The platform looks to take on the US$14 million Indonesian lingerie market, following an investment from Ardent Capital
With today’s launch of its online marketplace for lingerie, Lolalola wants to be Jakarta’s one-stop shop for the soft and slinky. The site offers intimate apparel from both in-house and international brands, ranging from basic undergarments to more scintillating lingerie options like babydoll pieces and camisoles, as well as sleepwear and swimwear products.
The company shares that the site was inspired by popular lingerie brands like Victoria’s Secret and Agent Provacateur, but with cheaper options.
“Fashion should be available and affordable for everyone. Therefore, trying to keep the price reasonable is a main focus of Lolalola,” says Lolalola CEO, Donna Lesmana.
Soft-launched in March 2014, the startup recently received an undisclosed investment from Ardent Capital which it will use to scale up its product and tap into the estimated US$14 million Indonesian lingerie market.
The company said in a release that platforms like Lolalola exemplifies how tech is powering female commerce, which is particularly significant in a religiously conservative market. At least 40 million women now occupy the online domain in Indonesia and control 65% of purchasing decisions.
The platform will face with other local competitors such as OgahMahal, Kawaii Lingerie, Lingerie Indonesia. The company claims however, that none of the local e-stores are dominant in the lingerie market, which gives Lolalola an opportunity enter in and win over the space.
The site did not share extensive statistics on Lolalola’s traction, but tells e27 that Lolalola currently registers an average monthly sales growth rate of 40 per cent.
Besides the new funds, the company also has access to Ardent Capital’s reach and regional partnerships with networks like WhatsNew. The VC’s Ardent Labs Division is also headquartered in Jakarta, which provides e-Commerce platforms like Lolalola with infrastructure support from operations and technology to sales and marketing.
The site is also managed and operated by e-Commerce logistics platform aCommerce, and will introduce new payment options for Indonesia consumers with the launch. On top of credit card payments and online banking, Lolalola will now offer Cash-On-Delivery (COD) which allows shoppers to pay for their products once it has been delivered to them. COD and bank transfer services are crucial in appealing to the Indonesian consumer base as the country has a less than six per cent credit card penetration, with more than 80 per cent of online shopping payments done by bank transfer.
COD services are also offered by the big e-commerce players in Indonesia, such as Rakuten, Lazada and Zalora. Currently, Lolalola’s COD services will only be available in the Greater Jakarta area, but will be expanded across Indonesia in the near future. The site also offers free delivery across Indonesia with no minimum purchase. Taking into account Indonesia’s more conservative consumer base, the site has plain packaging deliveries that offer discretion and privacy to shoppers.
Future plans for the startup include the expansion of product categories, a boost to marketing efforts and customer service.
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(Disclaimer: Ardent Capital is an investor in Optimatic Pte Ltd, e27’s parent company)