The Shopping Mall vs Department Store Misconception: Why Brands Misunderstand Online Marketplaces
Brands think Shopee, Tokopedia, and Lazada are digital shopping malls. They're actually department stores. This misconception is costing Indonesian brands millions in lost customer relationships and pricing power.
Here's the reality: When customers shop on marketplaces, they're shopping WITH the platform, not with your brand. You're not renting space in a mall—you're a vendor in someone else's store. And that changes everything about how you should strategize.
80% of Indonesian e-commerce happens on marketplaces, but most brands are using shopping mall strategies in a department store world. No wonder they're struggling with pricing pressure, customer retention, and brand control.
The solution isn't avoiding marketplaces—it's understanding what they really are and building your strategy accordingly. Your brand.com isn't competing with your physical store; it's the extension of it. But your marketplace presence? That's direct competition you need to manage strategically.
Ready to stop losing customers to platforms and start building real brand equity? The framework is simpler than you think, but most brands get it completely wrong.
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