IUIGA E-commerce to Arrive in Indonesia, Bags Funding from Konimex Group
Offering personal care to home living products
The Singapore-based e-commerce platform, selling various personal and household items, IUIGA has officially launched in Indonesia. This expansion is undergone after successfully securing funding from Konimex Group with undisclosed details.
The business model is, they work together with manufacturers of manufacturing designs, then do branding and sell their products online.
The IUIGA team said this concept was implemented in order to produce quality products at affordable prices. "IUIGA works closely with factories to produce quality products which will be labeled with IUIGA goods."
"IUIGA collaborates with more than 400 ODM (Original Design Manufacturer) factories [..] Unlike Contract Manufacturers, ODM is a factory with the capability and license in product design and development," IUIGA Indonesia's Managing Director William Firman explained.
With a focus on the supply of goods from ODM, IUIGA considers not to have a product development team for product design and development are carried out by factories.
"The existence of an integrated technology and information system allows consumers to experience the first online-to-offline experience in Indonesia that prioritizes self-service technology and information transparency, therefore, every consumer can understand the value obtained from every price paid for an IUIGA product," William added.
Quality and price transparency as leading features
Although Indonesian e-commerce is one of the rapid-growing industries, the competition is quite tight. In response to this, IUIGA comes with some differentiation, such as converting distribution channels to direct-to-consumer.
With the change in distribution channels, IUIGA claims to be able to cut prices for goods. For example, previously on the market, it could reach 8 to 15 times the production price, now it is only 1.6 to 2 times.
"At IUIGA, we allow consumers to know the cost component of each IUIGA product through the transparent pricing feature. The transparent pricing feature contains information on production costs, profits, and traditional retail price comparisons of each IUIGA product," William explained.
In Indonesia, IUIGA offers 11 product categories, from home living to personal care. Apart from being accessible through the website and mobile application, IUIGA will also open a physical store to enhance the user experience.
"We will deliver from our warehouse in Jakarta. In addition, we have collaborated with several delivery services to reach IUIGA customers throughout Indonesia. Our delivery providers are divided into instant, same day, next day, and regular," he explained.
– Original article is in Indonesian, translated by Kristin Siagian