E-Commerce in Indonesia Research and Analysis 06/08/2012
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E-Commerce in IndonesiaResearch and Analysis
06/08/2012
• The growth of indonesia online users will be give a benefit to an e-commerce and online transaction.
• E – Commerce currently rising in indonesia, and it’s a right time to running an online mal bussines.
• Indonesia netizen currently tend to buy online for fashion, gadget, and personal care.
• Trust issue is still to be consider by consumer. The originality of the product, internet payment system and from the e-commerce website itself.
• Indonesia people tend to pay using Cash on Delivery and bank transfer rather than credit card or other internet payment system.
Key Finding
2000 2006 2009 2010 2011 2015
2
20
31
42
55
94
source by BCG Report & Markplus
data in Millions
Year Users Population %
2000 2,000,000 206,264,595 1%
2011 55,000,000 245,613,043 22,4%
Source: Markplus
Internet in Indonesia
Internet user in indonesia increase because of technology, more educated people and the infrastructur which getting better year by year.
Magazine
Tabloid
Cinema
Newspaper
Internet
Radio
TV
7
9
14
14
19
30
94
5
7
13
13
24
27
95
20112010
Source : Consumer Media View W4 2010 – W4 2011
Internet grows faster
Increase 5%
2006 2007 2008 2009 2010 2011
0.1 0.1
0.2
0.3 0.3
0.5
Internet Retailing in Indonesia(Revenue 2006 - 2011)
source by Euromonitor, Retailing in Indonesia
data in Trilion Rp.
2011 2012 2013 2014 2015 2016
0.50.6
0.70.8
11.1
Forecast Internet Retailing in Indonesia(Revenue 2011 - 2016)
source by Euromonitor, Retailing in Indonesia
data in Trilion Rp.
Internet Retailing in Indonesia
www.acnielsen.co.id/news/NEWS14072010.shtml
70% of Indonesian online users intend to make an online purchase
• Behaviour Online thing is not that new to most Indonesians living in big cities, they know it but don’t do it. Most Indonesian still lacking in trust to e-commerce sites. They still fear fraud, and still prefer offline transaction because they can see, touch, feel and try the product physically.
• Payment Infrastructure in 2010, almost no online payment gateaway at all, but it’s definitely going to be a lot of offer from payment services to startups. iPaymu, Veritrans and Doku are the most famous online payment provider. Nowdays both of Bank Mandiri and BCA have their own online payment system to support online shopping.
• Internet Mobile None of these e-commerce companies ara doing anything significantly for their mobile users. The market is in mobile, but most of the e-commerce startups are pushing their desktop websites.
• Logistics Infrastructure e-commerce is just commerce using the internet, and a part of the commerce is also logistics, this has been an issue for most companies.
• Regulations Indonesian government is planning to lauch a regulation that prohibits anyone to handle money transfer which could hold up e-commerce industry. (a non banking company has to get a permit from government for any transfer activity matters)
Customer Study
Customer Behaviour
Customers are getting confidence using e-commerce with the help of their friends’ recommendation, and they need an e-commerce services that are trustworthy and easy to be accessed.Customer tend to buy Fashion and Gadget from online shopping. Female customer tend to buy clothes, shoes, and personal cares; while male buy shoes, gadget and gadget accessories.
The products that customer buy like clothes, shoes, and accessories tend to cost around IDR. 500,000. Customer still don’t feel safe to spend more than IDR. 500,000 because of the Trust Issue.
Customer tend to pay via bank transfer or cash on delivery rather than using credit card because Indonesia has earned a reputation for credit card fraud.
LINK
LINK
LINK
LINK
Payment InfrastructurBoth of Bank Mandiri and BCA have their own online payment system, For credit card usage there is a payment portal like Ipaymu ,Veritrans and Doku.
BCA Klikpay Merchants:
1. Bhinekka.com2. Blibli.com3. CBN4. Gudang voucher5. livingsocial
Mandiri clickpay Merchants:
1. Garuda Indonesia (ticketing)2. Plasa.com (belanja online)3. Indomog (voucher online)4. Rakuten (belanja online)5. Blibli.com (belanja online)6. Kagum Hotel (reservasi hotel)7. Bhinneka.com (belanja online)8. Enjoyspin.com (game online)9. Net.Axisworld (belanja online) 10. Tokopedia (belanja online)
Target 2012 : IDR 100 billion
Target: 500,000 transactions in 2012
Set up Fee : Rp15,000,000Monthly Fee : Rp500,000Transaction Fee : 3,5% + Rp5,000
For The payment infrastructure is very expensive and for some online shopping all the fee is charge to customer or their markup the price.
