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After Philippines, Zalora reportedly retreating from the Indonesia

Anisa Menur
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Zalora is reported to be in talks of an acquisition with Indonesian retail giant MAP Group

After pulling-back from the Philippines, Rocket Internet’s online beauty store Zalora is reportedly on its way out of Indonesia.

A TechCrunch report stated that Zalora is currently in talks for an acquisition with retail giant MAP group.

The news came only one day after conglomerate Ayala Group bought a 49 per cent stakes in BF Jade E-Services Philippines Inc., which owns and operate the Zalora brand in the country.

Zalora is under the management of Global Fashion Group (GFG), which was created by Rocket Internet in 2012 to manage its fashion e-commerce business across the world.

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e27 has been reaching out to Zalora and GFG for comments, and will update accordingly.

Consolidation is in fashion

In Indonesia, the year 2016 has proven to be a challenging one for fashion e-commerce startups. Startups such as Berrybenka and SaleStock laid off a considerable amount of its employees, while smaller players such as Lolalola were forced to close down business.

MAP Group has been known to make efforts to branch into e-commerce and it launched of MAP EMALL last year. The group operates various department stores and fashion outlets, and it has partnerships with global fashion brands such as Zara, and Marks & Spencer.

The deal is likely to be part of the company’s move to strengthen its foray into e-commerce; which, when combined with the group’s strong offline presence, might actually create a positive impact.

An O2O approach is believed to be a working formula for some e-commerce platforms in the country, with Berrybenka CEO Jason Lamuda stating that the company’s pop-up stores were able to increase overall sales in a city by two to four times. It is also able to increase online sales by 1.5 to two times.

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Image Credit: alenin / 123RF Stock Photo

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