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Retailers embrace shift to online channels

Indonesian retailers have embraced the need to shift online, but brick-and-mortar outlets still account for the vast majority of sales.

Yunindita Prasidya (The Jakarta Post)
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Jakarta
Wed, August 19, 2020

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Indonesian retailers have embraced the need to shift their services online amid the accelerating online shopping trend.

Roy Nicholas Mandey, the chairman of the Indonesian Retailers Association (Aprindo), said many of the association’s members had adopted an omnichannel strategy, where retailers integrate offline and online shopping experiences for their consumers' convenience.

“Ninety percent of our members have already changed their businesses by including an omnichannel,” Roy said during a webinar on Thursday.

An example of this approach was to give consumers the option to select products online but pick them up in-store, Roy added.

The adoption of such a strategy is deemed necessary as consumers are buying more products online during the health crisis. According to the Global Consumer Insights Survey 2020 by PricewaterhouseCoopers (PwC), 69 percent of the Indonesian respondents stated that they were buying more groceries online following the implementation of social restrictions to contain the COVID-19 outbreak.

More than half of the respondents, at 57 percent, stated that they were likely to continue shopping online even after the measures were removed.

Indonesia has gradually reopened the economy starting in June, despite the continuous rise of COVID-19 cases in the country. The tally of confirmed cases has reached more than 132,800 as of Thursday, with the death toll exceeding 5,900.

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