Internet Mobile
48% of regular internet users in Indonesia use a mobile phone to access the internet, the number will climb to an additonal of 5% within 12 months
internet users2010 42.000.000So there are 20.160.000 users using mobile phone to access the internetWhile 21.840.000 users access the internet using Desktop/PC
Logistic Infrastructur
Due to Indonesia is a archipelago nation, so there is take a day and money if the customer live outside java island. Online shopping usually charge the shipping fee to customer, so if the customer live far away from capital city then they must spend much money just for shipping fee.
Nation widePrice Jabodetabek Area – Rp6,000
Nation widePrice Jabodetabek Area – Rp6,000
Jabodetabek OnlyPrice - Calculated
The problem for many online shop in Indonesia is the shipping time, they usually take 2 till 6 work day for shipping time.
Regulation
After now there is no specific regulation or law for e-commerce or online shopping.In generally they use UU-ITE No. 11 Tahun 2008 as a guideline for internet transaction and cyber law
TOP 10 E – Commerce Website based on Alexa E – Commerce current trend category :
1. Classified Ad
2. Market Place
3. Online Retailer
4. Group Buying
No. Portal Name SegmentationDaily
VisitorDaily Page
ViewIndonesia Rank
1 kaskus.co.id Classified Ad 1,173,88720,425,63
19
2 tokobagus.com Classified Ad 541,180 9,037,701 153 berniaga.com Classified Ad 326,679 4,508,167 224 multiply.com Market Place 769,043 4,022,097 46
5 Bhineka.comOnline
Retailer158,189 822,580 53
6 lazada.co.idOnline
Retailer149,560 897,360 54
7 olx.co.id Classified Ad 166,141 541,621 58
8indonetwork.co.id
Classified Ad 155,954 640,972 60
9 tokopedia.com Market Place 107,303 2,414,327 66
10 zalora.co.idOnline
Retailer78,832 457,226 131
11dinomarket.com
Market Place 45,191 343,454 197
12 disdus.com Group Buying 47,242 212,589 214
13 blibli.comOnline
Retailer41,760 137,809 281
14livingsocial.co.id
Group Buying 30,749 113,772 324
15 rakuten.co.id Market Place 25,985 96,146 506
E - Commerce in Indonesia
LINK
LINK
LINK
LINK
40%
22%
13%
13% 7%
4%Major Player E-Commerce in
Indonesia
Bhineka.com multiply.comDealKeren rakuten.co.id
bhineka.comRp60.000.000.00
0
multiply.comRp32.000.000.00
0
DealKerenRp20.000.000.00
0
rakuten.co.idRp19.800.000.00
0
plasa.comRp10.000.000.00
0tokopedia.co
mRp6.500.000.000
Competitor StudyE - Commerce Revenue
Annual estimated revenue
E - Commerce Development
Website Development Cost
Development Fee
Rp200,000,000Payment InfrastructureIpaymu Setup Rp15,000,000
Monthly Fee Rp500,000
Domain / HostingMasterweb Dedicated IIX Setup
Rp1,000,000
Monthly Fee Rp2,500,000
Total CostDevelopment Fee & Setup
Rp216,000,000
Payment Yearly Fee
Rp6,000,000
Domain Yearly Fee
Rp30,000,000
Total CostRp252,000,000
Trusted Seller
Yearly Fixed FeeIDR. 375,000
Sales Margin 3,9%
Contract Term 1 Year
Item Registration *Unlimited
Trusted Merchant
Yearly Fixed FeeIDR. 555,000
Sales Margin 3,9%
Contract Term 1 Year
Item Registration *Unlimited
Trusted Business
Yearly Fixed FeeIDR. 925,000
Sales Margin 3,9%
Contract Term 1 Year
Item Registration *Unlimited
Website StatusDaily Visitor 1,203,537
Daily Page View 3,819,123
Indonesia Rank 19
Member 4,6 Million
Est. Sales Revenue 2011 IDR. 32 Bio
*For start up Mercahant
Starter Package
Advance Package
IDR. 5 Mil IDR. 8 Mil
100 products 250 products
E - Commerce Partnership
Payment SimulationProduct Price = IDR. 500,000Margin 3,9%
Merchant get
Merchant CustomerMultiply
IDR 19,500
IDR. 480.500
Customer paid with both of Credit Card and Bank transfer
Delivery apprx = IDR. 10,000(Depends on Product Weight)
IDR 10,000
IDR 500,000
E - Commerce Partnership
Platinum PlanMonthly Fixed Fee IDR. 5,5 M
Sales Margin 4%
Contract Term 1 Year
Item Registration 5,000
R-Cabinet 1 GB
Gold PlanMonthly Fixed Fee IDR. 3 M
