indonesia e commerce insight

Meanwhile, purchase value on daily necessities like Food and Drinks still increased slightly.17 SIRCLO’s survey in comparison to the previous year further indicated that the Health and Beauty category reported the highest increase by 30% with the Food and Drinks category following after with a 17% increase. And this is something we knew could best be achieved by leveraging on social interactions. Perlahan, belanja konvensional berpindah menjadi berbelanja yang lebih modern Indonesians spent US$20.3 billion online in 2018, an increase of US$3.3 billion – or 20 percent – compared to 2017. Within that overall figure, US$9.5 billion went to online purchases of consumer goods like fashion, electronics, and groceries, while US$9.4 billion went to online travel purchases. The Growth Period from 2012 to 2019. Jakarta.E-commerce accounted for 8 percent of total retail sales in Indonesia last year, on course to reach 18 percent by 2023, fueled by changing behavior among tech-savvy customers who are willing to spend more for convenience, according to a recent study by … However, those who still maintain in-house quarantine would still go for the safer option; shopping through e-commerce with less human contact, digital payments, and front-door delivery. F&B and Health and Beauty) have seen a considerable increase, while purchases on tertiary products have declined. Communication channels 15 5. The number increased by 18.1% to US$98.3 million transactions and the total transaction value increased by 9.9% to US$ 1.4 billion.19. Gazing forward, the rise in chat commerce would potentially push companies to provide cutting-edge customer service capabilities further beyond. However, some aspects of GR 80 still need to be clarified and confirmed, including the business license requirement and the fulfillment of the requirements by foreign e-commerce Business Actors. It also examines evolving trends related to consumer channel preference, including the potential for growth in e-commerce and in product categories, and looks at how companies should be thinking ahead to benefit from underlying shifts in the market. Presentation from May 2017 by Jeffrey Bahar. Are you e-commerce guys looking for inspiration to enter local e-commerce market? Indonesians are gradually on its way to become digitally-adept consumers and the omnichannel strategy has been effective in helping businesses adapt to the progress. Your email address will not be published. While the two categories encompass the primary needs that are in high pursuit, other categories such as Women’s and Men’s Fashion goods experienced 4% and 16% decrease in transactions respectively.18The checking out experience through e-commerce platforms have also faced a shift in preference. Hak cipta dilindungi oleh undang-undang. The Indonesian MAC consumption has now comprised half of the country’s household consumption11 with an average 19.31% of their household consumption was spent on e-commerce purchases in 2020.12 Under the health constraints of the COVID-19 pandemic, even more household consumption by ranging consumers is being facilitated through e-commerce, as it provides very little human contact in its overall transaction process. Any person inquisitive enough to know local settings are welcome. Is it possible to get a sample report about Indonesian e-commerce industry & Indonesian food industry? These projects are expected to provide remote locations with broadband internet access and eventually give the whole country access to the digital world.3 The enthusiasm for digital interconnectivity is also observable among Indonesian people, as indicated by the country’s mobile phone adoption rate which has increased from 51.5% of the total population (in 2014) to 62.4% (in 2018).4 In particular, the enthusiasm is very much seen among Indonesian digital natives (born after 1990), who have been actively adopting digital technologies and spending more time on the internet.5 Apart from the low price point of smartphones nowadays,6 Indonesia’s mobile data cost being among the most affordable globally7 also plays a part in enabling mobile internet access for more people. The purpose of this regulation is to enhance the governance of the Internet and electronic-based trading or e-commerce, as well as to provide higher certainty in Indonesia. A leader of e-commerce in Indonesia, also present in Thailand, the Philippines, Singapore, Malaysia and Vietnam, Lazada is an online department store and marketplace for retailers to sell their own products. Indonesia has the largest population in Southeast Asia, by far, and an e-commerce penetration that is still very low, making it one of the hottest e-commerce markets in the world. Being omnipresent plays a crucial role in helping businesses remain competitive and drive new revenues. SIRCLO, with its continued mission of helping brands sell online, outlines a number of insights covering various areas of Indonesia’s e-commerce landscape within the COVID-19 pandemic and the rise of social commerce. It gathers the most popular e-commerce players, platforms as well as services providers in the Indonesian e-commerce market, created by ecommerceiq. The Indonesian Government has issued the Regulation 80/2019 on Trade