Articles

TikTok Shop: Future of E-Commerce? How Can Galderma Leverage Tiktok Shop to Increase its Penetration and Improve its Market Share in Indonesia Skincare Market?

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TikTok was introduced to the Indonesian market in September 2017. Upon its launch, TikTok quickly gained popularity among Indonesian users, especially among the younger demographic, for its short-form video content that allowed for creative expression and entertainment. One of TikTok services is TikTok Shop, an integrated e-commerce capabilities directly within the TikTok app, allowing users to browse, purchase, and sell products without leaving the platform. They launch this service in April 2021. The platform introduced features like shoppable videos and live shopping events, where users could interact with influencers and brands in real-time while purchasing products providing a new and engaging way for Indonesian businesses to reach potential customers and boost sales through interactive and entertaining content.

Galderma Indonesia Healthcare is one of the leading companies dedicated to advancing dermatology for every skin story. Galderma strategically its positioned in attractive, consumer-driven segments of the dermatology market, characterized by high growth fundamentals supported by science-based product differentiation and premium positioning. One of Galderma’s brands that is available in Indonesia is Cetaphil.

Cetaphil products are available in modern retailers with Health & Beauty channel as the top contributor, followed by general trade and pharmacy channel. Even though available, Cetaphil is still low in in skincare category penetration.

This study examines the positioning and promotional strategies of Cetaphil on TikTok Shop using qualitative research methods. Primary data was gathered through expert interviews, while secondary data was sourced from internal company reports, previous research studies, and strategic agency reports.

Navigating Consumer Behavior in the Niche Market of Artisan Tea Blends: Insight from Indonesia’s E-Commerce Sector

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This research explores the factors that influence consumer behavior when purchasing artisan tea blends through e-commerce platforms. It investigates how aspects such as personal characteristics, cultural perceptions, trust endorsements, perceived usefulness, perceived ease of use, and online shopping preferences affect purchase intentions, using quantitative methods. The findings from Partial Least Squares Structural Equation Modelling (PLS-SEM) indicate that cultural perceptions, personal traits, and trust endorsements significantly influence purchase intentions, while perceived usefulness and online shopping preferences have less impact. These results suggest that for niche products like artisan tea blends, online marketing strategies should focus on cultural relevance, building trust, and understanding consumer characteristics to drive engagement and purchases.

The Effect of Gamification toward Customer Engagement in Shopee E-Commerce

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Customer engagement is one of the factors that influences a company’s overall performance, this aspect reflects the interaction between customers and brands. Gamification is one method that can be used to increase customer engagement. This research examines the influence of gamification on customer engagement on the Shopee e-commerce platform. In the rapidly evolving digital era, gamification has become a popular strategy to increase customer engagement by creating fun and interactive experiences. Shopee, as one of the leading e-commerce platforms in Indonesia, has implemented various gamification elements to attract customer attention. This research uses a quantitative approach with an online survey method involving 212 active Shopee user respondents from Jakarta and Bandung aged between 18 – 35 years. The data collected was analyzed using the Partial Least Squares Structural Equation Modelling (PLS-SEM) technique to test the relationship between the constructs of gameful experience, game satisfaction, and customer engagement. The research results show that all dimensions of the gameful experience, which include achievement, challenge, competition, immersion, fun, and social experience, have a positive influence on game satisfaction. Furthermore, game satisfaction also has a strong positive influence on customer engagement. This research provides insight for Shopee and other e-commerce about the importance of gamification to increase customer satisfaction and engagement. Effective implementation of gamification strategies can encourage e-commerce platforms to create more engaging user experiences.

Order Fulfillment Process Improvement in E-Commerce Warehouse: A DMAIC Approach for PT XYZ

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This research analyzes PT XYZ’s e-commerce fulfillment warehouse using the DMAIC (Define, Measure, Analyze, Improve, Control) methodology due to a shortfall in order processing, averaging 184.64 orders per shift versus a target of 250. The objective is to enhance operational efficiency and manpower productivity. Initial analysis identified significant inefficiencies and high variability in processing times due to Warehouse Management System (WMS) synchronization issues, manual rework, lack of standards, and non-value-adding activities. The improvement phase proposed solutions such as implementing a Pick-to-Light (PTL) system, WMS enhancements, standardized receipt picking, and incentive schemes. These improvements aim to reduce errors, optimize workflows, and increase employee productivity. The control phase includes comprehensive training plans, documentation, and monitoring tools to ensure sustainability and continuous improvement. Implementing these solutions is expected to increase order processing efficiency by 40-50%, build a more competitive and motivated workforce, and address issues between regular and freelance employees through targeted training and incentive schemes.

