Footwear Giant Baocheng Bets Heavily on Indonesia in 2022
07 Feb 2022
Abstract: Baocheng Group will focus on the expansion of production in 2022 in Southeast Asia, while...
It is reported that the Indonesian-based social commerce start-up "Desty" received a US$3.2 million Pre-A round of financing. This round was led by Wuyuan Capital, followed by Fosun Ruizheng Capital, Yingdong Capital, January Capital, and East Ventures. Among them, East Ventures is also a seed investor in Desty.
Desty is a digital platform established in October 2020. It provides tools and platforms for KOLs and small e-commerce sellers in all walks of life in Indonesia to display products and services online, such as creating personalized desty pages and Build an online store (desty store). Users include some brand owners, offline shop owners, well-known content creators, and KOLs from various industries such as food, travel, life, and fashion.
Desty was founded by technical experts from Indonesia and China, bringing together the collective experience of technology leaders such as Alibaba, Facebook, Google, JD.com, and Canva. It has rapidly developed into Indonesia's leading social commerce tool with hundreds of thousands of users. Desty's products are currently completely free, because Indonesia is still in the early stage of e-commerce development. Desty hopes to cultivate the e-commerce habits of buyers and sellers first, and grow together with merchants in the process of e-commerce ecological development triggered by the epidemic.
Currently Desty has two main products, Desty Page and Desty Store. Desty Page is a landing page service optimized for links on social media accounts, especially Instagram; Desty Store is a platform for users to open an online store.
The logic behind Desty Page is that the team hopes that Desty can empower these potential seller groups in the early stages of e-commerce development to better market their content, products and services through social channels, and improve traffic conversion. Desty Store wants to help sellers complete online store opening and build their own online sales platform. Buyers can place orders and pay online, and orders and logistics can be tracked and inquired in the background. Desty Store is similar to a tool like Shopify, but it will be closer to the needs of local users, and will serve users better with more local partners.
Desty then established Desty Academy as the main channel of information and training resources to help Desty customers develop their businesses through practical operating methods, best practices and case studies. The ultimate goal of Desty is to help businesses complete digitalization within five minutes by creating a platform.
The team admitted that it is difficult to find a benchmark for Desty's model in China, or that Desty's model may not be established in China. After years of development in domestic e-commerce, the page format for building personalized web pages is outdated. The mode of domestic online stores is often centered on the ecology of WeChat, and WeChat businesses use WeChat to attract traffic and spread. However, the e-commerce market in Indonesia is very different from that in China. "Indonesia’s e-commerce platforms are very fragmented. Both buyers and sellers have their own preferred platforms. At the same time, a large proportion of consumers will communicate and trade with merchants through social channels such as Facebook, Instagram and WhatsApp. There is too much room for optimization."
Desty has indeed gained the trust of customers through efficient products. For example, a famous Indonesian singer with more than 21 million followers on Instagram uses Desty to host her beauty brand Purnama Beauty, effectively increasing Purnama Beauty’s retail and distributor sales. efficiency.
One of the backgrounds for gaining customer recognition is the rapid development of large-scale e-commerce in Indonesia during the epidemic. In 2020, online transactions nationwide in Indonesia will increase by 18.1% to 98.3 million, and there will be 12 million new e-commerce users. In addition, the most trusted shopping channels for Indonesian consumers come from various platforms: market (97%), company-owned domains/websites (91%) and social media (82%).
In addition, Indonesia itself is also a market worthy of deep cultivation. Chief Operating Officer Wang Wei believes that Indonesia, as the largest population market in Southeast Asia, has sufficient influence. If it can occupy a certain scale in this market, the product can be well verified: "Indonesia itself is at a stage of rapid growth. The local manufacturing industry is also developing. This is actually a basic condition for local economic development. In the future. , Indonesia may also produce a stronger supply chain production capacity, and even radiate to other countries."
Another reason for the recognition is that the Desty team is strong and the products fit the actual situation. CEO Mulyono Xu and COO Wang Wei have a deep understanding of e-commerce, venture capital and the Indonesian market. The entire team has more than 15 years of experience in merchants and their digital operations.
It is reported that this round of financing will be mainly used for team expansion and user acquisition.