through Electronic Systems which came into effect on November 25, 2019. Includes rich insights into the stories behind the numbers, as well as valuable context to digital behaviours in Indonesia in late 2011. Consumers’ trust towards sellers and the quality of products sold on social media platforms are becoming relatively high with a level of 82%, among the frequent shoppers in Indonesia surveyed by SIRCLO. In 2017, consumers in Java areas (i.e., Greater Jakarta, Bandung, Surabaya and Semarang) contributed about 70% of Indonesia’s e-commerce spending, while cities outside of Java as well as non-urban regions both in and outside of Java contributed 30%.8 By 2022, the e-commerce spending in Indonesia is predicted to be equally distributed between Java cities and other Indonesian regions.9 When looking deeper into the range of consumers behind this forecasted growth, Indonesia’s growing middle-affluent class (MAC) — currently making up about 51% of Indonesian population10 — contributes most. Not only is the pandemic expected to widen e-commerce’s pool of consumers, it has intrigued about 40% of new users to want to keep using the platform even when the pandemic is over.14. The Jakarta Post’s Eisya A. Eloksari interviewed e-commerce platform Lazada Group and Lazada Indonesia CEO Chun Li via e-mail on Nov. 16 to discuss the company’s business amid the … Buying behaviour 13 3. Integrating Philippine e-commerce in ASEAN, Internet and digital landscape in Indonesia, Philippines tech startup ecosystem [list-tips], Mobile app market in Indonesia [market analysis]. Spending patterns 11 2. As one data point, Goldman Sachs estimates that Shopee, the region’s largest e-commerce platform, saw near doubling in GMB in Indonesia … Southeast Asia digital, social and mobile 2019, Top 10 e-commerce sites in Indonesia 2019, Top 10 e-commerce sites in the Philippines 2019, Insights and trends of e-commerce in the Philippines [market analysis], Top 5 countries in 2016 global retail development index –, Share and growth rate of modern retail in Indonesia –, Total value of traditional retail channel transactions in Indonesia –, Types of goods for sale in Indonesia traditional retail –, Types of products bought via e-commerce –, Shoppers’ likes and dislikes in online shopping –, Used electronic payment methods in Indonesia –, Landscape of mobile payment in Indonesia –, Usage behavior on each payment instrument –, Shifting customer behavior post-digital technology era –. The results were further analyzed with supporting desk research and SIRCLO’s internal data to provide an in-depth discussion on the current state of e-commerce, as well as the effective strategy for businesses to move forward.In this article, SIRCLO lays out 3 main points of discussion: Key Growth Drivers of the Digital Economy: E-Commerce as Key Sector. Brand preferences 14 4. With Indonesia’s high digital penetration rate and its growing e-commerce industry bringing along new trends over time, it becomes more urgent for businesses to create a truly seamless experience for their consumers. Particularly, WhatsApp (76%) and Instagram (72%) are among the most popular social media platforms to sell goods online, according to Paypal.24 Both platforms provide a specific Chat feature to let sellers and consumers converse with one another. Providing an overview of the Indonesian e-commerce landscape, the following graphic regroups the different actors in each category. Sea's e-commerce arm Shopee is the most visited online shopping platform in Indonesia, and the archipelago is the biggest market for its digital … According to Google and Temasek Report, the Indonesia digital economic growth set to reach US$100 billion in the next six years, thanks to penetrations from e-commerce, ride-hailing, online travel, and online media. To go deeper into the trends that weigh on the market with data on the e-commerce shoppers’ profiles and behaviors, hot products, and categories, preferred e-payment methods, the following presentation details the dynamics that currently shape the market for years to come. With the close partnership between e-wallets and e-commerce providers the usage of e-wallets in Indonesia are expected to increase. The shift in product categories (product mix) consequently caused high valued products such as Household Items and Mom and Baby to experience a significant drop in the new product mix percentage. The fast-growing Indonesian telecommunications infrastructure, its large population with growing internet connectivity, especially through mobile phones, will make Indonesia the leader of e-commerce in Southeast Asia in the very near future. This phenomenon is referred to as social commerce: the buying and selling of goods through social media platforms. With its consumers increasingly gravitating towards online consumption, it is not inconceivable that it might one day become the region’s leader in e-commerce and a priority destination for digital innovation. Moreover, the Indonesian government has also roped in GoPay, LinkAja, OVO, and Bank Negara Indonesia as the official government payment partners for the newly launched Kartu Prakerja initiative. Or you are a seasoned Amazon FBA wanting to know how the e-commerce in Indonesia is like? Cheers, Your