Southeast Asia has always been a market that has attracted much attention in the field of cross-border e-commerce, and Indonesia, as an important member of the region, has great potential for the development of its e-commerce market. This article will explore the current situation of Indonesia’s e-commerce market in depth and provide valuable reference for sellers who plan to understand or expand this market.
1. Internet penetration rate has risen and the average time spent online has increased.
From a data perspective, Indonesia’s Internet penetration rate has continued to rise. According to statistics, since 42.65% in 2015, the country’s Internet penetration rate has been expected to reach 72.81% in 2022. In just five years, Indonesia’s Internet penetration rate has increased by 30.16%. What is more worth looking forward to is that it is predicted that by 2025, this figure will further climb to 89.3%. Behind this huge number is Indonesia’s huge population base and growing Internet usage trends, which provide a very attractive situation for Chinese cross-border sellers seeking to develop in the Indonesian market.
And the average Internet usage time per capita in Indonesia is also increasing, from 3.6 hours per day before the epidemic to the current 4.3 hours. These factors have laid a solid foundation for the Indonesian e-commerce market, including the e-commerce sector, and promoted the rapid development of the Internet economy.
2. Mobile consumption is dominant, and shopping apps help complete orders.
Considering the special geographical location of Indonesia, its network infrastructure is not well developed due to the distribution of many archipelagos. Despite this, Indonesia’s traffic costs are relatively low. A 2022 market research report shows that before the epidemic, Indonesia’s Generation Z spent an average of 8.5 hours a day on their mobile phones, far exceeding the average application time per capita in the region.
Compared with traditional PCs, most Indonesian consumers prefer to conduct online transactions through mobile devices. Therefore, optimizing the mobile shopping experience is crucial to attracting Indonesian consumers. It is predicted that by 2023, mobile e-commerce will continue to grow at a compound annual growth rate of 20.3%, which indicates that mobile will become an important direction for the layout of cross-border sellers in the future.
3. Young consumers become the main force, and social media becomes a shopping habit.
Currently, the median population of Indonesia is about 29.7 years old, with young people as the main body, and obvious advantages in population structure. This characteristic also determines that young people are the main consumer force in Indonesia’s e-commerce market. As the main promoter of online consumption, young people are more receptive to new things and have stronger purchasing power.
The popularity and usage habits of social media among young people in Indonesia are deeply rooted in the hearts of the people. This provides sellers with the opportunity to interact directly with potential consumers, effectively promoting the development of the e-commerce market. Therefore, understanding and utilizing social media platforms to establish close ties with young consumers will be the key to the development of Indonesia’s e-commerce market.
Conclusion: Indonesia’s e-commerce market has unlimited potential
In summary, as an important cross-border e-commerce market in Southeast Asia, Indonesia’s development potential cannot be underestimated. The continuous increase in Internet penetration, the continued rise in mobile consumption, and the dominance of young consumers all provide sellers with broad opportunities. However, to succeed in this market, it is necessary to have a deep understanding of the needs and habits of local consumers and actively embrace the development trends of mobile Internet and social media in order to stand out in a highly competitive environment.