Asia

Indonesia’s social commerce boom comes with an unexpected casualty – struggling shopping malls

Shopkeeper Hariyanti said she and her colleagues go live for two hours everyday between 12pm and 2pm, displaying one item after another using three smartphones to capture audiences from three different platforms: TikTok Shop, Shopee and Instagram.

So far, she said, the store generates more sales from TikTok Shop compared to the other two platforms.

“Maybe (TikTok Shop) is more suited to our demographics. Maybe because (TikTok Shop) has more promos like discounts and free delivery. I don’t know for sure,” she said.

SOME SHOPPING MALLS STRUGGLE TO RECOVER

Miranti Amelia, who owns a clothing shop at a mall in West Jakarta, said although her store still welcomes physical customers from time to time, their numbers are dwindling.

“They usually saw us on social media but insisted on coming to the store to try our clothes for themselves. They buy one or two clothes and once they are confident with our products, their next purchase will be done online,” she told CNA.

“I even had one customer who came to the shop, tried our products and bought the same items at our online store while she was still at my physical shop. When I asked her why, she said: ‘There are many promos online’.”

Amelia said with offline sales dwindling, her physical store now acts more like window dressing to her online store and a backdrop for her daily livestreams.

“I plan on moving everything to a two-storey store. It’s hard to operate an online store from inside a mall. There’s not enough space for my workers to pack our shipment. Our couriers have to go up and down the stairs and elevators,” she said.

But moving away from a shopping mall is not for everyone.

Shop owner Josh Sulistyo said although his store’s online sales are starting to catch up with its offline transactions, he will continue to operate from Tanah Abang shopping complex, which has a reputation for being a magnet for wholesalers from across Indonesia.

“We need this shop to show (wholesalers) that we mean business, give them extra confidence that we have ample stock and we can deliver no matter the size of their order,” he said.

Source: CNA

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