60 Percent of SMEs Take Advantage of Digital Platforms, GudangAda Invites Celios to Share Business Strategies to Face Global Challenges in 2023

SVP Marketing & Corporate Affairs Gudang Ada Yuanita Agata (left) and Director of Celois Bhima Yudhistira (right). (Photo: Theresia Agatha / VOI)

JAKARTA – Digital transformation has brought major changes in the B2B FMCG industry which has an impact on accelerating economic recovery through strengthening the potential of SMEs.

Welcoming the 2023 business challenges, GudangAda supports Celios (Center of Economic and Law Studies) in making a study entitled "B2B FMCG Marketplace Indonesia Outlook 2023 Study".

This study aims to provide an understanding to the public regarding the condition of the B2B FMCG business in Indonesia, as well as opportunities for collaboration between business actors to increase the potential of the B2B FMCG market.

The latest study by GudangAda and Celios explains that as many as 60 percent of Indonesian SMEs have benefited from implementing digitization in their business, such as making it easier to find suppliers and reach customers.

Warehouse SVP Marketing & Corporate Affairs Yuanita Agata said, "The results of the Celios study are expected to be a reference for Indonesian supply chain business players in assessing the B2B business landscape, as well as setting the best business strategy to face economic challenges from the point of view of digital innovation in the B2B FMCG industry.

"Armed with GudangAda's long experience in the Indonesian B2B industry and longstanding strategic relationships with all B2B supply chain business actors, we believe we can provide the right business insights for the growth and development of the B2B business, especially this year," he said in the Kebayoran area Baru, South Jakarta, Thursday, January 19.

There are a number of other interesting findings from the research, namely:

1. Research has found that the biggest challenges for SMEs in developing post-pandemic businesses are competition with modern shops (36 percent), consumers defaulting on debt payments (31 percent), and unprofitable business locations (27 percent).

This correlates with other findings, namely the increasing need for simple digital solutions for speed and cost efficiency, payment flexibility, and wider market reach.

2. The opportunity for B2B FMCG volume escalation in Indonesia in 2023 is still considered large in line with the business potential of Indonesian SMEs, the growth of internet users, and government support in increasing public financial inclusion.

3. Research results show that digital B2B platforms as distribution channel providers from manufacturers, sellers to end-users will become a trend that spreads across various industries, including FMCG.

4. In 2023, research shows various challenges in the development of the B2B industry in terms of low financial literacy, digital access gaps, and financing for SMEs that B2B FMCG players in Indonesia must watch out for.

5. There are guiding principles (4P Strategy) in the research aimed at B2B FMCG players to build a sustainable B2B ecosystem, including creating end-to-end integrated applications, strengthening distribution channels, focused sales on strategic sellers in certain areas, as well as maintenance of cost ratios for market price stability.

On the same occasion, Economist and Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira said, to produce a more in-depth analysis, this study was made using the method of literature study with various sources, both primary and secondary and previous studies that relevant.

"Currently, the Indonesian market is in a transition period from Phase 2 (customer process portal) to Phase 3 (multi-channel infrastructure), the presence of a digital B2B platform such as GudangAda can play an effective role in accelerating this transition through a variety of integrated digital business services to customers. all players in the B2B industry, from principals to SME-level business people such as shop and stall owners," he explained.

The following is the prediction of Indonesia's FMCG B2B Business Industry Trends in 2023:

1. The need for a one-stop solution system to speed up the data validation process in real time, so that principals can follow market developments more quickly.

2. Multi-channel approach (omnichannel) as one of the B2B FMCG industry efforts

can grow faster.

3. Demands for personal data security in line with the increasing number of business people using B2B digital platforms.

4. Request for one stop financing with a tenor that can be adjusted to the needs of SMEs. Yuanita added, entering 2023, her party as a B2B digital platform provider will focus on strategic aspects to achieve the best position in navigating business competition, namely by building more efficient distribution channels to supporting the business development of principals and strategic sellers in strategic areas, as well as prioritizing sustainability by creating a healthy margin level between principals and business partners.

"Then, focus on strategic buyers and sellers by increasing partners' digital literacy in maximizing service features in the GudangAda application, as well as providing safe access to productive credit for SME business partners," he concluded.