This article comes from the WeChat public account: Xiaguangshe (id: globalinsights) , author: Guo Zhaochuan, editor: Weber, title picture from: Visual China
"We have seen many entrepreneurs from China, bringing new concepts of consumer brands and ideas are brought to Indonesia, so we always pay attention to these entrepreneurs who start businesses in the consumer field," said Melina Anlin, Vice President of Investment at AC Ventures.
New consumer brands are in the ascendant in Southeast Asia. What role does content e-commerce, represented by TikTok e-commerce, which is developing rapidly in Southeast Asia, play in the current development of consumer brands? Indonesian TikTok Shop has experienced a series of turmoils. After merging with Tokopedia and changing its name to Shoptokopedia, what impact will it have on sellers and traffic?
The "d2c brand (also known as dtc brand, that is, a direct to consumer brand)" that we often mention when going overseas in Europe and the United States is still a pseudo-concept in Southeast Asia's still immature market? What is the deep consumer psychological logic behind this?
Through an interview with Melina Anlin, vice president of investment at ac ventures, a Southeast Asian consumer brand investor, we have an in-depth understanding of the current situation of consumer brands going overseas and landing in Southeast Asia.
Subversion of content e-commerce: It’s like being in a huge online Disneyland
“The most interesting thing is that when tiktok enters Southeast Asian countries such as Indonesia, it is essentially like an online Disneyland.” Melina Anlin said.
While waiting for public transportation on the way to work every day, I can always see Indonesians naturally opening tiktok and immersing themselves in the online paradise world.
"When people are bored in Indonesia, the first thing they do is open tiktok, which is really a form of entertainment." These people spend a lot of time on tiktok, and the online ride-hailing drivers waiting for orders on the roadside , also watching tiktok videos all the time.
While people rely on short videos to kill boring time, they are also unconsciously exposed to and discovering countless new brands every day.
For these brands, whether they are local brands or foreign brands, and who is behind the factories, supply chains and investors, is of little significance to these broad viewing audiences - consumers are more concerned about what the brand represents. (whether it is decent, whether it is trendy), whether its sales method is eye-catching, and the most important factor is the price.
"When you shop during live broadcasts, there are usually special prices. Some live broadcasters always encourage people to sign in, and there are many electronic discount shopping coupons." Melina said.
Locals have become increasingly accustomed to this new form of shopping. Although it is really just for entertainment when you open tiktok, if you find a special price on something in a live video that only lasts for two hours, you may make an impulse purchase.
On March 27, 2024, Indonesian tiktok e-commerce has completed the migration of its e-commerce system, fully merged with tokopedia, and changed its name to shoptokopedia.
As a result, tokopedia has full management of the payment, user data and merchant operation functions of the original tiktok shop. This is the latest news about tiktok e-commerce after Indonesia’s regulations restricting direct commodity transactions on social media platforms were promulgated last year.
In October last year, after TikTok e-commerce was restricted in Indonesia, many people believed that traffic would flow to traditional shelf e-commerce companies such as Shopee and Lazada to a certain extent.
But in fact, after research and observation, it was found that "the growth of other e-commerce platforms is actually not as much as people expected." Another big seller who is engaged in consumer brand management in Southeast Asia also said that after experiencing this in Indonesia After the twists and turns, the current tiktok e-commerce does not seem to be much different from before (referring to the use and operation of sellers and buyers).
However, some sellers who have invested a lot in the early stage said that they vaguely felt that "the traffic was not as good as before." But now, has become an important option for many new consumer brands that want to enter the Southeast Asian market. Investing in content e-commerce on TikTok.
“Not just in Indonesia, but globally, social media platforms such as Instagram and TikTok are fundamentally changing the way brands emerge and grow.The cost of initial brand testing is minimal, but the benefits can be high. "melina said.
Due to the lack of trust, new consumption in Southeast Asia is still in the early stages of development.
"Although tiktok cuts in from the social side, in fact, in general, traditional shelf e-commerce is not bad, not that bad. "E-commerce sellers in Southeast Asia said.
According to melina anlin, we can compare the US FMCG industry to observe the development process of consumer brands in Southeast Asia.
melina anlin originally worked for Bain & Company. And every year Bain & Company will announce the US FMCG industry In the current Southeast Asian market, many new consumer brands can be observed that have similar characteristics to independent emerging brands in the United States.
But the difference is that “the emerging brands in Southeast Asia are not. It is a real d2c brand like the one in the United States. ”
Because the first step for new consumer brands in Southeast Asia to launch is often a third-party e-commerce platform (whether it is content e-commerce or traditional shelf e-commerce), rather than direct contact through the brand’s official website or independent website like a real d2c brand. Customers, to connect with consumers.
