JAKARTA, 28 February 2020 - The growth of Indonesia’s online market in recent years has encouraged Fast-Moving Consumer Goods (FMCG) brands to strengthen their presence across digital channels. According to a report by e-commerce enabler SIRCLO, online retail, which accounted for only 8% of total industry sales in 2018, was projected to contribute up to 24% by 2022. This highlights the significant untapped potential of digital sales, particularly for FMCG brands whose products are closely linked to consumers’ everyday needs. 

This rapid growth has been supported by several trends shaping Indonesia’s e-commerce industry. Rudy Adrian, Head of E-Commerce at Reckitt Benckiser Indonesia, said that one of the key drivers was the country’s increasingly stable economy and improving infrastructure. “From an infrastructure perspective, stronger technology adoption and Indonesia’s stable economic environment have helped accelerate e-commerce growth. Several market segments are now seeing significant opportunities, including mother and baby products, as well as beauty and personal care, supported by the growing availability of technology and distribution infrastructure,” he explained.

The next trend relates to the continued evolution of consumer behaviour. Rudy pointed to Indonesian mothers as one example. “Today, Indonesian mothers have become increasingly adept at using technology in their daily lives. From finding information to monitor pregnancy and child development, to managing and purchasing everyday household needs, technology has become part of the entire journey, including how they pay for and receive products,” Rudy explained. “This has also been supported by the internet, which provides quick and easy access to information about health-related products.”

These two trends indicate that FMCG brands need to strengthen their presence online and invest more actively in digital marketing. This is closely linked to the third trend: the growing number of FMCG brands partnering with trusted e-commerce enablers. Reckitt Benckiser, which manages well-known brands such as Enfagrow, Sustagen, Dettol, Durex, Vanish, and Harpic, needs a partner that not only understands business operations but also has a strong grasp of each brand’s products and commercial potential. These two capabilities are key to building trust.

“When Reckitt Benckiser decided to expand into e-commerce, we looked for a business partner with the experience and capabilities to support us across the entire operational process. We needed a partner that could stay highly focused, understand the sales potential of our products and brands, and respond quickly,” Rudy said. “So far, we have been pleased with our partnership with SIRCLO in supporting these needs.”

With SIRCLO Commerce, Reckitt Benckiser was able to make its e-commerce operations more streamlined and adaptable to emerging trends, supported by insights and strategies focused on Gross Merchandise Value (GMV). “One of the key advantages is that our overall business process has become leaner. Forecasting and the route-to-market process have also become simpler,” Rudy explained.

SIRCLO Commerce is SIRCLO’s e-commerce technology platform designed to help brands sell across online marketplaces. Since 2016, brands using SIRCLO Commerce, particularly FMCG brands such as Reckitt Benckiser, have recorded up to 20% growth in online sales transactions.

The SIRCLO platform can also help brands determine which sales channels are most suitable for their products and support their activation, including through promotions and targeted sales initiatives. “In the past, our focus was primarily on commercial terms. With SIRCLO’s platform, we are now more focused on achieving GMV,” Rudy said. “This is a much healthier approach for the brand, as shopper acquisition and retention have become key measures of success and a major focus for us.”

Brian Marshal, Founder and CEO of SIRCLO, said that brands face several challenges when expanding their business online, including a shortage of e-commerce specialists and the lack of integrated sales systems across multiple channels. “Professionals with strong expertise and experience in FMCG e-commerce are still relatively limited, making it difficult for companies to find the right talent. In addition, many traditional systems still rely on manual processes, which increases the risk of errors. Warehousing and logistics systems are also often not designed to fulfil online orders,” Brian said. “SIRCLO provides a one-stop solution to address these challenges for FMCG clients such as Reckitt Benckiser.”

At the time, SIRCLO Commerce had supported more than 40 leading clients representing 200 major brands in Indonesia and globally. According to 2019 data, SIRCLO facilitated more than US$4 million (approximately Rp55.9 billion) in online retail transactions each month.

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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.

About Reckitt Benckiser

Reckitt Benckiser (RB) is a leading consumer goods company with products across the health, hygiene, and home care categories. Operating in more than 60 countries, RB’s mission is to help people live healthier lives and create happier homes by providing products ranging from infant health and nutrition to everyday household hygiene essentials. Some of RB’s leading global power brands include Enfagrow, Sustagen, Dettol, Durex, Vanish, and Harpic.