Understanding Fashion Commerce Platform Strategy Building Retail Stores

The presence of e-commerce services that had mushroomed over the last two years was enough to shake the retail industry (offline). Business brick and mortar, a term that is widely used for offline stores, they are required to change their business model by taking an online approach and utilizing social media to establish relationships with visitors.

The amount of expenditure that must be set aside, according to Aprindo data, large retailers provide a significant tax contribution, not accompanied by a balanced income.

Issuer financial reports published and processed Dataword shows 10 retail sector issuers in 2017 a slowdown in revenue growth compared to 2013. Total sales of 10 retail issuers (Matahari Putra Prima, Ramayana, Supra Boga, Midi Utama, Electronic City, Hero, Matahari Department Store, Sumber Alfaria Trijaya, Mitra Adiperkasa, and Ace Hardware) in 2017 only grew 6,41% from the previous year, whereas in 2013 it was able to record growth of more than 21% compared to the previous year.

Consumer lifestyles and habits have shifted, along with the increasing number of online sales that provide e-commerce platforms.

Start opening shop offline

It is undeniable, for a number of variations of certain products, such as fashion, gadgets, and Grocery, people still like the experience of shopping directly at the store. Seeing this need, a number of e-commerce services then implemented a scheme online-to-offline by setting up offline stores in big cities.

According to VP of Corporate Relations GK-Plug and Play Indonesia Mercy Setiawan, O2O will be a striking concept because technology is an inevitable thing in everyday life. The high need for comfort is a big phenomenon in the future.

"O2O e-commerce is a strategic business designed to bring online customers to location offline store, as well as creating a digital experience that seamless pattern both before the transaction, at the time of purchase, and after the transaction ends."

DailySocial log at least two services fashion commerce who quite regularly set up offline stores in big cities in Indonesia. They are Berrybenka and alive. Both target women, including Muslim clothing.

Berrybenka has established 25 offline stores in major cities in Indonesia. Through Hijabenka, Berrybenka also inaugurated its first offline store targeting Muslim clothing at the Kota Kasablanka Mall, Jakarta.

"We have noted a significant development of Hijabenka, which is almost 150% from year to year. Hijabenka, which previously supported selling in Berrybenka offline stores since early 2016, is now considered well-established to be able to stand alone in the market. retail,” said Berrybenka CEO Jason Lambuda.

Jason added, since the fourth quarter of 2018, Hijabenka no longer sells Muslim clothing from other brands. Hijabenka focuses on developing clothes designed by local designers with brand Hijabenka.

Seeing the public's interest in the strategy omni-channel that has been implemented by Berrybenka, Jason believes that this strategy will be successfully implemented by Hijabenka. Online, apart from their own platform, Berrybenka and Hijabenka are also present in several major marketplaces, such as Zalora and Shopee.

Similar to Berrybenka, Hijup is active in reaching major cities in Indonesia and already has 12 offline store in Indonesia and 1 offline store in Malaysia. According to Hijup CEO Diajeng Lestari, the presence of Hijup Stores in various big cities in Indonesia affect Hijup's overall business growth up to three times.

"Along with Hijup's spirit to provide various facilities for Muslim women to become the best version of themselves, this Hijup Store is expected to complete one's day so that they can look good, feel comfortable, and engage in productive activities and spread kindness."

Other e-commerce services that also set up retail stores offline is Muslimmarket. Through the Suqma brand which was launched in 2017, Suqma is present as a modest fashion brand by providing various modest attire the work of Indonesian Muslim designers. Currently, Suqma has opened three outlets in Indonesian shopping centers, two in Jakarta and one in Surabaya.

"So offline it is still a distribution channel which we must have. I personally saw offline is still a big opportunity in Indonesia, because the culture of the people is still very offline even though online presence has been very developed," said CEO of Muslimarket Riel Tasmaya.

High public enthusiasm for attendance pop-up store and the bazaar becomes an additional trigger for the players online store to open at least one offline flagship store so that buyers can get to know brand positioning and the quality of their products.

"At this time, as time goes by, the Indonesian market is slowly starting to be educated. Feel more comfortable and trust to buy directly online because of the existence of refunds, swap sizes, to COD," said Mercy.

Future trends

According to idEA Chairman Ignatius Untung, the efforts of online players to build offline store aims to pick up consumer balls that have not been reached by online media. The business calculations cannot be equated with acquisition costs through channelonline.

"More and more player that builds offline channels will strengthen consumer based and share of mind them in the minds of consumers. We as an association (idEA) don't want to interfere too much because this goes into the realm of business and as long as it doesn't violate the rules, it's fine to do so," said Untung.

Brand generally take the opportunity to combine online and offline into a shopping experience that seamless pattern and fun for the buyers.

For those who are still in the early stages, level of engagement with buyers they are more personal and less needy offline store.

“The thing to pay attention to is how online brands can confirm that the existence offline they are 100% finalization of the purchase. offline store must also pay attention to availability stock available, don't let the product be online but not available in offline stores," said Mercy.