by Unggul Sagena (School of Goverment & Public Policy, Sentul, Indonesia)
Internet penetration in Indonesia open up many opportunities. Every year, there is significantly increasing number of Internet users, especially in Indonesia. Research company, Markplus Insight & Marketer belive it is now reach 74.6 million users, while Asosiasi Penyedia Jasa Internet Indonesia (APJII) released that already 88.1 million internet users in 2014.
Brand & Marketing Institute, a research company who conducted research in 10 cities with 1,213 respondents, stated that the online shopping industry in Indonesia will experience increasing growth in the future. The average online shopping expenditure Indonesian people a year to reach Rp 825,000/person. Last year alone, the value of online shopping transactions in Indonesia reached Rp 21 trillion and expected to be 50 million next year.
Referring to the Indonesia Central Bureau of Statistics (BPS), the percentage rate of entrepreneurship in the country reached 1.63 per cent in 2013. Of the total existing business unit in Indonesia, by 99.98% of which are MSMEs (Micro, Small, and Medium Entreprises). In addition, the SME sector accounts for nearly 58% of Indonesia’s GDP and employs more than 100 million people (Wulandari, 2014). Therefore, the SME sector is unquestionably serve as one of the triggers of economic growth in Indonesia.
Many of new SMEs are start-ups with their main services in Internet based services. As the SMEs become E-SMEs, there are also Start ups that focus in providing marketplace for customers to buy products and also to sell products. Online marketplace in Indonesia is flourishing. Many customers buy online to many marketplace such as Lazada, OLX, even Kaskus FJB.
Advantages for online shopping are divided into two actors involved, the buyers and the sellers. Also it will be profitable for the marketplace owners (start ups).
For Consumers, Easy to buy and 24 hours shopping is main attractive factor. Customers do not need to go outside their house and buy online right on their desks. Information also available through many websites and search engines. So customers, when decided to buy a product, has been research about the products from different marketplace available online and testimonial from buyers through googling pages.
For Sellers, online marketplaces make their initial cost decreased. No need to rent places and pay electricities, water and security services, their products are safe on the Internet. The dynamics of price also adaptable very fast and Sellers gain profit more if the marketplace is popular and their online store at the marketplace is satisfying to consumers.
However, there are challenges to Marketplace services in Indonesia. Their capacity to access capital is one of them. In terms of capital, 68.97% of the capital of SMEs are still very dependent and comes from the owners of capital. To overcome the problem, marketplace in Indonesia should attract investors to expand their capacity.
W&S Group ranked 15 local ecommerce websites based on their popularity. Popular brand index developed by four data variable, top of mind, expansive, last used and future intention. The popularity rank developed by W&S put Lazada as the champion of popularity among internet users.
Market share occupation rate from 15 websites above are downsized to only 10 websites. Lazada has the highest market with 23,7% customers, OLX in the second with 21,4% and Berniaga with 9.3 % customers. Fourth to tenth online shopping on marketplace are FJB Kaskus (9,1%), Qoo10 (6.1 %), Zalora (5.1%), Tokopedia (4.1 %), Bhinneka (2.0 %) and Elevenia (1.2 %).
There are many ecommerce websites but based on W&S research to 864 people (54.2 % Male, 45.8 Female) with diverse age from 17 to 50 years old, there are only 15 Top of Mind Websites for Ecommerce/Marketplace.
Also interesting that because Internet is the number one marketing tools, means that marketplace should advertise on internet, it also advertise on television commercials. For example, Three brands who advertised their services in TV ads, Lazada, OLX and Berniaga, also in the end are top 3 of the chart. This is because Television is still number two source of information (83.9%) while Internet is main marketing media (including advertising and social media promotion etc) with 96.1 % respondents choose.
From sample above, we could conclude that market for online shop and online marketplace ara gradually increasing and promising for entrepreneurs. SMEs who try to be an E-SMEs can also try facilities provided by each marketplace uniquely.
As Internet users growing, lifestyle of online shopping is also increasing. Demand of products to be sale online is increasing and it would be the future lifestyle of modern shopping. However, start ups and SMEs has to increase their ICT capability, always provides 24 hours access and guarantee of ease and secure transactions at the marketplace. Other wise, competitors are ready to attract their customers.
References :
https://id.techinasia.com/transaksi-belanja-online-indonesia-2015/
http://blog.getshoop.com/2015/04/peluang-bisnis-online-di-indonesia-semakin-lebar/
https://id.techinasia.com/survei-website-ecommerce-populer-indonesia/
https://id.techinasia.com/tingkah-laku-pengguna-internet-indonesia/
http://tekno.liputan6.com/read/2197413/jumlah-pengguna-internet-indonesia-capai-881-juta
APJII. (2015). Profil Pengguna Internet Indonesia 2014. Asosiasi Penyedia Jasa Internet Indonesia & Puskakom UI. Agustus 2014.
Wulandari. D. (2014) Jumlah UKM Tembus 56,5 Juta Usaha di 2013. Mix. 19 Maret 2014 Edition.
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