Elevenia – Indonesian Ecommerce and Digital Content

 

Elevenia is a joint venture e-commerce company, established by PT XL Axiata, Tbk., the cellular network provider operated in Southeast Asia, and SK Planet Co., Ltd., company from South Korea which provides online and mobile service for e-commerce, digital content, and advertising and marketing businesses. It was launched in March 2014 and covered 8 categories of products, including fashion, beauty/health, babies/kids, home garden, gadget/computer, electronic, hobby dan service/food. When it was first operated, the company listed 600.000 products from around 7.000 sellers in the website.

 

Investments and user metrics:

The main investors for the elevenia are PT XL Axiata, Tbk and SK Planet Co.,Ltd. The initial funding for Elevenia was US$ 37,2 million from the holding. In 2014, total transaction reached 25 million rupiah. In march 2015, elevenia received second investment amounted for US$ 24,2 million from its shareholders.  Chief Financial Officer (CFO) Elevenia, Lila Nirmandari stated, the investment will be used to develop business of Elevenia. With this investment, said Lila, total funding received by  Elevenia reached US $ 60 million.Furthermore, Lila stated that Elevenia will develop marketing and promotion programs, as well as the IT system, the main supporters of the e-commerce company by using the investment.

By December 2014, Elevenia was able to achieve 750,000 members with the growth of 30,000 new members every week. Meanwhile, total sellers listed in the website reached 18,000 stores both individual, corporate, and global with 2 million products. In the period of 9 months, the monthly visitors of Elevenia page reached 12 million visitors to 4 million unique visitors per month. Elevenia recorded 8,000 orders every day.

During 2015, the company recorded transaction amounted for 1.3 trillion rupiah, the total transaction increased dramatically for 420% compare to total transaction in previous year which amounted to 250 million rupiah. This increase eventually lead to another funding round by the holding company amounted for $US 50 million in January 2016. Thus, total investment of elevenia until 2016 is $US 110 million. According to James Lee, the CEO of Elevenia, the investment amount will be allocated or streamed for marketing activities, development platforms, enhance the service and products. Thus it can give maximum services to the customers and sellers who using the e-commerce as the platform of business. In addition, the investment will also be used to develop the human resources (HR). The managemet also targeted to have new office in 2016 as part of asset maximization.

By early 2016, Elevenia has an average of 20 thousand transactions per day, which ranging from more than 4 million products from 30 thousand resellers and 2 million members who have registered in the website. It claimed that 70% of the Elevenia’s members are from Jabodetabek (Jakarta Greater Area) and 30% are from outside the area. Total visit recorded in January 2016 was 40 million visitors and targeted total volume of transaction amounted to 3.5 trilion Rupiah in 2016.

How It Works

Shopping in elevenia means you can enjoy online shopping called open marketplace platform. The company offers payment solutions, namely Escrow System, which ensures the safe transaction between sellers and buyers.

First, the buyer will complete the transaction in elevenia, paying the amount of money for the purchased goods. Then, elevenia will send a notification to the seller on the transaction occurred. After the notice from elevenia, the seller sends the goods to the buyer. After receiving the goods, the buyer shall make a purchase confirmation, at which point elevenia releases the funds to the seller.  

On the website, elevenia claimed that there are some benefits for buyers to do shopping on the website such as various products, various payment methods, benefit to get points and vouchers, delivery tracking, 24 hours customer support, mobile apps and cancellation and return of the buying goods. For the sellers, elevenia provides photo studio for the products, training workshop, fast money disbursement, good value of commission, and an online shop on behalf of the sellers. In addition to providing convenience for the seller, elevenia gives attractive offers to its members. There is a special offer every 11th named “elevenia Day” as the day when elevenia gives  11% off to all products. Besides, through the year there is also Free Voucher amounted to 1 Million Rupiah and 3 Million rupiah  to the buyers.

Competitors

Elevenia faces still competition against other e commerce operated in Indonesia such as Tokopedia, Lazada, Bukalapak and matahari mall. According to alexa.com, commercial web traffic data and analytics company, elevenia ranking of access is number 29 among other websites. In terms of e-commerce, tokopedia leads the ranking, following bukalapak, lazada and then elevenia. While according to easycunter.com, elevenia global rank is 1.269, with the total daily visitors amounted to 410.000 and daily pageviews amounted to 1.04 million.

 

Consumers Insight

Madeleine Ong De Guzman, VP Marketing of Elevenia, stated that most of the consumers of the company are urbanist. In the elevenia’s database, over 60% of total members are from Jabodetabek (abbreviation of Jakarta, Bogor, Depok, Tangerang and Bekasi). Meanwhile, 20% are from other urban cities such and Medan, Surabaya, and Bandung. The average amount of each transaction on elevenia is of Rp 400,000. Demographically, there are segments of urban society with economy class at level A, B, and C + with the composition consist of 51% are male and the rest are women. In terms of access, 60% of transactions on Elevenia are accessed through mobile phone. However, Madeline said that customers tend to access Elevenia through mobile devices when they search for items and use the desktop to make a purchase.

Today, elevenia averaged transactions per day is 20.000 with more than 4 million products. Meanwhile, the number of registered members has reached about 2 million. However, the company claimed that it will only gain profit after its initial operation in 2014. Meanwhile, elevenia is considered as successful start up judging from its increasing transactions and amount of members. According to VP Marketing Elevenia Madeleine Ong De Guzman, the key to success of Elevenia in just 2 years of operation is because of the company’s ability to secure notable partners (sellers) to engage cooperation before the big launch. She claimed that it was because of the big name shareholders that were behind elevenia, namely XL Axiata and SK Planet. In addition, since its operation in 2014, elevenia has already supported both in desktop and mobile platform to run the website. Those two factors are key success of the elevenia which now is listed as top 5 e-commerce in Indonesia.

Business Insight

Elevenia focuses on key strategies that help build consumer confidence: the quality and quantity of products, pricing, marketing and promotion, as well as consumer convenience. Lila Nirmandari, CFO of elevenia, stated that elevenia actually supports the development of e-commerce in Indonesia. She explained that elevenia and other e-commerce companies are partners in building the digital market industry in Indonesia. Thus, she said, creating a positive climate in the digital market in Indonesia is an important goal for the company.

However, Lila stated that to face competition among the similar e-commerce companies, it would require elevenia to implement some focused business strategies. The company committed to educating the seller to give the best in terms of service, product quality, speed of response, and of course the shopping convenience of consumers. Lila claimed that all those strategies are important for the e-commerce industry since consumer expectations must be in accordance with the reality offered in the marketing campaign and website. By doing so, the company can achieve trust and loyalty from the consumers. Moreover, elevenia also planned to engage with Small – Medium Enterprises (SMEs) in Indonesia and encouraged them to open online shop in elevenia.co.id. Thus, Elevania joined cooperation with banking institutions, SME associations, and other independent entrepreneurs.

 

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