Hypefast and Lazada Sign "Joint Business Plan", Make It Easy for Local Brands to Sell Products

Startups brand aggregators Hypefast signs an exclusive partnership with Lazada Indonesia for long-term collaboration to drive growth brand local.

The concrete is outlined in the Joint Business Plan (JBP) between Lazada Indonesia and brand which is shaded by Hypefast, is among them exclusive launch products, joint events, marketing barter, training and development, to other innovations to support growth brand local.

On the same occasion, Hypefast also strengthened cooperation with Cosmax Indonesia, a product manufacturing company health and beauty. The concrete form is also similar, brand under Hypefast have access to technology transfer through research and product development.

This step was taken in order to welcome the community's enthusiasm for attendance brand continues to increase locally. Ipsos Global Trends 2023 data states that as many as 51% of people believe in quality brand local is able to compete with brand global. That is, right now brand Local governments have an increasingly significant role and are able to contribute more to developing the national economy.

“Public trust continues to increase in brand current local unprecedented, and is predicted to continue to increase, as its penetration expands and reaches all corners of the country. "This momentum is a golden opportunity to encourage the dominance of local brands and products," said the Founder and CEO of Hypefast Ahmad Alkatiri, Wednesday (29/11).

Welcoming this joint commitment, Lazada Indonesia CEO James Chang said that his party welcomed Hypefast's initiative to advance brand local together. At Lazada alone there are more than 500 brand well-known local people who have joined the platform.

Chang also said that a supporting ecosystem is also really needed by local businesses so that they can continue to grow. Currently, the ecosystem E-commerce Indonesia is increasingly mature, so it's not surprising that more and more local businesses are appearing.

"We believe that this commitment to cooperation will strengthen the local business ecosystem so that we can continue to grow together, especially with the various facilities and features that Lazada provides for brand local people who join Lazada," said Chang.

Regarding the reasons for collaborating with Cosmax, Mad, Achmad's nickname, said that it started from Hypefast's internal data collected from more than 3000 brand local Indonesia, one of the biggest challenges in the local brand business is supply chain, product development, and a production process that requires professionalism with high quality standards –especially for the category health and beauty.

Therefore, a partnership with Cosmax is needed which has international standard production facilities. President Director of Cosmax Indonesia, Cheong Min-Kyoung, said that the company is committed to presenting products health and beauty quality and relevant to the needs of the Indonesian market.

“The involvement of local partners plays an important role in making this happen; by collaborating with local brands to develop products that not only meet our global standards, but also respond directly to local market preferences and needs.”

Business trend prediction

Mad continued, from the results of the company's internal research with industry players, it was predicted that the product category moms and kids, especially personal care will excel in the next two to three years. The reason is category health and beauty which is starting to get bored with growth that is not as fantastic as it was from the start.

In industry, this market is classified as having thick margins even though it requires months of research. From the Hypefast report, the average time it takes to launch a product health and beauty up to 4-6 months and minimum capital of IDR 50 million. However, the gross profit that can be obtained is an average of 65% and repeat purchases up to 58%.

"Product health and beauty start saturated, now it's starting to happen shifting category moms and kids, especially personal care. We project [this category] will excel in the next two years.”

This trend is also reflected in Hypefast's performance. In the latest published data, categories moms and kids contributing to 49% of the company's total revenue. Then followed, beauty (34%) and fashion (17%). When viewed based on EBITDA, the order is also the same, namely moms and kids (62%), beauty (35%), and fashion (3%).

Sales channels are now dominated by lanes offline (52%) and online (48%). One of brand under Hypefast, Luxcrime, noted channel offline continue to record growth. The figure will be from 12% in 2020 to 48% in 2023.

It is claimed that Hypefast will achieve net revenue of $43 million in 2022, growing from $22 million in 2021. It is stated that the company has invested in more than 15 brand local with a value reaching IDR 434 billion. A number of brand These include Luxcrime, Roughneck, Bonnels, Soleram, Nyonya Nursing Wear, Adeola Scarf, Fabil Natural, and Bohopana.