Trend: Indonesia’s GMV is increasing year by year and it is one of the RCEP agreement countries
From 2015 to 2020, the Indonesian e-commerce market has experienced amazing growth. The market size in 2015 was2 billionUS dollars, last year it reached32 billionThe U.S. dollar is growing rapidly and has strong stamina and great opportunities.
In addition, Indonesia is one of the member states of the RCEP Agreement.RECP Agreement and “One Belt, One Road”With the policy dividends, more resources and advantages will be obtained in a short period of time.
Trend: Internet penetration rate increases, consumer groups are young
The Internet penetration rate in the Indonesian market is increasing year by year. In 2015, Indonesia's Internet penetration rate was 42.65%; in 2025, it is expected to reach89.3%。
On the other hand, Indonesia's population median is 29.7, and it has a strong receptiveness to new things. Social media such as Facebook, YouTube, and Instagram have high visits.
Opportunities:
- The growth of Internet penetration means the arrival of traffic dividends. Seizing the traffic dividends can be combined with distribution profit sharing to attract more new users, and combined with social e-commerce, fission distribution can grow rapidly.
- The user group is young and highly dependent on social media. They can create momentum and publicity on the social giant Facebook to achieve the brand's screen-dominating marketing and occupy the users' minds.
- Content marketing can be used on social media to achieve user education and KOL/KOC training, helping merchants achieve product-effect integration and distribution growth.
Current situation: Special geographical distribution, multi-island countries
Indonesia is a multi-island country with special geographical distribution and infrastructure that needs to be strengthened. Therefore, considering convenience and price advantages, many people choose to shop online. Since the COVID-19 pandemic, the vitality of its online economy has been further promoted.
Opportunities:
- This is an opportunity for cross-border e-commerce and a test for the logistics supply chain. This means that as long as you have a good logistics system and supply chain system, you can quickly enter the Indonesian market.
- On the other hand, the increasing distance between offline and offline means that community-based group buying business has unlimited possibilities. Leverage community store owners and other people to operate and accumulate social owned channels. Two ideas: complete the relationship progression from fans to users to members to distributors, complete the progression from low customer unit price to high customer unit price, thereby promoting repurchases and referrals.
Trend: Indonesian market product selection—categories with strong social attributes
Shoes and apparel, consumer electronics, beauty and personal care, household appliances, toys, games and pet suppliesIt is a type of product selection worthy of attention in the Indonesian market. Most of these products meet the needs of online shopping groups and have strong social attributes, making it easy to carry out social discussions and circle distribution.
In terms of reference for large product types, it is also necessary to respect its religious culture. Indonesia has no state religion, but it is stipulated that people must have religious beliefs. About 87% of the population believes in Islam, 6.1% of the population believes in Protestant Christianity, 3.6% believes in Catholicism, and the rest believes in Hinduism, Buddhism, and primitive fetishism.
Summary: It is better to strive for the sinking market sooner rather than later
Taking into account Indonesia’s traffic dividends, policy dividends, insufficient development of new infrastructure, and island isolation, entering the game as early as possible will help to seize this wave of dividends. At the same time, starting from the sinking market and distribution fission mode can achieve efficient and low-cost fission explosion. By building an overseas owned audience pool, the domestic owned channel strategy can be quickly copied to the Indonesian market. Market value can be mined by combining the three steps of customer acquisition, owned-channel operations and distribution fission.
owned-channel expansion is looking for SocialEpoch. The data in this article mainly comes from statista, Deloitte, Baidu Encyclopedia, "2021 Southeast Asia Cross-border E-commerce Market Research Report-Indonesia", etc. More cross-border industry information is welcome to come and exchange.
