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- 1. THE STATE OF eCOMMERCE INDONESIA ANDRY SUHAILI CEO, PRICEAREA.COM STARTUP ASIA 2013 THE STATE OF eCOMMERCE
- 2. Current State Government, Regulations – How Secure Are We? The Rise of SMB & Marketplaces Role of eCommerce Search Engine – PriceArea.com STARTUP ASIA 2013 THE STATE OF eCOMMERCE
- 3. 74.6 34.8 32.4 20.1 17.6 9.1 Indonesia Philippines Vietnam Malaysia Thailand Singapore 29.8% 36% 36% 67% 26.4% 104.2% Internet users (in million) % of penetration Source: TechinAsia, November 2013 STARTUP ASIA 2013 THE STATE OF eCOMMERCE 74.6 MILLION Internet users in Indonesia
- 4. 43 59.6 74.6 83.6 93.4 102.8 2011 2012 2013 2014 2015 2016 Internet users (in million) Source: eMarketer,March 2013 17.5% 24.0% 29.8% 33.0% 36.5% 39.8% % of population STARTUP ASIA 2013 THE STATE OF eCOMMERCE 20% Y-Y Growth Internet users
- 5. 4.6 MILLION people have shopped online in 2013 2 3.1 4.6 5.9 7.4 8.7 2011 2012 2013 2014 2015 2016 Source: eMarketer,March 2013 STARTUP ASIA 2013 THE STATE OF eCOMMERCE
- 6. USD 1.8 BILLION Spent on eCommerce in 2013 $0.56 $1.04 $1.80 $2.60 $3.56 $4.49 2011 2012 2013 2014 2015 2016 Source: eMarketer,March 2013 STARTUP ASIA 2013 THE STATE OF eCOMMERCE
- 7. Growth driven by Middle Class Spending, Cheap Smartphones & Affordable Internet Source: The Boston Consulting Group, March 2013 STARTUP ASIA 2013 THE STATE OF eCOMMERCE
- 8. Fashion and Females are the TOP Products & Buyers Respectively STARTUP ASIA 2013 THE STATE OF eCOMMERCE CLOTHING HANDPHONE PLANE TICKET /SHOW LAPTOP & ACCESSORIES BAGS MALE FEMALE BOOKS ELECTRONICS SHOES Source: APJII, Indonesian Internet Profile, Dec 2012 77.1% 2.1% 8.7% 3.8% 11.1% 5.2% 2.2% 5.0% 39.1% 17.8% 16.9% 16.1% 1.4% 11.0% 9.0% 8.8%
- 9. Trust is No.1 issue in online shopping in Indonesia STARTUP ASIA 2013 THE STATE OF eCOMMERCE 34.6% 21.5% 21.5% 21.5% 9.3% 6.0% 5.2% 4.7% 4.1% 4.0% Source: APJII, Indonesian Internet Profile, Dec 2012 AFRAID OF FRAUD TOUCH & FEEL THE ITEMS HIGH PRICES NOT INTERESTED PRODUCT QUALITY NOT GUARANTEED DO NOT KNOW HOW NOT PRACTICAL ITEM DO NOT MATCH THE OFFER ITEMS NOT IN ACCORDANCE TO ANYONE’S LIKING ITEMS DO NOT MATCH THE PICTURE
- 10. Challenge in Payment and Delivery STARTUP ASIA 2013 THE STATE OF eCOMMERCE Only 3 providers are ready to support logistics from online shopping. BANK TRANSFER CASH ON DELIVERY CREDIT CARD OTHERS 57% 28% 8% 7% Source: Indonesia Credit Card Association, 2013, VelaAsia 5% 6% 3% 6% 9% 55% 20% 33% 28% 25% 25% 39% Indonesia Philippines Vietnam Malaysia Thailand Singapore Delivery Payment 14.7 Million Credit Cards (4.5% Penetration)
- 11. Indonesian Government defines eCommerce as: “Electronic transaction is legal action which is done using computer, computer network, and/or other electronic medias.” STARTUP ASIA 2013 THE STATE OF eCOMMERCE
- 12. Indonesian Government defines eCommerce as: “Electronic transaction is legal action which is done using computer, computer network, and/or other electronic medias.” STARTUP ASIA 2013 THE STATE OF eCOMMERCE
- 13. Associations like idEA helps facilitate the growth STARTUP ASIA 2013 THE STATE OF eCOMMERCE www.idea.or.id
- 14. STARTUP ASIA 2013 THE STATE OF eCOMMERCE eCommerce Platforms Payment & Logistics
- 15. STARTUP ASIA 2013 THE STATE OF eCOMMERCE Marketplace • C2C model • B2C model • B2B model • B2B2C model Direct Selling • Consignment model • Outright model • Dropship model 2 Popular Business Model
- 16. Direct Selling is dominated by few numbers of aggressive players STARTUP ASIA 2013 THE STATE OF eCOMMERCE Integrated Infrastructure Offline – Online Strategy Pricing Strategy Partnerships
