Indosat Cipika E-Commerce Service Shifts Market Focus to Gadget Segment

A few months ago we preach that 2015 will be quite a busy year for Chipika, because they will be more serious about working on marketplace gadgets and travelher, including the promotion bundle with Indosat. Indosat, which is the owner of the portal, takes this seriously E-commerce this. Indosat decided to shift the focus of Cipika which was originally selling food, snack, and handicrafts, into gadgets.

Quoted from IndoTelko, Head of Digital Commerce Indosat Carlos Karo said, "We will focus on gadgets and electronic products this year. We want to strengthen Indosat's core business and products."

Carlos also revealed that Cipika will not only sell products bundling Indosat, but also open to products from its competitors.

This shift in focus is very clearly visible. If you now visit Cipika's official website, you will immediately be greeted with a list of gadgets sold through Cipika, no longer food, snack, or local handicrafts.

Currently, the largest contribution to Cipika's total transactions still comes from food, which is 80%. The remaining twenty percent comes from gadgets, travel, and lifestyle which are Cipika's service developments. Cipika itself has not carried out an aggressive advertising campaign until now.

When considering the penetration of mobile devices, in particular smartphone which is getting higher, it is only natural that Indosat decides to shift its market focus from Cipika. Carlos also targets that this year the gadget segment will be the biggest contributor to total transactions. "This year we are aiming for around 80 percent of transactions from gadgets," said Carlos.

Apart from smartphone penetration, the space for online transaction growth in Indonesia can be said to be another reason. Currently, online transactions completed in Indonesia have only reached 1,7% and in 2019 it is estimated that the value could rise to 7%. "We are aiming for around 17% to 20% of the total online transactions that will occur in 2019," he concluded.