Published in the International Journal of Economic, Finance and Business Statistics (IJEFBS) in 2026, the study provides a detailed look at how a multinational electronics company adapts its global digital strategy to meet the realities of one of Southeast Asia’s fastest-growing consumer markets. The findings offer valuable insights for businesses, policymakers, and researchers interested in digital transformation in emerging economies.
Indonesia’s Digital Economy Creates New Opportunities
Indonesia has become one of Southeast Asia’s largest digital markets. Rising internet penetration, widespread smartphone adoption, and a growing middle class have encouraged multinational companies to invest heavily in digital retail.
However, Indonesia also presents unique operational challenges. As an archipelagic nation, it faces uneven logistics infrastructure and varying levels of digital connectivity between regions. Businesses must also respond to rapidly changing e-commerce regulations and increasingly competitive online marketplaces.
According to the researchers, digital transformation is no longer limited to moving sales from physical stores to online platforms. Instead, it represents a comprehensive business transformation that integrates digital technology, customer engagement, data analytics, artificial intelligence, and Internet of Things (IoT) applications into everyday operations.
A Six-Year Narrative of Digital Transformation
Rather than relying on surveys or interviews, the researchers reconstructed PT Hisense International Indonesia’s digital transformation journey between 2020 and 2026 through a qualitative narrative approach.
The study analyzed publicly available materials, including:
- Official company press releases
- National business and economic news reports
- Industry market research from Statista and IDC Indonesia
- Customer reviews from Google Play Store, Shopee, and Tokopedia
By comparing these multiple sources, the researchers created a chronological narrative showing how the company's digital strategy evolved over time while validating information through documentary triangulation.
COVID-19 Accelerated Digital Retail
The study identifies the COVID-19 pandemic as the turning point in Hisense’s digital transformation.
During 2020 and 2021, declining foot traffic in physical stores prompted the company to expand its presence across major Indonesian e-commerce platforms through official online stores. Digital retail became essential for maintaining business continuity.
Between 2022 and 2024, the strategy evolved into an Online-to-Offline (O2O) model. Customers could explore products through marketplaces and live shopping events before visiting physical experience centers to interact with products directly.
By 2025 and 2026, the company shifted its focus toward building a connected smart home ecosystem powered by the VIDAA Smart OS platform and the ConnectLife application. Rather than selling standalone electronic products, Hisense increasingly positioned itself as a provider of integrated smart home solutions.
Three Major Opportunities Identified
The research highlights several strategic opportunities created by digital transformation.
Omnichannel Retail Improves Customer Experience
Integrating physical stores with digital platforms allows consumers to move seamlessly between online and offline shopping while increasing trust in the brand.
Live Commerce Drives Sales Growth
Live shopping sessions on platforms such as TikTok Shop and Shopee Live enable direct interaction with consumers, making it easier to explain product features and accelerate purchasing decisions.
The study reports that regular live commerce activities contributed to approximately 35 percent growth in direct sales, reducing reliance on traditional retail distributors.
Smart Home Demand Continues to Expand
Industry reports analyzed in the study indicate that Indonesian consumers increasingly prioritize connected home technology.
This trend provides multinational electronics companies with opportunities to differentiate themselves through IoT-enabled ecosystems rather than competing solely on hardware specifications.
Digital Transformation Still Faces Major Barriers
Despite these opportunities, the study identifies several structural obstacles that continue to challenge multinational retailers operating in Indonesia.
Constant Regulatory Changes
Government policies governing digital commerce, electronic imports, and social commerce platforms continue to evolve.
To remain compliant, the researchers note that companies increasingly adjust import strategies while expanding local assembly operations to meet Indonesia’s Domestic Component Level (TKDN) requirements.
Logistics Across an Archipelago
Customer reviews consistently identified logistics as one of the most significant operational problems.
Large household appliances such as refrigerators and washing machines require specialized transportation, and deliveries outside Java often involve higher shipping costs and greater risks of product damage.
The researchers recommend strengthening dedicated logistics partnerships supported by real-time digital tracking systems.
Intense Price Competition
Indonesia’s highly competitive e-commerce environment encourages consumers to seek the lowest possible prices.
Instead of relying solely on discounting, the study suggests that multinational companies create additional value through stronger after-sales services, longer warranties, and enhanced digital customer experiences.
Local Adaptation Determines Long-Term Success
One of the study’s central conclusions is that successful digital transformation depends not only on advanced technology but also on the ability to adapt global strategies to local market conditions.
According to Liana Kesuma and Ronnie Resdianto Masman of Tarumanagara University, multinational companies should combine global research and development capabilities with locally responsive business strategies. They argue that omnichannel retail, live commerce, decentralized logistics, stronger data governance, cybersecurity, and digital literacy should work together as part of a long-term transformation strategy rather than isolated initiatives.
The researchers also recommend expanding smart warehouse networks across Indonesia, strengthening digital after-sales services, improving consumer data protection, and accelerating partnerships that integrate traditional retail with digital platforms.
Why the Findings Matter
The study provides practical guidance for multiple stakeholders.
For multinational companies, it offers a roadmap for adapting digital transformation strategies to emerging markets.
For policymakers, it highlights the importance of improving digital infrastructure and logistics while maintaining clear and consistent regulations.
For retailers, it demonstrates that customer experience, service quality, and ecosystem integration may become stronger competitive advantages than price competition alone.
For researchers, it expands the literature by using a qualitative narrative approach that captures how digital transformation evolves over time rather than measuring it through cross-sectional surveys alone.
Author Profile
Liana Kesuma is a researcher in the Tarumanagara University whose academic interests include digital transformation, retail strategy, business management, and multinational corporations.
Ronnie Resdianto Masman is a lecturer at Tarumanagara University specializing in strategic management, international business, digital transformation, organizational development, and corporate strategy.
Source
Article Title: Digital Transformation in Retail: Challenges and Opportunities for Multinational Corporations (A Case Study of PT Hisense International Indonesia)
Authors: Liana Kesuma; Ronnie Resdianto Masman
Journal: International Journal of Economic, Finance and Business Statistics (IJEFBS), Vol. 4, No. 3 (2026)
DOI: https://doi.org/10.59890/ijefbs.v4i3.13
URL: http://journalijefbs.my.id/index.php/ijefbs
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