National and Multinational Corporations Embracing ‘E-commerce’ Revolution in Indonesia Header

National and Multinational Corporations Embracing ‘E-commerce’ Revolution in Indonesia

Increasing numbers of multinational and national companies operating in Indonesia are exploring or launching their own E-commerce business strategies to keep pace with business rivals, leading international recruitment company Monroe Consulting Group says.

Inge Sari Purnama, a recruitment consultant with Monroe Indonesia’s specialised Consumer Goods Division, said the growth in E-commerce had “unlimited potential” as the country’s middle-class continued to expand. “Indonesia has around 103 million active Internet users and growing. And we expect that by 2020 to have seen a 45 percent increase in E-commerce transactions compared to a 10 growth in traditional retail,” Inge said.

She said established, traditional retailers had been eyeing the success of a number of E-commerce companies and the growth of the sector and wanted to carve out their own slices of the action through the creation of dedicated E-commerce business units through the recruitment of business executives with the skills and experience needed in the technology and consumer goods sectors.

“Unilever is a good example of an established, successful company that were closely observing emerging trends in the marketplace, including today’s more discerning or consumers,” Inge said. “Future generations of customers or potential customers will almost certainly be more demanding when it comes to purchasing goods or services, so companies that want to remain competitive will have to stay ahead of the game to ensure ongoing success. It’s all about being innovative.”

The recruitment consultant said Unilever was a great example of a company embracing new technology to boost sales. “For example, Unilever just launched Lifebouy Gel, which differs from other similar products in that consumers only need to use one drop of gel,” Inge said. “So the company has created an online platform, an online space, where they can educate new users about the product and users could leave reviews and other feedback. It’s a great way of providing interaction between customers and the company and vice versa and has a number of benefits.”

Inge reiterated that companies in a range of different industries needed to embrace online platforms and create fun, intelligent and informative concepts that would “serve as the front page of their brands and products.”

Tina Nugraheni, head of Monroe Indonesia’s Technology Division, said a number of multinational companies operating in Indonesia had begun to employ specialist E-commerce personnel, including Frisian Flag, Lion Superindo, LÓreal, Danone Group and Procter & Gamble (P&G), to name a few.

“Monroe operates five recruitment divisions, namely Technology, Consumer Goods, Health, Professional and Industry,” Tina said. “Increasingly we are seeing a real crossover with technology and our other divisions, and this is definitely the case with Technology and Consumer Goods. E-commerce is the future,” she said.

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