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Image Credit: DailySocial

Near the end of 2015, digital media company migme made a move to strengthen its e-commerce focus by acquiring Shopdeca and Hipwee with a total value of US$2 billion. With this acquisition, Shopdeca implemented several changes, although it remains focused as a curated lifestyle e-commerce platform.

Shopdeca CEO Andreas Thamrin stressed that the company has decided to prove its business’ strength by keeping its focus on the Indonesian market, even though there is potential for expansion once the acquisition process is complete.

“Post-acquisition, the changes within Shopdeca and Sportdeca are more on the organisational side,” Thamrin told DailySocial. “We are now part of the bigger family. Back then Shopdeca had only 20 people, but now that we are part of migme, we grew into 200 people. We also have more complete resources,” he added.

“The additional resources from migme have enabled us to optimise operations. For example, when the organisation was made up of only 20 people, we had no one to monitor and optimise our AWS server usage. But now that we have someone from migme to do this role, we can easily monitor utilisation and ensure uptime,” he further explained.

Also Read: migme completes US$7.5M round from Foxconn, Timezone owner, Meitu and major Indonesian media company; resumes trading

After acquiring Shopdeca, migme likewise acquired Sportdeca, which, according to Thamrin, has already completed the process. He declined to comment on the exact numbers relevant to the Sportdeca acquisition, although Shopdeca is reported to have cost migme US$ 710,000.

Challenges, opportunities, and targets for next year

A year into the acquisition, new opportunities have opened up for both Shopdeca and Sportdeca. Among these is the chance to reach out to more users. Yet the main chellenge is to introduce migme users in Indonesia to Shopdeca and Sportdeca e-commerce services.

“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],” said Thamrin. “This can be one of the potentials to work on, [although] it is also a great challenge.”

Also Read: migme partners with MOX; looks to raise US$7.5M and resume trading on 4 Aug

“Historically, migme’s user base covers both Java-based handset (feature phone) and smartphone users. Thus, we need to figure out innovative ways to introduce and onboard those migme users as e-commerce users ,” Thamrin added.

On the other hand, there is actually an open opportunity to expand outside of Indonesia, considering migme’s user base, which originates not only from Indonesia. Even so, Thamrin stressed that the company will continue to focus on the Indonesian market to prove that its business can work, also pushing for growth in the succeeding year.

Thamrin stressed, “[Sportdeca and Shopdeca’s businesses] will keep focused on Indonesia. It is true that there are other markets where migme has a bigger user base, such as in India, but we need to be able to prove that [Shopdeca’s and Sportdeca’s businesses] can work in Indonesia.”

“We are certainly targeting growth for next year. But we want to ensure it is sustainable–not the kind that is led by massive discounts as done by several e-commerce players in Indonesia. Shopdeca and Sportdeca did choose to focus on niche e-commerce markets, in this case lifestyle. Thus, we tend to have larger basket sizes, and a decent number of repeat buyers and margins. 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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