ID ecommerce: rivalry up, growth down

In The Checkout this week, we look at Indonesia’s ecommerce landscape and discuss the crumbling of China tech’s walled gardens. [Read from your browser]( The Checkout 🛒  --------------------------------------------------------------- Welcome to The Checkout! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in ecommerce. You can find past issues [here]( or [sign up here]( to receive future newsletters. Also, If you’re not a subscriber, get access by [registering here](. IN FOCUS In today's newsletter, we spotlight: - [The key players in Indonesia’s growing ecommerce landscape]( - WeChat Pay’s integration with Alibaba’s ecommerce platforms --------------------------------------------------------------- Hello {NAME} There’s a running joke among Indonesian netizens about how Tokopedia is the ecommerce platform of choice for men, while [Shopee is for women](. While this might be purely coincidental, my wife and I definitely fit this classification: She does her online shopping only on Shopee while Tokopedia is the sole ecommerce app installed on my phone. As to why this is the case, I’d argue that it’s mostly due to what we buy online and how we discover these products. My wife’s shopping cart is mostly filled with skincare and cosmetics that she finds by watching hours of Instagram reels. I primarily buy electronic devices like wireless earphones and phone chargers recommended by [Gadgetin]( Indonesia’s top tech-focused content creator. In short, fashion and beauty are the most popular categories on Shopee. Tokopedia, in contrast, has a more established catalog of mobile and electronic gadgets. Despite slowing growth, Tokopedia and Shopee remain the leading ecommerce players in Indonesia, as noted in this week’s Big Story. The competition between the two has escalated lately, particularly in the social commerce segment, with each platform partnering with a video-streaming giant. Meanwhile, in this week’s Hot Take, I look into how China tech’s “walled gardens” continue to crumble as digital heavyweights like Taobao and WeChat are increasingly collaborating. -- Glenn  --------------------------------------------------------------- THE BIG STORY [Mapping Indonesia’s ecommerce sector as funding hits 10-year low]( Ecommerce players in Indonesia have only raised US$27.3 million so far this year, just 1.5% of the overall 2023 figure.  ---------------------------------------------------------------  THE HOT TAKE The end of China’s tech silos? Here’s what happened: - On September 27, Alibaba’s Taobao and Tmall ecommerce platforms started [accepting payments done via Tencent’s WeChat Pay](. - Besides Alipay, customers can now use WeChat Pay and UnionPay for purchases on Taobao and Tmall. - This is a major step towards greater interconnectivity between China’s tech giants. Here’s our take: This development marks a significant shift in China’s ecommerce landscape, breaking down the so-called “walled gardens” that have long defined the country’s tech ecosystem. Previously, Alibaba and Tencent fiercely protected their platforms by blocking each other’s services. For years, Alipay was the sole payment provider on Taobao and Tmall. Meanwhile, WeChat [only stopped blocking links from Taobao]( in September 2021, when Chinese authorities began cracking down on monopolistic practices. The foundation for this recent cooperation had been established by earlier initiatives. In October 2023, Taobao [tested]( a QR code payment functionality for WeChat users. Market necessity seems to be one of the driving forces of this collaboration. Alibaba’s ecommerce business has been facing [more competition]( from Pinduoduo and ByteDance’s platforms. Meanwhile, ByteDance surpassed Tencent in terms of revenue for the first time in 2023. Integrating WeChat Pay could unlock a larger user base for Alibaba, especially in lower-tier cities where WeChat is [more dominant](. Alibaba can also tap into both younger and older demographics who tend to spend much of their time on WeChat. Likewise, Tencent can immediately benefit from a new revenue stream. Speaking to [36Kr]( an investment analyst noted that Taobao will have to “pay a payment processing fee for each transaction completed via WeChat Pay.” This interconnectivity also extends to logistics. Xinhua [reported]( that by mid-October, Taobao and Tmall sellers will be able to use JD Logistics for shipments, while JD.com is adding services from Cainiao, Alibaba’s delivery network. Moreover, JD.com is preparing to introduce Alipay as a payment option in time for Singles Day or the November 11 shopping festival. All these moves could improve the user experience and seem to align with China’s broader push for digital infrastructure development. As tech giants continue to collaborate on payments and logistics, the competitive dynamics of China’s ecommerce market are bound to get even more interesting. ---------------------------------------------------------------  TECH IN ASIA CONFERENCE JAKARTA • OCTOBER 23-24 E-commerce: A Driving Force for Southeast Asia's Tech Future E-commerce has emerged as a cornerstone of Southeast Asia's digital economy. The region's rapid growth and increasing internet penetration have created a fertile ground for online shopping, attracting significant investment and innovation. Uncover more insights like these in the 2024 Tech in Asia Conference Report. [Download now]( to gain valuable insights into the e-commerce landscape and discover how it's shaping the future of Southeast Asia's tech ecosystem. [Join us at the Tech in Asia Conference Jakarta]( October 23-24, to delve deeper into e-commerce trends and network with 4000+ founders, investors, and industry leaders. Don't miss these must-attend sessions: - Beyond the platforms: New opportunities in ecommerce with Paul Srivorakul (group CEO, aCommerce) and Ryan Manafe (CEO & founder, Dagangan). - Building the Philippines' first fintech unicorn with Ernest Cu (president & chief executive officer, Globe Telecom Inc.) Use code SEATOFUTURE for a 15% discount. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. [Tech in Asia Conference Jakarta | October 23 - 24]( Over 4,000 founders, investors, and leaders from companies like eFishery, Qapita, Baidu, Brankas, and AWS have already secured their passes for the Tech in Asia Conference Jakarta. Don't miss out! Our presale passes are selling out fast. [Grab yours now]( and enjoy a 30% discount before prices increase on October 2 or we sell out completely. Secure your spot today and join the thousands of innovators shaping the future of Southeast Asia's tech landscape.  [Startup Factory at Tech in Asia Conference Jakarta]( Looking to attract investors, customers, and partners? Exhibit your startup at Southeast Asia's premier tech conference! With less than 20 slots remaining, now is your chance to showcase your innovation alongside rising startups from Indonesia, Japan, Singapore, ​​Turkey, Hong Kong, Cambodia, and more. Join us at Tech in Asia Conference Jakarta and gain unparalleled exposure to the region's most influential founders, investors, and tech leaders. Applications are open until 16 October or when fully sold out! [Apply now.]( [SYNC 2024 on October 08]( Calling all founders, CEOs, investors, and corporate leaders, join us for a unique opportunity to hear Razer CEO Min-Liang Tan share his vision for the future of gaming. At SYNC 2024, he will be joined by Andrea Phua, senior director of National AI Group, for a captivating main stage session where they will delve into Razer’s cutting-edge AI initiatives that are transforming the gaming landscape. Learn more about SYNC and [apply for a ticket.]( [Experience #TIAConferenceJKT like a pro | October 23 - 24]( Ever felt overwhelmed at a conference? Too much to see, too little time? At TIA Conference Jakarta, we've got you covered. Our Pro Pass gives you exclusive access to networking events, catered meals, and on-demand sessions, ensuring you make the most of your time. Focus on building relationships and leave the logistics to us. Bond with your new connections over five-star meals and catch up on sessions at your own pace with video replays. But hurry, this pass is in high demand and sells out quickly. [Grab your Pro Pass now]( for US$153 before prices increase on October 2.  --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. See you soon! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. 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