Omnichannel Approach to Keep Up With Changes in Retail Shopping Trends in Indonesia

Throughout the pandemic, jargon omnichannel maybe buried. Various offline activities are hampered. Tech companies are trying to adapt. Assuming there is a change in behavior that prefers to keep their distance, the services are focused towards go online. Since 2022, conditions have improved. People return to malls, restaurants, salons to experience activities.

Strategy omnichannel, which combines offline and online presence, is back on the scene with a different approach.

According to the research results released The Trade Desk in February 2022, Indonesian consumers returned to shopping offline after the pandemic was under control. However, the accelerated adoption of online in the retail industry is not necessarily abandoned. The presence of online and offline shopping channels complement each other.

This condition is supported by the results of a McKinsey survey entitled “Indonesian consumer sentiment during the coronavirus crisis” in August 2022. The survey shows that 60%-90% of Indonesian respondents use the solution omnichannel at the purchasing stage. These two pieces of research validate that omnichannel will remain for now and in the future for the retail business.

On the other hand, according to the Indonesian Retail Entrepreneurs Association, 90% of its members have adopted the strategy omnichannel. However, the vast majority of physical retailers across Indonesia still do not have sufficient internal expertise and resources nor substantial technology investment to run the retail model omnichannel effectively. Therefore, only a small number of large retailers were able to implement the initiative omnichannel.

For companies that have adopted this concept, the work cannot be done once. Business continues to be carried out in a sustainable manner, because there must be added value created to remain superior. Companies need to look at their desired target consumers from a perspective omnichannel.

“By embedding these principles into their retail strategies, these leaders can use the momentum—and urgency—of this moment to determine the benefits they want to achieve,” McKinsey wrote in a separate report titled “Omnichannel: The path to value".

Blibli

DailySocial.id contact two players E-commerce, Blibli and Sociolla, which implement an omnichannel strategy to understand future hypotheses in order to support the company's position.

SVP O2O Blibli David Michum said that Blibli's hypothesis in starting this strategy is always seen from the perspective of Indonesian consumers who continue to evolve. On one side, omnichannel is the future for retail businesses, especially after seeing the market potential in this sector since the pandemic. This prospect is a step for Blibli to become a sustainable company.

"Strategy Physical (physical-digital) or omnichannel in this case it is one of our main focuses aimed at improving customer journey to shop and transact seamless pattern at each touchpoints customers, both online and offline," explained David.

The research released by The Trade Desk and McKinsey is a strong reason for Blibli to strengthen its strategy omnichannel. The company has the ambition to become omnichannel commerce and the leading lifestyle platform in Indonesia.

In building this mission, the company tries to answer existing challenges, including: building multiple touchpoints, standardize the consumer experience, integrate online store presence with physical stores, and create a better retail experience for customers.

Blibli's initial journey build omnichannelstarting in 2016 with the launch of the Blibli Instore feature and followed by Click & Collect in 2018, by collaborating with business partners to answer needs immediate omnichannel presence, and various payment options in one integrated platform. Click & Collect services have become increasingly integrated since the launch of Bliblimart as Blibli's first offline store in 2020, as well as the acquisition of Ranch Market in 2021.

Innovation continued into last year by strengthening presence in physical stores for flagship store. This physical store initiative is run by Blibli's subsidiary, Blibli Omnichannel Mobility Group (Blibli OMG). There is monobrand store, such as Samsung Experience Store and Hello (monobrand store Blibli for Apple, specifically for tier-1 partners in Indonesia). In total, the company currently operates more than 100 flagship stores and 70 Ranch Market outlets spread throughout Indonesia.

Next, there is multi brand store, such as the Blibli Store and Exchange Add-on stores, which number more than 27 thousand points as of September 2022. Their locations are spread across seven cities, including Jakarta, Bandung, Medan and Surabaya.

David is optimistic that the synergy of the three services under Blibli: e-commerce, OTA (Tiket.com), and groceries (Ranch Market) will keep the company in a position relevant to the needs of today's society.

“Through the ecosystem Blibli Tickets, we can fulfill up to 90% of the needs of the Indonesian people, from shopping for daily necessities to leisure. We understand our customers' busy schedules, so it is increasingly easy for customers to order daily necessities via the Blibli application."

Sociolla

Sociolla also takes a similar approach to remain relevant to its consumers. Co-Founder and President of Social Bella (Sociolla's management company) Christopher Madiam said, from the start, even though Sociolla operates as a beauty e-commerce platform, they understand very well that the offline shopping experience will always be relevant for consumers in this segment.

“Because beauty lovers want to be able to touch and try products directly before buying the product. Understanding this, in 2019 we introduced concept store omnichannel, which combines online and offline shopping experiences seamless pattern and integrated for our consumers," said Chris.

From the company's observations, currently consumers - the majority of whom are women - expect shopping places that can provide a good shopping experience seamless pattern from URL to IRL (In Real Life), specializes in the products they sell, and offers a unique shopping experience. The company calls this trend as Future Commerce 3.0 and has been presented through the store omnichannel-New.

According to him, concept omnichannel should offer an online to offline experience or vice versa, seamless pattern and easy for consumers. The main key to providing a beautiful beauty experience seamless pattern and holistic in omnichannel Sociolla lies in its ability to build solid, ongoing collaborations seamless pattern with various stakeholders, including internal and external functions (brand, beg, delivery service, etc.).

"Second, being agile is a must. We are always trying to adapt and evolve to meet the constant changing demands of highly digital consumers.”

Chris does not deny the struggle to make it happen omnichannel not easy. However, he is optimistic that armed with a deep understanding of the constantly evolving behavior and needs of beauty lovers, and supported by strong technological capabilities, he will be able to fill the gap between consumer needs and the solutions available on the market.

“Since it was first founded, Social Bella has invested heavily not only in technology improvements front-end but also operations Back-end, with warehouse centers equipped with technological systems end-to-end. "

Mentioned, range of offline stores Sociolla has increased 30 times compared to before the pandemic with a total of 49 omnichannel stores in 29 cities throughout Indonesia. In Vietnam alone, it has now reached 13 stores since its initial expansion in 2020.

"Our next plan in 2023 is to continue expanding our reach and serving consumers to shop the way they like, whether online, offline, or both through the SOCO application, Sociolla website, and outlets. omnichannel. "

Several features have been presented to support omnichannel including:

● Click and Collect: Shop for products from various brands via the SOCO application or Sociolla website and consumers can choose to pick up the goods directly at the Sociolla outlet of their choice. ● Shop and Deliver: Shop for various brands and products at Sociolla outlets that consumers are currently visiting, then just scan the QR Code from the SOCO application. Then send the goods to the home/destination according to the consumer's wishes. ● Store Page on SOCO App: When visiting any Sociolla store, consumers can find out information about promotions or new things offered that day by scanning the QR Code at the SOCO check-in station and using the special voucher available for the transaction.

"We continue to innovate with new features in our omni stores to ensure that consumers will get the best beauty shopping experience according to their wishes and preferences," concluded Chris.