BELI - Transactions skyrocket during Pay Day

Global Digital Niaga (BELI) reports a jump in both transaction volume and value during Blibli Pay Day (BPD) by 40% and 30%, respectively, compared to normal days. BPD is carried out on 25th-28th of every month. During BPD, the e-commerce rolls out various promotion programs incl. cash back, discount and free 2-hour delivery. (Source: Kontan) Comment: Increased transaction during payday is not surprising, and may also happen across e-commerce industry, banking on momentum of higher spending during payday to jack up GTVs. Aside from payday program, Indonesia's e-commerce also engages in double date promotions and Harbolnas or e-shopping day that held on Dec 12. Nevertheless, we observed e-commerce players tend to spend less on promo cost in the past 2years, compared to the height of pandemic in 2020-2021 as they need to enforce efficiency efforts. In overall, we retain our BUY call on BELI