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The Silicon Review Asia

The future of FMCGs in Indonesia is now being dictated by B2B ecommerce

The future of FMCGs in Indonesia is now being dictated by B2B ecommerce

In recent times, the retailers in Indonesia prefer contemporary distribution methods over the traditional approach. The deciding factor in this approach is the distinction between modern trade and general trade. Most of the smaller retailers in Indonesia fall under the traditional retail bracket, whereas the latter falls under a more organized modern retail bracket. FMCGs predominantly influence general trade in Indonesia, and it occupies more than 50 percent of the market segment resulting in more than $50 billion in sales. In the rural areas, the FMCGs are distributed mostly through small retailers, and these retailers generally maintain a strong relationship with the local communities and customers.

To support the traders in this segment, the government is also contributing heavily by giving them sound infrastructure. This, in turn, promotes sustainability in the rural retail segment. In order to maintain peace, FMCG brands are now maintaining general trade with high regard as the main source of revenue. As of now, modern retailers are trying their best to knock this off and build momentum to create a strong presence in Indonesia. The growth of B2B ecommerce has made it an attractive prospect, raking in investments from various multi-billion dollar retailers in Indonesia.        

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