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Interesting Things from Indonesia E-Commerce Behavioral Research by IDEA @EcommerceID

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Recently, Indonesian Ecommerce Association (IDEA) released the results of Indonesia ecommerce behavioral research. Research carried out in a collaboration with Google and TNS Indonesia.

Research was done in 12 major cities in Indonesia from the middle of 2013 to January 2014, with the age segmentation from 18 years old, managed to get some important findings. It was predicted that the total market value of Indonesia e-commerce in 2013 reached 8 Billion United States Dollar and will continue to increase to 24 Billion US Dollar in 2016.

The results of this research was welcomed with enthusiasm by Daniel Tumiwa as the Chairman of idEA. “The industry performer is very excited to see the rapid growth projections. By studying consumer behavior more deeply, we can adjust offers to their desire to expand market penetration. It needs to be be recognized that there is consumer resistance to this online shopping model. With the right approach, we can reach a very large market potential that has not been touched now. ”

Tampaknya keinginan para shopper untuk menyentuh, mencium dan melihat langsung sebuah produk menjadi kendala yang cukup besar. Hal ini tidak hanya terjadi di Indonesia tetapi juga di negara lain seperti India yang industri ecommerce nya selangkah di depan Indonesia. Pada umumnya shopper memilih produk dengan resiko rendah, seperti pembelian online tiket.

Besides, this research tries to explore the profiles of those who do online shopping and the backgrounds of what encourage them to shop online. For those who does not belong as online shopping performer, this study also shows the reasons why they are reluctant to online shoppig. It seems that the shopper wants to touch, smell and see the product directly become a significant constraints.This is not only in Indonesia but also in other countries such as India which its e-commerce industry is already a step ahead of Indonesia. In general, shopper  chose products with low risk, such as online ticket purchases.

Interesting things learned from this research are:

  1.  After the survey results obtained, the researchers divided the research into four categories of respondents: Recent online shopper (last transaction within a month), non-recent online shopper (last transaction 6 months ago), non-online shopper and seller.
  2.  Fashion Category is the most purchased category with 78%, then the mobile (46%), consumer electronics (43%), books and magazines (39%) and something interesting is….. groceries (24%)
  3. What encouraged “recent online shoper ” respondents to buy online was not the price, but the time savings gained from shopping online (72%), no need to travel for shopping (66%), goods are delivered to home (64%), and the ability to compare lots of products (61%).
  4. While what encouraged the “non recent online shopper “respondents in buying online is when the price is cheaper online than in the offline (67%), while the respondents of this category’s reason of not often believing in shopping online is the quality of the product (42%), worrying the online financial data security (40%), and lack of physical contact with the goods (38%)
  5. As many as 83% of the category of “non-recent online shopper” got an online exposure, where from this exposure they do 70% direct action, 88% use the information obtained from advertising to plan and research, 47% do offline action. (slide 12/22)
  6. For the category of “non-online shopper” lots of them still have wrong perception about e-commerce, such as saying why they dont do online shopping is because they wanted to try the goods before buying (41%), while in reality this is already accommodated by many online e-commerce in Indonesia with a return policy, so for this category of respondents, education is the key. (slide 17/22)
  7. Average online shopper spending numbers are as follows:
ecommerce-indonesia-average-spend (2)


More presentation research you can read from the slide above.