Sales Margin 5%
Contract Term 1 Year
Item Registration 2,000
R-Cabinet 500 MB
Silver PlanMonthly Fixed Fee IDR. 1,5 M
Sales Margin 6%
Contract Term 1 Year
Item Registration 1,000
R-Cabinet 250 MB
Website StatusDaily Visitor 21,837
Daily Page View 74,246
Indonesia Rank 510
Member 35.000
Est. Sales Revenue 2011 IDR. 19,8 Bio
E - Commerce Partnership
Payment SimulationProduct Price = IDR. 500,000Margin 4%
Merchant get
Merchant CustomerRakuten
IDR 20,000
IDR. 480.000
Customer paid with Credit Card
Delivery apprx = IDR. 10,000(Depends on Product Weight)
Credit card charge 3,3%
IDR 10,000
IDR 16,500
IDR 526,500
Customer paid with Bank TransferIDR. 9,000
IDR 519,000
E - Commerce Partnership
THANK YOUThanks to everyone, vendors, partner and article who contribute to my research.
1. Classified Ad
Portal NameDaily
VisitorDaily Page
ViewIndonesia
Rank
Kaskus.co.id 1.415.366 23.480.929 7tokobagus.com 383.831 3.819.123 19berniaga.com 117.312 1.255.236 45
Tokobagus.com's total transaction value in December 2010 reached IDR 300 billion from 90 thousand transactions, from fashion products, information technology, handicrafts, books and games.http://en.indonesiafinancetoday.com/read/2864/E-Commerce-Continues-to-Rise-
Kaskus is the number one of the Classified Ad Category because of their big and loyal member, and it’s contain numbers of seller which sell their product cheaper than other.
E - Commerce Category
BACK
Customer
Classified Ad (TokoBagus)
Merchant
Visit website
Join the Classified Ad
Webbsite
Customer : Visiting tokobagus.com and looking for the product that have been upload by merchantMerchant : Join and upload the product that will be sell at tokobagus.comTokobagus : Provide an Classified Ad system that customer can directly interact with merchantCustomer : View an item at tokobagus.com and directly call the merchant to purchase an item
Merchant : Respond an make a good relationship with customer
Deliver the product
Transfer a payment
Customer : Directly transfer the payment into merchant accountMerchant : Sent the item after received a payment from customer
Classified Ad Procedure
Directly Call the Merchant to Purchase a product
BACK
Kaskus.co.idTokobagus.com
berniaga.com
Classified Ad
BACK
2. Market Place
Portal NameDaily
VisitorDaily Page
ViewIndonesia
Rank
Multiply.com 769,043 4,022,097 46Tokopedia.com 107,303 2,414,327 66
Dinomarket.com 45,191 343,454 162
2 JutaActive Member
35,000Merchant
17Merchant Category
500New Mechant per Month
50,000New Product per Month
RP. 1.6 BillionTransaction value per Month
E - Commerce Category
BACK
Customer
Online Market Place
(Multiply)Merchant
Visit websiteJoin the
online market place
Purchase some product and send a payment
Purchase Order
Customer : Visiting multiply.com and looking for the product that have been upload by merchantMerchant : Join and upload the product that will be sell at multiplyCustomer : Purchase an product on multiply.com, pay via credit card, internet banking, or bank transferMultiply : Automatically generated the purchase order on the merchant account
Send Recieve Confirmation
Deliver the product
Transfer a payment
Merchant : Send the product after received the payment confirmation from multiply’s systemCustomer : When the product was received so customer must make a receive confirmation to multiply’s systemMultiply : Transfer the payment into a merchant account
Online Market Place Procedure
BACK
Multiply.com Tokopedia.com Dinomarket.com
Market Place
BACK
3. Online Retailer
Portal NameDaily
VisitorDaily Page
ViewIndonesia
Rank
Bhineka.com 158,189 822,580 53Lazada.co.id 149,560 897,360 54Zalora.co.id 78,832 457,226 131
Bhinneka.com, which sells information technology products like computers, targets a 20 percent increase in revenues this year from last year's of IDR 80 billion.
