Logging
On. Elevenia.co.id welcomed 20 million visits to the marketplace in February
alone
Jakarta Globe, Tabita Delia, May 16, 2015
 |
| Jungsung Lee, chief executive of Indonesian online marketplace Elevenia, views other marketplaces as ‘cooperators’ not competitors. This twist on traditional business relationships is indicative of the change and development Elevenia is planning to evoke in Indonesia’s e-commerce industry. (GA Photo) |
Jakarta.
Indonesia as an e-commerce paradise in just two years’ time may seem an idle
dream to those who still struggle with connectivity as a massive burden in
their lives. It is, however, an emerging reality for some of the people behind
Indonesia’s growing online market ecosystem.
Meet
Jungsung Lee, chief executive of Indonesian online marketplace Elevenia.
Hailing from South Korea, he prefers to be called James and is one of those who
have thrown off any doubts about Indonesia’s potential.
His company
is already starting to tap the country’s huge e-commerce potential, he said in
an interview.
While he
acknowledged that Internet infrastructure is still far from ideal, there are
methods to tackle the problem.
Elevenia,
registered as a business entity as XL Planet, opened for business in March last
year as a joint venture between mobile provider XL Axiata and South Korea’s
online marketplace, SK Planet.
It began
modestly, with around 500,000 products and 6,000 sellers.
In just a
year, the online marketplace had almost a million registered members, two
million products and more than 20,000 sellers.
Elevenia.co.id
had 20 million visitors in February — 5 million of which were unique visits.
The online
marketplace posted Rp 250 billion ($19.45 million) in total transaction value
last year and in the first two months of this year had booked Rp 60 billion.
“It has
exceeded [my plan]. We achieved more than our business target so our
shareholders are so happy with us,” he said, noting that the investors now plan
an additional capital injection within the next two years.
Initial
investments from XL and SK Planet last year amounted to $18.3 million and
another $24.2 million was injected earlier this year.
Calm,
focused and friendly, Lee is clearly investor-friendly. At first glance he
looks like any other businessman in his 40s but his nature manages to radiate a
sense of security and optimism amid the hustle and bustle of an online business
community populated by employees in their mid-20s.
Jokingly,
one of his employees said his calmness is the product of months of training.
Korean businessmen are not accustomed to talking with the press and dealing
with informal work atmospheres, yet Lee has been able to keep his cool.
The Korean
set out to explain the principles he believes are needed for success in the
online world.
“The first
thing is trust. The second is good products, then good prices and convenience.
For the Indonesian market, trust is very important; it is the customers’ basic
demand,” he said.
Many
Indonesians remain hesitant to use online shops due to a lack of information.
Potential customers think that fraud and crime are easily concealed in an
apparently anonymous digital world.
That is not
the case with Elevenia, Lee said.
“We use a
system called escrow,” a formal account which holds funds prior to completion
of a transaction, allowing Elevenia to guarantee a safe transaction for both
buyer and seller.
Elevenia
also has some unique traits. For instance, customers can directly ask Elevenia
to find a certain product, local or otherwise.
“If there
is something the customer can’t find, they can inform us, then we will get the
product. [Especially] products from Korea. We have the experience, we have good
channels. From Korea, we can get anything,” said Lee.
To further
the trust factor, the company has set limits on trading. It will not sell
counterfeit goods, drugs or other illegal items.
The growing
business of Elevenia is a glimpse of Indonesia’s blossoming e-commerce
industry.
A survey conducted
by the Indonesian Internet Providers Association (APJII) and University of
Indonesia shows that online shopping is catching on fast with younger
Indonesians.
Samuel A
Pangerapan, chairman of APJII, said the survey showed that there were 88.1 million
Internet users in Indonesia in 2014. A huge portion — 49 percent — are young,
around 18 to 25 years old, with 51 percent of them women.
They use
the Internet for various reasons, from networking through social networking
applications to searching for information and exchanging messages, downloading
and sharing videos.
Internet
users’ behavior has shifted, Samuel stated, from only using the Internet to
interact — like exchanging stories from blogs, chatting through messaging
services or talking directly through video chat — to more complex behavior like
trading.
In its
latest report, APJII said many Indonesian Internet users have started to use
the Internet for shopping. Around 11 percent of users purchased goods online in
2014, double the number a year earlier. The vast majority — 85 percent — browse
the Internet with their phones, although many also use laptops, tablets and
PCs.
To meet
this multiple gadget lifestyle, Elevenia has made sure it can be accessed from
website, mobile web and mobile application.
According
to Lee, being in every digital space was critical, since competition is
beginning to intensify as companies recognize Indonesia’s e-commerce potential.
The number
of popular e-commerce sites in Indonesia is growing each year. Local sites with
a similar business model to Elevenia include Tokopedia, BukaLapak, Quoo10,
Lazada and Rakuten, and new ones keep coming.
“We welcome
the competition,” said Lee. “At the moment, this market is really in its early
stage. It’s not mature, that’s why at this moment I don’t think the other
players are our competitors. At this moment, they are our cooperators.”
Elevenia is
keen to work with other e-commerce players in Indonesia to build an ideal
ecosystem.
GlobeAsia
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