Easier, These 3 MSMEs Prefer Social Media Than Marketplace

Research conducted by DBS in 2020 stated that Indonesia occupies the highest position in the country with users E-commerce largest in Southeast Asia. In 2019, as many as 90% of internet users in Indonesia have made transactions in e-commerce. In the same survey, it was found that shopping activities online increased by 14% since the Covid-19 pandemic in Indonesia.

Indonesia's high online shopping interest accompanies the massive growth marketplace in Indonesia. Tokopedia, Shopee, Bukalapak, Lazada, and dozens of other marketplaces are present in Indonesia as an intermediary for sellers and buyers in transactions. Until now, the marketplace continues to develop its features to make it easier for users.

Even so, in fact not all sellers make the marketplace their main platform. Some of them haven't focused on the marketplace, or haven't even tried using the marketplace, for various reasons.

Three Indonesian Micro, Small and Medium Enterprises (MSMEs), namely TanganDia, Kailoka, and Popsiklus shared interesting stories about this.

HandDia: Focus On Brand Awareness

The first MSME to share their story was HandHe. His name is taken from the process of making a product that is handmade and name founder His Hand, namely Diayani Sukardi.

TanganDia sells knitted creations, which focuses on doll products. With so many people knitting clothes, Diayani admitted that she saw a business opportunity with knitting doll innovations. Starting as a hobby and self-taught, now TanganDia is growing, assisted by the use of the internet.

Starting sales on Instagram and entrusting his homemade products to various places, currently TanganDia is still focused on using social media and selling online. offline in collaboration with Artani Bulk Store. Marketplace only Tokopedia is used for buyers who want free shipping.

In the past, HandHe had tried several marketplace, but due to various considerations continue to focus on social media only. Diayani admitted that the brand still needs improvement brand awareness, so that more and more people know and know His Hand. Marketplace deemed unsuitable for upgrading brand awareness because of visitors marketplace generally looking for something to buy. Meanwhile, on social media, TanganDia is present on the sidelines of a wider, diverse audience, and has different goals in accessing social media.

"We can't say (the use of social media) is maximum or not, because everything has its pluses and minuses. But for now, social media is still our main selling platform because it is more tailored, the audience is more, and the reach is wider," said Diayani.

Of course, both social media and marketplace each has its own challenges. According to Diayani, the use of Instagram is more efficient, prospective buyers who are interested can simply send a message direct message (DM) and can directly discuss with him without having to talk to each other follow and save contacts.

Although on the other hand transactions via marketplace known to be safer, TanganDia strives to continuously improve Branding to increase public trust. Diayani also admits that social media is more vulnerable hit and run. The term refers to a buyer who has ordered a product, but suddenly disappears during payment. Different from marketplaces, the buyer must pay in advance so that the ordered goods can be delivered.

In the near future, TanganDia plans to expand the market by using marketplace from America, namely Etsy.

Kailoka: Interaction via Whatsapp as a Conversion Effort

Kailoka, a local wood craft brand whose name comes from a combination of Sundanese and Sanskrit, namely Kai and Loka. Kai means wood, while Loka means place.

Established in 2018, Kailoka started the business by launching a wood-based carved watch product. In the following year, Kailoka innovated by presenting a variety of new models. Presenting products that the market likes, are unique, and with an easy production process is the goal of Kailoka.

Harizal, Founder of Kailoka, said that the digitization helped Kailoka a lot. The internet has a role in the process of finding ideas, production, to marketing. In addition to selling products, Kailoka is no exception offline by participating in exhibitions, also optimizing websites that are integrated with Instagram Shopping, Facebook Page Shop and WhatsApp Business.

Interestingly, Kailoka doesn't use payment gateway but chose WhatsApp interaction as an effort to gain conversions. In addition, Kailoka is also available at marketplace namely Shopee and Blibli.com.

Choose to maximize social media over marketplace of course with reasons. Harizal admitted that Kailoka's products are unique. need to adapt to the personal characteristics of its users. Social media is a place where users express themselves, so it is more in line with value Kailoka. In addition to purchase conversions, social media can increase brand awareness and product insights, where Kailoka can provide information about the brand and each of its products so that people are more familiar with it.

Social media users who continue to grow is one of the advantages of using social media in promotion. Actively using social media, of course, accompanied by interesting, quality, and consistent content, has the potential to increase public awareness of a brand. Moreover, social media is the right place to present content that is relevant to the audience, adapting to trends that often change quickly.

Meanwhile, the use of Shopee and Blibli.com was also chosen as an effort to serve consumers and provide trusted transaction options. "We encourage customers or buyers of Kailoka products to have the freedom of transactions, and many also choose to transact via e-mail marketplace. Various benefits offered marketplace, such as free shipping, is also very profitable for us," explained Harizal.

Striving to continuously utilize technology, Kailoka believes that mastery of technology is the key to dominate the market. In the future, market place and social media will be increasingly connected, so Kailoka will optimize to maximize both.

Popsiklus: Slow Craft Upcycling Products, Less Ideal in Fast-paced Marketplaces

Popcycle is a business engaged in the field of applied art that is environmentally friendly, namely: upcycling which is a technique of recycling used materials into goods with new functions. This UMKM which has been established since 2009 offers bags, wallets, notebook, and other products with a price range of 395 thousand to 550 thousand rupiah.

A few years since its establishment, Popsiklus has begun to explore the use of social media such as Instagram and WhatsApp, in addition to selling online offline. Unlike the previous two MSMEs, Popsiklus has never tried to sell on the Internet marketplace to date.

"Popcycle includes slow craft so it is not ideal for sale in marketplace fast paced. The process of making products is very long, especially now that production capacity is limited. It takes six months to sew straight cardboard and a year to sew a pass product quality control, so adding workers is also not easy," said Kurniati Rachel Sugihrehardja or Nia as Founder Popcycle.

Furthermore, Nia revealed that the community is not ready to absorb waste-based products. Yield product upcycling which tends to be higher in terms of price has not been made the main option. Meanwhile, when sold in the marketplace, Popsiklus products will compete with other products that have the same function at a lower price.

On the other hand, Nia feels that the use of social media is quite optimal, because it is in line with the production process and absorption by consumers. Social media also provides a more personal approach. During this time, Nia often gets many questions regarding her products, because the basic ingredients of milk carton waste are rarely used, unlike plastic waste which is more common. Although according to him, the most ideal Popsiklus is sold online offline because prospective buyers can see and hold directly.