Behind this is the general lack of trust between consumers and businesses in Southeast Asian countries
"If I place an order on e-commerce platforms such as tokopedia, shopee, lazada and bukalapak. Finally, if the goods do not appear at my doorstep, I can go to the e-commerce platform to complain for a refund. But if I go directly to a brand’s own channel to buy, I can’t even guarantee they’ll answer my call. "melina anlin explains to us the current online shopping mentality of Southeast Asian consumers.
In fact, this type of online shopping mentality is not alone in Southeast Asia. Even domestic online shopping has only developed more diverse shopping channels in recent years. , consumers have also just begun to have the concept of "brand-owned".
Similarly, in consumer brand marketing in Europe, the United States, Japan and other countries, common subscription services, email marketing communication methods, credit card payments, etc. are new consumer brands in Southeast Asia. Promotion also faces "acclimatization".
At this time, the value of content social platforms such as TikTok and Instagram for brand promotion is even more prominent, especially TikTok, which has its own e-commerce system, and has become the market expansion platform for many new consumer brands in Southeast Asia. First choice.
melina used two emerging local consumer brands invested by ac ventures as examples: small home appliance brand simplus and local beauty and skin care brand rosé all day. These two emerging consumer brands have achieved outstanding sales in the Southeast Asian market. Growth and profitability. After
Indonesia, why the Philippines?
When it comes to exporting consumer goods in Southeast Asia, everyone has a common understanding: whether it is in Indonesia, Thailand or the Philippines, if you do well in one country, you will be better off in another Southeast Asia. The country does not guarantee that it will be good.
The so-called market expansion involves many issues such as the overall resource allocation, investment direction, the degree of adaptation of products to local culture, and most importantly, whether local resources have advantages.
New consumer brands entering the Southeast Asian market will choose Indonesia as the first place to start their business.
We have written many articles analyzing the Indonesian market before (" Chinese new energy vehicles "kill" into Indonesia " " after investing in Jitu, He said, "Those who win Indonesia will win Southeast Asia" 》), the most important population size, the extremely high proportion of young people, etc., are the key factors to promote consumption
And in Indonesian culture, a large number of people embrace it. They have a mentality of carpe diem and advocating consumption. Young people like to spend money and try new products. They are very receptive to new brands, new product concepts, new ideas, and new shopping methods.
The Indonesian market is unique among Southeast Asian countries. Sex:
Indonesia contributes nearly 40% of the GDP of the entire Southeast Asia, and Indonesia is the country with the largest population in Southeast Asia, now close to 280 million. With economic development, the foundation of the Indonesian middle class is constantly growing. , Indonesia’s population is very young, likes to spend money, and has strong spending power.
“Indonesia is actually a very consumption-driven economy, so we are very optimistic about the Indonesian market.Melina Anlin said, "In terms of structural market fundamentals, it is very attractive." "
If we go back in time and compare the current Indonesia with the consumer market that we are more familiar with in China, and then look at today's Indonesia, we will find:
Around 2014, China's per capita GDP was US$7,500, and at that time there were more than 50 consumers Companies are preparing for IPOs and will be listed between 2014 and 2018. Indonesia’s current per capita GDP is close to US$5,000 and is growing rapidly. It is expected to reach US$7,500~8,000 in 2030, which means considerable new consumer brands and products. The company will be listed through the Indonesian market.
Now in 2024, it is a very suitable time to invest in Indonesian consumption as an early investor.
After Indonesia, among Southeast Asian countries, the Philippines may be the most popular among investors and entrepreneurs. 2nd choice.
"What's interesting is that if you look at Metro Manila, it's a very dense area, it's almost as dense as Jakarta, actually even denser. "melina anlin said.
The Philippines has a population of 110 million, which is about one-third of the population of Indonesia. It is the second largest country after Indonesia.
In fact, nearly 10% of the Philippines' GDP comes from the diaspora, and many Filipinos Working overseas in wealthier countries while still having very close ties to their home country of the Philippines, sending a lot of money back to the Philippines actually increases Filipinos' domestic spending power
On the other hand, the Philippines is very popular with Western culture. Impact. They speak English, so new brands can be sold in English, and short videos used for marketing can also be in English, so it is easy to enter the market.
But at the same time, new consumer brand entrepreneurs going overseas also need to do so. Keep in mind: "Southeast Asia" is not a unified overall market, but a number of market segments with great differences in each country. Therefore, also needs to make targeted localization strategies and implementation strategies for different national markets. Localized content marketing
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