1. Startups

A number of considerations for Bukalapak to boost "Non-Marketplace" business

Execute a specialty vertical strategy by driving traffic to business areas that have higher margins

Bukalapak action boosts business non-marketplace invites a number of questions, even sparking the question of whether Bukalapak is leaving the business marketplace which he has been doing since the beginning. This assumption was immediately refuted by the President of Bukalapak, Teddy Oetomo.

“If someone says we changed course and left marketplace that's a misunderstanding. Indeed, many people ask questions like that, including investors," said Teddy at an iftar session with reporters (20/4).

According to him, Bukalapak is still loyal to the business model marketplace. That's why, since taking the floor on the IDX, we have continued to strengthen the number of sellers and partners of Bukalapak.

Menurut company financial statements as of the first quarter of 2021, revenue was supported by the Mitra business line with 284% growth to Rp764,5 billion against total revenue of Rp1,9 trillion. Business line marketplace remained the main contributor to revenue of Rp990 billion, but growth declined by 4% yoy.

Bukalapak's business model is very relevant to the condition of this country with a population of 173 million people. “If you only rely on online, there is no way we can reach the entire population. Fortunately, our country already has the infrastructure that allows us [Bukalapak] to reach the whole country, namely warungs.”

In the first half of 2022, Bukalapak is focused on increasing revenue through strategies vertical specialty by pushing traffic to a business area that has a larger margin. Therefore, many strategic steps have been taken, including strengthening the focus on the business Gaming and launch a business e-gorcery with Transmart, Allofresh.

Teddy said that this strategy allows the company to earn take rate higher. "Last year take rate us 1,7%. With strategy specialty vertical, take rateit can high single digits. At least 4%, some are up to 8%.”

Focusing on these two businesses can contribute to a better income, because there is already a market and there is no need to burn money. Which, in these two areas, the company can directly monetize, can provide value without the need for discounts.

He gave an example, my item acquisition step last year was considered appropriate because it is now one of the company's sources of profit. My own item playing in the realm marketplace which allows users to buy and sell digital game assets, as well as sell various vouchers for premium access to a game.

Para's needs Gamers to do top up game items are always available, whether there is or not a discount. Therefore, the game business is considered very stable.

Teddy said, itemku had been operating for several years before it was acquired by Bukalapak, there was already a transaction that took place, it's just that trafficit's not big yet. After being acquired, then integrated with traffic Bukalapak, the transaction volume on my item immediately jumped two to three times.

“my item as product standalone itself already profitable, so it goes into strategy vertical specialty. So it doesn't mean that Bukalapak has moved and it's not a marketplace anymore."

Next, the partnership with Allofresh is expected to be a machine for supplying goods for the needs of Mitra Bukalapak's stalls. Partners can acquire goods in less time, thereby lowering inventory costs. Goods procured from large retailers allow Partners to purchase goods more cheaply, rather than buying from small distributors. They can also have higher competitiveness.

More Coverage:

In the realm e-grocery In this case, Teddy considers that the competition is not so affected by the effect of increasing commodity prices, such as cooking oil and fuel oil. This segment focuses on daily needs, not the secondary or tertiary ones that are most likely to be affected. That is why, for Bukalapak Partners, it is hoped that more resilient.

"Perhaps consumers who used to shop directly a lot, now the shopping is smaller in size, for example sachet. Because, we are playing in a shop that sells basic necessities, so consumers have to keep shopping.”

Because the focus on vertical specialty In this case, Bukalapak needs funds for various product launches. This has become a consequence, so Teddy projects that this year's EBITDA will be stagnant, in the range of minus Rp 1,5 trillion to Rp 1,4 trillion.

Application Information Will Show Up Here
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again

Sign up for our
newsletter

Subscribe Newsletter
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again