How underdog Blibli took on the top dogs of Indonesian ecommerce

The Checkout is Tech in Asia’s free newsletter that breaks down the biggest stories and trends in ecommerce. [Read from your browser]( The Checkout 🛒 Welcome to The Checkout! Delivered every Thursday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in ecommerce. If you’re not a subscriber, get access by [registering here](. Hello {NAME} Sometimes, being an underdog is a good thing. You can keep your head down, focus on your mission, and carve out your own path. That’s the approach of Blibli. The Indonesia-based ecommerce marketplace has been around since 2011, but it doesn’t get as much attention as its local peers Tokopedia and Bukalapak. Blibli and JD.id collectively processed about US$4.4 billion in gross merchandise volume (GMV) in 2020, according to a report by venture builder Momentum Works. This means that Blibli’s GMV is trailing far behind leader Shopee’s record of US$14.2 billion in Indonesia alone. So why should we care? Blibli’s signature strategy has been its guarantee that the products sold on its platform are all original items - no fakes. Who wouldn’t appreciate that, especially if you’re a cautious online shopper? It also targets more affluent consumers, which could potentially account for 21% of Indonesians by 2030 compared to 9% today. Being backed by Indonesian conglomerate Djarum Group is another advantage, as Blibli doesn't need to chase venture capital money. For more insights about Blibli, the underdog of Indonesia’s ecommerce scene, my colleague Budi Sutrisno explains it all in this week’s big story. -- Huong THE BIG STORY [How Indonesia’s Blibli stood up to giants via a niche strategy]( Image credit: Timmy Loen After competing with bigger rivals in the country’s ecommerce space for over a decade, this under-the-radar marketplace is poised to benefit from a rising affluent class. DEEP READ 1️⃣ [The fight for sneakers]( The Covid-19 pandemic has elevated the status of a new asset class that includes not just cryptocurrencies but also sneakers. Online resale platforms like StockX and Goat have seen prices of rare sneakers skyrocketing to as high as US$33,000 a pair, according to this in-depth report from The New York Times. However, the resale market has been manipulated by “sophisticated sneaker bots.” These bots can exploit the holes in Shopify-powered websites of retailers and complete millions of checkouts, squeezing out ordinary customers. Resellers use botters to rack up huge profits, and even measures like trivia questions and puzzles haven’t slowed them down. TRENDING NEWS Check out Tech in Asia’s coverage of Asia’s ecommerce scene [here](.  1️⃣ [The Shopee troops are marching steadily to Europe]( Photo credit: Shopee It seems like reports about Shopee’s expansion to a new country pop up every two weeks. Spain and France are the most recent additions to its growing territory. Shopee has launched a [localized platform]( in France, which looks nearly identical to the ecommerce player’s apps in Southeast Asia. Why it matters: France would mark Shopee’s third market in Europe, following [Poland]( and [Spain](. Some of its notable competitors in the country include Amazon, AliExpress, and Cdiscount. Shopee’s arrival in France makes sense because an [estimated 76%]( of the country’s population are buying online. France’s ecommerce annual revenue [surpassed US$112 billion]( in 2020. Our friends at the [Momentum Works]( had predicted that France would be Shopee's next target after news about its Spain entry surfaced. Shopee has already topped the list of Android shopping apps in Spain, according to App Annie, so it might only be a matter of time before the same thing happens in France. However, we think that competition from French niche ecommerce players in France or online retailers with offline stores - Vestiaire Collective, Veepee, Auchan, Sportamore, to name a few - will also be significant. Shopee can source low-price products from China. But consumers in developed European markets such as France are shifting their focus to resale platforms so they can shop for affordable high-quality items - a trend that Shopee simply can’t ignore. For more insights on Shopee’s global ambition, head [here]( to read our previous analysis.  2️⃣ [Carousell acquires streetwear marketplace Ox Street ahead of IPO]( Photo credit: Carousell Group Back to sneakers: Southeast Asia’s classified major Carousell has snapped up Singapore-based [Ox Street]( a streetwear and sneaker resale platform. The amount was undisclosed, but Carousell picked up about US$2 million worth of shares in Ox Street, according to [DealStreetAsia](. Why it matters: The deal makes sense for Carousell, which makes money primarily from advertising as sellers pay to increase the visibility of their posts. Like Carousell, Ox Street also focuses on serving Gen Z users in Southeast Asia - a segment that the resale startup estimates would collectively spend US$128 billion on fashion in 2025. For now, Carousell’s model is more about online classifieds than recommerce. It connects buyers and sellers (mostly individuals) who want to sell secondhand items. But unlike most resale platforms, Carousell does not repair, repack, or stock these items. The classifieds unicorn has ventured into autos and property - big-ticket items to shorten its route to profitability. The Ox Street deal could also accelerate Carousell’s recommerce efforts, potentially capturing retailers and brands that need to offload their clearance and off-season stock.  3️⃣ [Alibaba launches fast-fashion shopping site allyLikes to rival Shein]( Photo credit: 123RF Shein is no longer the scrappy, secretive challenger; it’s now the obvious target for an overthrow. Alibaba has launched a competitor called [allyLikes]( that also focuses on speed, claiming to have 500 new items each week, according to the South China Morning Post. AllyLikes' website looks oddly similar to Shein’s, and it is aiming to enter North America and Europe. Why it matters: AllyLikes is a nascent business, but analysts believe it could benefit from Alibaba’s ecommerce capabilities - data, logistics, supply chain, and money. It’s still too early to tell how allyLikes can catch up with Shein, which is rumored to be going for [a US$47 billion public listing](. But if there’s one thing that we’re certain of, it’s that more Shein copycats will have a detrimental impact on the environment. [McKinsey’s The State of Fashion 2021]( report suggests that circularity will become the next trend of the decade, as brands are looking for ways to reduce overstock and become nimbler in their supply chain. STARTUP WATCH 1️⃣ [Tiki]( - Vietnam’s ecommerce major might soon become the country’s third unicorn The company has secured US$240 million in series E funding, boosting its valuation to around US$832 million. Founded in 2010, Tiki mostly competes with regional players Shopee and Lazada in Vietnam.  2️⃣ [Jumper.ai]( - Singapore-based shopper engagement company gets acquired The startup was purchased by US cloud communications firm Vonage, which is looking to boost its conversational commerce capabilities. Launched in 2017, Jumper.ai offers automated chatbots, live agents, and other omnichannel conversational commerce solutions for direct-to-consumer brands. That’s 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 our preference center at the bottom of this email. See you next week! 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 © 2021 Tech in Asia, All rights reserved. 51 Bras Basah Rd, #05-5061, Singapore 189554