Online Shopping Behaviour YouGov Insight Series
Indonesia Market
July 6, 2018
Introduction The emerge of the internet and mobile devices has transformed the old shopping habits. People can purchase anytime and anywhere nowadays. Products across the world can be purchased just at your fingertips. The latest YouGov survey finds that 37% of people in APAC make an online purchase at least several times a month. Over 93% of Indonesia respondents have purchased using a mobile app. What are the other online shopping trends in Indonesia that industry practitioners should pay attention to? YouGov, as the world’s leading data and analytics group, investigates the change of online shopping habits in APAC including Indonesia, with an aim to help eCommerce and mCommerce industry folks to answer various business questions. Have a pleasure reading!
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Edward Cessario Hutasoit Business Development Director Edward.Hutasoit@yougov.com +62 813 1515 3624
Online Shopping Behaviour
3
Frequency of online shopping Online purchase continue to grow. More than half of online-population purchase something online at least once a month
Asia Pacific
Monthly+ (at least once a month)
Weekly+ (at least once a week)
Never make online purchase in the past 12 months
4
China
Indonesia
Malaysia
Philippines
Vietnam
Thailand
N=9652
N=1,015
N=1,207
N=1,167
N=1,129
N=1,035
N=1,056
55%
87%
51%
46%
42%
62%
52%
13%
34%
9%
7%
8%
16%
11%
6%
1%
6%
5%
11%
4%
8%
Q: In the past 12 months, how often did you make online purchases (both traditional online and mobile) on average per month?
Timing for online shopping A significant number of respondents in Indonesia tend to purchase online during lunch time break 61%
55% Indonesia
APAC 37% 37% 31%
24% 14%
18% 18% 12%
At home, during breakfast
5
9%
11%
During my commute to and from work/school
Base : Indonesia N=1,127 APAC=9,098
During work hours
Q: What time of the day are you most likely to shop online?
During lunch time break
At home, in the evenings after dinner
At weekends
Top 5 products purchased online The top 5 product type purchased online were similar across APAC, but clothing/apparels consistently ranked No. 1 including in Indonesia
61%
38%
APAC 60%
35%
APAC 40% Clothing/ Apparels
APAC 38% Computer, digital products And games
+
34%
+
+
27%
APAC 33%
APAC 33% Cosmetics and skin care products
Personal care products
+ 6
Travel products
Q: Which of the following products did you purchase online (ie via the internet) in the past 12 months?
Base : Indonesia N=1,127 APAC=9,098
+
Top 5 products purchased online The top 5 product type purchased online were similar across APAC, but clothing/apparels consistently ranked No. 1 including in Indonesia
7
Asia Pacific 9098 60%
China 1006 69%
Indonesia 1127 61%
Malaysia 1117 59%
Philippines 1099 56%
Thailand 971 50%
Vietnam 998 64%
40%
47%
38%
38%
51%
36%
38%
38%
33%
35%
52%
28%
27%
25%
33%
43%
34%
30%
33%
38%
37%
33%
47%
27%
32%
32%
29%
35%
25%
37%
21%
18%
16%
19%
33%
24%
36%
16%
21%
23%
25%
30%
22%
48%
13%
17%
16%
18%
25%
22%
58%
14%
13%
12%
13%
25%
19%
12%
14%
20%
27%
31%
26%
18%
26%
15%
21%
18%
17%
16%
15%
34%
9%
8%
8%
10%
18%
15%
20%
12%
14%
17%
13%
22%
13%
17%
12%
14%
10%
16%
17%
12%
30%
8%
6%
7%
9%
16%
Fresh foods (e.g.. Vegetables, fruits, meat, seafood)
12%
30%
7%
6%
6%
6%
11%
Pet products (e.g.. Food for pets, toys for pets etc.)
