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What is Foodpanda? 

Foodpanda is Rocket Internet’s global food delivery service, present in 22 countries, 500 cities with a strong footprint in Asia. The company has raised $318 million in funding since its inception and will now be sold to rival Delivery Hero.

The company had already shut down its Indonesian arm a few months ago and sold its branch Vietnam in 2015 after struggling to compete with local rivals.

What does Rocket Internet get for Foodpanda? 

Stock in Delivery Hero, which gives the German conglomerate a total of 37.7%. They previously paid $586 million for a 30% stock in February of last year.

If calculations are done backwards:

  1. $586 million for 30% = 19.5% million per 1%
  2. Foodpanda sold to Delivery Hero for 7.7% additional stake roughly equals $150 million
  3. The company was sold for half the price of its total $318 million funding

Rocket Internet SE said the combined business will process more than 20 million orders a month and operate in 47 countries.

What is Delivery Hero?

Delivery Hero Holding GmbH is an online food-delivery service based in Berlin, Germany. The company launched in 2011 and now operates in 33 countries internationally in Europe, Asia, Latin America and the Middle East and partners with 300,000 restaurants.

Why did they sell Foodpanda? 

According to TechCrunch source,

Foodpanda has slashed the asking price for its Indonesia operations to basically zero after more than a year of unsuccessfully trying to offload it.

The company is reevaluating its entire business across [Southeast Asia], and it has already made tentative efforts to sell in some countries. The company expanded in Asia via a series of acquisitions, which, in many cases, ironically leaves it without obvious suitors.

With more on-demand services like Go-Jek and LINE Man offering delivery services, how will the combined company fare? Tweet us with your answer @ecomIQ.

Over the last few weeks, we have looked at the ecommerce landscapes in Indonesia, Thailand, Malaysia, Singapore and the Philippines to see how the five largest markets in the region are faring. The region itself is a diverse and fragmented landscape having disparate infrastructure and fickle government regulations, making it hard for global brands to find a one-size-fits-all solution to conquer $238 billion in market potential.

However, despite the diversity of each country, there is a common theme apparent for ecommerce in the region. Here’s what we have discovered from the Southeast Asian ecommerce landscape in 2016.

1. The domination of Lazada – or soon, Alibaba

One player that has succeeded in making a name for itself in every country across the region is Lazada Group. The company, introduced by Samwer Brother’s Rocket Internet in 2012, has dominated monthly web traffic by millions in almost every country. Their recent acquisition by Alibaba has only cemented their position of power and plays a key role in Jack Ma’s big plan for Southeast Asia.

The only market with local players that puts up a decent fight with the giant is Indonesia. The country has several big players in the B2B2C sector – MatahariMall and Blibli to name a few – backed by big enterprises or conglomerates. But deep pockets is not the only thing that gives these players an upper hand, local knowledge of the market is also a big advantage.

southeast asia ecommerce landscape

With the looming news of Amazon’s expansion into Southeast Asia with Singapore next year, Lazada doesn’t seem to be worried as they have the advantage of years of consumer data and its latest acquisition of Redmart is seen as the latest effort to thwart Amazon at its own game.

2. M&A as a strategy to survive

Ecommerce is a long term game. Even with a good business model, companies need to be able to sustain themselves for the marathon before they even have a chance to make profit, let alone reap the other additional benefits of going online.

This year, the region has seen a lot of acquisitions as players attempt to expand market share or make an entrance. This includes the old news of ‘Alizada’, a $1 billion acquisition that left players in the industry trembling with excitement or the acquisition of Caarly by Carousell to accommodate the growing interest of people looking for cars on the mobile platform.

Some of the acquisitions were done by non-ecommerce players hoping to expand their reach. There is the latest move by K-Fit, a subscription fitness startup, acquiring Groupon in Indonesia and Malaysia; and the exit of Zalora in Thailand and Vietnam to Thailand’s conglomerate, Central Group, earlier this year.

With hundreds of players clamoring for a chunk of market share, it’s only time before natural selection leaves only the strongest and most committed players in the arena.

3. Payments sector is saturated, but no true problem-solver

Payments is still one of the largest hurdles for ecommerce in the region despite the financing boom for Southeast Asian fintech startups in 2016. Numerous startups are attempting to create a payments product for the sake of ‘doing fintech’ but aren’t addressing fundamental payment issues like a high unbanked population.

