The so-called Korean wave is now getting into the Indonesian e-commerce space. This time, Kim Min-soo, founder of South Korean daily deals site Ticket Monster (which was acquired by LivingSocial in 2011) is launching a new venture. Dubbed TheHallyu, the new startup is done as a joint venture between local digital strategic intelligence company Inlite Indonesia and South Korea’s Coolink, Ltd. “Hallyu” refers to the “Korean wave,” or the rising popularity of Korean culture and entertainment in media outside the country.
The fashion e-tailer brings its home-grown products — such as Envylook, Shinn and Style Line — to Indonesia, which is its third foray outside of South Korea, after Japan and France.
As of writing, TheHallyu accepts PayPal, bank transfer and credit cards as payment methods, while other modes are on the way, such as Mandiri Clickpay. TheHallyu has also partnered with courier services with proven track records, such as Express Mail Service, DHL and UPS. As such, whatever needs to be delivered gets delivered.
Prior to the decision to tap the Indonesia market, Inlite — led by CEO Citra Yuliasari — conducted a market survey, in which the company saw a huge potential in the Indonesia market for e-commerce.
Kim believes that online shopping will be increasing by 45 percent in the next five years, with an average expenditure of IDR 500,000 (US$51.50) per transaction. That makes sense and explains why the products they offer ranging from the price of IDR 250,000 (US$26) to IDR1 million (US$105). Today, free shipping is available for a limited time for purchases with minimum of US$150.
“Based on the research results, the Korean wave in Indonesia is larger than neighbor countries, not only from the scope of entertainment such as music and drama, but also fashion and lifestyle,” Citra said in a statement.
Citra, who was formerly chief sales officer for DealGoing, highlighted that upon launching both companies will have customer satisfaction, payment system and delivery system development as their main priorities.
Besides focusing on the B2C market, the e-seller also plays in B2B. It’s actually the more important aspect of the business, which is their “revenue backbone.” By targeting a certain amount in minimum purchases, the wholesaler and resellers are entitled to a certain percentage of discounts.
In addition to these two programs, they also offer affiliate partnerships to reward publishers and partners for each visitor or customer brought in by outside marketing efforts.