10%
12%
6%
7%
8%
11%
10%
Alcohol beverages (e.g.. wine, sparkling wine, beer, liquor, baijiu)
9%
19%
3%
3%
4%
6%
10%
Base Clothing/Apparels, accessories, shoes and bags Computer, digital products and games (e.g.. Laptop, tablet, cellphone, digital camera, digital accessory etc.) Travel products (e.g.. Flight tickets, hotel etc.) Cosmetics and skin care (e.g.. lipstick, eyeliner, mask, mascara, lotion etc..) Personal care (e.g.. Hair care, oral care, health care, medicine etc..) Books & Music and video
Household appliances and furniture (e.g.. refrigerator, bed, table, chair, pots, oven, coffee machine) Household care (fabric wash, dish cleaner, kitchen supplies) Snacks, bakery product and confectionary (e.g.. chocolates, biscuits, Chips, bread and nuts etc..) Watches, jewelry and luxury products Outdoor and sports (e.g.. tent, sportswear, bicycles, bbq set..etc....) Beverages (e.g.. Soft drink, functional drink, juice, RTD tea/coffee) Baby and mother products (eg.diapers, formula, toys, clothes, accessories, body care) Automotive and related products (e.g.. Cars, motorcycles, spareparts, accessories) Dairy product (e.g.. Milk, yogurt, soy bean, ice cream..etc.....)
Q: Which of the following products did you purchase online (ie via the internet) in the past 12 months?
Device used for online shopping 77%
Smartphone
64% 32% 36%
Laptop
18%
Desktop
Tablet
Other Internet of things (IoT) device
27% 11% 18% 9% 10%
Base : Indonesia N=1,127 APAC=9,098
Indonesia 8
APAC
Q: Which was the primary device that you made online purchases on in the past 12 months?
Indonesia clearly Smartphone market, most purchase made through this device. In other APAC such HK many purchase made through Desktop, while in Australia high incidence remain through Laptop.
Preferred payment method for online purchases
Indonesia Cash on delivery
17%
Credit Card 11%
Bank Transfer
PayPal
Debit card
Mobile / EWallets
9
51%
APAC Cash on delivery
24%
Credit Card
23%
Bank Transfer
PayPal 15%
6%
8%
3%
16%
Debit card 12%
Mobile / EWallets
Q :What is your preferred method of payment for online purchases?
6%
Reason for online shopping 35%
Better price online
Top 3
33% 35%
Purchases can be delivered to home 30%
No limitation on shopping time Can compare prices between online retailers
28% 18%
Can avoid the crowds whilst shopping Greater product range available
35%
31%
21%
20%
23%
18% 18%
User reviews readily available
Can buy overseas brands that are not available
14%
Easier to view the products online
15%
Can shop for multiple different items in one store
38%
10%
14%
18% 24% Base : Indonesia N=1,127 APAC=9,098
Indonesia
APAC
10 Q: What are the key reasons for you to purchase products online instead of in a physical store? Please select the top 3 reasons
While better price and convenient are key drivers, greater product range and ease to compare the product and price are also encourage consumers to buy online
Promotion that stimulate online purchase 68%
67%
Indonesia 61%
Base : Indonesia N=1,207 APAC=9,652
54% 33%
33% 17%
Discount on offer
Free shipping promotion
Special edition/exclusive offer
APAC
25%
Credit card promotion
20%
19%
When 'New Arrivals' are available
Q : Which of the following promotions would encourage you to make an purchase online straight away?
BUY NOW PAY LATER
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New Idea 70% of respondents are more likely to purchase expensive items online if an online retailer offers a “Buy-now-pay-later� option with a reasonable interest rate
Shopping through Mobile Apps
12
Use of mobile app for shopping
13
Q : Have you ever purchase online using a mobile app?
Most important features of an online shopping mobile app 48%
54%
47% 46% 38% 39%
36%
38%
32% 32%
27%
36%
29% 27% Base : Indonesia N=1,042 APAC=7,613
28% 27% Indonesia 14
APAC
Q : When it comes to buying online using a mobile app, which of the following is most important to you?
