Tokyo-based C Channel, a Japanese startup offering a video-based digital fashion media for young women, has acquired Jakarta-based startup PT Media Makmur for an undisclosed sum.
As a local subsidiary of Japanese blog marketing company Rich Media, PT Media Makmur has been operating Kawaii Beauty Japan, a fashion and beauty-focused media outlet for female consumers in Indonesia.
The acquisition is expected to allow it to expand into the Indonesian market, which is slated to be Asia’s next largest e-commerce market. Indonesia would be its fourth major market to enter in Asia.
According to a CNBC report published in December 2014, Muslims account for over 20 per cent of the global population and possess growing spending power Indonesia is the largest Muslim country in the world, with an economy projected to surpass $1 trillion in GDP by 2023.
Indonesia, alongside Turkey, the U.A.E, Indonesia and Iran, are the Muslim countries with the highest consumer clothing consumption.
This is expected to see a growing demand for Islamic fashion apparel, with Islamic fashion is projected to comprise 11.2 per cent of global fashion spending in three years’ time, according to a Euromonitor report that CNBC cited. Spending is predicted to reach $322 billion by 2018, versus an estimated global expenditure of $2.9 trillion.
A Euromonitor report published in February 2016 nots that in Indonesia, womenswear current value sales grew by 14 per cent in 2015. These value sales are sustained by the constant evolution of women’s fashion trends are always evolving. Fashion trends in Indonesian womenswear trends are also influenced by celebrities.
With increased purchasing power of female Indonesian consumers over the years, as well as the brand strength that Japanese fashion brands represent, the transaction represents a strategic transaction that positions the company to capitalise on the Indonesian growth narrative.