Shariah-compliant Indonesian brands tap Evermos to expand countrywide

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Hi there,

There’s always a benefit to being a large brand.

Big brands with their capital often find themselves able to expand more quickly and reach a larger population, all while reaping the benefits of scale economies.

At least that’s what Evermos, an Indonesian social commerce startup focused on Shariah-compliant products, found.

In the archipelago, brands that sell countrywide are typically backed by conglomerates or multinational firms that have substantial financial resources available for investment, Evermos CEO and co-founder Ghufron Mustaqim tells my colleague Jofie in this week’s Big Story.

Through Evermos, even small businesses can develop a countrywide reach. The platform’s dropshipping model enables small resellers to start selling without incurring any inventory costs – and risks – upfront.

Big brands also hold sway in other ways – including the power to choose where to sell and how to price their items. Shiseido, a Japanese skincare and make-up retailer, said last month that it would “turn away” from “extreme” promotions in China going forward, including at the 618 sales extravaganza that concluded this week.

While big companies have that privilege, smaller sellers reliant on major ecommerce sites for sales may unfortunately find themselves getting squeezed as the platforms engage in aggressive subsidies to drive sales.

In this week’s Hot Take, I dive deeper into the slowing sales growth during China’s 618 summer sale event this year as consumption loses steam in the country.

— Melissa

THE BIG STORY

How Evermos helps Shariah-compliant brands reach lower-tier cities through social commerce

Image credit: Timmy Loen

The firm sees Shariah as an important aspect in penetrating lower-tier cities in the country.

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI