Hypefast Survey: Offline Shopping Trends are Back, Accessibility in Regions is a Attention
Hypefast is aiming for double digit growth while looking at potential brand acquisitions in the health & beauty and mom & kids categories
Startups e-commerce rolluphyperfast reveal trends channel shifting or switching to the use of shopping channels by product buyers brand local for the last few years.
In the presentation session "Exploring Local Brand Trends 2023" taken from 5.000 samples brand in Indonesia, it was revealed that consumers are starting to shop at stores again offline due to a number marketplace start raising platform fees on transactions to reduce free shipping subsidies. According to the survey, the strategy was adopted because marketplace are pursuing profitability.
"(Consumers) potential shifting ke marketplace competitors or shop in stores offline. Consumers in the area are also reluctant to shop online. Hence, shop offline being looked at brand local to get into town tier 2 give tier 3. As soon as it starts to enter the distribution offline, entered into convenience store, accessibility becomes much wider than online presence," said Hypefast Founder and CEO Achmad Alkatiri (Mad), Wednesday (21/6).
This trend can also be seen in the accumulated income of the Hypefast group. Mad calls revenue from sales online Hypefast accounted for 88% in the last ten months. However, now earnings online and offline each company takes 50%. "We are seeing the trend of offline shopping making a comeback," he said.
In addition, currently Shopee is said to be still the main sales channel brand local, mainly brand from the beginning market their products through the canal online. Shopee is said to have a loyal buyer base for brand local.
Then, continued Mad, his party would not necessarily add shops offline. For now at the group level, Hypefast has no plans to add new stores. However, the owner brand potential to open a shop offline when it shows good sales performance in the store flagship.
Currently, Hypefast has multi brand store as a shop flagship for various portfolios brand. Toko flagship targeted as channel branding, no revenue channels. As for, hyperfast already has more than 15 portfolios brand locally, including in the segment and beauty.
Not only channel shifting, this survey also found a transition trend brand or brand shifting since 3-4 years ago. Ball segment driven primarily , now start switching to health & beauty. Owner brand assess the competition in getting tighter. Unlike the segment beauty Who has barrier-to-entry because it requires a large business capital as well.
According to him, business actors can build brand fashion with a capital of IDR 3 million. In this segment, potential repeat buyers reach 32% with an average gross profit of 32%. However, the movement of fashion trends is so fast that there needs to be a new SKU every two weeks.
Meanwhile, product beauty requires a capital of around IDR 50 million with a potential repeat buyer of 58% and an average gross profit of 65%. Product beauty also have expiration date longer. This segment is growing rapidly because many manufacturers have opened in Indonesia. The situation is different from before where beauty product research could take two years.
Seeing this trend, he said that the company would focus on segments health & beauty because it contributes the largest EBITDA to the company's performance. Hypefast claims to have had positive EBITDA since 2021, and achieved positive EBITDA and net income positive in 2022. The accumulated income (all brand under the Hypefast entity) is claimed to reach Rp. 1 trillion, the majority from organic, isn't it acquiredrevenue.
"For strategy topline and Bottom line us line donate topline the biggest, meanwhile beauty contributes the most to Hypefast's EBITDA and bottom line--which is normal because gross margin profile different," he said.
This year, Hypefast is aiming for growth double digits while looking at potential acquisitions brand, especially in categories health & beauty and mom & kids. To strengthen its position as house of brands, he also expressed his interest in getting into supporting ecosystems, not only in ecosystems brand only.
Asked about the new fundraising plan, he concluded, "we're lucky enough to be a profitable business. It hasn't urgent Now. We're still waiting."