Tips for Avoiding E-commerce Failures from Mochtar Riady

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Mochtar Riady is a tycoon and a boss of the Lippo group.

Lippo group itself is a giant company in Indonesia which is engaged in banking, property and other fields including retail, one of its subsidiaries has long been known by the public in Indonesia, Matahari Department Store.

Success Quotes Entrepreneur
Source: detik finance

As is known, Matahari mall was initially successful in selling retail products offline by opening many outlets.

However, along with the development of the current era, people are starting to abandon their offline shopping habits and switch to online stores.

Matahari mall tried to compete with many eCommerce companies that had already sold their online products by opening eCommerce with the address Mataharimall [dot] com (now Matahari [dot] com).

But apparently, in the journey of pioneering eCommerce, Mataharimall [dot] com reportedly failed and could not reach the target.

One of the reasons Mochtar Riady said was that Mataharimall [dot] com in pioneering its business-focused more on technicians (technology).

Reportedly Mataharimall recruited 300 technicians to support the beginning of its business.

Supposedly, according to Mochtar, technology is used only as a medium of information, products remain the main thing.

This is why Matahari Mall closed at the end of 2018 last year.

You may want to read: The importance of business plan for every business owner

In one of his sharing sessions held at DJakarta Theater, Central Jakarta, on Thursday 28 November 2019, Mochtar Riady told a number of things that caused the failure of Mataharimall [dot] com.

The following are his quotes:

“MatahariMall [dot] com needs to position itself, whether it is to open a shop on the internet or it is to build a market on the internet. It must be clear. Both in opening a shop and building a market are essentially on the product, not the technique.” – Mochtar Riady

“This is the failure of MatahariMall [dot] com, and I mentioned this earlier, the business always has to start small, and it slowly, slowly, slowly becomes large. It cannot be immediately large, except for government companies that are different .” – Mochtar Riady

So, in this sharing session, Mochtar explained that the core of selling products is on the products, while technology is only as a media of information and support.

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