- 17. Marketplaces are the key players in shaping eCommerce STARTUP ASIA 2013 THE STATE OF eCOMMERCE 3,642,894 3,000,000 1,212,369 1,100,000 341,640 8,200 500,000 339,495 1,570,000 529,887 53,600 60,000 35,407 1,104,211 10,000 126,000 Source: PriceArea.com # of Products % of Sellers #7 Alexa Rank (Indonesia): #12 #24 #42 #54 #96 #158 #217
- 18. Competition is heating up STARTUP ASIA 2013 THE STATE OF eCOMMERCE
- 19. Marketplace that differentiate by market segmentation will win STARTUP ASIA 2013 THE STATE OF eCOMMERCE Younger shopkeepers Matured, Individuals, Business Females, Housewives Young, Less savvy shopkeepers
- 20. STARTUP ASIA 2013 THE STATE OF eCOMMERCE SMB represents 99% of all companies in Indonesia 40 MILLION Small Medium Businesses Retail Sales: USD 134 BILLION Online: 0.7%
- 21. While others focus on Sellers, Pricearea focus on Shoppers STARTUP ASIA 2013 THE STATE OF eCOMMERCE 2010 2012 2013
- 22. While others focus on Sellers, Pricearea focus on Shoppers STARTUP ASIA 2013 THE STATE OF eCOMMERCE ONLINE CONSUMERS RESEARCH ONLINE BEFORE PURCHASE 46.7% Source: APJII, Indonesian Internet Profile
- 23. SELLING PRICE PAYMENT INFORMATIONPRODUCT INFORMATION OFFERS/ DISCOUNTS SHIPPING INFORMATION SELLER’S INFORMATION 3000+ Online Stores 550,000+ Online Sellers 8.5 MILLION Products Listed STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Editor's Notes
- Up 20% from 60M in 2012
- Internet Users are growing at 20% Y-Y Internet users users grew to 74 Million, up from 60 Million in 2012
- Up 73% from 1.04B in 2012 (graph) eCommerce sales growth in Indonesia: 2011 (104%), 2012 (85%), 2013 (71%), 2014 (45%), 2015 (37%), 2016 (26%), 2017 (22%) Online retail sales will grow at x% from 2012 to 2017 By 2017, the eCommerce will account for xx% of Indonesia retail sales Social commerce will grow by xx% per year, xx% shoppers willing to buy through social media
- 2013 has 74 million MACs, will double to 141 million in 2020 a potential, as more digital users are turning into mobile internet Spread across 25 locations across Indonesia Connected through digital technology Users skip PC ownership stage directly to smartphones (mobile internet) EC growth is driven by rapid growth in middle class spending and entry of high profile eCommerce players in the last 12-18 months Affordable internet, mobile data even has weekly basis, Free Wi-Fi in most shops, cafés and restaurants Xl will provide Free data plan starting Dec 2013 So how should multinational brands market to this rapidly growing Indonesian affluent consumer class? The most ubiquitous technology in the country has to be the mobile phone. There are already over 220 million active mobile phone subscriptions in the country, making the mobile penetration rate over 90%. Besides mobile phones, Indonesians are also quite active on social media sites. Over 47 million people in the country use Facebook, making it the website’s 4th largest user base. These users are also highly responsive to brand messaging. In a recent survey, 79% of Indonesian Facebook users said that they regularly check brands’ social networking pages for updates. Brands seeking to reach these consumers can do so effectively through engagement on their Facebook pages. - 61Million smartphone users (16.6% penetration)
- (graph) Leading online retail categories are Fashion, Bags and Shoes
- Educating users, awareness of alternative ways to get products from online stores / sellers (COD, Escrow, Meet offline, etc) Top 10 reasons. To summarize, online consumers don’t trust the site (afraid of fraud), its either poor service (high prices, product quality, inconvenience, don’t match offer, don’t match picture), the store don’t sell what they want (items not avail)
- Shaping the industry 3000+ online stores recorded on PriceArea Seller’s reputation