Concern to Shop Online
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Concern around shopping online 39% 39%
The product turns out to be fake or of poor quality
Top 3
36% 37%
Cannot see, touch or try on products before buying
High shipping/delivery cost
30%
22% 21%
Long delivery time
24% 21%
The product is damaged during delivery 16% 16%
No or troublesome exchange/refund policy
12% 14%
More expensive than purchasing offline / in-store
16% 14%
Need to pay for delivery when exchange/refund 9%
Do not trust online retailers
14% 14% 14%
Poor customer service
Lack of payment options
7%
9%
9% 9%
Base : Indonesia N=1,207 APAC=9,652
Indonesia 16
While better price and convenient are key drivers, greater product range and ease to compare the product and price are also encourage consumers to buy online
23% 23%
Online security (ie credit card/payment fraud)
Coverage for delivery is limited - it doesn’t cover my area
33%
APAC
Q :What are your key concerns that might lead you to decide not to purchase from an online retailer? Please choose the top 3 reasons
Brand Performance
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APAC Best Perceived e-Commerce Site by Country
CHINA
Index Score
37%
Index Score
75%
THAILAND Index Score
PHILIPPINES Index Score
45%
31%
MALAYSIA Index Score
SINGAPORE Index Score
47%
27% INDONESIA Index Score
38%
AUSTRALIA Index Score
34%
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Based on Brand Index Score Period January – June 2018
Indonesia Best Perceived e-Commerce Site Brand
38%
25%
19
32%
25%
32%
12%
Based on Brand Index Score Period January – June 2018
11%
Tokopedia Shopee Traveloka Bukalapak Lazada Blibli jd.id Zalora MatahariMall.com Sale Stock Elevenia Berrybenka Bhinneka Sephora BLANJA.com Olx Sociolla
Brand Index Score 38 32 32 25 25 12 11 10 5 4 4 3 3 2 2 2 2
50 45 40 35 30 28 25 25 20 23 15 10 5 0
2018-04-15 2018-04-16 2018-04-17 2018-04-18 2018-04-19 2018-04-20 2018-04-21 2018-04-22 2018-04-23 2018-04-24 2018-04-25 2018-04-26 2018-04-27 2018-04-28 2018-04-29 2018-04-30 2018-05-01 2018-05-02 2018-05-03 2018-05-04 2018-05-05 2018-05-06 2018-05-07 2018-05-08 2018-05-09 2018-05-10 2018-05-11 2018-05-12 2018-05-13 2018-05-14 2018-05-15 2018-05-16 2018-05-17 2018-05-18 2018-05-19 2018-05-20 2018-05-21 2018-05-22 2018-05-23 2018-05-24 2018-05-25 2018-05-26 2018-05-27 2018-05-28 2018-05-29 2018-05-30 2018-05-31 2018-06-01 2018-06-02 2018-06-03 2018-06-04 2018-06-05 2018-06-06 2018-06-07 2018-06-08 2018-06-09 2018-06-10 2018-06-11 2018-06-12 2018-06-13 2018-06-14 2018-06-15 2018-06-16 2018-06-17 2018-06-18 2018-06-19 2018-06-20 2018-06-21 2018-06-22 2018-06-23 2018-06-24 2018-06-25 2018-06-26 2018-06-27 2018-06-28 2018-06-29 2018-06-30
Food for thought In less than 3 months, Zilingo manage to increase its Brand Awareness by 13 pt Strong and aggressive marketing campaign seems to successfully support this movement. But what about Purchase Consideration? Among those aware of Zilingo, only 10% considering making purchase from the brand. 18% of them consider Zalora, while SaleStock is the closest competitor What could be the barrier for people to consider the brand?
% Awareness
Total
20
Male
% Consideration among those aware of Zilingo
45
38
32
Female
4we end 30June18 (n=1400)
18%
12%
10% 6%
4we end 30June18 (n=540)
Food for thought In the last 2 quarters, Sale Stock consistently has higher Ad Awareness compared to Zalora and Berrybenka. Interesting to see that those exposed to Sale Stock ad in Q2’18 had stronger Quality perception and higher Consideration. It might be supported by more positive Buzz the ad created. But recently, Zilingo aggressive marketing push get them to have similar level of Ad Awareness with Sale Stock. Does it have any impact to SaleStock? Comparing Ad impact amongst those aware of the ad