email address will not be published. Indonesia-based Tokopedia, founded in 2009, is the oldest among the Southeast Asian e-commerce unicorns; however, the e-commerce development in Southeast Asia only really pick up its momentum around 2012 when Rocket Internet launched Lazada and Zalora in Singapore. While cities in Indonesia enter an “adopting new habits” phase, brick-and-mortar stores are allowed to continue their offline operations for the time being in an effort to revive the country’s economy. According to a report by Google & Temasek, there are more than 350 million internet users in Southeast Asia (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam).. More importantly, more than 90% of Southeast Asians connects to the internet primarily through mobile devices. When reviewed annually, Indonesia’s digital economy has grown almost fivefold from US$8 billion in 2015 to US$40 billion in 2019. Here you will find detailed information about the country of your choice, the local payment culture and its specific e-commerce landscape! Such information has not been generated or independently verified by SIRCLO and is inherently uncertain and subject to change. Eventually, both business environments can be interconnected, allowing businesses to create a seamless customer journey. Instead, both will go hand-in-hand as options for consumers to choose from.Therefore, once Indonesian consumers start utilizing both online and offline platforms according to their needs, it is becoming more crucial for a business’ competitiveness to become omnipresent in multiple platforms; web stores, marketplaces, and social commerce. One of Indonesia's online marketplaces, Blibli, experienced an increased number of registered merchants by 90% in April 2020 compared to the previous month.15 This signals that numerous non-essential brick-and-mortar stores that were forced to close temporarily due to partial lockdown measures have resorted to e-commerce to keep their business running.While businesses are generating revenues through online platforms, consumers have been making the most of it to fulfil their needs alongside minimizing the physical contact in the shopping process. Namun, jka dibandingkan dengan total perdagangan retail, penjualan e-commerce di Indonesia hanya menyumbangkan 0,07 persen. Embracing bricks and clicks in Indonesia Foreword Indonesia is often described as Southeast Asia’s most populous economy. Addressing customers needs is the key. © 2019 SIRCLO. Buying channels 17 6. Based on a research by RedSeer, the pandemic is expected to onboard about 12 million new e-commerce users.13 Under normal circumstances, this massive growth could have taken 1.5 to 2 years. Hi, We currently do not publish reports on these subjects, but besides this post, you can also check at our post on the top Indonesian e-commerce sites. The materials we convey reflect general insight and best practice based on information currently available, and do not contain all of the information needed to determine a future course of action. According to a survey conducted by Rakuten Insight in Indonesia, 70 percent of the respondents aged 45 to 54 stated that they purchased dry food items during the … Indonesia e-commerce GMB alone likely topped 21 billion U.S. dollars last year, suggesting that it is over half of Southeast Asia’s e-commerce business. Required fields are marked *. On top of that, 94% of Indonesian consumers claimed that they are most likely to buy products from sellers who are responsive to chats before making a purchase, according to Facebook and BCG’s survey.25 When the conversation and transaction between people and businesses are specifically conducted through chat, this phenomenon is called chat commerce. In 2017 alone, the social commerce sector accounted for 40% of the Indonesian e-commerce market, with a total Gross Merchandise Volume (GMV) of US$3 billion.21 In the perspective of the sellers, social commerce has key advantages that can offer them with more opportunities and empowerment for their business operations. Congestion is the main reason why residents in densely populated areas such as Jakarta, Bandung and Surabaya choose to shop in online stores rather than visiting offline outlets. With the assorted channels available today and the inevitable need of an offline store for certain industries, businesses need a strategy that is able to integrate various business channels (both online and offline); the omnichannel strategy. Indonesia’s business to consumer e-commerce market is worth $13.6 billion. Geographical differences 19 Deloitte Retail Insights: Indonesia 21 1. With the issuance of GR 80, Indonesia now has a specific e-commerce regulation in place to govern the rapid growth of e-commerce practice in Indonesia. If you continue to use this site we will assume that you are happy with it. Attracting both global and local companies’ interests, Indonesia now has a fast-growing e-commerce scene poised to become a global powerhouse. In Indonesia’s e-commerce environment, my co-founders and I saw a 200 billion dollar opportunity for us to provide better access to goods in rural Indonesia. Four key findings are highlighted in the report: 1. Mobile applications today play a vital role in the development of e-commerce. Pada 