http://en.indonesiafinancetoday.com/read/2864/E-Commerce-Continues-to-Rise-
E - Commerce Category
BACK
CustomerOnline
Market Place (Bhinneka)
Visit website
Purchase some product and send a payment
Customer : Visiting bhinneka.com and looking for the item that have been upload by BhinekaCustomer : Purchase an item on bhinneka.com pay via credit card, internet banking, or bank transfer
Deliver the product
Customer : Transfer a paymentBhinneka : Deliver the item to customer
Online Retailer Procedure
BACK
bhinneka.com
Zalora.co.id
Lazada.co.id
Online Retailer
BACK
4. Group Buying
Portal NameDaily
VisitorDaily Page
ViewIndonesia
Rank
disdus.com 47,242 212,589 214Livingsocial.co.id 30,749 113,772 324dealgoing.com 3,427 41,129 2,292
DealKeren has more than 300 thousand members and more than 300 merchants who are already working together. Currently there are 80 deals with 50 thousand transactions per month, which revenue reached US$ 250 thousand per month and growing. Based on statistics collected by DealKeren, approximately 55% of users are women aged 25-35 years, other than that 70-80% of users live in Jakarta, a natural considering that most of the deals was located in Jakarta.http://dailysocial.net/en/2011/07/04/dealkeren-post-livingsocial-acquisition/
E - Commerce Category
BACK
Customer
Group Buying
(DealKeren)
Merchant
Register as Member Join Partnership
Buy a Deal
Customer : Visiting dealkeren and register as member to start buyingMerchant : Join as partner and register the promotionDealkeren : Provide a daily deal for customer
Customer : View and buy a deal from dealkeren and transfer into dealkeren accountMerchant : Create a deal and uploading into dealkeren siteDealkeren : Automatically generate a deal voucher and send into customer account
Promote to Friends
Register as Member
Customer : Promote to his/her friendsDealkeren : Generate a point to Customer when the Customer’s referalls register and buy a deal
Group Buying Procedure
Create a Deal
Generate a deal voucher
Buy a Deal
BACK
Disdus.com Livingsocial.co.id
Dealgoing.com
Group Buying
BACK
dsresearch-ecommerce-may11224 Respondents175 Females49 Males
Peopl
e Rec
omm
enda
tion
Trans
pare
ncy on
Pro
duct
Offlin
e Sto
re A
vaila
ble
Simpl
e Pro
cedu
re
Sites u
p to
dat
e
Well k
nown
sites
0
20
40
60
80
100
120118
38
18 18 17 15
Good E-Commerce
Customer Study
Customers are getting confidence using e-commerce with the help of their friends’ recommendation, and they need an e-commerce services that are trustworthy and easy to be accessed
BACK
dsresearch-ecommerce-may11224 Respondents175 Females49 Males
Cloth
es
Shoe
s
Acces
sorie
s
Pers
onal C
are
Bags
Gadge
t
Books
, CDs,
Video
sPe
ts0
20
40
60
80
100
120 112
3730
1510 8 7 5
Customer Study
Purchasing ProductFemale customer tend to buy clothes, shoes, and personal cares; while male buy shoes, gadget and gadget accessories.
BACK
dsresearch-ecommerce-may11224 Respondents175 Females49 Males
Customer Study
IDR. 100,000 - 500,000
Less than IDR 5 Mil
Less than IDR. 100,000
Any amount Less than IDR. 1 Mil
0
20
40
60
80
100
120118
38
25 2518
The amount of transaction
The products that customer buy like clothes, shoes, and accessories tend to cost around IDR. 500,000. Customer still don’t feel safe to spend more than IDR. 500,000 because of the Trust Issue.
BACK
Source: Direktorat e-Bisnis Ditjen Aplikasi Informasi Komenkominfo 2011
Customer Study
Bank Transfer COD Credit Card Other (Paypall, etc)
0%
10%
20%
30%
40%
50%
60%57%
28%
7% 8%
Payment MethodCustomer tend to pay via bank transfer or cash on delivery rather than using credit card because the traumatic effect about credit card fraud in Indonesia.
BACK
Customer Study
BACK
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