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. 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. 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. As one data point, Goldman Sachs estimates that Shopee, the region’s largest e-commerce platform, saw near doubling in GMB in Indonesia … 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. Or you are a seasoned Amazon FBA wanting to know how the e-commerce in Indonesia is like? 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. F&B and Health and Beauty) have seen a considerable increase, while purchases on tertiary products have declined. Copyright © 2020 ASEAN UP - All rights reserved. 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. 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. 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. Communication channels 15 5. The e-competition is growing fiercer, with companies striving to provide a better e-shopping experience. This phenomenon is referred to as social commerce: the buying and selling of goods through social media platforms. 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 … 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. According to SIRCLO’s survey, which compared consumer purchasing habits before and during the pandemic, purchases on basic needs (e.g. Buying behaviour 13 3. 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. 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. Namun, jka dibandingkan dengan total perdagangan retail, penjualan e-commerce di Indonesia hanya menyumbangkan 0,07 persen. Both parties have significantly contributed to higher digital penetration that has changed the ways of interacting socially, obtaining information, and consuming products and services. Bricks-and-mortar businesses, facing unequal tax burdens, will pressure the government for a level playing field. This event is presented by local to provide you local insight and challenges. 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. © 2019 SIRCLO. Kami juga hanya memasukan e-commerce yang memiliki jumlah minimal 100.000 pengunjung bulanan atau minimal 100.000 pengikut di akun media sosialnya. MarkPlus Insight baru-baru ini mempublikasikan hasil riset terbaru mereka yang bertajuk MarkPlus Insight Netizen Survey 2013 yang merupakan riset untuk mendalami pasar teknologi dan internet di Indonesia. Providing an overview of the Indonesian e-commerce landscape, the following graphic regroups the different actors in each category. Ecommerce in Indonesia. 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. Stocking behavior 25 2. e-Commerce 27 Looking ahead 29 Brand preferences 14 4. Being omnipresent plays a crucial role in helping businesses remain competitive and drive new revenues. Navigating Indonesia’s E-Commerce: COVID-19 Impact & The Rise of Social Commerce. SIRCLO neither provides regulated advice nor guarantee results. 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. 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. 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. 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. 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. Spending patterns 11 2. 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. Buying channels 17 6. 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. And this is something we knew could best be achieved by leveraging on social interactions. It gathers the most popular e-commerce players, platforms as well as services providers in the Indonesian e-commerce market, created by ecommerceiq. Furthermore, creating an interconnected environment for a seamless consumer experience would bring more value to the business itself. 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. 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. Is it possible to get a sample report about Indonesian e-commerce industry & Indonesian food industry? All the data, charts, and insights you need to understand internet, social media, mobile, and e-commerce use in Indonesia in December 2011. 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. The direct engagement provided by social media is even proven to be favorable as online marketplaces such as Shopee and Tokopedia have now provided a similar Chat feature to replicate the conversational experience. If you continue to use this site we will assume that you are happy with it. Both consumers and businesses have turned to e-commerce platforms as their alternative channels for continuity in these uncertain times. 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. 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. Not been generated or independently verified by SIRCLO and is inherently uncertain and subject to change in collaboration with,. Interests, Indonesia now has a fast-growing e-commerce scene poised to become digitally-adept consumers and the omnichannel has... On a regular basis, iPrice Group releases insights on topics pertaining to e-commerce as! 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