In the vibrant tapestry of Southeast Asia's retail scene, Zalora emerges as a luminary, navigating the intricate dance of digital transformation with aplomb. As 2023 unfolds, the fashion industry witnesses a seismic shift towards digital, and amidst this tumult, Zalora's journey offers a masterclass in strategic evolution. Zalora's inception in 2012 was marked by a bold vision - to integrate online and offline retail experiences seamlessly. This pioneering omnichannel approach, though met with skepticism, set the stage for a retail revolution in Southeast Asia. But Zalora didn't stop there. Recognizing the diverse tapestry of its customer base, the company pivoted towards a data-driven personalization strategy. By harnessing the power of AI and machine learning, Zalora transformed its customer interactions, ensuring that each touchpoint, be it web, mobile, or email, resonated with individual preferences and buying stages. This strategic shift underscores the profound impact of personalization in shaping retail strategies, enhancing customer engagement, and fostering loyalty. Zalora's strategic foray into digital payment solutions was audacious and timely in a region dominated by cash-on-delivery transactions. This move, necessitated by logistical challenges and the quest for operational efficiency, showcased Zalora's proactive approach to addressing market challenges. The company's investment in this domain streamlined the payment process and enhanced customer convenience, setting a new benchmark for e-commerce operations in the region. Beyond the digital realm, Zalora crafted tangible, memorable customer experiences. Initiatives like pop-up stores, fashion shows, and community events transformed Zalora from a mere online retailer to a fashion community curator. The #ZALORAYA2023 campaign stands as a testament to this, turning a traditional shopping experience into a cultural extravaganza, reaching millions, and solidifying Zalora's position as an experiential retail powerhouse. Zalora's narrative offers invaluable insights into the future of retail in Southeast Asia. From its omnichannel prowess to its emphasis on personalization, its innovative payment solutions, and its experiential retail endeavors, Zalora stands as a beacon, illuminating the path for retailers in the digital age.

Two retail giants dominate Indonesia's bustling and vibrant retail scene, Matahari Department Store and MAP Group. These formidable competitors, each with their strengths and unique market offerings, are embroiled in an exciting battle for retail supremacy. As the market evolved and consumer tastes change, both companies have adopted an omnichannel strategy to stay ahead of the curve and win Indonesian shoppers' hearts (and wallets). As the two companies try to win their respective markets, some interesting evidence is unfolding from their respective omnichannel strategies. From seamlessly integrating online and offline channels to innovative use of personalization and data-driven decision-making, these leading retailers are helping their customers stay engaged and satisfied and get more. However, there is another type of customer. This type of customer is their investor. In this case study, we explore the competitive landscape of the Indonesian retail industry, focusing on two retail giants, Matahari Department Store, and MAP Group, through the lens of an investor. As both companies strive to excel in the rapidly evolving market, they have adopted omnichannel strategies to stay ahead of the curve, enhance customer experience, and drive growth. The case delves into both companies' financial performance, market share, brand strength, and competitive positioning. It also examines the effectiveness of their respective omnichannel strategies, which are designed to address the unique challenges of the Indonesian retail market, such as competition from e-commerce, poor infrastructure, limited consumer access, and supply chain inefficiencies. The case study highlights the importance of analyzing various factors, including the relationship between information on the merits of each company's financial performance, omnichannel strategy effectiveness, market share, brand strength, or competitive positioning, to make informed investment decisions. By comparing the omnichannel approaches and financial performance of Matahari Department Store and MAP Group, investors can gain valuable insights into their respective strengths and weaknesses. Through this investor's perspective, the case study invites readers to evaluate and contrast the investment potential of these two retail titans in Indonesia's dynamic and competitive retail industry. Ultimately, the case study aims to equip investors with the knowledge to identify the most compelling investment opportunity between Matahari Department Store and MAP Group as they navigate the challenges and capitalize on the growth opportunities in the fast-growing Indonesian retail sector.

