Professional Documents
Culture Documents
August 2012
About Us
Tech media and research company that focuses on the Indonesian market
Founded in 2008 www.dailysocial.net
Research Background
This study was conducted as part of an independent research project at Harvard Business School by the management of Veritrans, in joint effort with DailySocial First-hand interviews and transaction information was collected from leading eCommerce companies in Indonesia
This report is the first study solely focused on the Indonesian eCommerce market
3
Research Background
Why we conducted this study
Research Background
Male
40%
Female
60%
25-34 39%
15-24 53%
Diploma
Gender
Age
Education
13%
5
Defining eCommerce
The sales of goods and services where an order is placed by the buyer or price and terms of sale are negotiated over the Internet
Defining eCommerce
Does not include online travel services, financial brokers and dealers, and ticket sales agencies
17%
28%
71%
$824
$799
$1,111
$11 B
$115 B
$193 B
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$ 0.9 billion
(2011)
Avg. annual eCommerce spend per ecommerce user Percentage of eCommerce users out of the internet population
$256
6.5%
9
$ 134 Billion
Source: DataStatistik
10
Top-down Analysis
Calculation of Indonesian eCommerce market from public data & consumer survey
High
236 23%
55
8% 4.4
Rp. 500,000
4x
5x
Bottom-up Analysis
Calculation of Indonesian eCommerce market from survey of leading eCommerce players in Indonesia
Bottom-up Analysis
Many eCommerce companies and investors contributed transaction data to this analysis
However, they have requested that we do not disclose individual company data so we can only report in aggregate terms However, , Indonesias leading online forum, has given us special permission to disclose their transaction data. Thank you Kaskus! The following page gives you detailed calculation of how we were able to estimate Kaskus transaction volume
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High
4.0
$27.8
20%
$22.2m $2.5m
30%
$33.3m $3.7m
$24.7m
$296m
$37.0m
$444m
Assumptions
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Indonesia Today
Total population
Median Age
248 million
28 years
$4,700
16
56
38 23
33
31
Vietnam
Tablet
3%
8%
4%
Smartphone
24%
Office
25%
Home
71%
device used
63%
Source: Survey
Source: Survey
access location
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Time Spent
<1
More than a quarter of users spend over 30 hours per week online
Compared to other Southeast Asian countries, its on par with Malaysia and Philippines but less than Singapore and Vietnam
19
>30
1-4
20-30 10-20
5-9
Internet Usage
Search Social Network Email News
65 56 41 78 91 89
Music/Video
Online Banking Travel Career/Education Games
34
30 24 22 4
Search & social network are the most popular internet uses Many Indonesian entrepreneurs and businesses are connecting online through online advertising and social commerce to profit from these activities
20
Blog
Other
Source: Survey
Mobile Usage
Chat
Email Search Music Games Blog Other
8 30 69
59
55
47
Chat is the primary use of mobile phone service among Indonesians The top three most used mobile functions require mobile data connection
Source: Survey
21
Online Shopping
Fashion
37
20 20 13 8 18 Fashion goods are the most popular things bought, followed by online travel bookings which nowadays are easily booked over the Internet Some of the more popular categories found in developed market (e.g. online groceries) are virtually nonexistent
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Travel booking
Music/Video/Games
Electronics
Books
Other
Source: Survey
Where to Shop
Facebook Kaskus Disdus* Tokobagus Dealkeren* Amazon
19.5 13.6 11.9 50 49.2
8.9
8.5 5.5 4.7 4.7
Half of online shoppers uses Facebook or Kaskus to buy goods In addition to facilitating trust building for consumers with lack of trust in making purchases online, social networks are also able to more accurately screen user behavior for ad placements
23
eBay
Bhinneka Multiply Blibli.com Tokopedia
3.8
22.5
Other
Source: Survey * We partnered with Disdus to distribute the survey through their social media mailing list. Therefore, penetration rates for Disdus and Deal Keren (another group buying site) are likely to be exaggerated.
Payment Method
70%
Bank transfer is the most widely used method of payment for eCommerce Online payment solutions are fragmented and still not widely used
41%
CoD
Mandiri Internet
24
Credit Card
Mandiri Internet
Klik BCA
Bank Transfer
Source: Veritrans and DailySocial estimates by testing on 5 major e-commerce websites in Indonesia
Online Spend
>10m 5m-10m
<500k
2m-5m
15%
1m-2m
100k500k
The majority of online shoppers spend up to Rp. 500,000 (US$ 55) per transaction There is a minority of shoppers who spends over Rp 5 million
42%
500k-1m
13%
16%
26
Growth Opportunity
Internet usage will rise threefold over the next 4-5 years
By 2015
2015
2011
Internet Users
(millions)
55 110 2%
$0.9bn
$10bn
27
Source: Nomura Research Institute, Economist, Indonesia Statistics Bureau, Euromonitor International, Indonesia Broadband Declaration Note: Middle class defined as those with household disposable income above $5,000/year
Growth Opportunity
Supported by robust economic growth & increase of purchasing power
Mobile penetration
77%
6.4%
30%
28
Growth Opportunity
Facebook and Twitter are heavily used and present great opportunities to reach potential eCommerce customers
11.5 million users (4th largest globally) 12% of total tweets globally
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Challenges
Slow internet and unreliable delivery time
Price, quality, variety, and customer support are not competitive vs. offline channels Indonesias banks and conventions are slow to adapt to online transactions
Better Infrastructure