Conversation With: William Tanuwijaya, CEO of Tokopedia | Full Episode

Summary

In this conversation, William, the founder of Tokopedia, discusses the company's journey and its focus on democratizing commerce through technology. He highlights Tokopedia’s mission to educate the market and help millions of merchants, emphasizing the importance of local problem-solving. He shares insights on building a long-lasting business, the role of investors, and the company's aspiration to be a leading e-commerce platform in Indonesia. William also touches on the concept of evolving to survive, the challenges of staying relevant, and the power of humility, curiosity, and perseverance in leadership.

Takeaways

• 😀 Tokopedia's primary focus is on serving a large market of 78 million active users in Indonesia and helping 4 million merchants start their businesses, rather than focusing on short-term profitability.
• 😀 Tokopedia aims to democratize commerce through technology, believing that profits will come naturally if this mission is pursued successfully.
• 😀 The company reached its break-even point in 2017, with multiple revenue streams such as advertising, logistics, and e-commerce, although profitability is not the primary focus at this stage.
• 😀 Tokopedia sees itself as more than just a marketplace, continuously evolving and expanding by providing new services like mobile recharges and bill payments, removing barriers for new users.
• 😀 The company aspires to be a long-lasting business, aiming to be around for the next couple of centuries, similar to companies like Alibaba.
• 😀 Tokopedia is not just looking to expand within Indonesia but believes in becoming a major global player, with ambitions to be recognized as a global name, similar to Amazon and Alibaba.
• 😀 Despite investments from large companies like Alibaba and Sequoia Capital, Tokopedia runs independently, with no management interference from its investors.
• 😀 The company sees itself as a challenger, and it continues to learn from its competitors and international markets like China, adapting their strategies to local needs.
• 😀 For young entrepreneurs, Tokopedia's message is to focus on solving local problems first, even if the market is large, and then expand globally once you've solidified your base.
• 😀 Tokopedia emphasizes a meritocracy-driven approach to hiring, valuing talent over conventional qualifications, and continuously challenges its leadership to avoid losing the underdog spirit.
• 😀 The company's greatest fear is losing its entrepreneurial drive and evolving into a complacent giant. To avoid this, they focus on continuous reflection, humility, and growth.

Q & A

What is Tokopedia's main focus right now?

Tokopedia's main focus is to educate the market and democratize commerce through technology. They are focused on serving a large number of users and merchants in Indonesia rather than prioritizing immediate profitability.

Is Tokopedia currently profitable?

No, Tokopedia is not focusing on immediate profitability. While they have multiple revenue-generating streams, they are reinvesting their revenue to expand and grow the business.

What is Tokopedia's long-term goal for profitability?

Tokopedia's goal is to continue growing and educating the market. The company aims to reach profitability over time as they expand their services and improve the market's overall understanding of their offerings.

How does William Tan describe Tokopedia's business model?

William Tan describes Tokopedia's model as one that continuously evolves. It focuses on supporting small businesses and providing a platform for users to start their own businesses. Tokopedia aims to be a sustainable ecosystem, not just a traditional marketplace.

What does William Tan mean by 'idols becoming rivals'?

William Tan refers to the concept of companies like Tokopedia, which initially look up to giants like Alibaba, eventually becoming competitors. Over time, Tokopedia has learned from these companies, which now also invest in their growth.

What is Tokopedia’s vision for the future?

Tokopedia aspires to become a leading global player, akin to Amazon or Alibaba, but specifically as Tokopedia, not just as Indonesia's version of these companies. They plan to focus on Indonesia first before considering global expansion.

What advice does William Tan give to young entrepreneurs?

William Tan advises young entrepreneurs to dream big but to keep their eyes open. He emphasizes that their thoughts, actions, and words need to align in order to turn their dreams into reality.

What challenges does Tokopedia face with its growth?

Tokopedia faces challenges such as market education, overcoming barriers of entry, and ensuring trust among consumers, especially in a market where online shopping and payment systems are still being accepted by many.

Why is Tokopedia focused on Indonesia before expanding globally?

Tokopedia believes in fully addressing Indonesia's market potential first. By focusing on local growth and achieving profitability in Indonesia, they plan to fund future global expansion with their own profits rather than relying on external investment.

How does Tokopedia maintain its 'underdog' mentality?

Tokopedia continues to embrace its 'underdog' mentality by constantly challenging itself to evolve and innovate. They focus on staying humble and avoiding complacency, even after achieving success.