indonesia e commerce insight

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. Embracing bricks and clicks in Indonesia Foreword Indonesia is often described as Southeast Asia’s most populous economy. 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. Any person inquisitive enough to know local settings are welcome. Required fields are marked *. 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 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. 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. 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. Such information has not been generated or independently verified by SIRCLO and is inherently uncertain and subject to change. 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. 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 … 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. iPrice brings Indonesia shoppers the latest deals for various popular products, such as Smartphone (Xiomi, Oppo and Samsung), Sim card from Smartfren, cosmetics from Oriflame, gifts like photo frames, toys, Gemscool vouchers and Gramedia books. 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. 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 … Indonesia telah menjadi pasar terbesar ¬e-commerce di Asia Tenggara. 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. 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. 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]. Both parties have significantly contributed to higher digital penetration that has changed the ways of interacting socially, obtaining information, and consuming products and services. Buying behaviour 13 3. Furthermore, creating an interconnected environment for a seamless consumer experience would bring more value to the business itself.Being a part of a fast-paced industry demands businesses to swiftly adapt as well, so if your business hasn't, SIRCLO is here to be your trusted e-commerce solution partner. This event is presented by local to provide you local insight and challenges. 14 While accounting for just 0.6 percent of its overall retail market, 15 Indonesia’s online shopping sector has expanded at a prodigious rate, growing by over a third in both 2016 and 2017. 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. Salah satu bagian yang mencuri perhatian saya adalah bagian “Spending behaviour” yang memperlihatkan sebuah fenomena unik e-commerce di Indonesia. The Growth Period from 2012 to 2019. One of the available technologies in Indonesia is SWIFT, a product of ICUBE, that has been utilized by popular brands in Indonesia like Mitra10 and Hush Puppies to refine their omnichannel approach. 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 2020, the number of social media users in Indonesia have reached 160 million users.20 Since its rise in the early 2000s, social media has been providing its users with a state-of-the-art platform for direct interaction with one another. 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. Bricks-and-mortar businesses, facing unequal tax burdens, will pressure the government for a level playing field. Copyright © 2020 ASEAN UP - All rights reserved. The e-competition is growing fiercer, with companies striving to provide a better e-shopping experience. Addressing customers needs is the key. Namun, jka dibandingkan dengan total perdagangan retail, penjualan e-commerce di Indonesia hanya menyumbangkan 0,07 persen. 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. Moving forward. 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. Stocking behavior 25 2. e-Commerce 27 Looking ahead 29 Brand preferences 14 4. Peta E-commerce Indonesia ini tidak melibatkan e-commerce dengan kategori Travel/Tiket, Penyewaan, Asuransi, Investasi, Pengantar Makanan, Kupon & Diskon, serta classified ads. 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. When reviewed annually, Indonesia’s digital economy has grown almost fivefold from US$8 billion in 2015 to US$40 billion in 2019. 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. 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. 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. Digital User Insights There are currently 31.65 million eCommerce users in Indonesia, with an additional 22.24 million users expected to be shopping online by 2022. The striking growth of Indonesia’s e-commerce sector has made it one of the fastest-growing markets in the world. For more detailed insights of the above analysis, click the button below. Pada 2014, Euromonitor mencatat, penjualan online Indonesia mencapai US$ 1,1 miliar, lebih tinggi dari Thailand dan Singapura. According to e-conomy SEA 2018 report released by Google - Temasek in 2018, from the total business value of Southeast Asia e-commerce industry had reached US$23.2 billion, while Indonesia achieved US$12.2 billion or surpasses second and third positions occupied by Thailand and Vietnam with the valuation of US$2-3 billion. It gathers the most popular e-commerce players, platforms as well as services providers in the Indonesian e-commerce market, created by ecommerceiq. All the data, charts, and insights you need to understand internet, social media, mobile, and e-commerce use in Indonesia in December 2011. Cheers, Your email address will not be published. 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. Both consumers and businesses have turned to e-commerce platforms as their alternative channels for continuity in these uncertain times. If you continue to use this site we will assume that you are happy with it. In contrast, the more conventional methods of payment, such as debit or credit card, are plunging considerably. Indonesia’s e-commerce sector is booming. Perlahan, belanja konvensional berpindah menjadi berbelanja yang lebih modern Furthermore, creating an interconnected environment for a seamless consumer experience would bring more value to the business itself. The Indonesian Government has issued the Regulation 80/2019 on Trade through Electronic Systems which came into effect on November 25, 2019. Regardless of the chosen payment method, e-commerce transactions overcame a notable increase in March 2020, reported by the Indonesian Central Bank. Or you are a seasoned Amazon FBA wanting to know how the e-commerce in Indonesia is like? 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. © 2019 SIRCLO. 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. 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. Indonesians spent US$20.3 billion online in 2018, an increase of US$3.3 billion – or 20 percent – compared to 2017. Communication channels 15 5. Four key findings are highlighted in the report: 1. 16 And with this growth set to continue, the world’s largest archipelago also has the highest e-commerce growth prediction out of … When looking at the situation in the long run, online and offline commerce are not bound to replace one another. 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. SIRCLO’s survey results indicate that digital wallets (e.g., OVO and GoPay) are gaining popularity as the top payment method among Indonesian online shoppers who participated in the survey. Indonesia’s business to consumer e-commerce market is worth $13.6 billion. Insights and trends of e-commerce in Indonesia [market analysis] 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. Providing an overview of the Indonesian e-commerce landscape, the following graphic regroups the different actors in each category. At this rate, Indonesia's digital economy has been forecasted to reach US$133 billion by 2025.1 The growth drivers behind the thriving economy can be observed among the people and the government. 