TANGERANG, 1 February 2019 – Indonesia’s e-commerce industry continues to create new economic opportunities across a wide range of business sectors. McKinsey projected that the country’s e-commerce market would reach US$65 billion (approximately Rp948 trillion) by 2022¹. The rapid growth of digital commerce has also enabled Fast-Moving Consumer Goods (FMCG) businesses to reach consumers across Indonesia through online platforms, overcoming traditional limitations of distance and time.

Entering 2019, SIRCLO, an e-commerce solutions provider, identified several key challenges that FMCG businesses would need to navigate in the digital era. Through SIRCLO Commerce, its channel management solution (CMS), SIRCLO helps brands manage sales across multiple marketplace channels. The solution has supported a number of established FMCG clients, including KAO, Arnott’s, and Quaker Oats.

Drawing on research and insights from its FMCG clients, SIRCLO identified at least three key challenges that could hinder the growth of FMCG businesses if not managed effectively.

First, FMCG businesses often face challenges in developing new capabilities due to limited human and financial resources. For example, moving into digital sales channels requires employees with expertise in information technology and digital infrastructure. However, not every business has the capital or budget to hire these specialists on a permanent basis.

This challenge was one of the factors that led Brian Marshal to establish SIRCLO Commerce. “We want to help FMCG businesses adopt systems that are both efficient and more cost-effective. In doing so, they can reduce operational costs while driving transaction growth,” said Brian Marshal, Founder and CEO of SIRCLO.

Second, with the growing number of online sales channels, from brand-owned websites to marketplace platforms, many brands struggle with the administrative workload involved in managing them. Sellers need to stay on top of individual customer messages, respond to complaints, and check stock levels manually. These repetitive tasks can place a significant burden on employees and take up considerable time.

To help brands address these challenges, Brian expanded the scope of services offered by SIRCLO Commerce. “Many FMCG businesses struggle to keep up with incoming orders, customer enquiries, and inventory management. That is why SIRCLO Commerce now also supports their day-to-day sales operations, including warehouse management, order processing, and delivery to the customer,” said Brian.

This allows business owners and core teams to focus on what they do best: product innovation. SIRCLO’s automated systems help save time and reduce manual effort, enabling day-to-day operations to run more smoothly and efficiently.

SIRCLO’s comprehensive and integrated services have gained traction among FMCG businesses looking to expand into e-commerce.

“When Reckitt Benckiser decided to expand into e-commerce, we looked for a business partner with the right experience to support our operations. We are pleased to work with SIRCLO Commerce because the team is highly focused, understands the commercial potential of both products and brands, and is responsive,” said Rudy Adrian, Head of E-Commerce at Reckitt Benckiser Indonesia.

Third, without consolidated consumer data, FMCG businesses may struggle to optimise their sales strategies across digital platforms. With a diverse client portfolio spanning multiple sectors, SIRCLO is able to generate insights that can inform marketing and communication strategies. For example, between August 2018 and January 2019, the ten best-selling products on SIRCLO Commerce came from the cosmetics and beauty, food and beverage, and household categories. SIRCLO’s data also showed that online purchases peaked on Saturdays (23%) and Sundays (25%).

Access to this type of data enables FMCG businesses to develop more relevant campaigns and promotions. For example, brands can offer discounts or cashback at weekends, when consumers are more likely to make a purchase. These insights can help FMCG businesses better understand consumer preferences and tailor their offers accordingly, while also informing decisions on when to replenish stock and which product ranges to make available.

King Hartono Hamidjaja, Country Director of Stanley Black & Decker (SBD) Indonesia, praised SIRCLO’s innovation in supporting the brand’s e-commerce sales. “When e-commerce was still relatively new to SBD, we needed a partner with strong experience in the field. So far, we have been very satisfied with SIRCLO because the team consistently understands our needs and perspectives. At the same time, SIRCLO Commerce has demonstrated strong expertise in launching products at the right time and reaching the right target customers,” he said.

Looking ahead to 2019, Brian remained optimistic that SIRCLO’s business lines would continue to evolve in line with market demand. “SIRCLO now offers a comprehensive range of services, from inventory management and product photo editing to marketing strategy, order management, monthly reporting, and transaction data. We hope these capabilities can help FMCG businesses maximise their brand growth through e-commerce. Given the significant potential of online retail in Indonesia, we also aim for SIRCLO to become a trusted hub for e-commerce management and contribute to the continued development of Indonesia’s digital economy,” said Brian.

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About SIRCLO

Founded in 2013, SIRCLO is a leading e-commerce solutions company in Indonesia, helping brands grow their online presence. SIRCLO offers four business solutions: SIRCLO Store, SIRCLO Connexi, SIRCLO Chat, and SIRCLO Commerce. SIRCLO Store is a Software-as-a-Service (SaaS) platform that enables small and medium-sized local businesses to build template-based online stores. SIRCLO Connexi provides an interactive dashboard for managing sales across multiple e-commerce platforms in Indonesia. SIRCLO Chat offers a conversational commerce platform through an interactive dashboard integrated with the WhatsApp Business API. Meanwhile, SIRCLO Commerce provides end-to-end channel management solutions to support enterprise brands in expanding into online distribution channels.

In May 2020, SIRCLO officially merged with ICUBE, a Magento Premier Solutions Partner in Indonesia, strengthening its e-commerce technology development capabilities and expanding its offering with Swift, an omnichannel e-commerce builder. SIRCLO Store has powered the creation of more than 100,000 websites and supported 3,000 brands in growing their businesses online, including ATS The Label, Benscrub, Evete Naturals, Namaste Organic, This Is April, and Heytimmy Kidswear. SIRCLO is also trusted by dozens of clients representing more than 200 leading brands, including Unilever, Reckitt Benckiser, KAO, L’Oréal, Eiger, and Levi’s. Headquartered at Green Office Park 1, The Breeze in BSD, Tangerang, SIRCLO currently employs 500 people, with representatives based in Bandung, Yogyakarta, and Surabaya.

For more information about SIRCLO, visit www.sirclo.com.