Online Shopping Sphere
    Category: E-Gang By : Sonya Angraini Read : 2351 Date : Monday, February 17, 2014 - 00:58:02

    After a decade, the Internet is reaching a critical mass in Indonesia. More people are now using it—an estimated 75 million users last year—and for many purposes, from shopping to social media. It is now easier to access as the infrastructure is improving. The number of those online is forecast to expand to 145 million in 2015, or around 60% of the country's population. The Internet also contributes to economic growth. A study by Deloitte shows that from 2011 to 2016, the contribution of the Internet to GDP will grow from 1.6% to 2.5%.

    Compared to developed countries, e-commerce in Indonesia is still at an early stage. “Trust is the big issue,” says Hendrik Tio, founder and chief executive officer at online shopping site Started in 1999, the website now has 150,000 visitors with around 1,000 transactions per day.. Age also plays an important factor. E-commerce customers are mostly between 25 to 35 years old. According to Hendrik, this means big opportunities ahead for the industry's growth because these people are familiar with the concept of online shopping.

    Thanks to new technology, people now have devices that allow them to access the Internet anytime, anywhere. At the same time, prices are falling. One can now buy a prepaid handset-based subscription per month with unlimited data for only Rp 100,000. For the desktop, packages start from Rp 50,000. Smart phones and tablets are sold at affordable prices, both new and used models. Internet speed remains an issue, as the average speed in the country is 1.5 Mbps while the global average is 3.1 Mbps (according to a study by U.S. Internet firm Akamai).

    Hectic urban lifestyles combined with traffic congestion in the bigger cities is helping to drive an increase in online shopping. Social media plays its role too, as even instant messaging is now used for selling products. The latest research by MarkPlus Insight shows that there are four online shopping channels in Indonesia: online forums (27%), messenger groups (27%), social media (26%) and online shops (20%). People prefer the top three because they are easier to access, simpler, and usually paid offline, even if the transaction originated online. 

    The research also covers the factors influencing online buying. The factors are price (47%), brand (27%), promotion or discount (26%) and advertising (19%). Price plays the most important role as consumer will buy offline when the price is the same as online. E-commerce players therefore have to have lower prices or products that aren't available offline.