The Influence of Content Marketing towards Word of Mouth with a Mediating Role of Brand Awareness: Study Case at Lazada Indonesia

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The significant decrease in the number of visitors and not the first rank e-commerce platform in Indonesia indicates a decline in brand awareness and positive word-of-mouth. Considering the current critical condition of Lazada Indonesia in terms of awareness, the company must implement an innovative strategy to maintain the attraction of the platform and social media, while also gaining new customers and retaining existing ones. One approach is to efficiently utilize and enhance content marketing using social media to increase awareness of the company, which could result in increased positive word of mouth.

The purpose of this study is to explore the influence of content marketing has on word of mouth among users of Lazada Indonesia, while also examining the mediating role of brand awareness. The data for this research were obtained from a sample of 85 respondents who are users of Lazada Indonesia and who follow Lazada Indonesia’s social media accounts. The analysis and verification of all the results were conducted using SEM-PLS.

The research findings show that Lazada Indonesia’s content marketing has a positive influence on word of mouth and brand awareness among its users. The influence of brand awareness on word of mouth is positive but low influence. Furthermore, content marketing has a positive influence on word of mouth through brand awareness a mediating variable.

Research findings indicated that Lazada Indonesia’s content marketing has a positive also significant influence on word of mouth and brand awareness among Lazada Indonesia’s users. Same as the result of brand awareness has a positive and significant effect on word of mouth. Moreover, there is a positive and significant influence of content marketing on word of mouth through brand awareness as a mediating variable.

Proposed Marketing Strategy to Increase Brand Loyalty: Study Case of Lazada Indonesia

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The Indonesian e-commerce market is poised for significant growth, with projections indicating an expansion from USD 52.93 billion in 2023 to USD 86.81 billion by 2028. This rapid growth is driven by increasing internet and smartphone penetration, coupled with a rising demand for online shopping. Lazada Indonesia, one of the major players in this market, faces intense competition from platforms like Tokopedia and Shopee. This study aims to explore the strategic positioning of Lazada Indonesia, focusing on brand loyalty and market share dynamics within the Indonesian e-commerce landscape.

Utilizing a mixed-method approach, the research integrates both qualitative and quantitative data to provide a comprehensive analysis. The study employs various strategic frameworks, including PESTLE, Porter’s Five Forces, VRIO, STP, and the 7Ps of marketing, to assess Lazada’s internal and external environments. Key findings indicate that Lazada’s strengths lie in its robust technological infrastructure, extensive product offerings, and strong brand recognition supported by Alibaba. However, the company faces significant challenges, including inconsistent user experiences, internal coordination issues, and the need for more localized marketing strategies to effectively engage with the diverse Indonesian market.

The research provides actionable insights and strategic recommendations for Lazada Indonesia to enhance its market positioning and increase brand loyalty. Strategies include improving customer service, leveraging big data for personalized marketing, and forming strategic partnerships to enhance logistical capabilities. By addressing these areas, Lazada can better meet customer needs, strengthen its competitive edge, and achieve sustainable growth in the rapidly evolving Indonesian e-commerce sector.

Legal Protection for Both Parties in the Execution of E-Commerce Based Buying and Selling Agreements Grounded in Justice

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The internet media used for trading is known as electronic commerce (e-commerce), a business process that provides facilities between buyers and sellers or companies, consumers, and specific communities in electronic transactions related to goods, services, and information. In order for the parties involved in the transaction to feel more comfortable and secure, electronic transactions have been regulated in the ITE Law. The research method used in this study is normative or doctrinal. The nature of this legal research is prescriptive. The technique of collecting legal materials in this research is through document study or literature review. The results of the study indicate that the process of implementing buying and selling transactions through e-commerce is carried out in several stages, namely Offer, Acceptance, Payment, and Delivery. The buying and selling agreement through e-commerce is included in electronic contracts. Based on Article 1 number 17 of Law Number 11 of 2008 concerning Electronic Information and Transactions. Article 1320 of the Civil Code which is then reaffirmed in Article 47 paragraph (2) of Government Regulation Number 88 of 2012 concerning the Implementation of Electronic Systems and Transactions. Legal protection for Shopee consumers is based on the Consumer Protection Law Number 8 of 1999 and the Electronic Information and Transactions Law No. 11 of 2008 can be seen in regulations regarding consumer rights protection and compensation.

