E-commerce: Local Brands Vs Global Brands | Achmad Alkatiri | Hypefast | Summary and Q&A

TL;DR

The e-commerce native brand industry is booming in Southeast Asia due to easier access to manufacturers, technology ecosystems, and marketplaces, leading to more local entrepreneurs venturing into the market.

Key Insights

• 😮 The rise of e-commerce native brands in Southeast Asia is attributed to easy access to manufacturing, technology ecosystems, and marketplaces.
• 🪡 Local brands excel in providing relevant products tailored to the local market's needs at affordable prices, helping them compete with mega brands.
• 🥺 The marketing and community-driven approach of local brands leads to strong brand loyalty and enthusiastic customer support.
• ❓ Evaluating brand founders' ambitions and financial viability are important criteria for investments.
• ❓ Local brands have the potential for significant growth and can become top-selling brands on popular marketplaces.
• 🪡 Quality, affordability, and understanding of local customers' needs contribute to the success of local brands.
• 🤵 The growth of e-commerce native brands in Southeast Asia is still in its early stages, with room for further expansion.

Transcript

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Questions & Answers

Q: Why are we seeing a boom in e-commerce native brands in Southeast Asia?

The boom in e-commerce native brands can be attributed to easier access to manufacturers, technology ecosystems, and marketplaces, making it more convenient for entrepreneurs to start their own brands with minimal capital.

Q: What are the primary evaluation criteria when investing in a brand?

When investing in a brand, factors such as brand size, profitability, product quality, customer reviews, financials, and brand founder's ambitions are considered. Additionally, larger brands with revenue of at least 500k annually and a margin of at least 15% are preferred.

Q: Can local brands compete with mega brands?

Yes, local brands in Southeast Asia have shown their ability to compete with mega brands, often ranking among the best-selling brands on marketplaces. The quality, relevance, and affordability of local products, coupled with effective marketing approaches, contribute to their success.

Q: Is the growth of e-commerce native brands sustainable?

Yes, the growth of e-commerce native brands appears to be sustainable. The increasing demand for local products, driven by their quality, relevance, affordability, and community-driven approach, suggests a growing appetite among consumers. Strong brand loyalty and enthusiastic customer ambassadors contribute to their sustainable growth.

Summary & Key Takeaways

• The rise of e-commerce native brands in Southeast Asia is just the beginning, fueled by the accessibility of manufacturing, technology ecosystems, and marketplaces.

• Local brands are gaining popularity due to their ability to provide relevant products tailored to the needs of the local market, at affordable prices compared to global brands.

• The success of these brands is also attributed to their marketing and community-driven approach, building a strong brand loyalty among customers.