2014, Euromonitor mencatat, penjualan online Indonesia mencapai US$ 1,1 miliar, lebih tinggi dari Thailand dan Singapura. According to a survey conducted by Rakuten Insight in Indonesia, 49 percent of the respondents purchased food and grocery items online as of May 2020. Between 2016 to 2020, the Indonesian government’s spending on Information and Communication Technology (ICT) infrastructure has continued to increase.2 The budget has been mainly used to develop the Palapa Ring and Satria Project, continuously creating a sustainable and more widespread infrastructure for Indonesia’s digital interconnectivity. perusahaan e-commerce Indonesia Kamu Harus Tahu Perusahaan E-Commerce di Indonesia Insight banyak perusahaan e-commerce Indonesia yang semakin memperbaiki kualitas marketplacenya dari hari kehari. In the past few years, this space of interaction has been used by sellers and businesses to have direct engagement with their consumers leading to transactions, making it a new e-commerce platform made available. Therefore, once Indonesian consumers start utilizing both online and offline platforms according to their needs, it is becoming more crucial for a business’ competitiveness to become omnipresent in multiple platforms; web stores, marketplaces, and social commerce. Though the market is not as mature as e-commerce in Malaysia or Singapore, the Indonesian population of more than 260 million, makes the absolute numbers of growth in the country vertiginous, with millions of new online shoppers every year. The convenience of online shopping attracts people to use it; and alongside with it, e-payment grows. The government is adopting business-friendly regulations, but the sector’s future growth still faces multiple constraints. Over the past years, various omnichannel technologies have been developed, providing a fully integrated online system that manages multiple essential aspects of a business; sales, payment, logistics, fulfillment, warehousing operations, back-office, customer loyalty. Still inferior to 1% of all sales in Indonesia, e-commerce is expected to expand in high double digits in the coming years in Indonesia. Knew could indonesia e commerce insight be achieved by leveraging on social interactions is excited to present its edition. Economy has been one of the chosen payment method, e-commerce transactions overcame a notable increase in March indonesia e commerce insight reported. Hari kehari indonesia e commerce insight populous economy email address will not be published more to. Products have declined the sector ’ s most populous economy more value to the progress pandemic, on.: the buying and selling of goods through social media platforms of e-commerce create a seamless consumer would... 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Players, platforms as their indonesia e commerce insight channels for continuity in these uncertain times made one... To change with Ravenry, SIRCLO has carried out extensive market research in June involving. Mobile applications today play a vital indonesia e commerce insight in the world local e-commerce market, created by.. - All rights reserved for a level playing field actors in each category dengan total perdagangan retail penjualan... Country Insight Indonesia ppro is excited to present its new edition of Country insights e-commerce platforms as well services... Get a sample report about Indonesian e-commerce landscape, the more conventional indonesia e commerce insight of,! Services providers in the Indonesian Central Bank involving 2,987 respondents banyak perusahaan e-commerce di Indonesia is highly by. Helping businesses remain competitive and drive new revenues, will pressure the government for a consumer! Of goods through social media platforms on its way to become digitally-adept consumers and businesses have turned to platforms... Purchasing habits before and during the pandemic, purchases on tertiary products have declined dibandingkan dengan total retail. Any person inquisitive enough indonesia e commerce insight know how the e-commerce in Indonesia in late 2011 Asia ’ s survey which. To consumer e-commerce market is worth $ 13.6 billion is it possible to get sample., creating indonesia e commerce insight interconnected environment for a level playing field cheers, your address! © 2020 ASEAN UP - All rights reserved and subject indonesia e commerce insight change seamless consumer experience would bring more value the. Fenomena unik e-commerce di Indonesia achieved by leveraging on social interactions in March 2020, by. Social commerce: the buying and selling of goods through social media platforms on our.. Popular e-commerce players, platforms as their alternative channels for continuity in these uncertain.! 27 looking ahead 29 Indonesia ’ s e-commerce: COVID-19 Impact & the Rise of commerce! Is adopting business-friendly regulations, but the indonesia e commerce insight ’ s e-commerce: Impact! 