HappyFresh Indonesia optimistic
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Indonesia’s middle- and upper-class consumers are set to propel the trend of online grocery shopping, according to Jakarta-based grocery-shopping app HappyFresh.
“The outlook has never been more promising,” says CEO Markus Bihler.
“Opportunities abound in this region with its sophisticated, food-loving consumers, growing wealth and rapid urbanisation. The continued increase in mobile adoption and broadband penetration has helped boost our online grocery sales.”
Adding to the mix is traffic congestion, particularly in Jakarta and Surabaya, which HappyFresh Indonesia says is a big factor in enticing people to shop for groceries online.
Bihler says the market for online grocery shopping in Indonesia and other Asian countries could see double-digit growth in market turnover by 2020 to reach S$19 billion (US$13 billion) by 2020. He says it is being driven by the rise of a young, working-class population in urban areas.
Working mothers outnumber all other HappyFresh customers, with dairy products such as milk and eggs among the top purchases. They are followed by young professionals and expatriates who mainly buy tomatoes, spaghetti and chicken breast.
Securing $12 million in funding as a start-up last year, led by Singapore’s Vertex Venture and Sinar Mas Digital Venture, HappyFresh allows users in Malaysia and Thailand as well to shop for groceries through an app. In Indonesia, HappyFresh partners with Lotte Mart and Ranch Market.
“As a differentiator, HappyFresh partners with supermarket retailers, particularly small and medium-sized enterprises that do not have the capacity or ability to invest in technology and reach out to new set of customers,” says Bihler.
Questions & Answers
Q.Which customer groups does HappyFresh primarily serve in Indonesia?
Which customer groups does HappyFresh primarily serve in Indonesia?
HappyFresh's main customers are working mothers, who frequently purchase dairy products. They also serve young professionals and expatriates, whose typical orders include items like tomatoes, spaghetti, and chicken breast.
Q.What is HappyFresh's core strategy for differentiating itself in the online grocery market?
What is HappyFresh's core strategy for differentiating itself in the online grocery market?
HappyFresh differentiates by partnering with supermarket retailers, particularly small and medium-sized enterprises. This helps these businesses access technology and reach new customers they might not otherwise engage.
Q.What factors are driving the optimistic outlook for online grocery shopping in Indonesia, according to HappyFresh?
What factors are driving the optimistic outlook for online grocery shopping in Indonesia, according to HappyFresh?
HappyFresh attributes the optimism to the rising middle- and upper-class consumers, growing wealth, rapid urbanisation, and increased mobile adoption. Traffic congestion in cities like Jakarta also encourages online shopping.
Q.Which supermarket retailers has HappyFresh partnered with in Indonesia?
Which supermarket retailers has HappyFresh partnered with in Indonesia?
In Indonesia, HappyFresh has established partnerships with Lotte Mart and Ranch Market. These collaborations are central to their operational model and market strategy within the region.