% Ad Awarenesss Q1'18 21.9 22.4
Q2'18 23.0
19.8
18.5
7.9
6.2 0.0
Sale Stock
Zalora
Berrybenka
Q2’18 (n=2270)
21
Zilingo
Q1'18
Q2'18
+/-
Buzz
49.0
53.0
4.1
Impression
40.3
41.9
1.6
Quality
35.1
37.6
2.5
Value
30.3
31.3
1.0
Recommendation
31.0
32.7
1.7
Consideration
33.4
35.8
2.4
(n=524)
(n=509)
Food for thought Sale Stock ad in May seems very impactful to the brand’s Purchase Consideration. It went back to a normal level in June before went up in the latter stages of the month. This highlights the ever importance of campaign reach since those who are not aware of the ad has significantly lower Consideration for Sale Stock % Consideration
FEMALE AD AWARE
FEMALE FEMALE AD NOT AWARE
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4 weeks moving average
0 2018-01-01 2018-01-03 2018-01-05 2018-01-07 2018-01-09 2018-01-11 2018-01-13 2018-01-15 2018-01-17 2018-01-19 2018-01-21 2018-01-23 2018-01-25 2018-01-27 2018-01-29 2018-01-31 2018-02-02 2018-02-04 2018-02-06 2018-02-08 2018-02-10 2018-02-12 2018-02-14 2018-02-16 2018-02-18 2018-02-20 2018-02-22 2018-02-24 2018-02-26 2018-02-28 2018-03-02 2018-03-04 2018-03-06 2018-03-08 2018-03-10 2018-03-12 2018-03-14 2018-03-16 2018-03-18 2018-03-20 2018-03-22 2018-03-24 2018-03-26 2018-03-28 2018-03-30 2018-04-01 2018-04-03 2018-04-05 2018-04-07 2018-04-09 2018-04-11 2018-04-13 2018-04-15 2018-04-17 2018-04-19 2018-04-21 2018-04-23 2018-04-25 2018-04-27 2018-04-29 2018-05-01 2018-05-03 2018-05-05 2018-05-07 2018-05-09 2018-05-11 2018-05-13 2018-05-15 2018-05-17 2018-05-19 2018-05-21 2018-05-23 2018-05-25 2018-05-27 2018-05-29 2018-05-31 2018-06-02 2018-06-04 2018-06-06 2018-06-08 2018-06-10 2018-06-12 2018-06-14 2018-06-16 2018-06-18 2018-06-20 2018-06-22 2018-06-24 2018-06-26 2018-06-28 2018-06-30
Food for thought vs
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In the first half of 2018, Tiket.com is having aggressive push to the market. While the main established player, Traveloka maintains its marketing reach. With now more people exposed to both brands’ advertisement, impact to Consideration become crucial to be measured. The first semester of 2018 shows that among those aware of both ads, only 34% will consider Tiket.com What could be the reason behind this?
% Advertising Awareness
50
30
Traveloka Tiket.com
4we end 30June18 (n=1400)
% Consideration among those aware of both ads
60
52
47
40 34
20 25
10
Traveloka Tiket.com 2018 1st Half (n=1535)
Quarterly Brand Perception Among those aware of the brand, Tiket.com experience a significant increase in overall brand perception (Index) in Q2’18. It was driven by all Index components from Impression to Satisfaction Index (Overall Perception) Score among Aware 21.4
Tiket.com
Pegipegi
Nusatrip
46.9 47.9
14.8
+/-
Impression
21.1
25.8
4.7
Quality
18.4
22.4
3.9
Value
14.2
17.9
3.7
Reputation
14.5
19.4
4.9
Recommendation
17.0
21.5
4.5
Satisfaction
43.2
46.3
3.1
15.8
14.3 15.0
Q1'18 24
Q2'18
n = 2817
25.5
Traveloka
Q1'18
Q2'18
significant difference: current vs. previous period @ 90% confidence level
Media Performance Tiket.com ad seems to help how people perceive the brand and ultimately more of them will consider making purchase. Movement is visible mainly in the early weeks of Q2 and maintaining ever since
25
4 weeks moving average, Tiket.com aware
40
10
