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Use App to let Chinese brands connect directly to Indonesia
2022-07-19 11:26:20
WOOK is a mobile Internet product incubated within Indonesia's Viva Telecom Co., Ltd. The company has been deeply involved in the Indonesian market for four years. The "VIVAN" brand created by founder Xu Longhua is now the number one brand in Indonesia's 3C accessories industry.
In 2010, Xu Longhua, who had worked in TCL for 7 years and won the Golden Horse Award for Marketing of the Year, decided to start a business. By coincidence, he discovered local business opportunities when he went to visit friends in Indonesia: a large population, an open consumption concept, and a strong demand for products, but the manufacturing industry was lagging behind. In Xu Longhua's view, Indonesia is a huge consumer market, and China just has huge manufacturing resources. Why not integrate China's resources to be upstream, and then create a market and brand in Indonesia? Xu Longhua immediately decided to start a business in Indonesia.
At that time, smartphones had already begun to take off. Xu Longhua judged that the industry related to smartphones will have good prospects in the future, but considering that the risk of personal entrepreneurship to make smartphones is too great, he decided to start with peripheral products such as earphones, mobile power supplies, batteries, etc. Taking advantage of the manufacturing industry, we created the "VIVAN" brand and acted as an agent for other 3C digital brands to distribute in Indonesia. By 2013, Indonesia Viva Telecom had become the largest local 3C accessories company.
Although Feifan Telecom's development momentum is promising, it is still a traditional business model in the final analysis. At the end of 2013, Xu Longhua returned to China to join the dark horse growth camp, and got in touch with many excellent domestic Internet companies and e-commerce companies, so he came up with the idea of upgrading the company's business model. "The traditional model still works, but in five or eight years, Indonesia may be like China, so we should upgrade earlier."
After several explorations, Xu Longhua gradually clarified the direction - to be a mobile B2B e-commerce platform WOOK, which efficiently connects China's excellent manufacturing industry to small and medium-sized retailers in Indonesia. In a dark horse class, he did a roadshow with the WOOK project, and as a result, four investment institutions offered olive branches.
"Indonesia is a country with a very developed mobile Internet. According to data, the number of Facebook and Twitter users in Indonesia ranks among the top four in the world, and the number of WeChat users is also the highest outside China, so the acceptance of mobile terminals by local people is no problem. Yes." Xu Longhua said.
WOOK connects the two ends, one is the manufacturers and brands in Greater China, WOOK provides them with flat sales channels, and helps them expand the market in Indonesia through the ground push team. At present, more than a dozen Chinese brands such as Tenda, Scud and Huntkey have entered WOOK. Xu Longhua's plan is to expand the number of brands in WOOK to 30 by June 2015.
At the other end of WOOK are thousands of small and medium retail storefronts in Indonesia. The modern chain industry in Indonesia is not developed. The country's largest mobile phone chain store has only more than 500 stores, and the largest home appliance chain has less than 50 stores, and the price is not as advantageous as China. Instead, individual merchants have become the sales communication and digital store. The main channel of the product. In the past few years, Feifei Telecom has cooperated with more than 10,000 retail stores. For them, they can find good products with quality assurance and after-sales service through WOOK, and directly connect with Chinese manufacturers to reduce purchase costs. In addition, Viva Telecom also cooperated with the Industrial and Commercial Bank of Indonesia to provide financial
Financing support from Indonesia Viva Telecom Co., Ltd. The shop owner can get an interest-free account period from the bank by paying through the WOOK mobile terminal platform.
In addition to the flattening of channels, orders and data that used to be transmitted by manpower are now completely IT-based through WOOK. "For example, it might take you two months to promote a new product in the store. Now, through the IT-based approach, products and information can be directly transmitted to retail stores, and the efficiency is much improved." Xu Longhua Say.
The traditional flow of products is from manufacturers to distributors, and then to scattered retailers, and the flow is one-way. WOOK integrates a large number of retailers, and can go to upstream manufacturers to buy large-scale group purchases and customize products, and obtain the same bargaining power as chain stores. Xu Longhua believes that this can only be achieved by relying on mobile e-commerce.
As for why the B2C model is not adopted, Xu Longhua said that Indonesia is an island country with poor logistics infrastructure and almost no expressways. The transportation mainly relies on ships and planes. Even in the B2B model with relatively fixed delivery routes, the delivery cost is as high as 5.5%. %~7%, if it is a B2C e-commerce business, more scattered and uncertain orders will further increase the distribution cost. In terms of user habits, there is no third-party payment tool in Indonesia, and online shopping is relatively backward. It is difficult for B2C e-commerce to become a mainstream model in at least 5 to 8 years. Therefore, Xu Longhua believes that traditional retail channels will still be the mainstream of local sales for a long time in the future.
【Source: Lou Yue, author of this article, i Dark Horse Original】
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