All across the region we see players in every market trying to address local financial challenges with little success. In Thailand, the government’s effort to create a cashless society with PromptPay has been halted indefinitely when Government Saving Banks (GSB) ATMs fell victim to the cyber criminal.  

Coins.ph in the Philippines is using bitcoin to increase financial inclusion in the country but is still at a nascent stage. In Indonesia, Telcos and even ride-sharing apps are fueling the high-profile race of mobile wallets – no doubt inspired by Alipay’s and WeChat early days strategy in China – but not a single e-payment option has become widespread.

southeast asia ecommerce landscape

Bank transfers and cash-on-delivery (COD) still remain the top two most preferred payment methods and continues to cripple ecommerce.

4. The key to C2C is through mobile

Consumer-to-consumer is estimated to make up at least 30% of ecommerce market share in the region but is tricky to measure because it happens on social channels like Facebook and Instagram and payment typically happens offline.

In Thailand, around 50% of online shoppers make purchases through a social network – making it the biggest social commerce market in the world. Consequently, it has attracted Facebook to make the country its first test base for social commerce payments and Facebook Shop.

This habit of preferring social commerce pushes players to focus on mobile to be able to capture the customer in an already familiar environment. In Singapore, 38% of online shoppers are making purchases through mobile, higher than the global average of 28%, and inspires home-grown companies like Imsold, Shopee and Duriana to focus on mobile platforms to appeal to more customers.

singapore ecommerce landscape

C2C players are also seen dominating Google Play Store in the Shopping category for every market, with Shopee being the most favored in almost all the countries. In the Philippines, the platform has become the answer to the high demand for popular international brands that only recently available in the country through official offline channels

5. Delivering ecommerce packages gets easier

The rise of ecommerce in the region has also boosted logistics infrastructure. The sector has reached an all time high of funding at $28.16 million in 2015 – led by aCommerce, the tech-logistics ecommerce solutions provider, with $20.2 million before its bridge series of $10 million earlier this July.

Meanwhile, JNE, the largest logistics company in Indonesia, stated that 70-80% of its revenue came from the retail sector dominated by ecommerce and hopes to maintain its annual growth of 30-40%. German-based DHL is also reportedly raising the stakes to grab market share, including the opening of a hub in Singapore.

The on-demand delivery service, led by ride-hailing apps like Gojek and Grab, is also thriving in markets where traffic congestion is distressing like in Indonesia and Thailand. Their motorbike fleets allow them to achieve same day delivery.

Where in the Philippines, cross-border package forwarding services like ShippingCart and POBox.ph are targeting the unique high volume of cross-border transactions in the country to fuel their businesses.

The many facets of Southeast Asia’s ecommerce landscape

Despite the warnings about the region’s diversity, the core ecommerce bottlenecks in Southeast Asia boil down to one – poor infrastructure. Lazada’s strong footprint in the region did not happen overnight, its early-adopter status enabled collection of customer data and the ability to build its own infrastructure – logistics (LEX) and payments solution (Hellopay) – in almost every market. But it almost cost them its business before getting swept off its feet by Alibaba.

southeast asia ecommerce landscape

It comes to show that regional players need to be able to adapt their strategies by keeping tabs on the dynamic trends and consumer behaviors. They need to prepare for a long-term investment before hoping to make their mark in the region and if not – better stick to just one market.

Find the ECOMScape series here: Indonesia, Thailand, Malaysia, Singapore, and the Philippines.

It is hardly a secret anymore – ecommerce in Southeast Asia is an enormous $238 billion opportunity that has been under the global radar in the recent years. It’s no longer about whether businesses should have an online presence, but instead how they can stay relevant to their audience in a quickly crowding space.

Indonesia Ecommerce Landscape

ECOMScape: Indonesia details the growing ecommerce ecosystem as of 2016. Source: eIQ

One market that has time and time again stood out is Indonesia thanks to more accessibility to mobile devices, affordable data plans and a youthful demographic propelling social channels and social commerce to the leading activity on the internet. It is a clear goldmine for brands, retailers and investors alike to unlock over 250 million unrealized online shoppers.

So how are they going to do this? Well, Indonesia is a mobile-first country and its citizens update their social networking apps twice more frequently than games and fives times more than music/video apps according to a study by Baidu.

