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New Byline: Why partnerships are crucial when navigating the e-commerce market in Indonesia

Jul 05, 2019

Partnerize Senior Business Development Director in APAC, Dan Keegan has written a byline outlining four strategies for success for anyone looking to establish and grow a partner program in Indonesia.

Here is an excerpt from Dan’s article that appeared in the Drum:

Why partnerships are crucial when navigating the e-commerce market in Indonesia-1

It’s no secret that Indonesia has become a huge digital commerce market and that the business opportunity continues to grow at a rapid rate. CEIC reports that average incomes in Indonesia have risen 28% in the last three years alone, and data compiled by Hootsuite attests to the size of the digital marketing opportunity in Indonesia.

With 265 million people and 133 million internet users, there are lots of potential consumers reachable within this market. Mobile digital penetration is almost three times higher than desktop penetration, so clearly small screens can mean big revenue in this country.

In 2018, Statista estimates that total e-commerce in Indonesia hit almost US $10bn, up more than 23% versus the previous year. Naturally, this means many brands are interested in getting a share of sales in this fast-growing region. One key (and low-risk) strategy for brands is performance marketing arrangements through affiliates and other types of partners, in which the brands pay a commission for every sale driven by an online publisher or influencer.

A partnership is a highly effective strategy for entering and accelerating growth in a region because it operates on a pay-for-performance basis. In other words, brands only pay after they verify a purchase. That eliminates risk and leverages the trust that partner publishers have established in a region to give their own products and services more credibility. Further, brands can tailor featured products and offers to maximize new users, incremental purchases, high-margin sales and even lifetime value.

Because partnerships can be very lucrative for publishers, it’s no mystery why this channel has shown double-digit growth for as long as anyone can remember. But partner marketing is not without challenges. Lack of transparency, fraud risks, and other snags can hurt your performance if you aren’t careful.

If you’re looking to establish and grow a partner program in Indonesia, consider these four strategies for success:

Do your homework on the competitive landscape

You cannot establish an effective partner marketing program without understanding what’s already out there in your category. For the best results, you must deliver competitive offers and support that help ensure your partners derive significant revenue and profit from your programs. You can start your research by looking for affiliate and partner marketing programs from competitors using Google. Since most brands want to make it easy for partners to discover their partner programs, they are usually easy to find. On top of this, remember that there’s no substitute for a seasoned partnerships pro that is well-versed in the market nuances of a new region. In markets like Indonesia where demand outstrips supply, you may be able to find a full-time employee, or instead leverage a good consultant to manage your efforts while you are getting your partnerships efforts established.

Local experts give you a head start because they likely have the intel and relationships to get you up and running faster.

Collaborate directly with the largest partners

Focus attention on the largest partners in Indonesia. Some brands partner with thousands or tens of thousands of publishers and influencers. Others have fewer than a dozen partners. While “long tail” partnerships can eventually total significant sales for your brand, remember that it can be a lot easier to move the needle if you optimise your efforts with the largest regional partners first. This is particularly important in Indonesia, where a handful of publishers and influencers drive a disproportionate share of total partner marketing volume.

Given this, it makes sense to establish direct relationships with such partners instead of always working through a middleman network. Major partners generally leverage the best technology and have their fingers of the pulse of the industry’s biggest trends. Further, they have rich insights into their own audiences and can help you create bespoke programs to drive even more sales from their customer footprints.


Read the rest of the article in The Drum.

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