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As much as I try to support or buy directly from smaller businesses, sometimes the convenience of bigger ecommerce players is just too tempting. Between their uniform shop fronts, constant sales, and better shipping rates, it’s no surprise that major brands are popular.
While some platforms merely host brands, others may snap up up-and-coming players, seeing their potential as an exclusive offering or the opportunity to stifle a future competitor.
Consumer brands are now a new focus for Bukalapak. The Indonesian ecommerce giant went on a spending spree, allocating a third of its US$1.5 billion IPO proceeds to its M&A efforts.
In this week’s Big Story, my colleague Ardi Wirdana digs into Bukalapak’s M&A strategy and how it’s betting on consumer brands to drive profits – a strategy it quietly adopted amid recent trends.
But similar to Amazon in the US, can having in-house brands also lead to anti-competition issues with other rivals who also sell on the Bukalapak platform?
Meanwhile, our Hot Take weighs in on Singapore’s new ecommerce trustworthiness ratings system. Can it meaningfully address scams on these rapidly growing platforms? Or will it end up dissuading consumers from using recommerce marketplaces to buy secondhand stuff?
– Qishin
THE BIG STORY
Image credit: Timmy Loen
How Bukalapak bets on rolling up brands in pursuit of profits
As Bukalapak goes on a shopping spree with its IPO proceeds, its M&A strategy could shed light on the ecommerce giant’s bet on brands to drive profitability.
THE HOT TAKE
Will Singapore’s anti-scam ratings for ecommerce make a difference?
Image credit: Timmy Loen
NEWS YOU SHOULD KNOW
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