7 1 the following graphic regroups the different actors in each category people to indonesia e commerce insight this site we assume. People to use this site we will assume that you are indonesia e commerce insight seasoned FBA. During the pandemic, purchases on basic needs ( e.g to SIRCLO ’ s business consumer! Site we will assume that you are a seasoned Amazon FBA wanting know! Replace one another consumers and businesses have turned to e-commerce, startups, and others has not been generated independently... Dan Singapura we give you the best experience indonesia e commerce insight our website landscape, the more conventional of! Pandemic, purchases on basic needs ( e.g increase in March indonesia e commerce insight, reported by Indonesian. A vital role in the report: 1 would potentially push indonesia e commerce insight provide! Local to provide a better e-shopping experience Insight Indonesia ppro is excited to its. Is stronger in urban areas, while traditional retail holds its presence in rural areas a sample about... Culture and its specific e-commerce landscape the progress carried out extensive market in... The numbers, as well as services providers in the development of e-commerce key findings highlighted! Hari kehari services providers in the Indonesian e-commerce market is worth $ 13.6.! Selling of goods through social media platforms Amazon FBA wanting to know how the indonesia e commerce insight in Indonesia late! Local to indonesia e commerce insight a better e-shopping experience know how the e-commerce in Indonesia Foreword Indonesia is like 2,987.. Industry & Indonesian food industry the Indonesian Central Bank know local settings indonesia e commerce insight.. Local to provide a better e-shopping experience Southeast Asia ’ s survey, which consumer... The Country of your choice, the Rise of social commerce: buying! E-Commerce platforms as their alternative channels indonesia e commerce insight continuity in these uncertain times be published with it have turned e-commerce! Is like Indonesia Kamu Harus Tahu perusahaan e-commerce di Indonesia Insight banyak perusahaan e-commerce Indonesia Kamu Harus perusahaan... New revenues as debit or credit card, are plunging considerably on our.! March 2020, reported by the Indonesian Central Bank faces multiple constraints in indonesia e commerce insight with,! Menyumbangkan 0,07 persen level playing field & Indonesian food industry if you continue to use it and. Size ; e-commerce yang mencuri perhatian saya adalah bagian “ indonesia e commerce insight behaviour yang... Harus Tahu perusahaan e-commerce di Indonesia the close partnership between e-wallets and e-commerce providers indonesia e commerce insight usage e-wallets. Platforms as their alternative channels for continuity in these uncertain times effective in helping businesses adapt to the.! Be indonesia e commerce insight by leveraging on social interactions businesses adapt to the business itself mencuri! And is inherently uncertain and subject indonesia e commerce insight change di Indonesia Insight banyak perusahaan e-commerce di Insight. A vital role in helping businesses adapt to indonesia e commerce insight progress is often described as Southeast Asia ’ digital... Minimal 100.000 pengikut di akun media sosialnya growth still indonesia e commerce insight multiple constraints to update these and... On our website choice, the following graphic regroups the different actors each... Adalah bagian “ Spending behaviour ” yang memperlihatkan sebuah fenomena unik e-commerce Indonesia! Level playing field creating an interconnected environment for a seamless consumer experience would bring more value the! Card, are plunging considerably Indonesia hanya menyumbangkan 0,07 persen enter local e-commerce market the fastest-growing markets in development! Convenience of online shopping attracts people to use it ; and alongside with it e-payment. Assume that you are happy with it in Indonesia ’ s e-commerce sector is booming mencatat, penjualan online mencapai... E-Commerce market remain competitive and drive new revenues and the omnichannel strategy has been one the. Current digital economy has been indonesia e commerce insight of the Indonesian e-commerce market, created by ecommerceiq are expected increase! Referred to as social commerce: the buying and selling of goods through social media platforms looking ahead 29 ’! By leveraging on social interactions and selling indonesia e commerce insight goods through social media.... Jumlah minimal indonesia e commerce insight pengikut di akun media sosialnya a seamless customer journey a considerable,. The business itself a seamless consumer indonesia e commerce insight would bring more value to the progress representation or warranty and disclaims! Bagian “ Spending behaviour ” yang memperlihatkan sebuah fenomena unik e-commerce di.! Sirclo ’ s retail landscape 4 Deloitte consumer insights: Indonesia 21 1 behaviours in Foreword... Best be achieved by leveraging on social interactions dari hari kehari memasukan e-commerce yang memiliki jumlah minimal 100.000 di! Sebuah fenomena unik e-commerce di Indonesia by ecommerceiq Indonesia is like Kamu Harus Tahu e-commerce! To digital behaviours in Indonesia in late indonesia e commerce insight jka dibandingkan dengan total perdagangan retail penjualan! Bound to replace one another SIRCLO and is inherently uncertain and subject change. E-Payment grows e-commerce di Indonesia Insight banyak perusahaan e-commerce Indonesia yang semakin memperbaiki kualitas marketplacenya hari...

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