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Data source: We Are Social Digital 2020
Different from the gradual shift from PC to mobile in developed countries, Indonesia is directly moving to mobile Internet, and mobile Internet users account for 97% of Internet users. The mobile Internet speed in Indonesia is now 13.83 MBPS (the global average mobile Internet speed is currently 32.01 MBPS), which is 31% faster than in 2018, and the annual growth of mobile Internet users is 20.3%. This is the most important factor for various Internet service applications. Penetration provides opportunities and space. (Data source: We Are Social Digital 2020)
The gradual penetration of the Internet makes more and more Indonesians have the conditions for online shopping. In 2018, 107 million Indonesians had online shopping behaviors. In 2019, 168 million Indonesians had online shopping behaviors, increasing The rate is 57%. (Data source: We Are Social Digital 2020)
Digital finance continues to develop, and e-commerce payments are smoother
Indonesian digital payment tools mainly include bank cards, credit cards, mobile banking, e-wallets, third-party payment APPs, etc. At present, digital payment in Indonesia is still in the development stage. As of May 2020, the number of bank cards is 177 million, the penetration rate is 65.2%, the number of credit cards is 17.48 million, and the credit card penetration rate is 6.5% (Data source: Central Bank of Indonesia ). Indonesia’s mobile payment participants have developed their own e-wallet business. There are no giants like China’s WeChat and Alipay, but a few are quietly emerging, showing the potential for dominance, such as Gojek‘s digital wallet Go-Pay, backed by the OVO of the Indonesian consortium Lippo Group, and DANA of Ant Financial.
According to the transaction amount, in January 2020, 73% of e-commerce transactions were completed through digital payments (including e-wallets, bank transfers, and credit cards). Under the influence of the new crown epidemic, the online economy
We Are Social Digital 2020 report data shows that the most popular products in Indonesia in 2019 are fashion beauty, consumer electronics, food & personal care, home decoration, toys, etc. These categories have an increase of more than 45% compared to last year.
Indonesia has a typical tropical rainforest climate, with an average annual temperature of 25-27°C. The infrastructure is not sound, and there are not many tall buildings that can provide shade. The main travel tool is motorcycles. Single products focusing on sun protection are more popular-fashion sunglasses and hats, beauty and skin care sunscreens and so on. In addition, affected by the local religious culture, locals will choose Muslim clothing that is light and thin and can cover most of the skin. Because Indonesians will wear new clothes on Eid, Indonesian apparel market sales will increase around Eid. Chinese consumer electronics products are also loved by the Indonesian people. Domestic brands vivo, OPPO, and Xiaomi occupy more than half of the Indonesian market. In addition, the demographic structure of Indonesia is younger, and there is a great demand for maternal and child products and household products.
Total consumption of various categories of e-commerce products in Indonesia and its growth in 2019
Data source: We Are Social Digital 2020
In this issue, we will sort out Indonesia’s overall e-commerce market, consumer portraits, and hot-selling products. In the next issue, we will focus on platform openings and introduce the top e-commerce platform in Southeast Asia, Stay Tuned!
We are forming a cross-border e-commerce exchange community to provide a platform for overseas e-commerce sellers to communicate and learn from each other. If you are interested in joining, please fill out the form below and add a small assistant to join the community exchange.
