MNC Shop is one of Indonesia’s big players in TV home shopping. But what about its online

Indonesia’s business-to-consumer ecommerce scene was estimated to be worth US$2.6 billion this year. One aggressive player competing for a large slice of that total was MNC Shop, a firm that turned two years old last week. MNC Shop is one of the biggest TV home shopping ecommerce companies in Indonesia in terms of spending power. Let’s see how they’ve done so far.

The company is a joint venture between local media conglomerate MNC (60 percent ownership) and South Korean conglomerate GS Shop (40 percent ownership). The site claims to offer over 20,000 products in several categories including beauty, electronics, home appliances, and kitchenware. Its biggest strength sits in its TV networks, as the firm airs home shopping programs on various local channels like Elshinta TV, Sindo TV, RCTI, and MNC TV. MNC Shop also airs a 24-hour program on channel 88 of local cable provider Indovision.

In 2012, the company said that it initially spent over Rp 80 billion (US$6.4 million) on the project. Local media SWA reports that the venture plans to use no more than US$20 million, targeting US$100 million in revenue by 2017.

After two years, MNC Shop has grown its remote distribution centers to 18 cities across Indonesia, which enables the company to handle logistics more efficiently. MNC Shop still aims to increase its number of distribution centers over the next few years to better accommodate order fulfillments within the archipelago.

See: 18 popular online shopping sites in Indonesia (2014 edition)

Starting in mid-2014, MNC Shop says it will handle its own logistics. The company offers zero percent installment payments for customers with certain credits cards. In total, MNC Shop has more than 200 employees which include logistics professionals, operational workers, and customer support.

Targeting mainly women in Indonesia, the company claims that it have attracted over 300,000 customers in Indonesia. Back in 2013, MNC Shop said that its average transaction value was about Rp 1 million (US$80). Should that number be the same by the end of this year, MNC Shop’s total estimated revenue would sit at US$24 million. That may not look like much compared to Tokopedia’s revenue, for example, which accommodates about two million product transactions every month.

MNC is getting more serious about online business. The company had previously partnered with Japan’s eshopping giant Rakuten in Indonesia, though the joint venture soon dissolved. MNC is also currently holding a joint venture with Tencent’s WeChat.

There are a few other ecommerce players that utilize the power of television home shopping programs. Notable local firms include FastWorld, Jaco, Lejel, and GogoMall.

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