'Proudly Indonesian' brands are venturing into the global market

In The Checkout this week, we look at the Indonesian D2C brands venturing abroad and the possible SEA expansion of ByteDance's food delivery service. [Read from your browser]( The Checkout 🛒 --------------------------------------------------------------- Welcome to The Checkout! Delivered every Thursday, 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 you’re not a subscriber, get access by [registering here](. Written by Jofie Yordan Journalist Hello {NAME} In Indonesia, there is a “support local” trend, be it for products or works of art. The government has even organized a “Bangga Buatan Indonesia” campaign, which means “Proud of Indonesian products.” Many young people in the country now purchase homegrown products, especially when it comes to fashion. Apart from being more affordable, young shoppers also believe that the quality of local products is not inferior to their foreign counterparts. Having gained popularity domestically, the next stage for these Indonesian brands may be international expansion - and now could be the best time for that. In Singapore, large retailers are downsizing in response to evolving shopping behavior. On the other hand, several Indonesian brands that have dipped their toes in the city-state have experienced significant growth. These include fashion brand Claude and shoe label SevieyanaShoes. In this week's Big Story, my colleague Melissa examines how setting up shop in Singapore can provide momentum for Indonesian brands to realize their global ambitions. Meanwhile, in this week’s Hot Take, I discuss another company with global ambitions. Tech giant ByteDance may bring its food delivery service - which is now being tested in China - to Southeast Asia, possibly following the footsteps of TikTok Shop. -- Jofie  --------------------------------------------------------------- THE BIG STORY [For Indonesian D2C brands aspiring to go global, the time is now]( The entry of new brands to Singapore comes at a time when large retailers are downsizing in response to evolving shopping behavior.  ---------------------------------------------------------------  THE HOT TAKE Will ByteDance bring its food delivery service to Southeast Asia? Here’s what happened: - ByteDance's Douyin has been [testing a food delivery service]( in Beijing, Shanghai, and Chengdu. - With this service, merchants can promote and sell food packages to groups of Douyin users. - The China-based company currently has no plans to launch the service to the rest of the country. Here’s our take: Food delivery is ByteDance's latest bet in ecommerce. This is a sensible move following the positive response that TikTok Shop has received after blending ecommerce and video content. Douyin - the Chinese version of TikTok - is also working on a similar strategy for its food delivery service. The model is different from on-demand services such as GrabFood or GoFood. Instead, the Chinese platform is promoting the group-buying concept, where merchants can promote and sell food packages for more than one person through livestreamed videos. These merchants must pay a platform fee to sell on Douyin. If the service succeeds in China, it’s possible that ByteDance would take it internationally, especially in Southeast Asia. TikTok Shop is currently enjoying a [rise in popularity]( in the region. Group buying itself is not a new concept in Southeast Asia. Several players are currently operating in the sector, including WeBuy, Aemi, Super, and SariSuki. But none focus on the food, restaurant, in-store business, and hotel segments like Douyin. Before ByteDance brings its food delivery services to the region, it will have to consider potential hurdles. The growth of the region’s food delivery sector slowed last year. According to estimates from venture builder firm [Momentum Works]( gross merchandise value (GMV) for this sector only grew 5% from 2021 to 2022. This figure is much lower than previous years, although such a decline is common for sectors that benefited from higher demand during the pandemic. Another factor is the investors' demand for profitability, which changed the strategies of players in the sector. Many reduced incentives to grab market share, which may have slowed the market’s overall growth. Moreover, ByteDance would be entering a market with tough competition, with GrabFood leading the pack and other competitors such as GoFood, ShopeeFood, and Foodpanda also making big moves. The model of food-focused group buying has also not been proven in the region. Most group-buying players in Southeast Asia focus on groceries or [FMCG]( products and tend to operate in Tier 2 and Tier 3 areas. See also: [Indonesia’s unicorns have been avoiding community group buying, but the clock’s ticking]( However, ByteDance might be able to capitalize on the popularity of TikTok Shop. The ecommerce platform has been growing rapidly in the region with a [GMV of US$4.4 billion]( in 2022, up 363% from the previous year. Any decision will be based on the results of its test runs in China - and how committed ByteDance is to double down on ecommerce. -- Jofie  ---------------------------------------------------------------  NEWS YOU SHOULD KNOW Check out Tech in Asia’s coverage of the ecommerce scene [here](. 1️⃣ [Shein targets $60b revenue by 2025 as IPO nears]( The firm also expects its GMV to reach US$80.6 billion in 2025, up 174% from last year. 2️⃣ [Alibaba’s growth to accelerate from 2023, analysts predict]( An equity research firm expects the company to see its revenue drop 4.2% this year, but growth may reach the double digits through the next decade. 3️⃣ [Sociolla CEO to step down]( Co-founder and president Christopher Madiam will be taking over as CEO. 4️⃣ [Meituan eyes HK expansion amid local slowdown]( The Chinese food delivery firm has started hiring in Hong Kong, where it is reportedly offering incentives to drivers who meet their target order volumes within two weeks. ---------------------------------------------------------------  FYI 1️⃣ [Content to commerce: how D2C brands can wean themselves off Amazon]( While the content-to-commerce strategy is relatively new for ecommerce firms, it’s shaking up the industry in a significant way. 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 your “edit profile” page and choosing that option in our preference center. See you next week! [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 © 2023 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894