“Bakar Uang", Startup Pun Tumbang

Summary

The Indonesian e-commerce market has seen several major players collapse due to fierce competition, internal conflicts, and external challenges like the COVID-19 pandemic. Companies like Rakuten, Stoqo, Mataharimall, and Blanja.com all failed to sustain themselves in a rapidly changing marketplace. Despite having large financial backing and global influence, these platforms couldn't compete with local giants such as Tokopedia, Bukalapak, and Shopee. The closures raise concerns about the future stability of Indonesia's e-commerce sector, with many wondering if more platforms will follow suit.

Takeaways

• 😀 Rakuten's Indonesian venture, AirBio, failed due to internal conflicts and inability to compete with local e-commerce giants like Lazada and Tokopedia.
• 😀 Stoqo, a local e-commerce platform selling essential goods, had to shut down during the pandemic as its business model was severely affected by the economic downturn.
• 😀 Mataharimall.com, once a leading e-commerce site in Indonesia, merged with Matahari.com after it couldn't keep up with the competition and closed in 2018.
• 😀 Blanja.com, backed by Telkom Indonesia, shut down in 2020 after failing to compete with dominant players like Tokopedia, Bukalapak, and Shopee.
• 😀 Despite efforts to adapt, Rakuten’s AirBio was criticized for relying too heavily on Japanese business principles, making it hard to gain traction in the Indonesian market.
• 😀 The pandemic had a major impact on many businesses, including e-commerce startups like Stoqo, which saw a significant decline in revenue.
• 😀 Mataharimall's closure left many merchants without a platform, highlighting the risks e-commerce sellers face when platforms fail.
• 😀 Blanja.com urged users to withdraw their balances before its shutdown in 2020, marking the end of its operations.
• 😀 Indonesia's e-commerce market is highly competitive, with over 12 major marketplaces, far more than in China and the U.S.
• 😀 The closure of these e-commerce platforms raises concerns about the future of smaller players and whether more platforms will fold due to intense competition.

Q & A

What is the main reason why several e-commerce platforms in Indonesia have shut down?

The main reason is the intense competition in the Indonesian e-commerce market, combined with internal conflicts, economic challenges like the COVID-19 pandemic, and the difficulty of competing against dominant local players like Tokopedia, Bukalapak, and Shopee.

Why did Blanja.com, an e-commerce platform backed by Telkom Indonesia, close down?

Blanja.com failed to compete effectively against dominant e-commerce platforms like Tokopedia, Bukalapak, and Shopee, and was eventually forced to shut down in 2020 due to the fierce market competition.

What were the challenges Rakuten (Arbio) faced in Indonesia?

Rakuten faced internal conflicts with its local partner, MNC Group, and struggled to adapt to the Indonesian market. Additionally, it could not compete with local players such as Lazada and Bukalapak, leading to its closure in 2016.

What factors contributed to the closure of Stoqo, an e-commerce platform selling essential goods?

Stoqo's closure was primarily caused by the economic impact of the COVID-19 pandemic, which severely affected its business operations and led to a significant decline in revenue.

How did MatahariMall.com fare in the Indonesian e-commerce market?

MatahariMall.com, owned by Lippo Group, was once a dominant player but couldn't sustain its position due to strong competition. It eventually merged with Matahari.com after ceasing its e-commerce operations in 2018.

What happened to the merchants who were using MatahariMall.com after its closure?

After MatahariMall.com ceased operations and merged with Matahari.com, merchants faced uncertainty regarding their future as the platform shut down its marketplace.

How did the COVID-19 pandemic impact e-commerce platforms like Stoqo?

The pandemic led to significant disruptions in the economy, causing a decrease in consumer demand, business closures, and financial instability for platforms like Stoqo, which ultimately led to its shutdown.

How many major e-commerce marketplaces exist in Indonesia, and how does this compare to other countries like China and the United States?

Indonesia has over 12 major e-commerce marketplaces, which is significantly higher than countries like China and the United States, where the number is typically between 2 to 3 major platforms.

What role did Rakuten's internal conflicts with MNC Group play in its failure in Indonesia?

The internal conflicts between Rakuten and its local partner MNC Group severely impacted its operations in Indonesia. These conflicts led to the dissolution of their business relationship and ultimately contributed to Rakuten's inability to compete in the local market.

Why was Stoqo unable to continue its operations despite its focus on essential goods?

Despite focusing on essential goods, Stoqo could not survive the financial downturn caused by the COVID-19 pandemic. The closure of many businesses and the overall economic slowdown led to a drastic reduction in demand for its products.