Sumitomo Corporation Launches Online Grocer Sukamart in Indonesia

Sumitomo Corporation Launches Online Grocer Sukamart in Indonesia

Sumitomo Corporation Launches Online Grocer Sukamart in Indonesia
Sumitomo Corporation Launches Online Grocer Sukamart in Indonesia

2013 is shaping up to be a year for significant growth in the e-commerce landscape in Indonesia as more online stores and marketplaces are opening their doors. Today, Japan’s Sumitomo group announced the launch of Sukamart, an online grocery shop operated by PT Sumisho E-Commerce Indonesia, a joint venture between Sumitomo Corporation and PT Sumitomo Indonesia.

Sumisho E-commerce Indonesia was established in February of last year and spent a good part of the year recruiting staff as well as developing the Sukamart website and establishing its network of suppliers.  Sukamart offers over 1000 varieties of everyday household products from Japan and Indonesia. It provides food and drinks, personal care and health products, baby products, as well as household and kitchen items.

Sukamart currently delivers from its warehouse in central Jakarta and cites one to two day delivery period for the greater Jakarta area (Jabodetabek) and up to seven days for other areas once payment is confirmed. Delivery is handled by delivery company JNE and is free for customers within the greater Jakarta until 31 January 2013, with certain conditions. Deliveries can be tracked using a JNE tracking code.

During the launch period, free delivery applies to Jabodetabek orders for up to 5 kilograms. If an order weighs more than 5kg, the first 5 kg is free and the remaining will be charged the standard delivery fee which is Rp 3000 per kilogram.

Starting in February, the first 5kg will be charged Rp 15,000 as per the standard fee. In other words, after the promo period ends, all orders up to 5kg will be charged a minimum of Rp 15,000 delivery fee plus Rp 3,0000 per additional kilogram. Details of the promotion as well as delivery fee structures for cities or areas outside of Jabodetabek are available at the Sukamart website.

For the moment, payments are handled through bank transfers through BCA, Mandiri, and BRI accounts with credit card payment option expected to be available at a later date.

Perhaps the most surprising thing about this announcement is that Indonesia’s major grocers, Carrefour, Giant, and to an extent, Food Hall, have yet to implement full online shopping. Carrefour has shop and drive, which uses a pick up model and is only available at its location in Lebak Bulus, South Jakarta, while neither Giant nor Food Hall has online shopping at all.

This is reminiscent of the situation with online fashion stores in which hardly any of the established brands or department stores have their own online shops. They instead currently rely on marketplaces such as Lazada, Multiply, and others.

It seems inevitable that these major brands will eventually jump in to serve the online market but seeing that many of these brands fall under the same proprietor group, it’s difficult to see whether they will do so as a group and set up shop together under one online mall, or join the online revolution based on individual brand’s market audience. In the mean time, the “independent” players will populate the landscape and seize as many loyal shoppers as they can.

[Image by blanco teko on Flickr]

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