As the pandemic transformed various aspect buying behavior of the consumer, so did the retailers follows to match it. However, one of the legacies of the 2020 pandemic and the result of long restrictions of lockdowns, not all retailers are able to follow suit. This created an extensive list of malls and retail establishments questioning their existing business model and why could not bear the new business environment, which forced those retailers to file for bankruptcy. Yet, other retailers who prepared to tailor to the restriction saw it as opportunity to lead them to the market. During this same period, as consumers increased their reliance on online shopping, consumer spending shifted to the available retailing types. It increased sales for eCommerce in Indonesia, namely Tokopedia, Bukalapak, Shoppe, and many others. Though, the eCommerce boom during the pandemic was then challenged by the sudden consumer shift, which consumers flock back to malls and other entertainment venues. The lessen restriction on social interaction by the government has impacted the consumers’ not only toward buying patterns but also how they change their leisure preferences. This begs the question of the retail practitioners on what strategy is and whether their applied business model is sustainable. They should evaluate the advantages and disadvantages of the cautions they must prepare. With this rising phenomenon, while nowadays, e-commerce has become a vital element of retail strategy, the coming success of retailers will, in the long run, hang on constructing a cohesive customer experience, both online and in stores.

The development of modern technology has penetrated the world of transportation in Indonesia. It can be seen from the emergence of ride-hailing application models in major cities in Indonesia (Exhibit 1). This ride-hailing application is a combination of motorcycle taxi transportation services and communication technology. This application is intended to make it easier for users to access transportation media that will be used in daily mobility. This online-based transportation application is also called the ride-hailing application, whose appearance in Indonesia began to rise in 2014 and peaked in 2017 (Exhibit 2). The phenomenon of online-based applications is an answer to people's needs for transportation that is easy to get, convenient, fast, and inexpensive. The most popular online transportation provider in Indonesia is Gojek and Grab.

The issue that is now the concern is the widespread finding of cases of fictional orders that aim to get massive bonuses, including the use of fake GPS to rig the driver's partner position. Fictional orders appear after new regulations from online transportation providers are considered to be harmful to the drivers. Service rates are lowered, and minimum payments are also deleted. The company also added a performance appraisal system for its drivers. This policy certainly has a positive and negative impact on the driver and management. The new rules will add to the list of burdens borne by drivers, namely pulses, gasoline, and vehicle service fees, while receipt of orders must reach 70 per cent to get a daily bonus. This new rule seems to eliminate the opportunity for the driver to get the daily bonus. This new rule also makes drivers unable to reject passenger orders directed by company management. Drivers only have 10 seconds to take the order, and if not taken, it will affect their performance as a driver.

Fintech’s business in Indonesia is growing rapidly nowadays, proven by the existence of many Fintech-based startup companies in the last few years. Fintech startup itself is starting to occupy a large part of the Indonesian startup industries. Fintech helps people to access financial products, facilitate transactions and improve their financial literacy easier. Fintech became highlight in September 2015 when Indonesia’s Fintech Association established. The goal is to set a trusted and reliable partner to build up Indonesia’s Fintech ecosystem. It come up from Indonesia enterprises and for Indonesians. Up to now, there are at least 140 Fintech players in Indonesia, with 55 of them joining the organization as full members.

 

In 2016, the Indonesia Financial Service Institution (POJK) issued new regulations and policies about fintech on off balance sheet (marketplace) lending and by Central Bank (BI) on Payment Transaction Processing. The growth of Fintech players has been skyrocketing, from only 7% in 2006/2007 to 78% a decade later. The number of the players are recorded around 135-140 companies. 43% of them play in the payment sector, such as mobile payment as well as payment gateway startups from various sectors, ranging from payment startups, lending, financial planning (personal finance), retail investment, crowdfunding, remittances, financial research, and others. Fintech reaches the younger generation who are more familiar with the internet and make use of the internet for all their needs. Fintech can also make things simpler and more efficient. Fintech uses technology, software and big data, it also uses social media data from its users that Fintech uses in conducting risk analysis.