The next challenge is to introduce migme users to Shopdeca and Sportdeca services
Image Credit: DailySocial
By the end of 2015, migme made a maneuver to strengthen its focus on e-commerce by acquiring Shopdeca and Hipwee with a total value of US$2 billion. Thanks to this acquisition, there were several changes happening inside Shopdeca though it remains focussed as a curated lifestyle e-commerce platform. Shopdeca CEO Andreas Thamrin stressed that though there is a potential for expansion once the acquisition process is complete, the company decided to prove its business’ strength by focussing on Indonesian market first.
Thamrin told DailySocial that, “Post-acquisition changes [within Shopdeca and Sportdeca] is more on the organisational side. We are now part of the bigger family. Back then Shopdeca had only 20 people, but now that we are part migme, we grew into 200 people. We also have more complete resources.”
“From operational side, with additional resources from migme, there are things that we are able to optimise. For example, when we were only 20 people, there is no one to monitor and optimise our server usage in AWS. But now that we have [someone from] migme for this kinds of role, they can help us monitor and make sure of the uptime,” he further explains.
Shopdeca’s acquisition by migme is followed by the acquisition of SPortdeca, which according to Thamrin, had completed its process. Thamrin declined to comment on the exact number of Sportdeca’s acquisition, while Shopdeca is reported to have cost migme US$710,000.
Challenges, opportunities, and targets for next year
One year after the acquisition, there are several new opportunities opened for both Shopdeca and Sportdeca. One of them is the chance to reach out to more users. Yet the challenge is to introduce migme users in Indonesia to Shopdeca and Sportdeca e-commerce services.
Thamrin said, “One of the great potentials that our alliance with migme brings is the number of migme users in Indonesia that haven’t been ‘introduced’ to Shopdeca [and Sportdeca]. This can be one of the potentials to work on, [though] it also becomes a greater challenge.”
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“Historically, migme users range from Java-based handset (feature phone) to smartphone. So, we need to figure out innovative ways to introduce and on-board those migme users to the e-commerce users,” Thamrin added.
At the other hand, there is actually an open opportunity to expand outside of Indonesia, considering migme’s user base which originated not only from Indonesia. Even though so, Thamrin stressed that the company will continue on focussing in Indonesian market to prove that its business can work, and focus on pushing for growth in the next year.
Thamrin stressed, “[Sportdeca and Shopdeca’s businesses] will remain focus in Indonesia. It is true that there are other markets where migme users are bigger, such as in India, but we need to [be able] to prove that [Shopdeca and Sportdeca’s businesses] can work in Indonesia.”
“[Next year] we are targetting for growth, certainly. But a sustainable one, not the kind that is led by massive discounts as done by several e-commerce players in Indonesia. Shopdeca/Sportdeca did choose to play in the e-commerce niche, in this case lifestyle and e-commerce. So, we tend to have larger basket size, and a decent number of repeat buyer and margin. Therefore, there is a hope to maintain our sustainability,” he added.
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The article Pasca Akuisisi oleh Migme, Shopdeca dan Sportdeca Tetap Fokus di Pasar Indonesia was written by Adjie Priambada and was first published on DailySocial. English translation by e27.
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