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Spire presentation logistics experience for e-commerce users in indonesia 2016
1. Logistics Experience for E-Commerce
Users in Indonesia
By Jeffrey Bahar, Deputy CEO Spire Research and Consulting
E-Commerce Logistics Summit
Keraton at the Plaza, March 8, 2016
3. We were founded in the year 2000.
We have 100 employees in ten full-service offices.
We serve Global Fortune 1000 firms, governments and other leading
organizations.
Our opinions frequently appear in print, television and radio media.
We provide a broad spectrum of research and consulting solutions for
market growth and entry.
Spire Research and Consulting
The leading research-based consultancy in emerging markets
6. Basic Diagram of e-Commerce
Image Source: Flexy (www.flexy.com.br)
7. Comparison of Several E-Commerce
Portals in Indonesia
Marketplace Dedicated Online Store
Lazada MatahariMall Tokopedia Bhinneka Berrybenka Zalora
Delivery
Partners
LEX, First Logistics,
TIKI, RPX, JNE, NEX
Logistics, Pandu
Logistics
JNE, aCommerce Cahaya Logistik, First
Logistics, JNE, Pandu
Logistics, PT Pos
Indonesia, RPX, Tiki,
Wahana, SiCepat
Express, Go Kilat
JNE, TIKI JNE, RPX,
aCommerce, First
Logistics, Ninja Van,
Berrybenka Express
First Logistics, JNE,
RPX, Pandu Logistics,
PT Pos Indonesia
Delivery Cost
Free*
(For purchase from
same area & under
7kg)
Free Not Free
Free
(minimum purchase
Rp 300,000)
Free*
(minimum purchase
Rp 100,000)
Free*
(minimum purchase
Rp 300,000)
Payment
Options
Bank Transfer, Credit
Card, Internet
Banking, COD,
Installment,
helloPay, Virtual
Account
Bank Transfer, Virtual
Account, Credit
Card, Cash on
Delivery, Installment
Credit Card, Mobile
Money, Bank
Transfer, Saldo
Tokopedia, COD
Indomaret, Seven
Eleven, Installment
Bank Transfer (Virtual
Account), ATM
Payment, Internet
Banking, Credit
Card, Debit Card, e-
Money, QR Code
Scan, FinPay, COD
Bank Transfer,
Internet Banking,
Credit Card, COD,
Indomaret
Bank Transfer, Credit
Card, COD,
Wallet/Store Credit,
Debit Card
O2O Support
8. Card-Based Payment & Smart Phones
Ownership and Payment Methods Used by
Indonesia Internet Users
77,752
105,828
110,891 114,895
15,092 16,043 16,227 16,440
27,433
38,319
52,211
69,451
2013 2014 2015 2016*
Debet and Credit Card Ownership and
Active Smartphone Users in Indonesia
Debet Card Credit Card Smartphone Users 1%
2.30%
2.70%
7%
24%
33%
67.40%
Mobile Money
Rekber
PayPal
Debit Card
Credit Card
Internet
Banking
SMS Banking
Payment Methods Used by
Indonesia Internet User
Source: Bank Indonesia, Asosiasi Penyelenggara Jasa Internet Indonesia
10. Indonesia E-Commerce Buyer Demographic
Who is the buyer?
0
8.77
15.79
73.68
1.75
50-59 y.o.
40-49 y.o.
30-39 y.o.
20-29 y.o
> 20 y.o.
E-Commerce Buyer Based on Age (%)
45.61
54.39
Female
Male
E-Commerce Buyer Based on Gender
(%)
Source: Spire Research and Consulting
11. Indonesia E-Commerce Buyer Demographic
Where to buy and what are bought?
4
2
2.7
7.6
9.6
15.9
17.2
20
20.7
5
4
4
4
22
12
18
15
20.5
Others
Automotive Accessories
Health Supplement
Sports and Entertainment
Books
Beauty Products
Electronics and Gadgets
Gaming Products and
Services
Fashion Products
Types of Products Bought via E-Commerce (%)
20
26.6 26.4 27
35
30.1
15.1
19.8
Marketplace Dedicated
Online Store
Social Media Trading Forum
Favorite Place for E-Shopping (%)
Q3 2015
Q1 2016
Source: Spire Research and Consulting
12. Indonesia E-Commerce Buyer Demographic
Purchasing from Abroad
4.8
9.6
13.5
15.4
16.3
18.3
22.1
Not interested with the products
Limited payment options
Worried over safe delivery
Worried over scam possibility
Worried over product quality
Long delivery time
Difficult Payment System
Worries Over Shopping from Abroad (%)
40.35
59.65
Never
Yes
E-Shopping Experience from Other
Countries (%)
Payment-related
Delivery-related
Source: Spire Research and Consulting
13. Indonesia E-Commerce Buyer Demographic
How Buyers Choose their Platform?
1
โขFast and
correct
product
delivery
2 โขProduct
variation
3
โขSatisfactory
customer
service
4
โขSafe
packaging
5
โขMore
comfortable
(than offline
shopping)
6 โขA flexible
return policy
7 โขCan pay in
installment
8
โขAbility to
use COD
option
Payment-related
Delivery-related
Source: Spire Research and Consulting
14. Indonesia E-Commerce Buyer Demographic
Factors of importance from e-commerce product delivery
Ease to
open the
wrappings
Display on
the Box
Items on the
box
(wrappings,
fillings)
Notification
During
Delivery
Product
Protection
During
Delivery
Right
Address in
Delivery
Fast &
Correct
Product
Delivery
Source: Spire Research and Consulting
15. Indonesia E-Commerce Buyer Demographic
Which courier service and delivery options are being chosen?
5.27%
1.75%
3.50%
8.77%
8.77%
10.53%
14.04%
45.61%
92.98%
Others
Wahana Express
Go-jek
Fedex
EMS
DHL
PT Pos Indonesia
TIKI
JNE
Courier Service Used for Online Shopping
64.91%
33.33%
1.75%
Chosen Delivery Options
Free or regular delivery Express delivery Others
Source: Spire Research and Consulting
16. Indonesia E-Commerce Buyer Demographic
Ideal time for product delivery based on customersโ opinion (%)
0 1 2 3 4 5 6 7 8 9 10
7
Intra-city delivery
Intra-island delivery
Inter-island delivery
Inter-country delivery
daysSource: Spire Research and Consulting
7
21
88
3.5
42
65
12
36
37
12.3
61.5
14
11.7
17. Indonesia E-Commerce Buyer Demographic
Experience in returning bought product
โข46.15% user have
โข53.85% user have
not
Returning bought
product
โข33.08%
unmatched /
wrong product
โข66.92% damaged
product
Reasons for
returning the
product โข84.62% YES
โข15.38% NO
Will if affect your
choice for future
shopping?
Source: Spire Research and Consulting
19. Customer satisfaction is the key for repeated order from an e-
shopping portal. Fast and correct product delivery plays an
important role in customer satisfaction.
20. Fast delivery is crucial especially in intra-city purchase. The
challenge is to provide a fast delivery service with low delivery cost.
21. Tel: (62) 5794 5800
Fax: (62) 5794 5808
Wisma 46, Kota BNI 25th Floor,
Unit #08-10
Jakarta 10220
indonesia.info@spireresearch.com
www.spireresearch.com