In The Checkout this week, we look at the key players in Indonesian ecommerce, and analyze Tokopediaâs and Bukalapakâs latest results. [Read from your browser]( The Checkout ð --------------------------------------------------------------- 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: - [An update of the key players in Indonesiaâs ecommerce industry](
- Tokopediaâs focus on advertising and serving more budget consumers
- [Oral care startup Zenyum achieving EBITDA profitability in its largest markets]( --------------------------------------------------------------- Hello {NAME} I was in Jakarta last month for the Tech in Asia conference. The city pulsed with dynamism, and you could see billboards plastered with local and foreign brands, from banks like BNI and Mandiri to accounting firm EY. Two other brands I recognized were Blibli and Tokopedia, two key players that dominate ecommerce in the country. My colleague Jofie highlights these two companies as well as the many others that make up Indonesiaâs ecommerce landscape in this weekâs Big Story. Ecommerce remains the largest contributor to Indonesiaâs digital economy, with estimates saying that gross merchandise value will reach US$82 billion in 2025, according to the latest [e-Conomy SEA report](. However, growth has slowed since the pandemic. Between 2022 to 2023, the industry grew 7% compared to the 20% expansion between 2021 and 2022. This is evident in Tokopediaâs and Bukalapakâs most recent financial results. I dive deeper into these results in this weekâs Hot Take. -- Simon
Â
--------------------------------------------------------------- THE BIG STORY [Indonesia's ecommerce map reveals slowdowns and struggles]( Funding for Indonesian ecommerce players is the lowest in the past seven years. Some firms have pivoted while others have closed down.
 ---------------------------------------------------------------
Â
THE HOT TAKE Tokopedia leans on serving budget consumers and advertising as growth slows Hereâs what happened: - Tokopediaâs gross transaction value (GTV) for the third quarter of 2023 fell 11% from a year ago, even as revenue and [adjusted EBITDA]( figures improved.
- In comparison, Bukalapak's total processing value (TPV) declined 1% year on year.
- Tokopedia intends to focus on its advertising business and offer more affordable products to increase its total addressable market (TAM). Hereâs our take: Ecommerce platforms in Indonesia continue to see sluggish growth in [gross merchandise value]( even as their profitability has improved. Tokopedia, the ecommerce arm of tech conglomerate GoTo, recorded a GTV of US$4 billion for Q3 2023, decreasing 11% year on year. This decline was larger than that suffered by its smaller rival Bukalapak, whose TPV for the same period fell 1% from the year prior to US$2.6 billion. Part of this divergence in performance may come down to the difference in customer profiles. [According]( to GoTo, its âcore consumersâ are those who âprioritize and are willing to pay for convenience and reliability.â In contrast, [73%]( of Bukalapakâs TPV is generated from non-Tier 1 regions, where users are likely to be more price-sensitive. But Tokopedia wants in on this segment of mass-market consumers. The company [has said]( it is offering more products that âresonateâ with budget consumers, enabling it to expand its TAM. This dovetails with similar initiatives in the wider GoTo Group. For example, ride-hailing operator Gojek is piloting GoRide Nego, which will expand its two-wheel offering to budget consumers by allowing users and drivers to communicate directly and come to a mutual agreement on a fare. Meanwhile, GoToâs e-wallet GoPay had its [standalone app launched]( in July to further penetrate consumers on a budget. Apart from targeting budget consumers, Tokopedia intends to boost the monetization of its business by increasing revenue from its [âvery importantâ]( advertising business, where the company sees a âlarge untappedâ market opportunity. GoTo expects the return on investment from these initiatives to exceed what it can get from investing in live streaming. As CEO Patrick Walujo said during the earnings call, Tokopedia âwill continue to be an ecommerce platform where people come with an intention to purchase. We are not coming from a platform with the DNA of content creation or live streaming.â As such, when it comes to live streaming, the company is working with partners âwho understand this area better.â For example, it recently started a pilot collaboration with Instagram Live. Investors seem to approve of the companyâs strategy. Since its results were released, its share price is up by 36%. Currency converted from Indonesian rupiah to US dollar: US$1=15,642 rupiah.
 ---------------------------------------------------------------
Â
NEWS YOU SHOULD KNOW Also check out Tech in Asiaâs coverage of the ecommerce scene [here](. 1ï¸â£Â [Mamaearth parent makes quiet debut as shares stay level]( Founded in 2016 by husband-and-wife duo Varun and Ghazal Alagh, India-listed Honasa Consumer sells natural and toxin-free personal care products. 2ï¸â£Â [AnyMind enters 14th market with South Korea launch]( The Tokyo-listed ecommerce enabler will set up a team in the country to speed up the development of its local network. 3ï¸â£Â [SEAâs digital economy to generate $100b revenue in 2023]( Private funding for the regionâs digital businesses is estimated to fall to its lowest level since 2017, according to the e-Conomy SEA 2023 report by Google, Temasek, and Bain & Company. 4ï¸â£Â [Layoffs fear grows as TikTok asks managers to lower employee review scores: report]( The development comes as TikTok is struggling to grow its revenue amid the aggressive regulatory environment.  --------------------------------------------------------------- FYI 1ï¸â£Â [Singaporeâs Zenyum is EBITDA-profitable in its largest markets, CEO says]( The companyâs filings stated that its cash and cash equivalents went from US$20.5 million in FY 2022 to just US$4.5 million as of April 2023. Â
--------------------------------------------------------------- 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 © 2023 Tech in Asia, All rights reserved.
63 Robinson Road, Singapore 068894