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AcceptWork - News Jet Commerce CEO Talks About Business Development and Expansion to Vietnam and Thailand

Jet Commerce CEO Talks About Business Development and Expansion to Vietnam and Thailand

2018-11-11 - 5 min read

Since 2017, former Indonesian OPPO CEO Jet Lee has set up a J & T Express logistics company, which now has outlets in many locations in Indonesia. At the same time, Lee actually co-founded another company called Jet Commerce.

Jet Commerce focuses on helping owners of Small and Medium Enterprises (SMEs) and large companies that are used to selling products offline, to enter the business of buying and selling online.

How exactly is the business and development of Jet Commerce to date? What lessons have they brought from China to support the e-commerce industry in the country? To answer these questions, we decided to meet again with the CEO, Oliver Yang.

What are the services of Jet Commerce actually?

We have two main services. The first is service as Alibaba.com's official partner in Indonesia. With this service, we can help SME owners in Indonesia who want to sell their products on Alibaba, so that they can be bought by everyone in the world.

While the second is a service to help brands who want to sell products online. We can help them in terms of:

  • Determine a marketing strategy.
  • Determine which e-commerce or marketplace is right for them.
  • Make product design, and display it on an online platform as an Official Store.
  • Handle customer complaints with internal customer service teams.
  • Packaging goods.
  • Send products to customers.

Especially for the second service, can brands only choose one or two types of services, and not use other services (à la carte)?

For now, we prefer to only deliver full service to the brand. But it is possible that we will present such à la carte services in the future.

Currently there are several startups in Indonesia that also present e-commerce enabler services like the one you offer, for example aCommerce. What is your strategy to win the competition?

We actually tend to avoid the term enabler, because the term is synonymous with warehousing and logistics companies, and only focuses on sales volume.

Whereas we focus on making marketing strategies, brand images, and public awareness of the brand. That way, they can feel the positive impact for the long term. The online strategy must be in line with their strategies in the offline domain.

In order to succeed with this focus, we also recruit experienced talent in advertising agencies in Indonesia, as well as experts from China.

One of them is the importance of the online chat feature. In addition, we also try to do attractive packaging, so customers can feel the difference ordering through our Official Store with other stores, even though the product is the same.

For example for one cosmetic product, we made a kind of gift box, and inserted a thank you card and a small gift in it. That way, customers will automatically share the packaging on their social media, even though we didn't ask for it.

We try to overcome one of the problems that occur in e-commerce businesses, namely users cannot touch and try directly the products sold. We present what we call Rich Content in the product description.

In the description column, we explain:

  • Why do you have to choose that brand,
  • Why do you have to buy the product,
  • From where the raw material to make the product comes from.

In addition, for fashion products, we will display the right situation to use the product, and how to combine it with other products.

Does Indonesia really only need some e-commerce support services like you? Or actually there is still room for more new services?

Talk about e-commerce, in my opinion it is not enough with just a few services. In China alone there are thousands of e-commerce support services, both small and large scale.

At present, there are still many brands that are not ready to enter the online business, so the market for this business is still very large.

What is the number of warehouses currently owned by Jet Commerce? Do you use a warehouse owned by J & T Express?

We have our own warehouse, separate from the J & T Express warehouse. We currently have only two warehouses in the Tangerang area and Daan Mogot, West Jakarta. In 2019, we are targeting to add two new warehouses on Java and Sumatra.

Until now, what brands have cooperated with you?

Currently, we have collaborated with OPPO, MamyPoko, Mustika Ratu, Shiseido, Dettol, Colgate, and several other brands.

We do not directly invite all companies to work together. We prefer to target a famous brand in each category, making it successful in the online market, before then opening up cooperation with other companies in that category.

For example in our collaboration with PPPO. We try to create a customer mindset, so that when someone intends to buy a smartphone online, he will immediately think of the OPPO brand. We hope that something similar can happen when they are looking for a smartphone that is good for selfies.

Is this cooperation exclusive?

Yes, we chose to make it exclusive so that all forms of marketing their products online can be in line. So if you buy an official product from the brand, we can be sure to send it.

How many transactions do you facilitate every day?

About two thousand orders every day.

How many are your current employees?

The number of our team currently reaches 170 people. This figure includes the operational team in the warehouse, customer service, and Digital Marketing.

For the Digital Marketing team we divide into three parts, namely Marketing Planner, Copywriter, and Designer.

Are you looking for new funding?

From the start, we operated with funds from our founder, Jet Lee. So far our financial condition is still good, so we don't need external funding.

Have you ever received an investment from Alibaba?

No, our relationship with Alibaba is only as a partner.

Are there plans to expand to other countries in the near future?

At present, we have teams in Thailand and Vietnam. There are two things why we decided to expand there:

Brands encourage us to also deliver services in these countries.

The interest of the people there to buy branded goods that work with us online is also quite high.

In addition, our brother J & T Express has also been there. So when we expand, at least we already have a family that can support us.

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