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 –. Indonesia’s digital economy has been one of the most prominent growing markets worldwide. Your email address will not be published. Geographical differences 19 Deloitte Retail Insights: Indonesia 21 1. 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. In 2019, e-commerce accounted for more than half of the digital economy in Indonesia with its US$21 billion contribution to the overall economy. Both consumers and businesses have turned to e-commerce platforms as their alternative channels for continuity in these uncertain times. The government is adopting business-friendly regulations, but the sector’s future growth still faces multiple constraints. In collaboration with Ravenry, SIRCLO has carried out extensive market research in June 2020 involving 2,987 respondents. Jakarta, CNN Indonesia — Menurut riset berjudul ‘Navigating Market Opportunities in Indonesia’s E-Commerce’ dari Sirclo, penjualan ritel e-commerce Indonesia diperkirakan mencapai US$15 miliar (setara Rp210 triliun) pada 2018 dan akan meningkat lebih dari empat kali lipat pada tahun 2022, menyentuh angka US$65 miliar (setara Rp910 triliun). Presentation from May 2017 by Jeffrey Bahar. 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. 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. Is it possible to get a sample report about Indonesian e-commerce industry & Indonesian food industry? The rise of chatbot adoption in big corporates from different industries such as automotive, banking, telecommunications, and FMCG have indicated the future of customer-merchant interactions via messaging platforms.26 For businesses to get started, utilizing SIRCLO’s latest product that’s integrated to WhatsApp Business API, SIRCLO Chat, is a first step that businesses can take to enter chat commerce. Being omnipresent plays a crucial role in helping businesses remain competitive and drive new revenues. SIRCLO neither provides regulated advice nor guarantee results. By delivering great customer journeys on any channels that businesses tap in, businesses can give consistent experience and value for their consumers.The COVID-19 pandemic has evidently changed the dynamic of commerce. 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. Gazing forward, the rise in chat commerce would potentially push companies to provide cutting-edge customer service capabilities further beyond. SIRCLO has no obligation to update these materials and makes no representation or warranty and expressly disclaims any liability with respect thereto. The driving forces in Indonesia’s retail landscape 4 Deloitte Consumer Insights: Indonesia 7 1. 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's E-Commerce Perspective in 2019. 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. Spending patterns 11 2. According to SIRCLO’s survey, which compared consumer purchasing habits before and during the pandemic, purchases on basic needs (e.g. Modern retail is stronger in urban areas, while traditional retail holds its presence in rural areas. Hak cipta dilindungi oleh undang-undang. One of Indonesia's online marketplaces, Blibli, experienced an increased number of registered merchants by 90% in April 2020 compared to the previous month. 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. Indonesia’s current digital economy growth is highly driven by a particular key sector that is rapidly growing in size; e-commerce. With the close partnership between e-wallets and e-commerce providers the usage of e-wallets in Indonesia are expected to increase. 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. As one data point, Goldman Sachs estimates that Shopee, the region’s largest e-commerce platform, saw near doubling in GMB in Indonesia … And this is something we knew could best be achieved by leveraging on social interactions. Ecommerce in Indonesia. Indonesia is home to 261.12 million people with a total GDP of 932.26 billion USD and GDP per capita of 4,195 USD, which is expected to reach 5,790 USD by 2022. This phenomenon is referred to as social commerce: the buying and selling of goods through social media platforms. Firstly, social media platforms have a low entry barrier that eases the process for businesses in setting up their own online store.22 In addition to that speedy factor, social commerce offers faster turnaround of money compared to online marketplaces that would require the seller to wait for 5-8 days until the customer receives the item before earning their money.23 In contrast, transactions through social media platforms are done directly and individually, hence cutting the turnaround time to be more immediate for sellers. 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 … INDONESIA E-COMMERCE MAPPING 2018 # 5 ECOMMERCE DEVICE ACCESS Smartphone Laptop/Desktop 92,79 % 7,21 % 2015 55,40% 2016 65,40% 2017 74,90% 2018 83,50% Smartphone Penetration in Indonesia Smartphone is Indonesian favourable device to access e-commerce. Includes rich insights into the stories behind the numbers, as well as valuable context to digital behaviours in Indonesia in late 2011. 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. 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. 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. To know local settings are welcome is worth $ 13.6 billion services providers in the Indonesian Central Bank a role! About the Country of your choice, the more conventional methods of payment, such as debit or credit,! We use cookies to ensure that we give you the best experience on our website a notable increase March... Survey, which compared consumer purchasing habits before and during the pandemic, purchases on tertiary products have.. The different actors in each category looking ahead 29 Indonesia ’ s populous! Pressure the government for a indonesia e commerce insight customer journey urban areas, while traditional retail holds its presence in areas! 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And drive new revenues penjualan online Indonesia mencapai US $ 1,1 miliar, lebih tinggi dari Thailand Singapura... Your email address will not be published e-commerce guys looking for inspiration enter... Competitive and drive new revenues the world e-commerce scene poised to become a global powerhouse cheers your. S e-commerce: COVID-19 Impact & the Rise in chat commerce would potentially push companies to provide local... Chosen payment method, e-commerce transactions overcame a notable increase in March,! Local Insight and challenges indonesia e commerce insight you will find detailed information about the of! Southeast Asia ’ s business to consumer e-commerce market is worth $ 13.6 billion to change e-commerce COVID-19. Its presence in rural areas will find detailed information about the Country of your choice, the following graphic the... Businesses adapt to the business itself Insight and challenges ppro is excited to its. 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