Jakarta. Having recently celebrated its first year in business, MatahariMall.com is beginning to enter the second phase of its growth as an e-commerce platform in order to make it profitable, chief executive Hadi Wenas said during a visit to the offices of the Jakarta Globe at BeritaSatu Plaza in South Jakarta on Wednesday (12/10).
MatahariMall.com is optimistic about its business because of the rapid growth in Indonesia's e-commerce market. Hadi cited Google and Temasek's report "E-Conomy SEA: Unlocking the $200 billion digital opportunity in Southeast Asia," which states that the first-hand e-commerce market is expected to amount to $88 billion by 2025.
"In 10 years, we expect to be the number-one e-commerce company in Indonesia with at least 35 percent of the market share," Hadi said.
The online marketplace is also seeking to secure more investment, most of which will be allocated to improving its technology. MatahariMall.com previously received $500 million from the controlling-investor Lippo Group. Hadi said the investment was primarily spent on marketing.
MatahariMall.com records an average of 52 million site visits per month, with 60 percent of them using mobile devices.
Unlike other e-commerce platforms, MatahariMall.com is presented as a virtual mall composed of 11 "floors." Customers not only browse categories but also see those categories placed on different floors. The first floor, called "gallery," is equivalent to a shopping mall's lobby, where only premium goods and special exhibitions are displayed.
The year-old e-commerce company sells products ranging from fashion to electronics and automotive.
"We are currently cooperating with Lippo Homes to also sell houses and apartments," Hadi said.
MatahariMall.com currently has around 5 million users, with 80 percent of them below the age of 35 years. Customers aged 25-34 reportedly have the strongest brand attachment.
According to MatahariMall.com's report, most buyers of non-electronic products are female, at 63 percent of the total. Hadi said female customers are more likely to make repeat purchases, especially for clothing.
One of MatahariMall.com's marketing strategies is to provide different facilities for customers depending on the cities where they live. The company provides e-lockers in metropolitan areas such as Jakarta, Bandung (West Java), Surabaya (East Java), Makassar (South Sulawesi) and Medan (North Sumatra), where customers can collect their orders.
The service is aimed at providing more sophisticated customers with a convenient, flexible shopping method that also requires less human interaction. In non-metropolitan areas, MatahariMall.com has set up collection and payment points for customers who value trust and human interaction to assist them in making their purchases.
The company also cooperates with the Indonesian Post Office for collection points, enabling customers to collect their orders at post offices.
"In the future, we'll also arrange for post offices to be places from where orders can be returned," Hadi said.
Other future plans involve cooperating with digital payment-solution company, OFO.
"We will cooperate with OFO, a sister company that will soon be launched by Lippo Group," Hadi added.
MatahariMall.com and the Jakarta Globe are both affiliated with the Lippo Group.