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THE STATE OF
eCOMMERCE INDONESIAANDRY SUHAILICEO, PRICEAREA.COM
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Current State
Government, Regulations – How Secure Are We?
The Rise of SMB & Marketplaces
Role of eCommerce Search Engine – PriceArea.com
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Indonesia Philippines Vietnam Malaysia Thailand Singapore
74.6
34.832.4
20.117.6
9.130%
36%
36%
67% 26
%
104%
Internet users (in million) % of penetration
Source: TechinAsia, November 2013
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
74.6 MILLIONInternet users in Indonesia
2011 2012 2013 2014 2015 2016
43
59.6
74.6
83.6
93.4
102.8
Internet users (in million)
Source: eMarketer,March 2013
17.5%24.0%
29.8%33.0%
36.5%39.8%
% of population
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
20% Y-Y GrowthInternet users
4.6 MILLIONpeople have shopped online in 2013
2011 2012 2013 2014 2015 2016
2
3.1
4.6
5.9
7.4
8.7
Source: eMarketer,March 2013
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
USD 1.8 BILLIONSpent on eCommerce in 2013
2011 2012 2013 2014 2015 2016
$0.56
$1.04
$1.80
$2.60
$3.56
$4.49
Source: eMarketer,March 2013
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Growth driven by Middle Class Spending, Cheap Smartphones & Affordable Internet
Source: The Boston Consulting Group, March 2013
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Fashion and Females are the TOP Products & Buyers Respectively
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
CLOTHING
HANDPHONE
PLANE TICKET/SHOW
LAPTOP & ACCESSORIES
BAGS
MALE FEMALE
BOOKS
ELECTRONICS
SHOES
Source: APJII, Indonesian Internet Profile, Dec 2012
77.1%
2.1%
8.7%
3.8%
11.1%
5.2%
2.2%
5.0%
39.1%
17.8%
16.9%
16.1%
1.4%
11.0%
9.0%
8.8%
Trust is No.1 issue in online shopping in Indonesia
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
34.6%
21.5%
21.5%
21.5%
9.3%
6.0%
5.2%
4.7%
4.1%
4.0%
Source: APJII, Indonesian Internet Profile, Dec 2012
AFRAID OF FRAUD
TOUCH & FEEL THE ITEMS
HIGH PRICES
NOT INTERESTED
PRODUCT QUALITY NOT GUARANTEED
DO NOT KNOW HOW
NOT PRACTICAL
ITEM DO NOT MATCH THE OFFER
ITEMS NOT IN ACCORDANCE TO ANYONE’S LIKING
ITEMS DO NOT MATCH THE PICTURE
Challenge in Payment and Delivery
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Only 3 providers are ready to support logistics from online shopping.
BANK TRANSFER
CASH ON DELIVERY
CREDIT CARD
OTHERS
57%
28%
8%
7%
Source: Indonesia Credit Card Association, 2013, VelaAsia
Indonesia Philippines Vietnam Malaysia Thailand Singapore
5% 6%3%
6%9%
55%
20%
33%28%
25% 25%
39%
Delivery Payment
14.7 Million Credit Cards (4.5% Penetration)
Indonesian Government defines eCommerce as: “Electronic transaction is legal action which is done using computer, computer network, and/or other electronic medias.”
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Indonesian Government defines eCommerce as: “Electronic transaction is legal action which is done using computer, computer network, and/or other electronic medias.”
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Associations like idEA helps facilitate the growth
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
www.idea.or.id
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
eCommerce Platforms
Payment & Logistics
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Marketplace
• C2C model
• B2C model
• B2B model
• B2B2C model
Direct Selling
• Consignment model
• Outright model
• Dropship model
2 Popular Business Model
Direct Selling is dominated by few numbers of aggressive players
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Integrated Infrastructure
Offline – Online Strategy
Pricing Strategy
Partnerships
Marketplaces are the key players in shaping eCommerce
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
3,642,894
3,000,000
1,212,369 1,100,000
341,640
8,200
500,000 339,495
1,570,000
529,887
53,600 60,000 35,407
1,104,211
10,000 126,000
Source: PriceArea.com
# of Products % of Sellers
#7
Alexa Rank (Indonesia):
#12 #24 #42 #54 #96 #158 #217
Competition is heating up
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Marketplace that differentiate by market segmentation will win
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Younger shopkeepers
Matured,Individuals,Business
Females,Housewives
Young,Less savvy
shopkeepers
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
SMB represents 99% of all companies in Indonesia
40 MILLIONSmall Medium Businesses
Retail Sales: USD 134 BILLIONOnline: 0.7%
While others focus on Sellers,Pricearea focus on Shoppers
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
2010 2012 2013
While others focus on Sellers,Pricearea focus on Shoppers
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
ONLINE CONSUMERSRESEARCH ONLINE BEFORE PURCHASE
46.7%
Source: APJII, Indonesian Internet Profile
SELLING PRICE
PAYMENTINFORMATIONPRODUCT
INFORMATION
OFFERS/DISCOUNTS
SHIPPINGINFORMATION
SELLER’SINFORMATION
3000+ Online Stores
550,000+ Online Sellers
8.5 MILLION Products Listed
STARTUP ASIA 2013 THE STATE OF eCOMMERCE
Thanks!
Andry SuhailiCEO, PriceArea.com
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