With the development of globalization and the popularity of the Internet, e-commerce has become a global communication platform. The Indonesian e-commerce market is one of the markets currently in a period of rapid development in the global e-commerce market. As one of the largest economies in Southeast Asia, its market size (US$27.4 billion) and number of users (approximately 390 million) are also constantly expanding. The demand for Chinese goods in this market is also gradually heating up, so let’s take a look at the demand for Chinese goods in the Indonesian e-commerce market.
1. Market background.
1. Indonesian e-commerce market status.
In recent years, with the continuous expansion of the number of Internet users and the rapid popularization of online information, the Indonesian e-commerce market has become one of the largest markets in Southeast Asia. Data shows that the total transaction volume of the Indonesian e-commerce market reached US$27.4 billion in 2020 and is expected to grow to US$63.6 billion in 2025, and the number of Indonesian e-commerce market users is expected to grow to 537 million people. It can be seen that the Indonesian e-commerce market has shown a relatively obvious growth trend in terms of market size and number of consumers.
2. Indonesia’s degree of openness to the outside world.
Indonesia is one of the largest economies in Southeast Asia. Its economic development mainly relies on international trade and foreign investment. The Indonesian government implements an open policy and encourages various foreign-funded companies and international brands to enter the Indonesian market. Currently, well-known Chinese companies such as Alibaba, JD.com, and Huawei have launched e-commerce businesses in the Indonesian market.
2. Advantages of Chinese products.
1. Stable quality.
As Chinese companies continue to improve the quality of their goods, and after entering the International Trade Organization, China’s quality control, testing capabilities and standards have gradually improved significantly, and the quality of Chinese goods has been greatly improved.
2. Price advantage.
China has the world’s largest goods export base. Therefore, the prices of Chinese goods are more favorable and more friendly to the people than goods from other countries. This is also an important reason why Indonesian consumers choose to buy Chinese goods.
3. Rich variety.
Chinese products have a wide variety of products, including household products, daily necessities, electronic products, sporting goods, clothing, etc., which meet consumers’ needs for various products and bring consumers more products. Lots of choices.
4. The supply chain is improved.
China has a complete supply chain system, which allows Chinese products to exert their own advantages in the Indonesian e-commerce market. Chinese goods can be supplied stably, and a stable partnership has been established to ensure smooth trade.
3. Demands of Indonesian consumers.
1. Price sensitive.
Indonesian consumers pay more attention to price issues when purchasing goods, so lower-priced Chinese products and preferential strategies can better attract the attention of Indonesian consumers.
2. Differences in consumer groups.
Indonesian consumers are diverse and culturally diverse. When it comes to purchasing goods, different groups of people have very different spending power, consumption preferences, cultural characteristics, etc. Therefore, marketing needs to be carried out according to the characteristics of different consumer groups to provide goods and services that meet their needs.
3. Online shopping habits.
Indonesian consumers are also paying more and more attention to the experience and convenience of online shopping. They tend to use smartphones and other mobile devices for online shopping, so there is a need to continuously improve user experience and convenience.
4. Competition situation.
Chinese products are competing fiercely in the Indonesian e-commerce market. The Indonesian e-commerce market has always been one of the markets entered by well-known Chinese companies such as Alibaba, JD.com, and Huawei. In the Indonesian e-commerce market, Chinese products are not the only option. There are also products from other countries and regions, such as Japan, South Korea, Singapore, etc. This also shows that Chinese products face fierce competition in the Indonesian e-commerce market. However, due to the price advantage and reliable quality of Chinese goods, as well as the fact that China has exerted its advantages, the share of Chinese goods in the Indonesian market has gradually increased.
5. Follow-up development.
1. Break through cultural barriers.
When entering the Indonesian e-commerce market, due to the different cultures and market environments of China and India, it is inevitable to encounter problems in cultural differences and brand awareness. Therefore, Chinese companies should establish a localized team to help them better understand the local market, communicate and coordinate local market operations.
2. Precision marketing.
The sales of Chinese goods in the Indonesian e-commerce market not only depend on the goods themselves, but also the compatibility between Chinese goods and Indonesian consumers. Therefore, Chinese companies should conduct market analysis and research in Indonesia to better understand consumer needs and provide better value and quality services while complying with local consumer preferences.
3. Strengthen brand building.
Brand building is the foundation for the long-term development of an enterprise. Chinese companies should continue to improve their brand awareness and reputation in the Indonesian market, actively carry out brand marketing activities and promotional strategies, and expand brand influence and market share.
It can be seen from the above analysis that the demand for Chinese goods in the Indonesian e-commerce market is growing. Chinese products have the advantages of stable quality, price advantage, rich variety and complete supply chain. These advantages can meet the diverse needs of Indonesian consumers. However, in further expanding the Indonesian e-commerce market, Chinese companies still need to deal with difficulties and challenges, such as cultural barriers, diversity of consumer needs, and competition with products from other countries and regions. They still need to strengthen iteration and optimization.