Why You should Love Indonesia for E-Commerce
(Opportunities & Challenges in 2016)
Online retailing in Indonesia is poised for an e-liftoff. As has already happened in China, this major structural theme will have sizeable ramifications for offline retail. Online shopping in Indonesia will be huge, rising to almost 11% of total retail sales by 19CL. As CLSA 2015 reported, Indonesia e-commerce sales in 2016; expected to have US$ 25 billion.
With the best online retail growth prospects among Asean countries, key drivers for Indonesia e-commerce will be a mix of its huge, young population; an extremely under penetrated offline sector; relatively high levels of mobile-internet penetration with large and accelerating levels of private and direct-equity investment into the sector.
To completely present why everyone should love Indonesia for e-commerce business, 8Commerce has released a special report handbook; Dissecting Indonesia Market and Its E-Commerce Opportunities in 2016 with some highlights as below:
- The rise of the young, 51% of Indonesia’s population is under the age of 30. We believe a young population tends to be more tech-savvy and internet literate than their order counterparts and as this former demographic moves into higher disposable income brackets, they should be an important driver of online retail growth.
- There’s been summarized from the survey, most concerns why people finally buy product via online channel are; product quality (73%), payment security (51%), complicated return of goods policies (20%), lack of physical touch and feel of the item to buy (17%), and other things that completely written in the report.
- Fashion is still the most often purchased in online retail which contributed 51% of total categories. After that is gadget (7%), air ticket (5%), healthcare (5%) and other categories that are reported completely in the report.
- The findings from CLSA survey, indicate that an average of 48% of all online-shopping traffic is already on mobile devices, and 17% of transactions all online shopping done by mobile phone. 45% of Indonesian online shoppers have more than three online-shopping on their phones.
And here are some key points from the report:
- Slow mobile data speeds and low fixed broadband penetration are one of the main obstacle to e-Commerce growth in Indonesia. There are average mobile data speeds are 2.7 times faster in China than Indonesia. In Indonesia average mobile data connection speeds are at 1.7 mbps, 32% slower than in Thailand.
- Online retail has had some impact on traditional retail which present more of a threat. We summarize there are 3 main threats for Indonesia traditional retail; price competition, sizeable product offering and price parity.
- There is potential opportunity to combine the strength of online and offline channels, which is integrated omni channel retailing. is the future e-commerce for the nearly upcoming year.
To get a full report of “DISSECTING INDONESIA MARKET AND IT’S E-COMMERCE OPPORTUNITIES IN 2016” please click here to download free.
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