Page 69 - BrandZ Top 50 Most Valuable Indonesian Brands 2015

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Thought Leadership E-COMMERCE
Indonesia’s Communications and Information Ministry predicts the value of e-commerce transactions in the country will hit US$24 billion in 2016 - twice
the value seen in 2014. The signs are clear; we must adapt to digital change, whatever industry we are in.
Already, the traditional business models of travel, inance, motoring, baby care, music, entertainment, retail and fashion are being challenged and transformed by new e-commerce-driven models.
In Indonesia, you can use the Go-Jek delivery app or motorcycle taxi service GrabBike.com when you want to avoid the Jakarta traic jams. You can buy furniture from Toko online, without battling the crowds of Jogja.
E-commerce in Indonesia is still
nascent by world standards, due to
the complexity of delivery across the archipelago, and the low uptake of digital payment methods. But while the overall rate of e-commerce is still low at just
0.8 percent of retail sales, it is forecast
to be heading for 8 percent of retail
sales within 10 years. That rate of growth would make Indonesia’s online shopping sector the largest in Southeast Asia.
Brands across business sectors must start preparing for a future in which success – or survival – depends on success in e-commerce, laying strong foundations now in ive key areas.
WIN WITH TALENT
The chemistry that is needed in a team developing e-commerce requires a range of skills and perspectives, from traditional retail sales, digital strategy and beyond. At the heart must be a decision- maker who can build a cross-disciplinary team and draw out the best skills and ideas from each member.
WIN WITH ASSETS
Fulilling a brand’s e-commerce starts with a great web site, but that is only the beginning, particularly in a market like Indonesia, where many people’s irst experience of the internet is not on a computer but a mobile phone. A brand’s digital assets have to
be discoverable, shareable and shoppable – and they need to be adapted to all kinds of digital devices, especially mobile screens. A consumer’s digital experience of a brand begins before they even see the products; the digital interface needs to support their device, be easy to navigate, be optimized for diferent connection speeds, allow personalization of content and ofer easy payment.
WIN WITH INSIGHT
The TNS Connected Life study in 2014 showed that most millennial consumers, those now aged roughly between 18 and 34, research purchases and buy online. Younger generations are even more adept at managing and manipulating the digital world. We need to move away from static models of measurement towards dynamic ones, combining oline segmentation and insights with online audience information and behavioral data. People’s lives span the digital divide; insight generation and e-commerce strategies need to do the same.
WIN THROUGH PARTNERSHIP
In the complex world of constant innovation, it is not easy to achieve greatness alone. We need to identify our strengths and draw strength from our diferences, building partnerships with other businesses that can help with innovation, insight, logistics, technology, media, and data management.
WIN WITH SPEED
‘Launch fast, learn fast’ should be the mantra in e-commerce. Constant experimentation and adaptation at speed is essential. This approach requires an important change in mindset; we need to
be willing to celebrate failure and learn from it. We need to reward those with a restless desire to innovate and improve – and accept the cost of failure as a step towards success. Experimentation is the spirit that has led pioneers in small garages and university dorms around the world to create some of today’s most valuable brands.
It was sobering news to hear the recent prediction of retiring Cisco CEO John Chambers, that more than a third of businesses will not see out the next decade. The only survivors, he said, would be those that could transform themselves into digital, technological versions of their current selves, and many of those who tried, he predicted, would fail in the attempt.