Indonesia to Become the Largest B2C Ecommerce Market in Southeast Asia
According to a new report by market researchers yStats.com, Indonesia has the potential to become the largest of the fast growing B2C ecommerce markets in Southeast Asia. The report also highlights some important trends in Indonesia’s online retail, most notably the rise of mobile commerce.
The fourth most populous country worldwide, Indonesia, ranks in the top 10 global markets by number of internet users, despite low internet penetration. Although only a low double-digit share of internet users in the country makes purchases online, Indonesia has the potential to become by far the largest of the B2C ecommerce markets in Southeast Asia, due to rapid anticipated growth.
Mobile phones were used by the majority of internet users in Indonesia to access the web in 2014, and were the device most used by online shoppers to make purchases online. Smartphone penetration is growing, expected to top 100 million users within the next three years, ranking Indonesia among the top five countries worldwide by number of smartphone users.
Clothing and other fashion-related items were the most purchased online product category last year. The payment method most preferred by online shoppers was bank transfer.
The most popular ecommerce website in Indonesia, Lazada, combined online retailing with the marketplace model and achieved triple-digit growth across Southeast Asia last year. It also attracted additional investment, as did two other marketplaces, Tokopedia and Elevenia. The two major online classifieds websites in the country, OLX and Berniaga, formed a joint venture under the OLX brand.
yStats.com, based in Hamburg, Germany, provides research on global B2C ecommerce.