Indonesia E-Commerce Market Report - 2019
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 smart phones. 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.Regions outside of Jakarta such as Denspar and Bali are expected to generate more than ~% of the revenues for ecommerce market of Indonesia whereas 20% of the revenues are expected to be generated through regions outside of Java.
Online B2B commerce had garnered a share of ~% in 2014 and is expected to enhance in 2015. Numerous investors and companies in Indonesia have realized the extent of hyper-competition and razor-thin margins in online B2C market. Expansion of product by B2B firms such as Amazon, Kaskus Networks, ASOS, Alibaba and others has led to the rise in online B2B commerce market of Indonesia. Over the next coming years, a similar pattern of growth is likely to be seen in the market as it is expected to grow at a very rapid pace and is projected to reach to USD ~ Billion by 2019.
Online C2C commerce market has been one of the major growth factors of online commerce market of Indonesia. Kaskus, Tokobagus and Berniaga are the largest online C2C commerce companies in the country. B2C retail in Indonesian archipelago has been capital intensive and margins have been achieved majorly through economies of scale. The total revenue generated by the online commerce market in Indonesia was USD ~ billion in 2014 which has increased from USD ~ billion in 2013 at a CAGR of ~% during the period 2009-2014.
This is primarily due to the emergence of large number of online portals, widespread internet infrastructure and levitation in smartphone usage, rapidly changing lifestyles has made the customers to switch their mode of preference for shopping from offline to online. The online retail market of Indonesia had generated revenue of USD ~ Billion in 2014 with dominance by the clothing segment that had captured a share of around ~% by revenues in the overall online retail market. Online travel market in Indonesia is projected to become the second largest market after online retail in Indonesia.
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 20092014.
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.
Also, numerous businesses in Indonesia have recognized the affinity of social media and have used the opportunity to connect and assist various local startups such as “LakuBgt” and “Onigi”. Numerous investors and companies in Indonesia have realized the extent of hyper-competition and razor-thin margins in online B2C market.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.
Source: https://www.kenresearch.com/technology-and-telecom/it-and-ites/indonesia-ecom
 Contact: Ken Research Ankur Gupta, Head Marketing & Communications Ankur@kenresearch.com +91-9015378249 Website : www.kenresearch.com
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