How Berrybenka Is Changing The Fashion Ecommerce Game In Indonesia With Private Labels & Physical Outlets




How Berrybenka Is Changing The Fashion Ecommerce Game In Indonesia With Private Labels & Physical Outlets

Jason Lamuda, founder of Indonesian fashion ecommerce startup Berrybenka & Hijabenka is no outsider to startups. Before founding Berrybenka, he had co-founded Disdus, a collection-buying web site which turned into acquired by way of Groupon (now Groupon Indonesia) in addition to Bilna, the infant product web site which he set up with his Disdus co-founder Ferry Tenka. What induced him to start Berrybenka in 2012 as a small on-line style commercial enterprise along with his wife was not a love for startups on my own.

Fashion ecommerce in Indonesia changed into a non-existent category at that time. In fact, ecommerce itself had simply entered Indonesia in 2011. Hence, Jason noticed a big market possibility within the untapped style ecommerce phase.

I Ketut Adi Putra, Vice President of Finance and Customer Management reveals, “Jason saw how style trade grew inside the US and China. And how it is considered one of the largest categories in ecommerce. What he desired to do was solve a real problem for Indonesia customers – to bring them equal access to equal exceptional fashion outdoor of Jakarta.”

Additionally, he additionally wanted to groom private local brands. Most of the department shops in Jakarta have been flooded with global fashion brands, leaving nearby brands at a drawback. Thus, started out Berrybenka’s adventure as a first mover within the industry. It aimed to grow to be one in all the most important fashion ecommerce corporations in Indonesia, focused on the middle-income section inside the 18-35 12 months age bracket.

Over the years, the Jakarta-based totally startup has additionally pioneered the web-to-offline retail idea within the style enterprise in Indonesia. It has executed so via the presence of a dozen stores all around the u . S .. Meanwhile, its devoted Islamic style label Hijabenka has carved an area as an intermediary among Islamic fashion designers and buyers.

Doubling Growth Every Year: The Berrybenka Journey

From launching Hijabenka in 2014 to its first bodily save in 2016, Berrybenka has come a protracted way in turning into one of the biggest style ecommerce players in Indonesia. While to begin with, it simplest supplied fashion merchandise for women, it branched out into men’s fashion as properly, in 2015.

Though Adi did not display the real revenue figures, he said that Berrybenka has grown at a CAGR of a hundred% or nearly double each 12 months. The common basket length stands roughly $25-$30. Again while the exact number of orders in a month was no longer found out, the startup claims to overshoot more than 1 Mn orders without difficulty in a single month.

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What also facilitates the startup is the Islamic style-focussed Hijabenka platform. As penetration on this segment is low, Hijabenka’s fashionable Muslim garb finds many takers. The Islamic fashion ecommerce portal isn't always simplest famous in Indonesia.  It additionally has customers from Malaysia, Singapore, Australia, US, UK, and the Middle East. Hijabenka has labored collectively with extra than 150 Islamic fashion designers for showcasing products.

Besides private investment from Jason, the startup has been funded 4 times and has raised greater than $10 Mn in ordinary funding. In January this 12 months, it secured an undisclosed funding from institutional investors Maj Invest Private Equity, Asia Summit Capital, and Softbank-Indosat Fund amongst others. Prior to that, it had raised $5 Mn in a Series B spherical of funding in November 2013 from trans cosmos inc., and GREE Ventures, Inc. In January 2013, it had raised a Series A funding from GREE Ventures and East Ventures. East Ventures had also funded its Seed funding spherical in 2012.

The organisation is now focussing on growing its offline presence as well as non-public labels. The startup has two hundred humans on board minus the shrunk employees of its offline stores. And it's far making a bet large on its O2O strategy.

The Berrybenka O2O Journey: From Pop-up Stores To a hundred Physical Stores In Next Five Years

Berrybenka’s O2O journey started out its experiment with pop-up stores. When it organised a pop-up keep event in Bandung in 2015, it controlled to gather 10,000 traffic in three days. Thus, pop-up shops and bazaars became key factors in Berrybenka’s O2O plans as they helped create emblem attention within the nearby marketplace. It created such shops in Medan, Tangerang, Makassar, Bekasi, Semarang, Bandung, Cibubur, and Jakarta last year. This helped it to distinguish against competitors like Zalora, SaleStock, and MatahariStore which attention more on foreign and big manufacturers, targeting the A class marketplace.

Berrybenka, the logo, focusses extra at the local manufacturers targeting the middle elegance or the B phase Indonesian market.These pop-up stores allowed its customers to directly experience the first-class of its merchandise. They stores acted as a bridge among the online and offline income.