Analytical Hierarchy Process (AHP) Method for Marketing Agency Selection at PT Kirana Mitraabadi

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E-Commerce growth in Indonesia sets the stage for PT Kirana Mitraabadi, underlined by statistics indicating a substantial increase in e-commerce users. PT Kirana has identified the need to embrace and make a shift from a B2B-focused business model to the dynamic B2C market. The company aims to leverage this momentum, recognizing the potential to broaden its customer base and drive sales through the introduction of a new product line derived from its core offering of paraffin wax. However, the complexities of this shift reveal a major challenge in PT Kirana’s marketing division, which specializes only in B2B strategies. The key responsibility is developing B2C marketing strategies, required to be employed with a competent marketing agency. The assessment is conducted using 5 Whys technique and a fishbone diagram, examining the current factors and challenges that PT Kirana faces. Then, the process of choosing the agency involves a thorough decision making approach that takes into account both qualitative and quantitative factors. The Analytic Hierarchy Process (AHP) is the preferred method for assessing and choosing the best marketing agency to partner with. The findings of the AHP analysis offer actionable insights, facilitating a seamless transition for PT Kirana Mitraabadi’s as it ventures into the B2C market, supported by the strategic expertise of the chosen marketing agency. This will help the company to capitalize on the e-commerce market in Indonesia, expand its customer base and successfully introduce their new product line also increasing their sales through the B2C market strategies.

Warehouse Location Optimization with Clustering Analysis to Minimize Shipping Costs in Indonesia’s E-Commerce Case

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Due to the growth of the Internet economy, the popularity of online shopping has escalated in recent years. One of the largest e-commerce enterprises in Indonesia, PT. S, is the subject of the research in this article. Instead of typical e-commerce, where anybody may start a store, PT. S is concentrating on social commerce, which makes use of several resellers to offer hand-picked SME brand partners. PT. S must expand the market for inter-island or non-java-to-non-java transactions to fulfill its vision. However, PT. S will have logistical difficulty completing this job. The business used performance indicators to keep track of the logistics process’ vision and mission. Gross merchandise value, pickup time service level, and shipping time service level are a few of the performance indicators that pertain to logistics. The process of managing the supply chain will become more complex as a result of the opening of the new warehouse, and the business will need to maximize its use of various selling channels, logistical services, and supply chain management. With the aid of clustering analysis, which assesses demand similarity and proximity, the enterprise can locate a new warehouse. Durairaj and Kasinathan developed the framework template for this study in 2015. Based on the case study, literature review, and clustering method framework, the framework will be modified in several ways, particularly clustering analysis. The alteration concerns framework-integrated theories as an input and as a data source. According to the simulation’s findings, shipping costs per kilogram decreased by about 35% for five clusters. But if the corporation does not have a problem with the number of warehouses, according to the simulation’s findings, because the cost of transportation will go down as the number of clusters increases, the number of warehouses can be expanded to more than five.

E-Commerce Product Demand Modelling Using Machine Learning Algorithm Case Study of Rice Trading Products in PT XYZ

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E-commerce XYZ is an Indonesian commerce company that have 3 types of products in its B2C business line: trading, consignment, and marketplace. From January 2021 until October 2022, the company’s trading rice category product sales generated a negative profit. Even though for the last several years e-commerce has been focused on growth instead of profitability, the current economic environment is forcing e-commerce companies to focus on profitability as well. For trading products, maximum profit can be achieved in two ways: selling products with a very high margin but with less quantities or selling in large quantities but with a sub-optimal margin. Hence, the company needs to find a demand function model that can be used to generate maximum profit. To find the best model, the researcher first created a baseline model by using median for every product group which is already grouped based on their Unit of Measurement. Next, to find the best model, the researcher will create a demand function using 4 other models. It is found that Gradient Boosted is the best algorithm to model the demand function. Although this model successfully models a demand function for a product category in e-commerce, business context still needs to be added before this model can be implemented in real life as well as finding other features that might affect the demand function.