In the next three years, Indonesia is expected to have over 92 million smartphone users, up 67% from 2015. This will push many startups to skip desktop entirely and focus on smartphone friendly ecommerce products. New apps have been the popular way to reach customers, but large spending for development, maintenance, and marketing have restricted companies from finding long-term success. And what happens when app downloads start to slow down as currently happening in the US?

wearesocial-indonesia-eiq

The rising global resistance to new apps

Almost 50% of smartphone users in the US did not install a new app last month while less than 25% of the ones who did returned to it after the first use. What’s even more shocking is a full 94% of revenue in the App Store comes from only 1% of all publishers, think Google and Facebook.  

Mobile isn’t dead but the opportunity is shrinking. So what does this mean for businesses scrambling to capture the attention of the world’s fourth largest population who prefers to use on average only 6.7 apps?

You don’t chase customers, you find them where they already are.

For the first time, messaging apps have surpassed social networks and that’s where chat commerce comes into the story.

Chatbot, chat commerce

Chat commerce isn’t the future, it is the present.

Chat commerce or conversational commerce is the intersection of messaging apps and shopping and is already a very familiar concept in the West. Businesses understand the importance of being readily available to their customers, especially as a poor customer service experience will drive 89% of them to a competitor.

According to Facebook, more than 50 million companies operate on its platform and send more than 1 billion business messages every month.

But having properly trained customer service reps to support hundreds to millions of personal conversations in parallel is difficult to scale for any business. Solution? Chatbot.

A chatbot is an AI (artificial intelligence) feature of a chat or messaging platform that simulates a human conversation with the user in order to provide them with the information or service they’re looking for.

Brands overseas like Taco Bell have partnered with Slack to allow customers to order and pay through the team communications platform.

Think about Siri who has been helping Apple users carry out tasks since 2011 or Amazon Echo, an at-home device by Amazon, which encompasses a chatbot named Alexa to read aloud weather reports, set alarms and more importantly, help customers order new products from Amazon.

chat-bot-amazon

Screenshot from Amazon Echo commercial.

These are only a few of many examples. Facebook Messenger also opened its platform earlier this year for businesses to build chatbots through its Messenger Send/Receive API.

The API will support sending and receiving text and also images and interactive rich bubbles containing multiple calls-to-action.

chat-bot-benefits, southeast asia chatbot

A chatbot can clearly offer a business great benefits to get closer to customers in a medium they are already familiar with, so why has there been little activity in Southeast Asia?

Call all chatbots

Southeast Asia has largely mirrored the West and particularly China in development of its ecommerce maturity. Yet, current chatbot growth has been stuck at the ‘idea phase’ – a lot of chatter and buzz about its revolutionary importance but no product.

“The reason why companies in Southeast Asia haven’t created chatbots isn’t because they don’t think the opportunity is there, but they lack the resources and most fundamentally – AI talent to build it,” comments Lingga Madu, Sale Stock co-founder.

No company has released a true commercial-scale, transaction-enabled MVP, that is, until now.

Sale Stock case study: Facebook Messenger’s first chatbot in Southeast Asia

One lesser talked about company has already begun testing its chatbot with Facebook, Indonesia’s most popular social channel. Sale Stock, the mobile first shopping platform widely popular among Indonesia’s young females, has become SEA’s first company to launch a chatbot that can handle end-to-end transaction on Facebook’s Messenger Platform.

Meet Soraya AI, a relatable, cheery chatbot who handles 100% of queries coming to Sale Stock’s Facebook Page and the brainchild of Facebook, Google, Palantir, and NASA engineers recruited by Sale Stock around the world.
sale-stock-chat-2, southeast asia chatbot

Soraya uses machine learning to shuffle through queries and decide whether to answer it autonomously or give recommendations to an agent instead.

Frequently asked questions such as “do you offer cash on delivery?” or “do you sell high heels?” are replied to almost instantly. In development since 2015, she can already handle 22% of all queries autonomously.

The beauty of machine learning is that the more information she receives, the smarter she becomes and the more accurate her answers will be.

Soraya has already improved response time by 20 – 40 times and currently replies within 60 s. That has granted Sale Stock a response time badge on their official Facebook page.

sale-stock-fb, southeast asia chatbot

Soraya has also been fed large amounts of past Sale Stock customer queries to enhance her intelligence. This combined with recent purchasing behavior and browsing history allow her to recommend consumers personalized products.

Buying the product is even more simple. Soraya asks for confirmation of the item, correct size and color, all within Messenger, and requests address and payment method. If it is a returning shopper, all previous payment information is saved so purchase is simply a click of yes.

sale-stock-chatbot, southeast asia chatbot

“Soraya was created to meet the needs of our customers, many of whom are living outside major cities on limited social media data plans where chat is free but browsing is not. Some have never even been exposed to digital shopping carts but chatting is second nature,” – Jeffrey Yuwono, Sale Stock President.

