GoToko Continues Expansion after Successful First Year of Operations
GoToko strengthens its commitment to become the platform of choice amongst warung kelontong owners for their business needs
Jakarta, 3 February, 2022 – Introduced for the first time in August 2020, PT Gerai Cepat Untung (GoToko) – a joint venture between the Gojek (GoTo) Group and the Unilever Group – has expanded its operations to the Jabodetabek areas. This concrete step is part of GoToko’s expansion strategy to reach and serve geographical clusters.
GoToko CEO and President Director Gurnoor Dhillon explained that GoToko decided to continue its expansion after the company successfully assisted and developed thousands of convenience shops (warung kelontong) in Tangerang and South Tangerang in the past year.
“The company and its shareholders decided to expand our operational reach based on the positive feedback and high interest we received from our customers. GoToko’s platform enables customers to manage their supply needs with reliable, guaranteed delivery, which is clearly needed by the underserved market. We are extremely excited to provide a positive impact and optimal added value. We want our GoToko digital platform to reach as many warung kelontong owners as possible,” continued Gurnoor in his official statement in Jakarta (2/2).
The warung kelontong is part of micro, small, and medium enterprises (MSMEs), which are drivers of national economy. The Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) noted that there were currently around 3.6 million convenience shops which account for up to 80 percent of retail sales in Indonesia. According to the records of the Coordinating Ministry for the Economy, MSMEs also contributed up to 61.07 percent, or the equivalent of more than Rp 8,573 trillion to GDP.
Despite its large contribution to the national economy, there are still approximately 2.5 million convenience shops currently underserved. In part due to the complexity of the distribution of goods in Indonesia, and difficulty in reaching well-known packaged goods manufacturers (brand principals).
So far, warung kelontong entrepreneurs have faced various challenges, such as difficulty in getting products at competitive prices, limited product offerings and lack of reliable and cost-effective freight forwarding services. For this reason, GoToko is here to provide a solution that connects brand principals with warung kelontong businesses, thereby meeting their supply needs through the creation of an increasingly efficient distribution process.
“The presence of GoToko is expected to help the development of the convenience shop business. This is in line with the efforts of the Indonesian government’s post-pandemic economic recovery, especially supporting the government’s mission as the host of the G20 to empower and digitize MSMEs,” said Gurnoor.
Gurnoor said that development in this segment supported by supply chain efficiency would have a good impact on the economy, especially with the current pandemic condition. GoToko continues to be committed to the company’s mission, which is not only to create business value, but also to improve the welfare of warung kelontong owners.
The implementation of a strong strategy to reach a wider regional area, supported by collaboration with several strategic partners regarding the ability to fulfill the supply of goods, will ensure supply chain reliability on the GoToko platform. Therefore, convenience shops need not worry about the availability of the supplies they sell.
“We want to ensure that all GoToko services run well from upstream to downstream, so as to create a smooth and unimpeded supply chain, making it easier for convenience shop entrepreneurs to rely on price, delivery, and goods certainty. Since GoToko is built on a foundation of trust and reliability, we will ensure that having the necessary infrastructure can serve the needs of users,” said Gurnoor.
GoToko also ensures it will continue to drive a differentiated customer experience to its users. “One of GoToko’s values is customer obsession, we know that for some of our customers this is going to be the first time they engage their business with a digital platform, our product strategy is built keeping that in mind. We will continue to create innovations driven by data and technology to reach more warung kelontong that are still outside the digital ecosystem,” Gurnoor continued.
Currently, GoToko offers a wide range of products from various brand principals, including in the categories of food and beverages, household needs, toiletries, beauty and health, as well as baby needs. In addition to competitive prices, GoToko also holds many interesting promotions for its users. As a platform, GoToko also extends the reach of brand principals targeting underserved retailers.
Major brand principals, such as Unilever Indonesia, Danone, Coca-Cola Europacific Partners Indonesia, Nestle, Mayora, and Wings, have become partners and support GoToko’s vision and mission as a reliable platform of choice for the warung kelontong. In the future, GoToko hopes that more strategic partners will join the GoToko platform.
Unilever, one of the founding partners of GoToko, welcomes this expansion. This was confirmed by Hira Triadi, the Head of Modern Trade and Ecommerce Unilever Indonesia, who said: “We welcome the expansion of GoToko. This development reflects the mission of Unilever’s collaboration with GoJek through GoToko, which is to improve the MSMEs’ standard of living. In this case, it means traditional retailers such as grocers by providing easier access to the needs of goods and services. In addition, for Unilever Indonesia, GoToko is also important for our distribution system because it enables grocery shop business partners to obtain quality products for everyday consumers at competitive prices.”
Food and beverage producer Danone Indonesia also expressed a similar sentiment. Corporate Communication Director, Danone Indonesia Arif Mujahidin said the expansion of GoToko services was in line with Danone Indonesia’s vision. The company aims to create healthy living through high quality food and hydration supply to as many people as possible. “As GoToko’s reach extends to convenience shops, we hope it can further expand the creation of a healthier society and environment.” said Arif.
Coca-Cola Europacific Partners Indonesia echoed this sentiment. “We hope that, following Jabodetabek, GoToko will soon expand its service area to other cities. Thus, GoToko can provide more benefits not only to convenience shop entrepreneurs, but also the public at large,” concluded Coca-Cola Europacific Partners Indonesia’s Director of Public Affairs, Communications and Sustainability Lucia Karina.