According to SIRCLO data, online purchases of food and beverage (F&B) products increased by 143% from February to March 2020. SIRCLO projected that online F&B purchases would grow by 261% between February and April 2020.
JAKARTA, 17 April 2020 – As the spread of COVID-19 continued to intensify, the government introduced further preventive measures. On 10 April 2020, Large-Scale Social Restrictions (PSBB) came into effect in Jakarta, with similar measures set to be implemented gradually across Bogor, Depok, Tangerang, and Bekasi. These restrictions limited public mobility and drove a sharp increase in the use of and demand for online transaction services, including shopping through marketplaces and e-commerce platforms, as well as food delivery applications that help minimise direct physical interaction.
According to data from e-commerce enabler SIRCLO, demand for food and beverage (F&B) products increased by 143% from February to March 2020. Products such as instant packaged beverages, bottled juices, and milk recorded the highest increases. This was followed by longer-lasting packaged food products, including biscuits, sauces, and snacks.
SIRCLO also found that the surge in food and beverage purchases continued into April. By the second week of the month, total online purchases had already reached 1.5 times the level recorded in February. SIRCLO also projected that online F&B purchases would grow by 261% from February to April 2020.
“Since the COVID-19 outbreak, the shift towards online transactions has taken place not only in Indonesia, but around the world. With cashless payments, contactless delivery, and a wide range of products available, consumers can shop more safely and conveniently without having to leave home and risk exposure to the virus,” said Brian Marshal, Chief Executive Officer and Founder of SIRCLO. “Consumers who may not have previously bought or sold online are also likely to adapt and give it a try, as it has become one of the most practical alternatives during the crisis.”
Four Ways F&B Businesses Can Move Online
Similar to the retail and education sectors, which were increasingly shifting towards digital channels, F&B businesses also needed to strengthen their online marketing strategies. This was important not only to maintain operations during the outbreak, but also to support long-term success in an increasingly technology-driven environment.
Fortunately, moving a business from offline to online has become increasingly accessible. F&B businesses could make use of at least three main sales channels. First, they could build their own website using templates from SIRCLO Store, allowing sellers and customers to connect directly through the site. Second, F&B businesses could open stores and sell through marketplace platforms such as Tokopedia, Blibli, Shopee, and Bukalapak. Third, communication platforms such as WhatsApp Business made it easier for sellers to connect directly with end customers and process transactions. With these three sales channels available, businesses could start selling online more easily, even without advanced IT expertise.
As a leading e-commerce enabler in Indonesia, SIRCLO helps lower the barriers for businesses looking to enter digital sales channels. In addition to the SIRCLO Store, SIRCLO also offers SIRCLO Commerce to help companies streamline their online sales operations. Its end-to-end services cover the entire process, from receiving customer orders and packing to delivery, customer service, and warehousing. This allows businesses to leverage SIRCLO’s expertise and technology infrastructure to strengthen their online sales.
“Through digitalisation, innovation, and adaptability, F&B businesses can continue operating amid the COVID-19 outbreak and the government’s PSBB measures. The key is to optimise the use of digital technology to stay connected with customers,” Brian said. “If businesses can make this transition successfully, we believe the benefits will extend beyond the pandemic and continue to support them in the longer term.”
At the time, SIRCLO had supported dozens of local and international brands with their online sales operations. Through SIRCLO Commerce, the company served 40 leading principals representing 200 major brands, including Unilever, Reckitt Benckiser, Beiersdorf, L’Oréal Group, Eiger, and Levi’s.
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About SIRCLO
Founded in 2013, SIRCLO is a technology company that provides solutions to help businesses sell online. SIRCLO offers two products: SIRCLO Store and SIRCLO Commerce. SIRCLO Store is a Software-as-a-Service (SaaS) platform that enables small and medium-sized local businesses to build their own online stores. At the time, SIRCLO Store had supported nearly 1,000 active paying users in building their brands and growing their businesses online, including ATS The Label, Benscrub, Evete Naturals, Namaste Organic, This Is April, and Heytimmy Kidswear.
SIRCLO Commerce is a channel management solution designed to support enterprise brands entering online distribution channels. Powered by technology that synchronises sales across multiple marketplaces, SIRCLO Commerce was trusted by leading brands including Reckitt Benckiser, Unilever, KAO, Arnott’s, L’Oréal, Eiger, and Levi’s. For more information about SIRCLO, visit www.sirclo.com.