Trust is also a major concern that holds many Indonesians back from trying ecommerce. By creating a personable chatbot on a familiar channel, brands hope customers will feel comfortable sharing their personal details.

sale-stock-chat, southeast asia chatbot

Chatting with Soraya on Facebook Messenger

Sale Stock chat bot, Indonesia

What’s next for Sale Stock?

The company is already working to create viable chatbots for WhatsApp, LINE, BBM and SMS as they are the most popular messaging platforms their shoppers use. Sale Stock strongly believes in the Lean Startup methodology, “getting it out there as soon as possible to collect real, user feedback”.

“We’re still in the very early stage of our product and ironing out the bugs and adding features iteratively,” comments Madu.

All inquiries going to Sale Stock are monitored, independent of the channel source, on one platform created in house to control flow and fix any arising bugs.

The team hopes to fine-tune its technology to quite possibly launch SaaS in the future.

“The success of chat commerce depends on how well the machine can distinguish the details: context, intention, the slang, mix of dialects, and even the use of emojis so the customer never feels like they are chatting with a bot. The platform has to be robust enough to handle these typos and fringe use cases,” says Madu.

The future of chatbots

There has always been a fear of AI replacing tasks typically performed by humans, but customer support is a tricky area since personalization is at the core.

“As brand loyalty and exceptional customer service become the main priority for brands, companies simply cannot afford for bots to completely handle customer service and risk creating a negative experience. With that said, the live customer service representative will always have a place with the overall customer experience,” says Mayur Anadkat, Vice President of Product Marketing at call center software provider Five9.

The moment has not yet been reached when machine learning enables 100% accurate and instant replies to customers no matter the language, mix of dialect, slang or emojis – but it is in the foreseeable future. AI is here to enhance, not replace.

Not only will the rise of chatbots improve the reputations of brands but it will be expected of businesses by the next generation of shoppers. As Uber product manager Chris Messina put it, bots present a new, unpolluted opportunity to build lasting relationships with people.

Ultimately, the lack of friction is what makes the shopping experience a pleasant one and what will drive the A players to the head of the game.

By: Cynthia Luo

New funding, new Jack Ma comment on Indonesia and a few concerns surrounding Single’s Day. Here are the morning ecommerce headlines that you should know:

1. Helpster, startup connecting blue-collar workers with temp jobs, raises $2.1 million in seed funding 

Indonesia’s Convergence Ventures led the round with Wavemaker Partners and other investors participating. Helpster sorts through applicants who fill in data through the app. It then matches them to companies looking for help. Businesses can range from food and beverage to hospitality, events, and logistics.

Read the rest of the story here.

2. Jack Ma not giving up on Indonesia 

“I never say no,” Ma told The Jakarta Post on the sidelines of Alibaba’s Singles Day or the 11.11 Global Shopping Festival, dubbed the world’s biggest ecommerce event, in Shenzhen, China, on Friday evening. Indonesian Information and Communications Minister Rudiantara recently said Indonesia had “lost” to Malaysia in securing Ma as adviser for the country’s ecommerce development plans, adding he had seen pictures of Ma and Malaysian Prime Minister Najib Razak in agreement to become the neighboring country’s digital economy adviser.

“We acquired Lazada so that we can be in Indonesia as well as five other Southeast Asian countries […] obviously Indonesia being the largest market.” – Alibaba Group co-founder and vice chairman Joseph Tsai.

Read the rest of the story here

3. A word of caution for ecommerce brands looking to market around Single’s Day

Alexis Lanternier, CEO, Lazada Singapore, said last year, the brand saw an uplift of six times in revenue on key sale dates through Online Revolution – 11 November and 12 December.

Such occasions serve as an opportunity for ecommerce platforms to not only expand their consumer base by spreading awareness about their presence. This helps us gain trust in the highly cluttered market.

Read the rest of the story here

4. Pos Indonesia eyes role as logistical backbone for ecommerce

With ecommerce booming in the country, the government is pushing state-owned postal service PT Pos Indonesia to benefit from this growing industry by providing logistical support for online businesses. Communications and Information Minister Rudiantara says:

“Ecommerce players don’t need to establish their own logistical unit, as they can share a single logistical platform provided by Pos Indonesia.”

Read the rest of the story here

If you’re interested in ecommerce, you might also find these recent reports about online retail helpful.

