One-Stop Mall
    Category: E-Conomy By : Ardian Wibisono Read : 695 Date : Friday, February 09, 2018 - 11:12:27

    Ahmad Zamroni / Forbes Indonesia

    E-commerce competition in Indonesia is very tough with multiple players. Backed by Martin Hartono’s GDP Venture, is among the earliest and has survived to become one of the largest e-commerce companies. Founded in 2010, the company recently made a significant venture into the online travel industry by acquiring, one of the largest online ticket vendors in the industry. “Being an archipelago, there is a huge demand for travel and also with low cost carriers coming in. We also see a trend of the younger people who like to travel,” says Blibli Chief Executive Kusumo Martanto about the acquisition.

    The numbers confirm this. Inbound tourism continues to rise in Indonesia. After reaching over eight million visitors in 2015, the number grew by another 9% the following year, and a target is 15 million foreign visitors in 2017, expected to bring in Rp 172 trillion. Indonesia is also globally the fifth largest domestic travel market. In 2015, an estimated 255 million trips were made.

    Kusumo, who has been with the company since its founding, says GDP Venture’s intention from the beginning was to have a site that combined e-commerce with online travel, but GDP decided to focus on e-commerce first. The opportunity came when the founder looked for a partnership, but instead Blibli convinced him to sell the company last June for an undisclosed price. Later in November, Blibli also took over Indonesia Flight, an application based online travel agency. In 2016, the app booked a gross transaction value of $37 million. The association between Indonesia Flight and goes back to before the latter’s acquisition by Blibli. Indonesia Flight was launched in 2012 by venture builder Ticket Solutions, with an app built using the API. Kusumo says Blibli has no plans to merge all the travel business instead keeping both separate as additional channels to the already existing travel services in the company. Blibli could also do cross selling by offering related goods with travel needs.

    “We see that the customer overlap is minimal, so it adds more opportunity for us,” says Kusumo, adding that the e-commerce and online travel agency businesses have similar characteristics to succeed: good service. With that focus, Blibli sticks to its B2C business model as an online mall providing selected quality items and tenants, despite the rising popularity of C2C markets such as Tokopedia and Bukalapak. Kusumo believes good service and customer satisfaction will win the market, rather than just offering the lowest prices. The company is also maintaining a simple business model of collecting commissions from sellers, with a variable fee that depends on the partner and goods category, but starts with a minimum 5% fee.

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