Social Networking Platform Indonesia Ecommerce|Indonesia e commerce market report 2019

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Indonesia has a lot of up-side potential in the ecommerce market since Indonesians are frequent social media users. In2014, around ~% users visited social media through cell phones and ~% used social media through smartphones.


The Indonesia e-commerce market has showcased remarkable growth during the span of last five years on the grounds of expansion in product range as well as surge in online market places. In 2014, B2C retail distribution model was one of the most utilized and has garnered the highest share of ~% in the overall sales revenues.


Rise in internet access along with secured online payment gateways have been the foremost drivers in Indonesia e-commerce market. Moreover, scarcity of products in tier-2 and tier-3 cities has enhanced the demand of various products in the e-commerce industry.


Indonesia’s internet user base has grown at a CAGR of ~% during the review period. Colossal competition between mobile phone companies in Indonesia has led to the decline in mobile phone prices and subscription plans. Various e-commerce retailers in Indonesia are expected to introduce this scheme for online purchases in Indonesia. This scheme provides flexibility to customers to try the products before making the actual purchase. Such services are expected to enhance the buying experience of the customer.


Indonesia registered 42 million internet users in 2014 and social networking was observed as the most prevalent activity, with ~ percent of online users actively engaged on sites such as Facebook and Twitter. Search and Chat applications account for about ~% and 30% of the overall internet usage. The total revenue generated by the online commerce market in Indonesia was USD ~ billion in 2014 which has increased from USD ~ billion in 2009 at a CAGR of ~% during the period 2009-2014.


During 2014, the e-commerce industry has garnered the attention of large population in Indonesia, which has signified the facts that people are anticipated to shop online more often. This change in trend has certainly helped the ecommerce companies to set a benchmark for themselves and gain popularity among the customers, thereby bolstered the revenues. In 2014, B2C retail distribution model was one of the largest and has garnered the highest share of ~% in the overall sales revenues.


Owing to these opportunities in the years to come, the revenues originated by the market are likely to enhance at a promising CAGR of ~% during the period 2014-2019. Introduction of giants such as Ardent Capital along with Bizzy.co.id in Indonesia E-commerce market in 2015 has led to the rise in revenues in online B2B commerce segment. These will post the online commerce market revenues at USD ~ Billion by 2019. The challenge in this sector is to enhance internet penetration at a lower cost in homes along with the enhancement of Indonesian conviction in online payment gateways.


The major segments in Indonesia e-commerce market include retail, travel, entertainment and advertising. Online retail market in terms of revenues has mounted at a substantial CAGR of ~% during the period 2009-2014, which has reported the revenues at USD ~ Billion during 2014.


Wego and Nusa Trips are one of the largest online travel sites in Indonesia. The firm has a database of 100,000 hotels and more than ~ domestic and international airlines. In 2014, around 70% of the people in Indonesia had travelled for corporate/ business purposes whereas the rest of inhabitants travel for the purpose of leisure and holidays. In 2014, the digital advertising spends per internet user in Indonesia was USD ~. The digital media advertising spent of Indonesia was USD ~ per internet user in 2014 and is expected to increase by around ~% in 2015.


Search ads are one of the most sorts after advertising techniques in the country with a revenue share of ~% in 2014. People in Indonesia rarely use an ad blocker therefore; display ads are one of the most common forms of advertising in the country and accounted for a share of ~% in the year 2014. Music and file sharing accounted for around ~% whereas celebrity and entertainment news accounted for ~% of the total online entertainment market by revenue in 2014.


Indonesia has numerous retail websites such as Rakutan, Zalora, Lazada, Lotte Group, PT Trans retail, PT superhero and others with innovative product offerings, attractive pricings, seasonal offers and discounts. The apparels and footwear segment in lieu to the aforementioned factors have contributed ~% of the overall gross merchandise value in the online retail market in 2014.


The online retail market of Indonesia had generated revenue of USD ~ Billion in 2014. Rise of cheap smartphone and tablets with a price of less than USD 100 has broadened the access to e-commerce portals. Cash on delivery is the major payment mode used in the country for the purpose of online retail and the segment had generated revenue of USD ~ Billion in the overall online retail market of Indonesia.


Source: https://www.kenresearch.com/technologyand-telecom/it-and-ites/indonesiaecommerce-market-research-report/2114105.html Contact: Ken Research Ankur Gupta, Head Marketing & Communications Ankur@kenresearch.com +91-9015378249


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