Indonesia Ecommerce Landscape

Mapping Southeast Asia’s Dynamic But Fragmented Ecommerce Market

In order to ‘win a market’, some online publications will say: ‘define your brand’, define your competitive advantage, ensure product-market fit, create a customer database, and/or market to the world. And while your business should encompass all these strategies, the very first step any company, old or new, should take is to identify the key players already in the field.

Southeast Asia has become a hotspot for saturation thanks to booming growth – the online sector is expected to reach more than $87 billion by 2025 and many global players such as Alibaba and Amazon are scrambling to get their own slice of ecommerce pie.

However, what new entrants often overlook or find out too late when entering the region is its fragmented nature. Every country brings with it a different set of strengths and challenges.

For any player looking to grab Southeast Asia market share, the key to unlocking its potential is knowledge. Different players exist in several market segments, and some dominate certain niche segments all hoping to solve problems or capture an untapped opportunity but the ecommerce bottlenecks vary across borders.

The ECOMScape Series by ecommerceIQ aims to bring you a complete picture of the ecommerce ecosystem in individual Southeast Asian countries from the businesses selling, to the specialists providing their online solutions, all the way to the end customer. We hope it will help you navigate the competitive space. Let’s start first with the region’s biggest and most promising market, Indonesia.

Indonesia Ecommerce Landscape: 6 Key Takeaways from Current Market Conditions

The country is on track to become one of the biggest markets in Asia with the potential to comprise 52% of Southeast Asia’s entire ecommerce value by 2025.

Despite the country’s attractive $46 billion ecommerce valuation that keeps foreign investors and companies pouring in, local players are not intimidated by the influx of global ones. What else can we tell from the bird’s eye view of Indonesia’s ecommerce ecosystem?

1. Local players are dominating the market, especially in niche sectors

Indonesian run companies are seen selling in every sector of ecommerce in Indonesia, especially C2C, Lifestyle & Travel and smaller niches that fall under the ‘Other’ category. These include marketplaces like Cipika, Qlapa, and KuKa that sell local and handcrafted products and Limakilo, a marketplace targeted at farmers.

Indonesia Ecommerce Landscape

‘Others’ category under B2C sector is filled with niche players.

Some locally owned companies such as Shoot Your Dream and AkuLaku also better understand the country’s payment pain points and allow customers to buy products via installments through their website without a credit card.

Targeting a smaller consumer segment for local players is one way to empower local SMEs to go online. It also means less competition as foreign and big players usually try to compete over a more ‘mainstream’ audience such as Lazada, Elevenia and MatahariMall.

A reason for the success of Indonesian owned companies is due to familiarity of local trends and behavior. These companies, such as Bukalapak, customize marketing campaigns to match cultural preferences and identify better with the customer.

Indonesia Ecommerce Landscape

Bukalapak’s viral video campaign for Online Shopping Day 12-12 last year, starred their CEO creating a small-budget, home-made marketing initiative while ‘apologizing’ to the executives everywhere for distracting and decreasing their employees’ productivity with big discounts offered.

Among the top 20 websites in the archipelago under SimilarWeb’s ‘Shopping’ category, more than half are native Indonesian run companies.

Indonesia Ecommerce Landscape

Even OLX and iProperty, who have the advantage of vast resources to be at the top of their respective niches as seen in the ‘Classifieds’ section, were once local companies acquired by regional players.

2. Brand.com and the rise of omni-channel

Indonesia’s most popular ecommerce model is presently the marketplace like Tokopedia and Lazada. Even in the vertical sectors like Fashion & Apparel, Electronics & Gadgets and Local & Handcrafted products, the dominant choice is still a marketplace.

This model is popular to accommodate the growing interest of SMEs and brands that want to bring their business online but lack the capital or are unwilling to take a risk jumping online with both feet.

Indonesia Ecommerce Landscape

However, as the industry matures and brands realize the importance of having an online channel, more adopt a brand.com strategy to directly reach customers.

HP and Kiehl’s are some of the big brand names in their field that recognize the potential of going online. And it isn’t restricted only to brands because offline retailers are also joining the ecommerce bandwagon.

MatahariMall and MAPEmall are just two examples of retailers with deep pockets that recently joined the online space and it’s paying off. MAP, the parent company of MAPEmall, has stated 78% year on year profit growth in August and credit their online venture as one of the main drivers.

As more customers demand convenience to shop anywhere and at anytime, it is vital that retailers complement their offline networks with an online strategy to create an omni-channel experience.

