JAKARTA, 27 October 2021 – The COVID-19 pandemic, which accelerated the growth of e-commerce, had also increased Indonesia’s readiness for an omnichannel retail system. This cross-channel business model, which integrates online and offline operations, was increasingly seen as a relevant approach for the future of retail.

The virtual panel discussion “Driving Digital Adaptation Through Omnichannel Strategies”, held on 27 October 2021, featured Brian Marshal, Founder & CEO of SIRCLO; Triawan Munaf, Commissioner of SIRCLO and former Head of the Creative Economy Agency (2015–2019); Rizal Edwin Manansang, Assistant Deputy for Digital Economy at the Coordinating Ministry for Economic Affairs; and Adek Media Roza, Head of Katadata Insight Center.

Recently, e-commerce solutions company SIRCLO, together with Katadata Insight Center, launched an e-commerce landscape report titled “Navigating Indonesia’s E-Commerce: Omnichannel as the Future of Retail”.

During the virtual panel discussion “Driving Digital Adaptation Through Omnichannel Strategies” (27/10/2021), Adek Media Roza, Head of Katadata Insight Center (KIC), said that Indonesia’s e-commerce industry was projected to continue growing by 21% through 2025.

The research found that fashion and accessories were generally the most searched-for and purchased product categories. In terms of preferred shopping channels, 85.6% of consumers chose marketplaces, followed by social commerce and brand websites. Promotions were the primary reason consumers preferred shopping through marketplaces.

Adek added, “An omnichannel strategy helps brands increase sales and reach a broader, more diverse consumer base. E-commerce enablers such as SIRCLO help brands become omnipresent by integrating them across multiple channels and industry ecosystems.”

Triawan Munaf, Commissioner of SIRCLO and former Head of the Creative Economy Agency (2015–2019), said that around 74.5% of consumers continued to shop through both offline and online channels during the pandemic, although they tended to spend more through online channels.

Triawan explained the importance of adopting an omnichannel strategy, particularly during the pandemic and beyond. “Brands need a strategy that integrates their offline and online resources. Consumers across Southeast Asia are also beginning to expect a seamless shopping experience across every platform. An omnichannel strategy therefore provides a way for brands to deliver a consistent and personalised shopping experience,” Triawan said.

According to Triawan, an omnichannel strategy provides a comprehensive approach by integrating both online and offline channels across payments, sales touchpoints, fulfilment and inventory, logistics and delivery, ERP systems, and customer management.

Triawan explained, “By 2022, e-commerce in Indonesia was expected to increasingly move hand in hand with offline retail. Access to online shopping was also expected to become more evenly distributed across both Java and regions outside Java. Ultimately, the future of retail in Indonesia will be shaped by the integration of online and offline shopping channels.”

At the same time, SMEs were expected to adopt a more constructive approach to help local products grow more rapidly. Local SME players had become increasingly aware of market competition, encouraging them to differentiate their products and develop stronger, more distinctive offerings.

As the backbone of Indonesia’s economy, it was essential for SMEs to accelerate their digital adoption and capture opportunities in both local and international markets. As part of the government’s strategy to accelerate economic digitalisation, Rizal Edwin Manansang, Assistant Deputy for Digital Economy at the Coordinating Ministry for Economic Affairs, explained that government support for SMEs was being implemented through two main approaches.

The first approach focused on strengthening the SME ecosystem itself, including simplifying business licensing, providing tax incentives and product certification, and improving access to markets, financing, and raw materials. The second approach focused on strengthening the e-commerce ecosystem.

“The government will continue to foster a fair business environment, establish regulations around digital payments and logistics, and strengthen digital infrastructure, among other measures. Equally important is expanding digital literacy and building the right mindset among entrepreneurs,” Rizal added.

Rizal also expressed his appreciation for the role of various players across Indonesia’s e-commerce ecosystem, including SIRCLO, in accelerating the digitalisation process. To deliver an optimal omnichannel experience for consumers, brands need a strong and measurable e-commerce ecosystem, supported by the capabilities of e-commerce enablers such as SIRCLO Commerce to integrate and effectively manage multiple channels and platforms, including marketplaces, social commerce, brand.com websites, payment gateways, logistics, and others.

Brian Marshal, Founder and CEO of SIRCLO, said, “The key to the digital world lies in openness of information and data. Everything needs to be transparently measurable and supported by clear standards. Through the e-commerce research report launched by SIRCLO with the support of Katadata Insight Center, we hope platform providers will further embrace a culture of research and data-driven decision-making to inform their next steps and contribute to the continued advancement of Indonesia’s economy.”

Documentation Caption:

• The virtual panel discussion “Driving Digital Adaptation Through Omnichannel Strategies” on 27 October 2021 featured Brian Marshal, Founder & CEO of SIRCLO; Triawan Munaf, Commissioner of SIRCLO and former Head of the Creative Economy Agency (2015–2019); Rizal Edwin Manansang, Assistant Deputy for Digital Economy at the Coordinating Ministry for Economic Affairs; and Adek Media Roza, Head of Katadata Insight Center.

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About SIRCLO

Founded in 2013, SIRCLO is a leading e-commerce solutions company in Indonesia that helps brands sell online. SIRCLO’s solutions are divided into two main categories: Entrepreneur and Enterprise. Under the Entrepreneur category, SIRCLO offers SIRCLO Store, an online store management dashboard that enables SMEs to sell across multiple platforms, including websites, marketplaces, and chat commerce; as well as IbuSibuk, a community empowerment solution that enables mothers to become Key Opinion Leaders (KOLs), micro-influencers, and resellers. For enterprise businesses, SIRCLO provides e-commerce enablement services through SIRCLO Commerce; omnichannel technology development solutions through ICUBE by SIRCLO; Sooplai, a B2B2C platform that supplies mother and baby products to retail stores; and Orami, a parenting platform that combines Commerce, Content, and Community within a single ecosystem.

SIRCLO had supported more than 100,000 brands in growing their businesses online. Its solutions were trusted by local brands including ATS The Label, Evete Naturals, Namaste Organic, This Is April, and Heytimmy Kidswear, as well as multinational brands such as Unilever, Reckitt, KAO, L’Oréal, and Levi’s. At the time, SIRCLO was headquartered at Green Office Park 1, The Breeze, BSD, Serpong, and had 1,000 employees, with representatives based in Jakarta, Bekasi, Bandung, Yogyakarta, and Surabaya.

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