Retail & E-commerce
From The Report: Indonesia 2020
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Indonesia’s large and relatively young population, coupled with a fast-growing middle class and high levels of consumer confidence, has been a key driver of expansion in retail and e-commerce. Physical retail spaces remain prevalent, with new malls opening across the country in 2019. Despite the sector’s positive performance in recent years, it will face headwinds in the short term amid the Covid-19 pandemic. Other challenges include infrastructure issues and slow technology adoption among some demographic groups, especially in rural areas. However, the medium- to long-term outlook of the retail sector looks bright. The burgeoning e-commerce market should help weather the impact of the Covid-19 pandemic, with companies adapting their services and interactions to accommodate customers who are relying on online and mobile offerings as they practise social distancing. Given the popularity of e-commerce and ride-hailing apps, it is expected that tech-based services will continue to expand to meet shifting consumer expectations. This chapter contains interviews with Kevin Aluwi, Co-CEO, Gojek; and Muhamad Fajrin Rasyid, Co-Founder, Bukalapak.

Articles from this Chapter

Overview

Delivered success: In a market dominated by brick-and-mortar stores, e-commerce is proving attractive for a young, tech-savvy population
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Indonesia’s large and relatively young population, coupled with a fast-growing middle class and high levels of consumer confidence, has been a key driver of expansion in retail and e-commerce. Physical retail spaces remain prevalent, with new malls opening across the country in 2019. Despite the sector’s positive performance in recent years, however, it will face headwinds in the short term, with advisory firm International Data Corporation estimating that worldwide growth expectations…

Interview

Community effort: Kevin Aluwi, Co-CEO, Gojek, on tapping technology to alleviate a public health crisis
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Interview:Kevin Aluwi What local and regional growth opportunities do you foresee in the food delivery industry? KEVIN ALUWI: The South-east Asian online food delivery market has been projected to reach $8bn by 2025. This growth may be accelerated by the Covid-19 pandemic that took hold in the first quarter of 2020, as online food delivery enables people to adhere to social-distancing and self-isolation rules. Lockdowns and other measures to restrict movement have been implemented in many…

Analysis

Red-carpet treatment: The popularity of modest fashion is growing, attracting the attention of top international brands
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In recent years modest fashion inspired by Islam has shifted from a niche market to the mainstream, with designs that appeal to religious consumers appearing at major fashion weeks, and global clothing brands such as H&M, Macy’s, and Marks & Spencer launching their own labels. Now in the limelight, modest fashion is expected to grow substantially. Spending on modest apparel reached $270bn in 2017 and is anticipated to grow by around 5% annually to reach approximately $361bn by 2023,…

Interview

Expand the ecosystem: Muhamad Fajrin Rasyid, Co-Founder, Bukalapak, on how to leverage the digital economy to create growth
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Interview:Muhamad Fajrin Rasyid What are your projections for changes in Indonesian consumer behaviour patterns? MUHAMAD FAJRIN RASYID: E-commerce in Indonesia witnessed 300% growth since 2017 and is projected to expand seven-fold through to 2023. The segment’s potential far exceeds most other industries, particularly in fashion, food and electronics. Interestingly, small and medium-sized enterprises (SMEs) are leading partners of e-commerce platforms, acting as suppliers and enabling them…