- Mar 28, 2021
- Business Update
JD.ID CMO: Five Years On, JD.ID Laser Focused on Quality and Service
by Ella Kidron
JD.ID, JD.com’s joint venture in Indonesia, celebrated its fifth anniversary on Mar. 28. To mark the occasion, the company’s CMO, Leo Haryono, spoke with the founder of Alarice and ChoZan and LinkedIn influencer, Ashley Dudarenok, about the company’s journey since 2016, consumer trends in Indonesia, and what to expect from JD.ID going forward.
“Before the [COVID-19] pandemic, people would mainly buy online because of a big discount, or because the product is something they don’t get in the supermarket,” said Haryono. In this pandemic, shopping behavior has become ‘online first’. People care about their safety, and purchase behavior for products like groceries has shifted online.
“In addition to groceries, the 3C category (computers, communication, and consumer electronics) has remained a top seller for JD.ID. “It’s exciting that they trust JD with these high-ticket items.” Furthermore, as people are spending more time at home, gaming has boomed under the impact of COVID-19, creating significant demand for gaming equipment and accessories.
According to Haryono, a few things make the Indonesian e-commerce market particularly unique: deep smart phone penetration and young customers. Indonesia is a very young country, which means consumers are open and eager to try new technology.
In addition to ‘online first,’ another trend is that people are purchasing more items and with increased frequency. The average spend per purchaser has increased by up to 50% YOY at JD.ID as of the end of 2020 .
Dudarenok noted the healthy balance of international and domestic brands in JD.com’s operations in China. As for Indonesia, Haryono mentioned a “great balance of global brands, local brands.” JD.ID supports government initiatives to enable Indonesian SMEs to participate more actively in the economy, meaning a wide variety of niche local products is also available on the platform.
What sets JD.ID apart from others in the market is the #DijaminOri tagline, which means “authenticity guaranteed” in English. “#DijaminOri is something we used when we started the business five years ago. We coined the term. If you ask people what they think of JD.ID in the local market, they will speak to #DijaminOri,” said Haryono.
The early commitment to authenticity has also served to educate the market and cultivate consumers who highly value product quality and service, in both the shopping experience and delivery. “Our primary focus is to bring a joyous shopping experience to customers. We learn from the success of JD.com in China and bring that to Indonesia. But at the same time, we tailor our method to the local market.” This deliberate decision has enabled the company to achieve nearly 100% of orders in Jakarta, Bogor, Depok, Tangerang, and Bekasi delivered in 24 hours, and 85% of orders nationwide fulfilled in 24 hours, even though Indonesia has tons of islands.
The approach has paid off. The number of people who registered on JD.ID in 2020 was nearly 40 times higher than in 2016 when JD.ID was getting started. Orders are up to 50 times in the same period. Daily active users are also approximately 15 times higher. “Daily app downloads have increased 10 times since 2016. This is encouraging,” said Haryono. JD.ID supplies a wide range of products from home electronics, apparel, audio, furniture, games, and many more.
Looking to the next five years, high quality, authenticity, vast product selection, and customer service remain top priorities for JD.ID. The company is an early mover in Indonesia’s O2O (online to offline) market. Haryono stressed that enabling consumers to buy anything at any time is a key aspect of providing top-notch service.
“There may be this perception that Indonesian consumers want to go for bulk or cheaper products with e-commerce, not quality or authenticity, but JD.ID being there in the market and to see that they are thriving in Indonesia proves this wrong,” said Dudarenok. “At the end of the day, quality and authenticity always win.”
According to Haryono, the level of service JD.ID provides is the bottom line in what an e-commerce experience should offer. “For customers to keep coming back, you have to work on these basics. This is what they want.”
View the whole discussion here
View a snapshot of JD.ID’s five years of milestones here
To learn more about working with JD.ID in Indonesia, please contact:
Senior Media Relations Manager JD.ID