Heaptalk, Jakarta— Indonesia’s Blibli reported a 4% decrease in net revenue from US$953 million in FY22 to US$922 million in FY23 due to the Company’s strategy to optimize its Total Processing Value (TPV) mix throughout the year.
In its optimization effort, the company focuses on the more profitable product selection across categories in the 1P Retail segment, partly offset by the robust performance of the Company’s OTA business unit and more substantial contribution from digital products and increased performance in the institution’s segment. In more detail, the Company posted the result in its multiple segments, including:
- 1P retail (B2C online marketplace) recorded Gross Profit Before Discount (GPBD) improvement by 8% in 4Q23 YoY, reaching US$6.8 million and uplifted by 41% to US$32.4 million in FY23. Nevertheless, the rationalization measure led to lower TPV and net revenue for this segment to US$458,139 and US$395,381, respectively, in FY23.
- 3P retail (e-commerce and OTA platform) noted GPBD enhancement by 33% in 4Q23, touching US$34 million, and grew 51%, attaining US$119 million in FY23. Blibli’s TPV in this unit climbed by 35%, worth US$3.1 billion in 2023. Also, net revenues for this segment still grew very strongly by 576% and 466% in 4Q23 and FY23, respectively, to US$17.5 million and US$70 million.
- Institutions (B2B and B2G) generated GPBD growth by 179% in 4Q23, reaching US$10 million and uplifting by 114% at US$17.4 million in FY23. However, overall TPV for this segment recorded a slight decline of 4% in FY23 to US$627 million as the overall institutional demand softened, approaching the election year. Also, this segment posted net revenue growth of up to 4%, becoming US$188 million in 2023.
- Physical stores gained GPDB growth of 18%, approximately US15 million in 4Q23 and US$57 million in FY23, boosted by increased TPV and net revenue progress in both periods.
Despite lower net revenue, Blibli achieved organic growth within the ecosystem, demonstrating a 39% increase in average order value from US$69.72 in FY22 to US$97.21 in FY23. Consolidated Gross Margin Profit also increased by 830 bps, from 8.0% in 2022 to 16.3% in 2023, supported by Gross Profit expansion from all business segments.
“Reflecting on 2023, our strategic agenda was comprehensive, targeting the expansion of our product assortment, the enhancement of value-add services, the improvement of technology, and the amplification of ecosystem synergies. Central to our profitability strategy was optimizing our product mix, prioritizing higher-margin products, and aligning third-party seller rates with our profitability roadmap,” CEO and Co-Founder of Blibli, Kusumo Martanto, said.
Blibli’s business prospects to catch more profits
From now on, Blibli will focus on developing and amplifying the omnichannel strategy of the Blibli Tiket ecosystem through further expansion of physical stores and partnering with leading global brand principals. A physical presence enables Blibli’s consumers to enjoy a more seamless shopping experience within the Company’s online and offline ecosystem.
Further, the Company’s omnichannel integrated and unified loyalty program, Blibli Tiket Rewards, has been integrated into all the Company’s platforms of the Blibli Tiket ecosystem, which enables our customers to earn and spend the same loyalty points seamlessly within the Company’s e-commerce and OTA platforms, consumer electronics stores, and premium groceries outlets nationwide.
This move is expected to enhance cross-selling within the ecosystem, ultimately providing more efficient growth by reducing advertising and marketing expenses and lowering customer acquisition costs.