Indonesia’s D2C firms discuss the TikTok Shop ban and why offline retail still matters

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IN FOCUS

In today’s newsletter, we look at:

• The future of Southeast Asia’s direct-to-consumer space
• Rainforest’s positive earnings result despite troubles facing ecommerce roll-ups
• Why Bukalapak’s president isn’t too concerned about its falling stock prices

Hi there,

Filters allowing consumers to toggle between lipstick colors and “test” how different shades would look on them from the comfort of their homes were game changers during the pandemic.

Similar services have become commonplace these days, so brands have to innovate to stay ahead.

Given the high degree of personalization in makeup – everyone has different skin tones and preferences – it’s not surprising that cosmetics and beauty products are among the most popular items sold on livestreaming platforms.

Firms such as Esqa, an Indonesian direct-to-consumer makeup brand, had to quickly adapt to changing times, CEO Cindy Angelina told audiences at a panel session at the Tech in Asia Conference in Jakarta last week.

In this week’s Big Story, my colleague Jofie shares key takeaways from the discussion, including the impact of TikTok Shop Indonesia’s closure on businesses like Esqa.

Ecommerce platforms are working overtime to drive eyeballs to their sites. But there’s no denying how spending has gone down from the levels it reached during Covid-19.

In this week’s Hot Take, I discuss ecommerce aggregator Rainforest’s upbeat 2022 results and why it’s thriving even as large rivals like Thrasio are seeking restructuring options.

— Melissa

THE BIG STORY

D2C in Indonesia: life after TikTok Shop ban and why offline retail still matters

Image credit: Timmy Loen

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI