Visitors Drop 40% during Pandemic, Matahari Collaborates with Tokopedia

The modern retail company owned by the Lippo Group, PT Matahari Putra Prima Tbk (MPPA), saw a 40% decrease in visit rates during the corona pandemic. Matahari also hooked up an e-commerce startup, Tokopedia, to reach consumers. MPPA’s Director of Corporate Secretary and PR Danny Kojongian said the company focused on expanding physical stores before the Covid-19 outbreak.

However, the visit rate has decreased due to the implementation of large-scale social restrictions (PSBB). “The strict regulations on physical restrictions have an impact on retail business actors, including MPPA,” Danny said during a virtual press conference regarding the cooperation between MPPA and Tokopedia, Thursday (10/12).

Therefore, companies are turning to digital platforms. “Before, we didn’t pay attention to this.” Before the coronavirus pandemic, online platforms only contributed 4% to performance. Now, the portion has increased to 8%.

The company has also increased the capacity of its online platform, such as launching the Chat and Shop feature to facilitate customers to shop via chat applications. In addition, relying on its own e-commerce, namely Hypermart Online. Matahari also collaborates with various e-commerce companies, one of which is Tokopedia.

Optimists can Reach more Consumers through Tokopedia

Danny is optimistic that MPPA can reach more consumers, considering that this homeland unicorn has 100 million users. “Tokopedia canals are also used throughout Indonesia. This will help our consumers meet their household shopping needs during the pandemic,” he said.

VP of Corporate Communications Tokopedia Nuraini Razak added that e-commerce is an alternative for modern retailers to increase sales during the Covid-19 period. “We have 100 million users and 10 million sellers. In addition, there are 350 million registered products,” he said.

Tokopedia estimates that there are more modern retailers collaborating with e-commerce. “The retail industry contributes to state revenue. With this new access, hopefully, users can meet their daily needs, “he said.

Going forward, MPPA will add more online stores to participate in this established collaboration and develop more new collaborations with other leading marketplace operators in Indonesia.

Meanwhile, Chairman of the Indonesian Retail Entrepreneurs Association (Aprindo) Roy Nicholas Mandey said the retail industry sector is starting to show good signs, aka positive. Meanwhile, the collaboration between online and offline stores is increasingly important, especially during a pandemic like now.

Lazada also Collaborates with Shopping Centers

Apart from Tokopedia, Lazada is collaborating with three shopping centers under the Pakuwon Group Jakarta to launch a digital mall or e-mall. The three of them were Gandaria City, Kota Kasablanka and Plaza Blok M last July.

Some of the brands present at the Pakuwon Group Jakarta e-mall are Sogo, Giordano, Converse, Wakai, Samsonite, Optik Melawai. There are also Nature Republic, Innisfree, The Body Shop, Make Up Forever, Kidz Station, Lego Certified Store, and others. In addition, there are more than 50 brands selling daily necessities, including Lock & Lock and GNC.

In the Southeast Asian market, for example, Facebook and Bain and Company estimate that nearly 70% of consumers have switched to digital, bringing the total to 310 million this year. This number was originally predicted to be reached in 2025.

In terms of product categories, sales of staples have jumped dramatically during the corona pandemic. Around 35-43% of digital consumers buy packaged food ingredients, fresh food ingredients, and non-alcoholic beverages.

“Consumers who buy groceries online have increased by 8.4 times and non-alcoholic drinks 6.6 times in the last three months (April-June),” as quoted from a report by Facebook and Bain and Company, last August (31/8). In addition, around 50-73% of consumers buy products in the categories of clothing, electronics, personal care and beauty.

Research by Google, Temasek and Bain and Company entitled e-Conomy SEA 2020 also estimates that the gross merchandise value (GMV) of e-commerce in Indonesia will reach US$ 32 billion this year and US$ 83 billion in 2025.