TANGERANG, 14 February 2019 – Data from SIRCLO, an e-commerce solutions provider, shows that e-commerce platforms contributed up to 20% of total sales for fast-moving consumer goods (FMCG) companies, with this figure expected to continue rising in 2019.

“E-commerce sales targets have increased significantly each year. At the end of 2016, FMCG brands were aiming for e-commerce to contribute around 1% of total sales. This year, however, most are targeting a 10% contribution, representing a tenfold increase compared with two years earlier,” said Brian Marshal, Founder and CEO of SIRCLO.

Brian added that FMCG companies can take several approaches to increase sales through online marketplaces.

“First, production and merchandising processes, including product procurement, need to become more efficient through stronger inventory management, quality control, and the regular launch of new collections,” Brian continued.

Second, FMCG companies need to direct their marketing activities towards marketplace users with the strongest potential to become customers. Brands can optimise their promotional efforts across marketplace platforms by using digital assets such as banner advertisements, newsletters, social media, and discount promotions.

“Third, FMCG companies need to establish dedicated customer service capabilities. Through online customer support, businesses can respond to enquiries and provide a more satisfying shopping experience. Maintaining customer satisfaction is an important part of building long-term loyalty,” said Brian.

E-commerce has contributed significantly to the growth of Indonesia’s FMCG sector over the past two years. However, FMCG companies continue to face a number of challenges in fully maximising their presence and performance in e-commerce.

SIRCLO is a commerce solutions company that helps both local and established brands grow their online sales. Through SIRCLO Commerce, brands can manage sales across multiple marketplace channels with support spanning merchandising, marketing, logistics, order fulfilment, and inventory warehousing.

Fransiscus Kurniawan, Head of Trade Marketing and E-Commerce at PepsiCo, noted that FMCG companies in Indonesia generally face at least three major challenges when expanding into online commerce, with human resources being the most significant.

“Running an e-commerce unit within a company requires at least five people, covering key account management, store operations, customer service, logistics and inventory, and graphic design, all of which require significant upfront investment. In addition, there remains a limited pool of talent with strong experience in FMCG e-commerce in Indonesia, making it challenging for companies to recruit people with the right capabilities,” said Fransiscus.

Fransiscus added that another challenge lies in supply chain systems, from internal company operations to external distributors, which are not yet fully integrated with e-commerce platforms. As a result, many logistics processes, including picking and packing online orders, are still handled manually.

“These manual processes increase the risk of errors, which can ultimately affect sales performance,” Fransiscus continued.

Finally, selling through digital channels requires a different set of knowledge and experience from traditional retail, as the approach and techniques involved are not the same.

“Selling through e-commerce requires the knowledge and experience to identify the right platform for each brand or product, as well as the most suitable promotional approach for each channel,” said Fransiscus.

One way to address these challenges is by partnering with a specialized channel management solutions provider that supports FMCG companies in managing and growing their online sales.

“SIRCLO provides PepsiCo with a reliable, end-to-end one-stop solution to address these challenges,” said Fransiscus.

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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.