Comprehensive analysis of Indonesian e-commerce online shopping peak and influencer marketing status quo

In recent years, with the development of mobile Internet technology and popularity, the Indonesian e-commerce market has entered a new period of rapid growth. Especially between March 2020 and March 2021, due to the impact of the COVID-19 epidemic, social distancing, home isolation and other policies prompted people to choose to shop online more. This change not only changed consumers’ shopping habits, but also accelerated competition and development in the Indonesian e-commerce market.

The current situation of online shopping peak

Data points out

According to relevant data, during the epidemic, Indonesian e-commerce online shopping demand increased significantly. Consumers’ lifestyles have changed dramatically, from traditional standing shopping to home shopping, which has also made e-commerce an important channel to meet daily needs.

The industry is heating up

Currently, Indonesia’s e-commerce platforms include not only local companies, but also China’s Pinduoduo, Taobao, Alibaba and other international brands entering the market, accelerating market competition. Under the influence of the epidemic, the scale of the e-commerce market and the number of users have increased significantly. Compared with physical stores, e-commerce can better meet people’s needs and is safer and more convenient.

Reasons for the peak of online shopping

The impact of the epidemic

The outbreak of the COVID-19 epidemic has forced many Indonesian residents to isolate themselves at home, making it difficult to go shopping. A large number of consumers can only choose online shopping to solve their daily needs.

Popularization of mobile Internet

More than 70% of Indonesian young people and urban residents use smartphones, which provides support for the rapid development of e-commerce. In addition, the popularity and improvement of mobile payment technology enable consumers to complete payments more conveniently and quickly.

Geographical location and logistics technology

Indonesia is located in Southeast Asia, and its geographical location makes cross-border e-commerce a new economic growth point. At the same time, the improvement of logistics and distribution technology has enabled more and more consumers to purchase goods from overseas on e-commerce platforms, providing the necessary guarantee for the occurrence of e-commerce online shopping peaks.

Current status of influencer marketing

Most KOLs (influencers) in Indonesia are concentrated on the three major platforms of YouTube, Instagram, and Tiktok. Especially with the vigorous development of social media, 56.27% of Indonesian influencers are small and medium-sized Internet celebrities (followers less than 100,000) , mainly grassroots. Although there are relatively few TOP Internet celebrities, Indonesian social media also has super KOLs like Li Jiaqi.

Characteristics of small and medium-sized Internet celebrities

• Attitude: Easier to communicate and accept products and cooperation methods.
• Efficiency: The production cycle of Indonesian Internet celebrities is long and the efficiency is low. They need more patience, praise and reminders.
• Creativity: Indonesian Internet celebrities lack creative ability and rely on case videos, which require communication and production in advance.

Marketing status quo

According to statistics, 60% of Indonesians believe that online recommendations from Internet celebrities are more trustworthy than sponsored ads. 80% of brands marketing in Indonesia will use Internet celebrity marketing, especially small and medium-sized Internet celebrities, which is more Popular with brands.

Reasons for cooperation

• Stronger sense of trust: Small and medium-sized Internet celebrity KOL pays more attention to the content itself and the attitude of fans, and will insist on content output. Fan activity and interaction rates are higher, creating strong trust in the hearts of fans.
• Feeling more real: Products or services can be truly exposed to fans, especially in the form of live broadcast, where fans can interact directly with the host and quickly complete the order process.
• More cost-effective: Compared with platforms such as FB and Google, the performance advertising of Internet celebrity marketing is more cost-effective. Especially when working with small and medium-sized Internet celebrities, the cost can often be lower than traditional advertising and achieve the desired results.

To sum up, the peak of Indonesian e-commerce online shopping and the current status of Internet celebrity marketing show that the Indonesian e-commerce market is reaching a historical high, bringing huge business opportunities to e-commerce companies. However, e-commerce companies need to better grasp market development trends, adapt to consumer needs, improve innovation capabilities and service levels, and achieve market growth and brand upgrades.

With the improvement of mobile Internet technology and popularity, the e-commerce market will have a broader space for development in the future, and will also bring huge business opportunities and driving force to Indonesia’s economic development.