So, the next logical step became to open bodily shops. Berrybenka opened the primary shop closing yr in January. That wide variety has now risen to 20 in less than 2 years. These stores are in Sumatra, Java, Kalimantan and nearly every large town. The startup objectives to open one hundred shops inside the next 5 years. In fact, Adi states that launching offline stores became possibly one of the most vital milestones, because it gave a big thrust to brand focus.

Adi says, “We consider that omnichannel approach is the right way to win the market.  This is likewise due to the fact Internet penetration out of doors of massive towns like Java may be very low. Secondly, there is a pretty sturdy conversion of offline/online consumers, compared to simply on-line customers. This method additionally facilitates us build accept as true with with our clients. More so, in offline shops, we simplest promote non-public labels which bolster our private label class.”

And that category is a huge differentiator for Berrybenka. The fashion ecommerce startup has a robust non-public label class, with over 1/2 the sales stemming from it. More so, it is completely concerned in the personal label area – from designing to fashion selection to marketing to distribution compared to competitors like Lazada and Tokopedia, which awareness best at the style component. Rocket Internet’s Zalora is also recognized to have its very own personal label. Cutthroat opposition inside the fashion segment is likewise a motive for the business enterprise’s layoffs in 2016, to run the enterprise sustainably.

Meanwhile, having a separate platform Hijabenka for Muslim style also helped it to distinguish. Because closest competitor Zalora also sells Islamic fashion but now not on a separate platform. Berrybenka, however, chose to hold the 2 separate as it believes that the Islamic fashion calls for a special advertising strategy.

The idea become that clients who need to look for Muslim style and add-ons want now not navigate via all the goods at the Berrybenka website. Last yr, it also released the Hijabenka app.

Berrybenka Fashion Ecommerce Strategy: Banking On The Growing Middle Class In Indonesia

Berrybenka is a sturdy believer inside the middle-magnificence boom story of Indonesia. It has seen a shift in the beyond one decade –how the center magnificence has grown from the lower magnificence and emerged as a robust patron section. Hence its laser-sharp recognition on the center-income segment.

More so because style trade is a massive possibility in Indonesia’s rising environment. While the overall marketplace size for ecommerce in Indonesia is still very small – an insignificant 1% of the whole retail marketplace, the capability is without a doubt big. This is due to the increasing Internet get entry to and a growing middle elegance. As of now, the ecommerce marketplace is dominated by the electronics and tour category but, slowly, fashion ecommerce is rating higher.

It is this possibility Berrybenka plans to leverage with its strategy of an omnichannel presence. On the anvil also are plans to beautify the technology of the platform similarly. Reveals Adi, “Last 12 months, we generated higher income from our app compared to our desktop. We used to be very laptop-centric. So, we are constructing up the app and also building up social media trade. Because social media trade fits the customer behaviour of Indonesians and revs up the basket size by using nearly 10%-15%.”

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Then, of direction, the plan to take its keep count number to 100 inside the next 5 years is another step within the path of pioneering the web-to-offline retail idea in Indonesian style enterprise.

Editor’s Note

Indonesia’s ecommerce quarter has seen exceptional increase with the country’s evolving virtual consumption. In addition to a budding financial system, an expansion of push elements which includes growing Internet penetration, rapid mobile device adoption, expanded social media utilization, and extra spending electricity via the center class has made Indonesia’s ecommerce region an monetary powerhouse in South East Asia. As consistent with this Google patron survey, an anticipated 7.Four Mn people shopped on line in 2015, resulting in sales of round $three.6 Bn. By 2020, this island state’s e-marketplace is reportedly valued to develop to $a hundred thirty Bn.

Hence, the archipelago of Indonesia with a population of 250 Mn has large ability as a long way as ecommerce and style ecommerce is worried. Also, with a worldwide increase in phone usage, the usa’s cellular-first economic system offers accelerated possibilities for boom. Data indicates that 64% of Indonesia’s a hundred Mn internet customers pick cell over computers for shopping. This augurs properly for startups like Berrybenka whose cognizance is to boom the engagement both on-line on cellular as well as offline through its bodily stores. While its strong repertoire of personal labels and attention on the burgeoning middle-class section is a win-win combination, what’s not to be forgotten is the extreme competition it faces from strong gamers like Zalora, SaleStock, Lazada, and others.

The fashion trade wars will get handiest tighter from here as an increasing number of Indonesians take to on line trade. It might be exciting to look how Berrybenka is capable of sustain itself amidst a comparable backdrop of favor wars which played out between Indian gamers like Jabong, Myntra, and Flipkart in India. Those ended with Flipkart obtaining both of them to consolidate its function within the style section, giving it a robust arsenal in opposition to Amazon.



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