Analysis of Indonesian e-commerce market: potential and opportunities coexist
The Southeast Asian market has become the focus of cross-border merchant competition in recent years. The markets in Thailand, the Philippines, Malaysia and other countries have made many merchants very profitable. However, with the continuous improvement of platforms and logistics, cross-border sellers have focused their attention on Indonesia, one of the most populous countries in Southeast Asia.
1. Advantages of Indonesia’s e-commerce market
1. Demographic dividend
Indonesia has a huge population base, especially the young population, which accounts for a large proportion, bringing huge consumption potential to the market. According to statistics, the total number of people reached 268 million in 2018, ranking first in Southeast Asia. People under the age of 30 account for nearly 70%. Young people are the main force of online shopping.
2. Economic advantages
Indonesia’s economy is growing rapidly and the domestic demand market is strong, providing a broad market for various goods and services.
3. Digital development
Indonesia’s 4G network penetration rate has reached 72%, and more than 80% of the population have become Internet users, which provides a solid foundation for the development of e-commerce. In addition, Indonesia’s Internet penetration rate is 53.7%, which has tripled in five years, fully reflecting the potential of the Internet market development.
4. Market potential
As one of the largest e-commerce markets in Southeast Asia, Indonesia’s market size is expected to far exceed that of other Southeast Asian countries. It is expected that the online shopping transaction volume will reach US$130 billion by 2020, which is considered a very promising and optimistic amount.
2. Best-selling products in the Indonesian market
In the Indonesian market, many product areas show great potential. Here are some popular product areas in this market:
1. Medical products
Since the quality of medical products and services in Indonesia has not yet reached the level of developed countries, the demand for medical products is very high. Medical equipment and related products have attracted much attention in the Indonesian market.
2. Digital products
As the digitalization of the Indonesian market increases, the demand for smartphones and other mobile products continues to grow, bringing huge business opportunities to the digital products industry.
3. Daily necessities
Daily necessities such as home appliances, household products, baby products and pet products have a huge demand in the Indonesian market. These product categories are relatively undersupplied and therefore present huge business opportunities.
4. Food
Indonesia’s food market has not yet been completely occupied by foreign brands, so innovative food products have attracted much attention in the market. This brings broad development space for enterprises willing to innovate.
In the Indonesian market, there are also other areas where there is huge demand. There are also huge business opportunities in areas such as technology, jet technology, robotics, auto parts, and video games.
Conclusion
To sum up, the analysis of the Indonesian e-commerce market shows its huge market potential and diverse business opportunities. The country’s large population, rapid economic development, high degree of digitalization and huge market potential make it a popular target for global cross-border sellers. By seizing these advantages and combining them with market demand, merchants have the opportunity to earn considerable profits in the Indonesian market.