2021 AIBP Insights – Direct to Consumer Distribution: Spotlight on Indonesia’s Consumption Story

In recent years, many direct-to-consumer (D2C) brands have emerged in the competition for a slice of the retail industry. Players along the retail value chain are also increasingly exploring ways to reach the end-consumer directly, many of which are expanding their vertical capabilities. What does it take to succeed amidst fierce competition in Indonesia’s retail and distribution landscape? Stakeholders along the manufacturing, distribution and retail value chain will either have to develop and acquire capabilities to establish their presence at every part of the value chain, or form partnerships with other players along the value chain. Digitalisation will play a key role in enabling these stakeholders in going direct-to-consumer successfully.

As the manufacturing distribution and retail landscape become increasingly interconnected, it is important to have a clear view of the entire supply chain. On the back-end, datasets and information may already be readily available. The next step to take would be to eliminate data silos and explore ways to derive value from these raw, unstructured data. Properly managed, firms may then make data-driven, informed decisions along the entire manufacturing, distribution and retail value chain. How can Indonesian stakeholders make use of technologies like data analytics, AI and ML to bridge the gap to the end-consumer?