In The Checkout this week, we analyze the logistics firmâs numbers for FYE June 2023 and examine Blibliâs huge bet on offline stores. [Read from your browser]( The Checkout ð
Â
--------------------------------------------------------------- Welcome to The Checkout! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in ecommerce. You can find past issues [here]( or [sign up here]( to receive future newsletters. Also, If youâre not a subscriber, get access by [registering here](. IN FOCUS In today's newsletter, we spotlight: - Ninja Van's [declining revenue and widening losses]( in FY 2023 and its goal of hitting EBITDA breakeven in the next 12 months
- Indonesia-based Blibli's growing share of revenue from physical stores in FY 2023 after an aggressive offline expansion
- Carroâs positive adjusted EBITDA achievement in FY 2023, even as losses hit US$94 million --------------------------------------------------------------- Hello {NAME} The logistics industry in Southeast Asia has undergone a transformation in recent years. These days, many ecommerce players are building their own logistics fleet, as weâve seen from Shopee, Lazada, and Tokopedia. This has prompted existing third-party logistics (3PL) firms to diversify their services, given that shipment volume from ecommerce platforms will inevitably decrease. Additionally, there is still intense price competition among 3PL players - an ongoing challenge for years. Singapore-based Ninja Van, for instance, has been exploring new services such as Ninja Mart, a B2B service for fast-moving consumer goods, as well as cold chain logistics. In its earnings report for the financial year ended June 2023, the company reported that sales from Ninja Mart doubled year on year. Although its overall revenue contribution is still small - at under 20% - Ninja Van CEO Lai Chang Wen claims the service has better unit economics than ecommerce logistics. As my colleague Simon notes in this weekâs Big Story, Laiâs diversification strategy might be a glimmer of hope for the company, whose revenue was down by 7% year on year and operating losses widened by 32% during the period. Meanwhile, I analyze Blibli's bet to invest heavily in physical stores to differentiate itself from other ecommerce players in this weekâs Hot Take. Expanding its offline presence has been Blibliâs focus in recent years - and it might be paying off. -- Jofie
Â
--------------------------------------------------------------- THE BIG STORY [Ninja Van eyes path beyond ecommerce as price war dents FY23 earnings]( Between FY 2023 and FY 2022, Ninja Van saw its top line grow by 93% in Singapore, 24% in Vietnam, and 11% in Malaysia.
 ---------------------------------------------------------------
Â
THE HOT TAKE  Blibli's bet on physical stores is starting to pay off Hereâs what happened: - Blibli, an Indonesia-based ecommerce major, [reduced its operating losses]( by 28% in 2023.
- The companyâs net revenue also shrank by roughly 4% year on year.
- A strategy to focus on more profitable product selections across categories in B2C ecommerce sales led to the decline in net revenue, the company said. Hereâs our take:
GoTo Group may have achieved its first profitable quarter in Q4 2023, but its peers like Blibli are still chasing profitability. For Blibli, which is targeting affluent customers through the sales of smartphones and other electronics, investing in physical stores and logistics has been and remains a key focus as many consumers still prefer hitting the stores when buying electronic products. In 2023, it began construction of a [new warehouse](. Located in Marunda, West Java, the facility is expected to be Blibliâs largest when it becomes operational this year. The company also opened 40 new consumer electronic stores last year, bringing its total number of brick-and-mortar stores in Indonesia to 166. This consists of 87 monobrand outlets (such as Samsung and Apple stores) and 79 multibrand stores, most of which are located in malls and shopping centers. While marketplaces like Shopee and Lazada also sell electronic products, including smartphones from third-party authorized resellers and unauthorized resellers, Blibliâs status as an authorized Apple reseller and offline stores to support the purchase experience set the firm apart. In addition, the company owns 65 supermarkets under the premium Ranch Market brand - which Blibli [acquired]( in 2021. See also: [Can iPhones put Blibli in the black?]( Its offline strategy differentiates Blibli from other ecommerce players like Shopee, Tokopedia, and TikTok Shop, which operate exclusively online and whose most popular goods typically include apparel and beauty products. While Blibliâs net revenue declined slightly in FY 2023, physical stores was one segment that grew during the period. Net revenue for the physical stores segment was up by 18% to US$263 million, which accounted for 28% of the company's total revenue. This revenue figure is not significantly different from the total processing value (TPV) recorded for the segment - US$294 million - in the period. In contrast, its third-party retail segment, which serves merchants using the Blibli platform and its online travel agency Tiket.com, logged US$3.1 billion in TPV but only generated net revenue of US$68.9 million. A post-pandemic uptick in mall visitors in Indonesia could be a bright spot for Blibliâs offline business. According to data from the Indonesian Shopping Center Association (APPBI), the mall visit rate in the country [reached 80%]( last year and is expected to reach 90% this year. Not surprising, Blibli stated that the company will continue to focus on developing its omnichannel strategy through further expansion of its physical stores in the future. While the prospects for Blibli's offline strategy so far look promising, a similar strategy was once implemented by JD.id, though the Indonesian subsidiary of JD.com ultimately [shut its operations]( in the country in March 2023. Like Blibli, JD.id also opened consumer electronics stores in malls across the country, though its rate of offline expansion was less aggressive. As of [January 2022]( the number of JD.id outlets was only around eight, much smaller compared to what Blibli currently has. Blibliâs more sizable offline footprint may give the firm a better shot than JD.id in expanding into the offline market. Moreover, it has also integrated its online platform with physical outlets, allowing buyers to purchase products on its app or website and pick them up in-store.
 ---------------------------------------------------------------
Â
NEWS YOU SHOULD KNOW Also check out Tech in Asiaâs coverage of the ecommerce scene [here](. 1ï¸â£Â [Carousell doubles down on luxury segment with new acquisition]( The classifieds platform has acquired LuxLexicon, a Singapore-based reseller of luxury handbags, to strengthen its luxury offerings. 2ï¸â£Â [Shein posts over 2x profit growth to $2b ahead of IPO]( The companyâs gross merchandise value, which reflects the total sales on its platform, reached around US$45 billion in 2023. 3ï¸â£Â [Bukalapak posts 23% revenue growth in 2023, nearly hits EBITDA breakeven in Q4]( The Indonesian ecommerce firmâs investment in Allo Bank was a factor dragging down its overall performance. 4ï¸â£Â [J&T zooms to positive EBITDA one quarter after IPO]( The Indonesia-based logistics giantâs China business also became profitable for the first time since entering the market in 2020. 5ï¸â£Â [Vietnamese food-sourcing firm raises $2.1m after hitting profitability in 2023]( Kamereo, which operates an online marketplace for farmers and F&B businesses to source fresh supplies, aims to use the fresh funds to boost its market position in its home country. ---------------------------------------------------------------
Â
FYI 1ï¸â£Â [Carro posts 67% revenue jump in FY 2023, generates positive adjusted EBITDA]( The used-car marketplace previously said it had hit US$11 million in EBITDA for the first quarter of FY 2024, its highest-ever quarterly profit. 2ï¸â£Â [Ecommerce roll-up firm Una Brands hits EBITDA profitability as industry struggles]( This comes after the company, which is backed by Lazada Group former CEO Maximilian Bittner, reported a significant uptick in net loss in 2022. --------------------------------------------------------------- Thatâs it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your âedit profileâ page and choosing that option in our preference center. See you soon! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails?
Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](
 Copyright © 2024 Tech in Asia, All rights reserved.
63 Robinson Road, Singapore 068894