Bizzy Adapts to Changes in Consumer Behavior, Launches Tokosmart Agent

With the implementation of the Large-Scale Social Restrictions (PSBB), a number of startups have begun to adapt to changes in consumer behavior. Some have had to close their services and some have been forced to develop new features to adapt to consumer needs.

Bizzy Group which currently oversees the procurement, logistics (Bizzy Logistics), and distribution (Bizzy Distribution) businesses are also affected by this pandemic situation. This is especially true for the distribution business, which is set to be the main pillar of Bizzy's overall business.

Bizzy Group CEO Andrew Mawikere said that now stores outside the area don't want to accept stock orders from salesmen. This condition is a good opportunity for Tokosmart because store owners turn to applications to order stock supplies. Andrew reveals basketball size Tokosmart experienced an average increase from Rp. 2 million to Rp. 3 million from this situation.

Since January 2019, Tokosmart launches to support the digitization of micro, small and medium enterprises (MSMEs). This application makes it easier and more efficient for shop owners to place orders, receive inventory, and make payments. Recently, Andrew said that Tokosmart had captured 54.600 stores and more than 27.000 distribution companies in Indonesia.

"The current situation does not allow us to meet the principal, this interferes with the effectiveness of the discussion business development we. However, this encourages Opportunity new because consumers still need to buy necessities," he explained when contacted DailySocial.

To facilitate the effectiveness of Tokosmart services, said Andrew, his party developed a new version of the application beta which launched last week, namely Tokosmart Agent. The service is similar to Tokosmart, only the users and the selling price are different.

Meanwhile, Tokosmart Agent targets the segment directly end-user and community leaders, such as the head of the RT or RW in the local area. They can order supplies in large quantities to be distributed to residents in their residences.

"By impacts, [business] our platform is minimal with changes behavior this, despite the negative distribution business. That is, the distribution business that is affected offline, move to online. Overall distribution turnover fell by 20 percent, but overall GMV goes up. The decline in turnover was offset by the shift to [distribution companies] that use our platform," he explained.

Bizzy's commitment to enter the realm of logistics and distribution, as well as targeting MSMEs, is starting to be seen with efforts to strengthen the digital supply chain ecosystem. After Tokosmart, Bizzy who is now holding also launched Truckway, Bizzy Field Force, and Smart Warehouse applications.

All of these services are built to optimize the operational performance of users in a supply chain, such as distributors, wholesalers, owners and truck drivers.

No longer playing in e-procurement

Furthermore, Andrew gave a signal that the company will not resume business marketplace B2B. In fact, previously the business that provided e-procurement It is targeted to reopen in the fourth quarter of 2020.

As is well known, Bizzy decided close service marketplace B2B This has been since January. At that time, the company said the closure was only temporary.

"Now we are not in the e-procurement again. We don't plan to open again e-procurement, and do not know when," said Andrew.

Marketplace B2B is Bizzy's first business that was initiated since 2015. Then since January 2019, Bizzy has expanded its business scope to MSMEs through the launch of Tokosmart. Well marketplace B2B and Tokosmart have procurement activities the same one. It's just the market segment and nature from procurementits different.

Marketplace B2B is intended for the large-scale corporate segment whose products will be consumed by themselves. Meanwhile, Tokosmart serves the purchase of stock supplies which will be redistributed to grocery stores in the market.

According to Andrew, there are several things that the company considers when it comes to quitting marketplace B2B. First, activities procurement basically consists of a long series of processes. In other words, he sees that large-scale corporate consumers have processes selling cycles long too.

"There are many stakeholder involved in decision making. For example, on the administrative side, it is necessary to submit a PO to the Finance. Because stakeholder many, process selling cycles too long," he said.

In addition, he also assessed that the corporate segment in Indonesia has not yet fully adapted to digital because the infrastructure is not ready. The simplest example is that administrative activities that want to be digitized are ultimately not achieved because many companies still use paper.

This answers that business people marketplace B2B is faced with the same challenges. Awareness market for services marketplace B2B is still low considering that companies have not realized the importance of digitizing business processes. It can also mean that there is no full commitment from C-Levels yet.

On the other hand, marketplace B2B is considered promising because the business model is considered to be able to guarantee measurable revenue and profit growth in the next 1-2 years.

Not only that, business marketplace B2B is also more efficient because businesses don't have to "burn money" to acquire a single customer. Unlike the retail segment, nature B2B business does not depend on strong competition for discounts or price promotions, but on the rationality of needs.