Andry startupasia

THE STATE OF

eCOMMERCE INDONESIAANDRY SUHAILICEO, PRICEAREA.COM

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

Indonesia Philippines Vietnam Malaysia Thailand Singapore

74.6

34.832.4

20.117.6

9.130%

36%

36%

67% 26

%

104%

Internet users (in million) % of penetration

Source: TechinAsia, November 2013

STARTUP ASIA 2013 THE STATE OF eCOMMERCE

74.6 MILLIONInternet users in Indonesia

2011 2012 2013 2014 2015 2016

43

59.6

74.6

83.6

93.4

102.8

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 GrowthInternet users

4.6 MILLIONpeople have shopped online in 2013

2011 2012 2013 2014 2015 2016

2

3.1

4.6

5.9

7.4

8.7

Source: eMarketer,March 2013

STARTUP ASIA 2013 THE STATE OF eCOMMERCE

USD 1.8 BILLIONSpent on eCommerce in 2013

2011 2012 2013 2014 2015 2016

$0.56

$1.04

$1.80

$2.60

$3.56

$4.49

Source: eMarketer,March 2013

STARTUP ASIA 2013 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

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%

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

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

Indonesia Philippines Vietnam Malaysia Thailand Singapore

5% 6%3%

6%9%

55%

20%

33%28%

25% 25%

39%

Delivery Payment

14.7 Million Credit Cards (4.5% Penetration)

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

STARTUP ASIA 2013 THE STATE OF eCOMMERCE

www.idea.or.id

STARTUP ASIA 2013 THE STATE OF eCOMMERCE

eCommerce Platforms

Payment & Logistics

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

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

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

Competition is heating up

STARTUP ASIA 2013 THE STATE OF eCOMMERCE

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

STARTUP ASIA 2013 THE STATE OF eCOMMERCE

SMB represents 99% of all companies in Indonesia

40 MILLIONSmall Medium Businesses

Retail Sales: USD 134 BILLIONOnline: 0.7%

While others focus on Sellers,Pricearea focus on Shoppers

STARTUP ASIA 2013 THE STATE OF eCOMMERCE

2010 2012 2013

While others focus on Sellers,Pricearea focus on Shoppers

STARTUP ASIA 2013 THE STATE OF eCOMMERCE

ONLINE CONSUMERSRESEARCH ONLINE BEFORE PURCHASE

46.7%

Source: APJII, Indonesian Internet Profile

SELLING PRICE

PAYMENTINFORMATIONPRODUCT

INFORMATION

OFFERS/DISCOUNTS

SHIPPINGINFORMATION

SELLER’SINFORMATION

3000+ Online Stores

550,000+ Online Sellers

8.5 MILLION Products Listed

STARTUP ASIA 2013 THE STATE OF eCOMMERCE

Thanks!

Andry SuhailiCEO, PriceArea.com