Retail & E-Commerce
From The Report: Indonesia 2019
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A large and youthful population, a fast-rising middle class and rapid digitalisation have underpinned strong growth in Indonesia’s retail and e-commerce sectors. Indonesian shoppers are the third-most optimistic globally, with consumer confidence benefitting from a steady rise in incomes that has supported recent growth in personal consumption and retail sales. New retail supply is on the rise in Jakarta and also across secondary cities, while occupancy rates of premium-class shopping centres remain above 90%. The formal retail sector could come under pressure in the coming years, however, as rapid growth in e-commerce activities is challenging traditional retail models. Although retail activity remains concentrated in bricks-and-mortar stores and shopping malls, e-commerce growth has soared in recent years, with online sales and customer volumes recording consistent double-digit growth since 2013. This chapter also contains an interview with William Tanuwijaya, CEO and Founder, Tokopedia.

Articles from this Chapter

Overview

Sizeable potential: Increased consumer confidence and digitalisation are quickly expanding the retail segment past traditional channels
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A large and youthful population, a fast-rising middle class and rapid digitalisation have underpinned strong growth in Indonesia’s retail and e-commerce sectors. Indonesian shoppers are the third-most optimistic globally, with consumer confidence benefitting from a steady rise in personal income that has supported recent growth in personal consumption and retail sales. New retail supply is on the rise in Jakarta and also across secondary cities, while occupancy rates of premium-class shopping…

Interview

Empower and enable: William Tanuwijaya, CEO and Founder, Tokopedia, on the factors behind the rapid expansion of the e-commerce sector
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Interview:William Tanuwijaya How would you evaluate the performance of Indonesia’s e-commerce sector in 2018? WILLIAM TANUWIJAYA: Indonesia’s e-commerce sector as a whole continued to grow in 2018, driven by increased internet penetration, growing consumer trust and greater popularity of technology platforms. Largely built on the trust that was developed with local communities, Tokopedia alone has increased their active monthly users, reaching 90m monthly active users in 2018. At the…

Analysis

Digital blueprint: An e-commerce roadmap is guiding the segment’s development
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The 2017 release of a mid-term e-commerce roadmap marked an important step forward for e-commerce development. Under development for more than a year, the roadmap established a policy framework and action plans across a host of relevant areas, including taxation, consumer protection, human resource development, communications, management, logistics and start-up funding. It set targets and deadlines for various government entities expected to play an important role in future e-commerce growth.…

Overview

Online shopping is set to keep growing in emerging markets,: despite some cultural and logistical challenges E-commerce evolution
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E-commerce is now well established in developed markets, where the majority of adults make at least occasional purchases online. However, levels of activity on the whole remain relatively low in emerging countries, as these markets are restrained by a wide range of challenges, among them less-developed financial and logistical infrastructure. Nevertheless, online sales are growing rapidly in many developing economies, with local governments deploying different measures aimed at boosting activity. Several notable regional players are emerging in these largely untapped markets, in some cases backed by partnerships with major international…

Overview

Online shopping is set to keep growing in emerging markets,: despite some cultural and logistical challenges E-commerce evolution
OBG
plus

E-commerce is now well established in developed markets, where the majority of adults make at least occasional purchases online. However, levels of activity on the whole remain relatively low in emerging countries, as these markets are restrained by a wide range of challenges, among them less-developed financial and logistical infrastructure. Nevertheless, online sales are growing rapidly in many developing economies, with local governments deploying different measures aimed at boosting activity. Several notable regional players are emerging in these largely untapped markets, in some cases backed by partnerships with major international…