Lazada Collaborates with Chilibeli, Competition for Selling Groceries

E-commerce company Lazada is partnering with a community-based trading startup (social commerce), Chilibeli to reach more consumers. This corporate action has tightened competition in this industry in marketing staples in the midst of the corona pandemic.

The Chilibeli platform focuses on selling staples, such as vegetables, meat and more. Through this collaboration, it has been on the LazMall channel on the Lazada platform since last June.

Chilibeli has not only succeeded in developing its business but has also helped traditional Indonesian breeders and farmers distribute their crops and livestock, ranging from various types of vegetables and fruits, eggs, meat to salted fish.

“Not only can we reach more consumers, but we also, indirectly, can continue to empower Chilibeli’s many farmer and breeder partners,” said Bobby Gandasaputra, EVP of FMCG Category Lazada Indonesia, as quoted from a press release, Thursday (3/9).

Lazada benefits from the quality assurance and safety of food products. This is because Chilibeli has a delivery fleet equipped with hand sanitizers and masks, in accordance with health protocols.

Delivery fleet Chilibeli also provides ice gel to ensure the freshness of food products when consumers receive them. Meanwhile, Chilibeli has access to hundreds of new customers. The company noted, orders increased by more than 1,500 in the last three months, or since partnering with Lazada.

It is a Form of Lazada’s Commitment to Providing Various Quality Products

On the same occasion, EVP of FMCG Category Lazada Indonesia, Bobby Gandasaputra said that Chilibeli’s joining since last June was proof of Lazada’s commitment to always present various quality products at attractive prices and promos.

“Through this collaboration, not only can we help Chilibeli to continue to develop its business, reach more consumers, but also indirectly we can continue to empower many of Chilibeli’s farmer partners and breeders and create new sources of income for Chilibeli partners throughout Indonesia,” he stressed.

“Chilibeli is joining forces with Lazada to provide easier access for customers,” said B2C Commercial Manager Chilibeli Fintia. On the one hand, staples and food ingredients, both packaged and fresh, are in demand during the coronavirus pandemic.

Chilibeli was founded in July 2019 and has a mission to empower partners who are housewives through the Chilibeli Partners program. Chilibeli Partners are empowered to distribute ordered products to Chilibeli users in exchange for commissions.

Users who have entered orders through the application can collect their ordered products at the nearest Chilibeli Partner community location when the product has been received by Chilibeli Partners.

Thus, Chilibeli not only benefits many Indonesian consumers by making it easy to shop for quality fresh food products at affordable prices but also allows the creation of thousands of new indirect jobs for Chilibeli Partners in Indonesia.

Sales of Staples Increased Dramatically during the Pandemic

Based on research by Facebook and Bain & Company, sales of staples jumped dramatically during the Covid-19 pandemic. Around 35-43% of digital consumers buy packaged food ingredients, fresh food ingredients, and non-alcoholic beverages.

Consumers buying groceries online increased by 8.4 times during April-June. Meanwhile, sales of non-alcoholic drinks jumped 6.6 times. This has prompted many e-commerce companies such as Tokopedia, Shopee, and Bukalapak to strengthen the marketing of staples on their platforms.

Bukalapak provided the Groceries HappyFresh feature last July. “All users can now shop at the grocery stores of their choice while still following the health protocol,” said Victor Lesmana, Director of Fintech, Payment and Virtual Products, Bukalapak, last July (13/7).

Bukalapak recorded a 3.5-fold increase in staple goods transactions during the pandemic. Tokopedia also noted that ready-to-cook food and food ingredients are the most sought-after products on the platform.

Meanwhile, Shopee recorded a fourfold increase in transactions for staple goods and food. This Singapore-based company also released a special food feature, Shopee Food.