Indonesia’s Bukalapak to scale down to virtual products
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Indonesian e-commerce firm Bukalapak said on Tuesday that it would stop selling physical items on its marketplace soon, amid tough competition from TikTok’s Tokopedia and Sea’s Shopee in Southeast Asia’s largest economy.
Bukalapak, which went public in 2021, said in a statement that it later would only sell virtual products ranging from mobile phone credits to streaming vouchers. Customers have until February 9 to make last orders for certain items, Bukalapak added.
“Bukalapak will undergo a transformation in an effort to increase focus on virtual products … we fully understand that these changes will impact the sellers and we are committed to making this transition as smooth as possible,” the company said.
Shares of Bukalapak were down 4.1 percent to 117 rupiah on Wednesday as of 0519 GMT.
On the day of its market debut in August 2021, Bukalapak shares had soared by the daily limit of 25 percent to 1,060 rupiah a piece as investors looked to get a piece of the company that raised $1.5 billion in its initial public offering.
But over the three years since its listing, Bukalapak has faced fierce competition from Indonesia’s e-commerce market leader Shopee, which is owned by Southeast Asian technology firm Sea, and from Tokopedia.
Tokopedia, another homegrown e-commerce company, is now majority owned by ByteDance’s TikTok, which acquired 75.01 percent of the shares from local tech conglomerate GoTo early last year.
Bukalapak reported a loss of 593.23 billion rupiah ($36.62 million) in the first nine months of 2024, according to its latest financial results.
Questions & Answers
Q.Which virtual products will Bukalapak focus on selling after its transformation?
Which virtual products will Bukalapak focus on selling after its transformation?
Bukalapak stated it will focus on selling virtual products such as mobile phone credits and streaming vouchers. This new strategy comes amid tough competition from other e-commerce giants in the region.
Q.When do customers have to place their final orders for physical items from Bukalapak?
When do customers have to place their final orders for physical items from Bukalapak?
Customers have until February 9 to make their last orders for certain physical items. After this date, Bukalapak will no longer sell these products, transitioning to a virtual-only model.
Q.Who are Bukalapak's main competitors in the Indonesian e-commerce market?
Who are Bukalapak's main competitors in the Indonesian e-commerce market?
Bukalapak faces significant competition from TikTok's Tokopedia and Sea's Shopee. Both companies operate in Southeast Asia's largest economy, making the e-commerce market fiercely competitive for Bukalapak.
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