Scoring an Albatross Deal?
Scoring an Albatross Deal?
During the holiday season, I spent Christmas playing golf with my old man and my not so little brother—a tradition we cherished back in my high school and college days, though less frequent now. Our family used to gather for dinner daily, but with everyone caught up in weekday and weekend commitments, those moments have become rare. My brother, pursuing a law degree at Universitas Indonesia, has followed my footsteps into the realm of competitions, while I delved into equity research, he opts for moot court competitions, filling his days sometimes even to weekends.
The scorching sun failed to deter over 50 golfers from joining us on the course that day, with more than four flights ahead of us, slowing our pace. Surprisingly, this delay allowed us to engage in more conversations, a silver lining despite the temperature reaching 35 degrees. Exhausted as we appeared, our caddies, Lydia and Sari, kindly offered us a taste of the variety of food they had on hand—a mini-market on wheels. Jackfruits, rujak, batagor, siomay, iced tea, and more – a tempting array. I couldn’t help but think, “Ah, the impulsive spender,” wondering if they were avid Shopee or TikTok users.
Thus, began my inquiry into the eCommerce habits of our caddies on the 7th hole. Lydia and Sari, Shopee enthusiasts, favoured it primarily for ShopeePayLater, aiding them in managing their monthly cash flow. Interestingly, when it came to TikTokShop (TTS) and Shopee, they leaned towards TTS. Their rationale? Spending 4-5 hours daily on TikTok, they appreciated influencers seamlessly incorporating product details in their videos, creating an impulsive consumer experience. These purchases vary from cute dresses, kitchen equipment, beauty products (make up, micellar water, eyelash and brow pencils), even food and snacks.
The financing aspect emerged as a significant factor. They revealed that paying in bulk at the end of the month suited them. Spending around IDR 1-2 million monthly, which accounted for a substantial portion of their assumed monthly income of IDR 6-8 million, made up 10-30% of their earnings. When asked about credit cards, Lydia and Sari found the idea daunting, fearing hidden fees. According to Sari, the fees for their current Paylater service were minimal (which is probably not the case, as it accounts for 5-10% of loan taken). Interestingly, Paylater limit amount also acted as a status symbol – When Sari said that her Shopee Paylater limit was IDR 12 million, Lydia proudly stated her IDR 17 million limit, emphasising her timely payments.
Curiosity led me to ask, “Are you eagerly awaiting a Paylater option for TikTok?” Their response was a resounding “Of course!” They believed it could be a game changer – a no brainer reason to change to TTS.
Wow I thought. Imagine potentially prompting a massive migration of Shopee and Lazada users to TTS. The prospect of doubling GMV to USD 12 billion suddenly seemed conservative. Perhaps GOTO had struck gold with this collaboration, I mused.
While I pondered these eCommerce dynamics, my dad achieved something equally remarkable – a Birdie! We are mere 20-30 handicap golfers, this is a big deal for us. Distracted momentarily, I returned my focus to the game.
But really, the GOTO and TikTok partnership was probably akin to an Albatross or, at the very least, an Eagle 🦅.
Danzel Aryo Soerjohadi
Investments at Heyokha Brothers
Share
During the holiday season, I spent Christmas playing golf with my old man and my not so little brother—a tradition we cherished back in my high school and college days, though less frequent now. Our family used to gather for dinner daily, but with everyone caught up in weekday and weekend commitments, those moments have become rare. My brother, pursuing a law degree at Universitas Indonesia, has followed my footsteps into the realm of competitions, while I delved into equity research, he opts for moot court competitions, filling his days sometimes even to weekends.
The scorching sun failed to deter over 50 golfers from joining us on the course that day, with more than four flights ahead of us, slowing our pace. Surprisingly, this delay allowed us to engage in more conversations, a silver lining despite the temperature reaching 35 degrees. Exhausted as we appeared, our caddies, Lydia and Sari, kindly offered us a taste of the variety of food they had on hand—a mini-market on wheels. Jackfruits, rujak, batagor, siomay, iced tea, and more – a tempting array. I couldn’t help but think, “Ah, the impulsive spender,” wondering if they were avid Shopee or TikTok users.
Thus, began my inquiry into the eCommerce habits of our caddies on the 7th hole. Lydia and Sari, Shopee enthusiasts, favoured it primarily for ShopeePayLater, aiding them in managing their monthly cash flow. Interestingly, when it came to TikTokShop (TTS) and Shopee, they leaned towards TTS. Their rationale? Spending 4-5 hours daily on TikTok, they appreciated influencers seamlessly incorporating product details in their videos, creating an impulsive consumer experience. These purchases vary from cute dresses, kitchen equipment, beauty products (make up, micellar water, eyelash and brow pencils), even food and snacks.
The financing aspect emerged as a significant factor. They revealed that paying in bulk at the end of the month suited them. Spending around IDR 1-2 million monthly, which accounted for a substantial portion of their assumed monthly income of IDR 6-8 million, made up 10-30% of their earnings. When asked about credit cards, Lydia and Sari found the idea daunting, fearing hidden fees. According to Sari, the fees for their current Paylater service were minimal (which is probably not the case, as it accounts for 5-10% of loan taken). Interestingly, Paylater limit amount also acted as a status symbol – When Sari said that her Shopee Paylater limit was IDR 12 million, Lydia proudly stated her IDR 17 million limit, emphasising her timely payments.
Curiosity led me to ask, “Are you eagerly awaiting a Paylater option for TikTok?” Their response was a resounding “Of course!” They believed it could be a game changer – a no brainer reason to change to TTS.
Wow I thought. Imagine potentially prompting a massive migration of Shopee and Lazada users to TTS. The prospect of doubling GMV to USD 12 billion suddenly seemed conservative. Perhaps GOTO had struck gold with this collaboration, I mused.
While I pondered these eCommerce dynamics, my dad achieved something equally remarkable – a Birdie! We are mere 20-30 handicap golfers, this is a big deal for us. Distracted momentarily, I returned my focus to the game.
But really, the GOTO and TikTok partnership was probably akin to an Albatross or, at the very least, an Eagle 🦅.
Danzel Aryo Soerjohadi
Investments at Heyokha Brothers
Share
