The eCommerce market size in Indonesia has grown rapidly, thanks to high smartphone penetration rates. Unlike online users in Europe or the United States, most Indonesians have skipped the digital evolution from personal computers to laptops and tablets, and have instead leapfrogged to smartphones like the Chinese. The Indonesianretail market is worth an estimated $282 billion, of which B2C eCommerce businesses selling physical goods, accounts for about 4% or $12.2 billion. Indonesia is the fastest growing eCommerce market in the APAC region only next to China and the largest eCommerce market in the ASEAN region. In this blog post, we have estimated the Total Addressable Market (TAM) of B2C eCommerce companies selling physical goods in Indonesia and then profile the TAM distribution by Product Categories, Web Sales and Shopping Carts.
Based on a combination of secondary research, and validation, and analysis of proprietary data, we estimate that across brands, retailers, and marketplaces, there are about 15,000-20,000 eCommerce companies in Indonesia. More than 80% of these merchants also reportedly sell through social platforms - mostly Instagram and Facebook.The most popular category in Indonesia is Fashion (36%), followed by Toys-Hobbies-DIY (21%), and Electronics (18%).
Retail in Indonesia is dominated by small independent store owners (collectively totaling 4.1 million stores) but modern retail— convenience-store chains, supermarkets, and hypermarkets—is reportedly growing twice as fast as traditional trade. eCommerce still accounts for less than 5% of the country's total retail sales and is growing at an estimated CAGR of 20.6%.
We proﬁled a sample of Indonesia’s universe of eCommerce companies to analyze its distribution by Online sales.
The distribution pattern reﬂects the long-tail nature of Indonesian eCommerce where the majority of the companies make less than a million dollars in online sales.
We proﬁled a sample of Indonesia’s universe of eCommerce companies to analyze its distribution by Shopping carts.
Tokopedia, Bukalapak, Shopee, and Lazada are the top 4 sites from a trafﬁc point of view. Below is a list of leading eCommerce companies - both local and international - in Indonesia together with their online trafﬁc and Facebook/ Instagram follower data.
Lazada, Shopee, Tokopedia, and Bukalapak control most of the formal eCommerce sales with the top three each controlling between 20% and 30% of the market and Bukalapak in the low teens according to the Morgan Stanley’s estimation. Despite high trafﬁc inﬂow to local eCommerce sites, Shopee stands out as the most popular eCommerce site in terms of conversion.
The Indonesian eCommerce market size is the largest in SEA in terms of GMV. A few major local and international ecommerce marketplaces and tens of thousands of small-scale eCommerce companies dot the landscape. Social media usage in the country is also among the highest in the world. Fashion is the dominant product category, and Woocommerce is the most popularly used shopping cart platform. Investment in Indonesian eCommerce companies has steadily risen over the past two years (2017 and 2018) with 2018 clocking an investment of over $7 billion across 700 deals. Not counting the unicorns, 2018 saw Indonesian startups receive a total investment of $274 million. eCommerce and Fintech received the most funding, while AI-based services bolstered those platforms and others by creating chatbots for them. Download free market research reports like this. We value your feedback, let us know if there are any suggestions/corrections. For customized market research report reach out to us at firstname.lastname@example.org :)
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