0 2017-10-01 2017-10-04 2017-10-07 2017-10-10 2017-10-13 2017-10-16 2017-10-19 2017-10-22 2017-10-25 2017-10-28 2017-10-31 2017-11-03 2017-11-06 2017-11-09 2017-11-12 2017-11-15 2017-11-18 2017-11-21 2017-11-24 2017-11-27 2017-11-30 2017-12-03 2017-12-06 2017-12-09 2017-12-12 2017-12-15 2017-12-18 2017-12-21 2017-12-24 2017-12-27 2017-12-30 2018-01-02 2018-01-05 2018-01-08 2018-01-11 2018-01-14 2018-01-17 2018-01-20 2018-01-23 2018-01-26 2018-01-29 2018-02-01 2018-02-04 2018-02-07 2018-02-10 2018-02-13 2018-02-16 2018-02-19 2018-02-22 2018-02-25 2018-02-28 2018-03-03 2018-03-06 2018-03-09 2018-03-12 2018-03-15 2018-03-18 2018-03-21 2018-03-24 2018-03-27 2018-03-30 2018-04-02 2018-04-05 2018-04-08 2018-04-11 2018-04-14 2018-04-17 2018-04-20 2018-04-23 2018-04-26 2018-04-29 2018-05-02 2018-05-05 2018-05-08 2018-05-11 2018-05-14 2018-05-17 2018-05-20 2018-05-23 2018-05-26 2018-05-29 2018-06-01 2018-06-04 2018-06-07 2018-06-10 2018-06-13 2018-06-16 2018-06-19 2018-06-22 2018-06-25 2018-06-28
Food for thought Since Q3’17, JD.ID aggressive marketing strategies support its Awareness. Compared to early Q3’17, JD.ID Brand Awareness improved by + 20% Those tried the brand also improved by + 4%. Turn those aware to try the brand is now a goal for the brand. As things stand, less than a quarter of those aware, consider the brand. Most of them will still prefer other brands. What metrics separate JD.ID to other players? JD.id
60
8
Awareness
26
Ever Customers
4we end 30June18 (n=1400)
Purchase Funnel
70
57
41
30
12
Awareness
Consideration
Purchase Intent
55.2
50 24%
13.4
20
21%
2.9
2018 1st Half (n=9781)
25
Impression 83 81
20
Quality 74 72
15
Value 77 79
5
Recommendation 79 79
0
Satisfaction 75 75
2018-01-01 2018-01-03 2018-01-05 2018-01-07 2018-01-09 2018-01-11 2018-01-13 2018-01-15 2018-01-17 2018-01-19 2018-01-21 2018-01-23 2018-01-25 2018-01-27 2018-01-29 2018-01-31 2018-02-02 2018-02-04 2018-02-06 2018-02-08 2018-02-10 2018-02-12 2018-02-14 2018-02-16 2018-02-18 2018-02-20 2018-02-22 2018-02-24 2018-02-26 2018-02-28 2018-03-02 2018-03-04 2018-03-06 2018-03-08 2018-03-10 2018-03-12 2018-03-14 2018-03-16 2018-03-18 2018-03-20 2018-03-22 2018-03-24 2018-03-26 2018-03-28 2018-03-30 2018-04-01 2018-04-03 2018-04-05 2018-04-07 2018-04-09 2018-04-11 2018-04-13 2018-04-15 2018-04-17 2018-04-19 2018-04-21 2018-04-23 2018-04-25 2018-04-27 2018-04-29 2018-05-01 2018-05-03 2018-05-05 2018-05-07 2018-05-09 2018-05-11 2018-05-13 2018-05-15 2018-05-17 2018-05-19 2018-05-21 2018-05-23 2018-05-25 2018-05-27 2018-05-29 2018-05-31 2018-06-02 2018-06-04 2018-06-06 2018-06-08 2018-06-10 2018-06-12 2018-06-14 2018-06-16 2018-06-18 2018-06-20 2018-06-22 2018-06-24 2018-06-26 2018-06-28 2018-06-30
Food for thought Since the start of 2018, Shopee is competing closely with Tokopedia. With Current Customers is on similar level, it is expected to have duplication between brands. Looking at these dualists, they seem to rate both brands similarly. If Shopee perceived similarly to Tokopedia, why do people still buy there? Is there are any products that they still prefer buying from Tokopedia?
% Current Customers (P30D)
40
30
10
Tokopedia
27
Shopee
4we end 30June18 (n=1400)
Key Scores among Dualists (Current Customers of both Tokopedia & Shopee)
35
2018 1st Half (n=903)
Food for thought Bukalapak is the only top brand perceived significantly better among Male. This lead to the brand overall penetration, which seems to be limited due to weaker perception amongst Female. Why would Male perceive Bukalapak much better than Female? How to improve preference amongst Female to induce more Customers? Index (Overall Perception) Score
% Current Customers
31.6 25.5
25.2 18.0
Total
Male 2018 1st Half (n=9821)
28
Female
20.4 14.8
Total
Male 2018 1st Half (n=9821)
Female
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Thank You So how can we help?
Edward Cessario Hutasoit Business Development Director Edward.Hutasoit@yougov.com +62 813 1515 3624