Observing the Potential of Social Commerce Platforms in Indonesia

In report released by DailySocial.id discuss ecosystem development social commerce In Indonesia, it was revealed that over the past decade e-commerce has succeeded in becoming an industrial locomotive that drives various digital innovations in various sectors. However, there is still gap unresolved issues, particularly regarding equal distribution of service coverage.

Gap This is based on various factors, for example related to the distribution of services in tier 3 or 4 cities. Up to the digital literacy of rural communities which has not been maximized. From these conditions then emerged a new innovation called "Social Commerce".

In this #Tuesdaystartup session, Trade CEO Ryan Manafe revealed the challenges and roles Trade to be able to embrace more partners from multinational companies, so that they can provide integrated services to the people of Indonesia.

Relevant technological approach

It is undeniable, technology has an important role to be able to help speed up services and delivery of goods to those who live in certain areas to rural areas. However, in its application, ideally, the understanding of technology is not equated with those who live in rural areas or certain areas to the countryside, with those who live in big cities.

If it is needed, it can be offered to use the application, microsite, to ordering via WhatsApp. However, to make the process easier, it is also necessary to provide a more accurate and direct explanation by the team in the field.

"In this case, Dagangan offers a team of extension workers in each area to help them place orders, manage and collect orders so that they can be distributed to each buyer," said Ryan.

To speed up delivery and reduce shipping costs, which are mostly quite high in certain areas, Dagangan has strategic partnerships with third-party logistics. They also apply the Hub and Spoke model to speed up the process of distributing goods.

As mentioned in the previous report, the concept offered by the current social commerce platform emphasizes empowering the community as a representative for every transaction. In addition to consumers who are the target of all social commerce platforms, the community in this case functions as a strategic partner of social commerce.

Currently, apart from Trading, there are many social commerce platforms in Indonesia. Among them are Super, Evermos, Mapan, RateS, Woobiz and others.

Platform challenges social commerce

One of the challenges the platform still faces social commerce now is, how can they convince producers and principals to jointly provide services to cities in tiers 2 and 3.

"Still applying local wisdom, now I take it to a different level, namely convincing the principal who is multinational company who already have the experience to partner with Dagangan," said Ryan.

Interest from local to foreign investors to provide funding to the platform social commerce also seems to be increasing. Although it does not always focus on technology or technology-based development, if the platform social commerce having a good vision of reaching more areas in tier 2 and 3 cities, was able to attract the attention of investors to provide confidence.

The report also states, GMV (Gross Merchandise Value) for the industry E-commerce in Indonesia is predicted to reach $104 billion by 2025. Regardless of platform E-commerce which is already widely used by users, there is still a huge market potential from the fragmented society on social media.

Share platform social commerce what currently needs to be considered is how a sustainable business model, economic unit and vision they offer can help people to get goods quickly and at better affordable prices.