THE STATE OF

eCOMMERCE INDONESIA
STARTUP ASIA 2013

THE STATE OF eCOMMERCE

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

74.6 MILLION
Internet users in Indonesia
74.6

34.8

32.4
20.1

30%

36%

Indonesia Philippines

36%

Vietnam

Internet users (in million)

67%

Malaysia

104%

17.6
9.1

26%

Thailand

Singapore

% of penetration

Source: TechinAsia, November 2013

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

20% Y-Y Growth

Internet users

102.8
93.4
83.6
74.6
59.6

29.8%

43

33.0%

39.8%

36.5%

24.0%
17.5%

2011

2012

2013

Internet users (in million)

2014

2015

2016

% of population

Source: eMarketer,March 2013

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

4.6 MILLION
people have shopped online in 2013
8.7
7.4
5.9
4.6
3.1
2

2011

2012

2013

2014

2015

2016

Source: eMarketer,March 2013

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THE STATE OF eCOMMERCE

USD 1.8 BILLION

Spent on eCommerce in 2013

$4.49

$3.56

$2.60

$1.80

$1.04
$0.56

2011

2012

2013

2014

2015

2016

Source: eMarketer,March 2013

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THE STATE OF eCOMMERCE

Growth driven by Middle Class Spending,

Cheap Smartphones & Affordable Internet

Source: The Boston Consulting Group, March 2013

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

Fashion and Females are

the TOP Products & Buyers Respectively
FEMALE

MALE
CLOTHING

39.1%

HANDPHONE

17.8%
16.9%

PLANE TICKET
/SHOW

16.1%

LAPTOP &
ACCESSORIES

1.4%
11.0%
9.0%
8.8%

77.1%
2.1%
8.7%
3.8%
11.1%

BAGS
BOOKS
ELECTRONICS
SHOES

5.2%
2.2%
5.0%

Source: APJII, Indonesian Internet Profile, Dec 2012

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THE STATE OF eCOMMERCE

Trust is No.1 issue in online shopping in Indonesia

34.6%

AFRAID OF FRAUD

21.5%

TOUCH & FEEL THE ITEMS

21.5%

HIGH PRICES

21.5%

NOT INTERESTED

9.3%
6.0%
5.2%

PRODUCT QUALITY NOT GUARANTEED

DO NOT KNOW HOW
NOT PRACTICAL

4.7%

ITEM DO NOT MATCH THE OFFER

4.1%

ITEMS NOT IN ACCORDANCE TO ANYONES LIKING

4.0%

ITEMS DO NOT MATCH THE PICTURE

Source: APJII, Indonesian Internet Profile, Dec 2012

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THE STATE OF eCOMMERCE

Challenge in Payment and Delivery

57%
28%
8%
7%

BANK TRANSFER
CASH ON DELIVERY
OTHERS
CREDIT CARD

14.7 Million Credit Cards

(4.5% Penetration)
55%
39%
33%

Only 3 providers are ready to

support logistics from online
shopping.

28%

25%

20%
5%

6%

3%

Indonesia Philippines Vietnam

Delivery

25%
9%

6%
Malaysia

Thailand Singapore

Payment

Source: Indonesia Credit Card Association, 2013, VelaAsia

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THE STATE OF eCOMMERCE

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

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

Associations like idEA helps facilitate the growth

www.idea.or.id

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

Payment & Logistics

eCommerce Platforms

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

2 Popular Business Model

Marketplace

C2C model

B2C model

B2B model

B2B2C model

Direct Selling

Consignment model

Outright model

Dropship model

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

Direct Selling is dominated by few numbers of

aggressive players
Integrated Infrastructure

Pricing Strategy

Offline Online Strategy

Partnerships

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

Marketplaces are the key players in shaping

eCommerce
3,642,894

3,000,000
# of Products

% of Sellers

1,570,000

1,212,369

1,104,211

1,100,000

529,887
53,600

500,000

341,640
60,000

35,407

8,200

339,495

10,000

126,000

Alexa Rank (Indonesia):

#7

#12

#24

#42

#54

#96

#158

#217

Source: PriceArea.com

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THE STATE OF eCOMMERCE

Competition is heating up

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

Marketplace that differentiate by

market segmentation will win
Younger
shopkeepers

Matured,
Individuals,
Business

Young,
Less savvy
shopkeepers

Females,
Housewives

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

40 MILLION
Small Medium Businesses
SMB represents 99% of all
companies in Indonesia

Retail Sales: USD 134 BILLION

Online: 0.7%

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THE STATE OF eCOMMERCE

While others focus on Sellers,

Pricearea focus on Shoppers
2010

STARTUP ASIA 2013

2012

2013

THE STATE OF eCOMMERCE

While others focus on Sellers,

Pricearea focus on Shoppers

46.7%
ONLINE CONSUMERS
RESEARCH ONLINE BEFORE PURCHASE
Source: APJII, Indonesian Internet Profile

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

3000+ Online Stores

550,000+ Online Sellers
8.5 MILLION Products Listed

SELLERS
INFORMATION

PAYMENT
INFORMATION

PRODUCT
INFORMATION
SHIPPING
INFORMATION
SELLING
PRICE
OFFERS/
DISCOUNTS

STARTUP ASIA 2013

THE STATE OF eCOMMERCE

Thanks!