Medan, 21 June 2023 – Tokopedia has been helping entrepreneurs, particularly MSMEs, to establish and grow their businesses for almost 14 years. “There are already over 14 million sellers, and almost 100% are MSME entrepreneurs, including those from Medan, North Sumatra. To encourage the progress of these millions of sellers, Tokopedia is carrying out various initiatives, one of which is Hyperlocal," said Rizky Juanita Azuz, Corporate Affairs Senior Lead Tokopedia.
Hyperlocal brings sellers closer to buyers wherever they are, enabling businesses to have the same opportunity to grow without moving to the capital city. One of the Hyperlocal manifestations, the Kumpulan Toko Pilihan (KTP), is a product curation page of the seller closest to the buyer's location. This Hyperlocal Tokopedia initiative has had a positive impact on local MSMEs.
The Research Institute for Economics and Society Faculty of Economics and Business University of Indonesia (LPEM FEB UI) 2023 study recorded the top three reasons sellers use Tokopedia: (1) ease of starting a business (84.01%), (2) increasing the number of sales and customers (65.13%); and (3) time flexibility (60.77%). This research also reveals that new sellers on Tokopedia have increased their average monthly income to IDR 7,865,628, while existing sellers were at IDR 10,783,999 in 2022.
Fog Apothecary is a Medan MSME and seller on Tokopedia. Fog Apothecary sells essential oil, body care, and home fragrance products made from natural ingredients. Fog Apothecary's business has been growing and developing since joining Tokopedia in 2018 and participating in various campaigns, such as the Hyperlocal initiative KTP.
Medan MSME 'Fog Apothecary' Employs Hundreds of Farmers, Makes Sensitive Skin-Friendly Essential Oils
Essential oils are extracted from specific plants and are commonly used in aromatherapy for their psychological benefits, such as calming the mind. “The most popular essential oils bought on Tokopedia in Medan and nearby areas are those with woody and floral scents, with a twofold and five times increase in sales, respectively,” said Rizky.
In 2017, Vivi Tantri, founder of one of Medan’s MSMEs on Tokopedia Fog Apothecary, saw that the business opportunity for essential oil products was still wide open. Vivi decided to produce and market a wide range of essential oils with various uses, such as skin care, air fresheners, anti-mite and bacterial sprays, and many more.
Vivi learned to make essential oils by herself. "We partnered with hundreds of local farmers to get natural and high-quality spices, such as ginger, clove, and patchouli extracts. We minimize chemical additives so it is safe for sensitive skin," explained Vivi.
Vivi has two employees, and both are women. This aligns with the LPEM FEB UI 2023 research results, where sellers on Tokopedia have an average of two workers, and more than half (58.47%) employed by sellers on Tokopedia are women.
"Since joining Tokopedia in 2018, our business has continued to grow. During the first quarter of 2023, there was an increase in the number of Fog Apothecary transactions through Tokopedia, almost 1.5 times compared to the first quarter of 2022. Our turnover has also increased more than two times compared to before using Tokopedia," Vivi concluded.
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About Tokopedia
Tokopedia is an Indonesian technology company with the goal of achieving digital economic equality. Tokopedia’s vision is to build a Super Ecosystem that enables anybody to start and explore anything. Tokopedia currently empowers millions of sellers and users via marketplaces, digital products, fintech and payments, logistics and fulfillment, and Tokopedia Partners. Tokopedia is a member of the GoTo group, the largest digital ecosystem in Indonesia that encompasses Gojek, Tokopedia, and GoTo Financial.
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