Specialist
Senior executive at Buka Mitra Indonesia PT (Bukalapak.com PT)
Agenda
- Competitive dynamics – GoTo merger impact and Shopee’s (NYSE: SE) penetration strategy
- Decision-making process around logistics assets and network planning
- Distribution costs and delivery economics
Questions
1.
How has the recent GoTo merger impacted Indonesian e-commerce? Do you expect similar deals or tie-ups in the future?
2.
Could industry fulfilment or delivery strategies change post-merger given that Tokopedia has gained Gojek’s mobility capabilities?
3.
Do you think GoTo could gain market share in at least the e-commerce parcel segment? The combined entity offers such a large ecosystem from the platform to the payments, including GoPay and Gojek mobility.
4.
What has Shopee done to gain so much market share so quickly in Indonesia?
5.
What is outsourced to third-party logistics players by Shopee Express vs kept in-house under the hybrid fulfilment strategy?
6.
Do you expect platforms to start building captive fleets as the Indonesian e-commerce market matures? Do you think there will always be an argument for having third-party support?
7.
How do you balance the improved profitability from platforms having captive fleets vs the capital or rental costs of line-haul vehicles and distribution centres?
8.
How could outsourcing factor into a future where platforms increasingly in-house their fleets? Could this follow a Gojek ride-hailing model where drivers work as contractors or employees?
9.
Do you think transportation vehicles, including line-haul vehicles, will be outsourced or leased? Could it become the drivers’ responsibility to provide their own vehicles?
10.
Do you think Shopee’s aggressive market share gains over the last few years will continue? Could the GoTo merger be a serious roadblock to Shopee’s growth?
11.
Could any other players enter the market, including international or China-based players? Several large players seem to have already taken the top spots.
12.
Would third-party logistics players such as SiCepat perceive GoTo and Shopee as competitors?
13.
Do you think SiCepat and other third-party players’ positions will remain secure in rural markets and outlying islands? Could the platforms continue to have difficulties accessing and servicing those markets in the long term?
14.
Why do you think a platform or third-party player could have strong fulfilment market share across Indonesia despite the difficult geography?
15.
Do you think the third-party players fulfil difficult geographies more efficiently than the platforms?
16.
Which third-party players do you think are most capable of enabling e-commerce volumes?
17.
Would you say that last-mile logistics companies are pricing delivery below its marginal cost? Are their operations economical?
18.
How are platforms selecting sites for fulfilment centres assuming they lease their own? Do platforms build new fulfilment centres to take market share from third-party players or simply to accommodate future demand growth?
19.
Could you estimate the overall delivery cost per parcel for major platforms in Indonesia?
20.
How does the IDR 18,000-30,000 average delivery cost split across first mile, middle mile and last mile, as well as the various stores and distribution points where a delivery is static?
21.
Could you compare delivery costs today vs three years ago? Have you noticed a major change?
22.
How do you think last-mile costs will evolve over the next 3-5 years? What key factors would drive any changes?
23.
Could platforms targeting an IDR 10,000 last-mile delivery cost per parcel lead to more in-housing? You indicated that in-house costs are between IDR 10,000 and IDR 20,000, which is lower than the current third party delivery cost.
24.
Do you think platforms need to change their fulfilment strategies to make this IDR 10,000 per parcel average possible? Do you think players need to move towards quick commerce and micro-fulfilment to decrease costs further?
25.
Could you estimate average lead times? How do you expect them to change? You said that players such as GoTo can facilitate same-day and next-day delivery, but that there’s a shift towards customer indifference as to whether a package arrives the next day or in the next 3-5 days.
26.
Do you think delivery lead time will be a key driver of e-commerce penetration in Indonesia? We already have next-day-plus-one as the average fulfilment time. Do you think this needs to decrease further to drive penetration? Would it be enough for key players to facilitate same day?
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