3. B2B sector is slowly gaining momentum

B2C is not the only sector that has seen an increase in online adoption. The country’s biggest industrial retailer, Kawan Lama, is among the early players making the jump to ecommerce in this sector.

The company launched a shoppable website to cater to both a B2B and B2C audience after seeing steady traffic from consumers browsing its catalogs, indicating a change in customer behavior. Another big offline retailer that followed suit is Electronic City.

Indonesia Ecommerce Landscape

However, despite the push for B2B ecommerce in Indonesia with the establishment of Indonetwork, an online directory and marketplace for SMEs catering to B2B and B2C alike, the sector is still very scarce. Bizzy and Lippo-backed Mbiz are the only significant B2B marketplaces that launched in the past year.

Indonesia Ecommerce Landscape

4. Market research is urgently needed

Due to the infancy of the industry in Southeast Asia, there is only a handful of resources that exist to help businesses make informed decisions. Even established research firms like Nielsen are having difficulty obtaining enough market data to create a comprehensive report.

Indonesia Ecommerce Landscape

The lack of knowledge and insight affects the growth of ecommerce as executives are forced to make strategic decisions based on gut thus the reservation of conservative brands going online.

ecommerceIQ aims to bridge the gap of knowledge in Southeast Asia by providing market research to executives in the form of summits, reports, insights and data.

5. More payment options to tap into the unbanked

With more than half of the population in Indonesia still unbanked and credit card penetration at only 1.4%, payment has become one of the biggest bottlenecks to ecommerce growth in the country.

Telco companies in Indonesia are one of the key contributors that help build the ecommerce ecosystem by launching their own versions of mobile wallets, a popular payments method. And it’s not surprising, considering that each telco company has their own ecommerce website.

Other popular payments gateway include Adyen, a payments unicorn used by both Uber and most recently, Grab and aCommerce. The payment gateway offers both online and familiar offline options that locals trust, such as ATM transfers.

6. Diversifying delivery services

Infrastructure is often acknowledged as one of the top barriers for ecommerce in the region, especially Indonesia where lack of public transportation, tricky island geography and under-developed roads pose serious problems.  

Ride-hailing apps are expanding their offerings to include courier services to cater to growing demands. Gojek, for example, a traditional transportation startup has become the preferred delivery method for C2C merchants and buyers as it offers same-day delivery services and a built-in tracking system at an affordable price.

Indonesia Ecommerce Landscape

The third party logistics (3PL) category is also very saturated in Indonesia. Brands are provided with so many options that it becomes a time-consuming task to find one that suits the needs of their business and consumers. Multi-shipping tech from aCommerce or Alibaba’s Cainiao aim to save time by aggregating the best options based on the price and destination.

The potential of ecommerce in Indonesia has already tempted many players, both foreign and local, to enter the market. However, it’s still a long time before a clear winner emerges from the battlefield.

Click here to download the full, high-resolution version of ECOMScape: Indonesia and join the ecommerceIQ network for the next ECOMScape in our series.

***Are we missing an important player? Let us know! Reach us on FacebookTwitterLinkedIn

Cosmetics and healthcare manufacturer from China, Longrich Bioscience, is eyeing the ecommerce market in Indonesia as reported by Bisnis.com. The company feels optimistic about its venture in the country as it sets a monthly target of $300,000 sales per month by 2017 and $1 million of sales per month in the next five years.

Longrich International President, Charlie Chin said that the company is confident with its target as the economy in Indonesia is getting stronger and people’s purchasing power in the country will continue to increase.

The company is not alone in their opinion, back in June, Chinese investors have also expressed their confidence in Indonesia’s future business outlook.

Longrich eyes markets beyond Java

Longrich has been operating in Indonesia since 2013 and has seen a positive growth in the last 1.5 years. General Manager of Longrich Indonesia, Thamrin Slamet claimed that the sales growth has reached 120%.

In addition to producing its own line of products, the manufacturer also serves other brands such as GlaxoSmithKline (GSK) who owns the toothpaste brand Sensodyne.

Indonesian big cities like Jakarta and Surabaya are the main markets for Longrich’s variety of products but the company will not only focus on Java, Indonesia’s most populous island. It has a business center in Medan, North Sumatera. It also serves the people in Palembang and big cities in eastern Indonesia.

Globally, Longrich is present in 15 countries and recorded $167 million in revenue globally in 2015.

A version of this appeared in Bisnis.com on August 14. Read the full article in Bahasa here.