Chair of idEA Ignatius Untung said the Development of Digital Malls Now Entering Third phase - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesian E-Commerce Association (idEA) reported on changes in the behavior of Indonesian consumers when conducting online transactions, as well as reading where the business sector is going forward. Based on the research, chairman of idEA Ignatius Untung, said that the development of digital malls is now entering its third phase.

“Competition in the third phase is more diverse. Funding, expansion, and achievement of consumer confidence are in the midst of the increasing number of e-commerce choices nowadays,” he said at the idEA survey presentation in Jakarta, on Tuesday (02/26).

The data showed that the number of internet users in Indonesia continues to grow every year, he added. In 2017, the number of internet users was 72.8 million, which then rose to 102.8 million in 2018. In 2019, Indonesian internet users are predicted to reach 112.6 million.

While, sample data from e-commerce in the country shows an average of 87 percent of visits come from mobile usage. These findings further prove that the share of mobile device users is a considerable potential in reaping a higher number of visits.

Respondents in this study are quite active searching for information using e-commerce service of the platform. According to the survey, as many as 36.8 percent per day and 39.6 percent per month. More than seven day calipers as much as 20.2 percent, 21.9 percent per month.

Shopee is one of the e-commerce companies that is quite keen in seeing this trend, as evidenced from the beginning they have focused on developing mobile platforms so that consumers are easier to shop.

Therefore, local e-commerce actors must invest more in developing mobile access, prioritizing the development of features on mobile applications, making the web mobile friendly.

Furthermore, Untung said, consumers tend to trust e-commerce that has stood longer. Innovation and the longevity of an e-commerce are proof that the company deserves to be trusted.

Companies that are active in the industry for more than 10 years are more convincing to buyers than young companies. As many as 28.5 percent of respondents admitted that, only 3.6 percent disagreed.

Furthermore, the age of a company is an important consideration for buyers in using their services. As many as 28.5 percent of buyers depend on how long the company stands.

“Not just trust, but feel so comfortable when having to transaction through a digital platform, ” he explained.

Untung revealed, as many as 40.4 percent of consumers feel safe and believe that using the services of a company that has long existed in the online platform is compared to 0.5 percent that contradicts it.

The data also shows that innovation and creativity are the keys for a company to survive. As many as 62.7 percent of respondents admitted that.

A number of communities facilitated and developed by an e-commerce company will also be an important factor for the business continuity of a company. 32.6 percent of respondents agreed and 1.6 percent did not agree.

Untung explained, along with the widespread fourth generation (4G) internet network, discussions related to startups that had a valuation of US$1 billion were also increasingly intense. Four unicorns also appeared in Indonesia.

Since then, e-commerce competition has become more colorful. Some grow stronger, on the other hand there are players who eventually have to close their businesses.

Even though not a few of these names come from abroad, and are supported by very large capital. Thus, questions will arise about how best to keep perpetrators in this sector.

Indonesia is indeed an attractive big market. The number of smartphone users in Indonesia is predicted to reach more than 100 million. This number will make Indonesia the country with the fourth largest active smartphone users in the world after China, India and America. This is certainly a huge potential to develop a mobile wallet in Indonesia.

Throughout 2018, idEA also saw that there were several mobile wallets that were often discussed by the people of Indonesia, namely GoPay, Jenius, TCash, Pay Pro and OVO. Viewed from Google Trends, the search volume for these five mobile wallets has increased. The most amazing thing happened to OVO.

The application that was introduced in early 2017 has topped the list, Top Free App financial category in the App Store and third place in the Google Store with more than one million downloads.

Recently OVO from Lippo Group partnered with Grab to provide electronic money services. With this collaboration, Grab application users can already use GrabPay to pay for their travel expenses. In addition, GOPAY from GO-JEK, which also acquired three Tekfin companies in December.

Untung also stated, that there would be more collaboration among other companies to create a mobile wallet to meet the needs of the community. In this regard, the readiness of the community to utilize the mobile wallet has become a major determinant of the growth of this industry.

While shipments on the same day will be the first choice. The problem of shipping old goods is one of the problems of e-commerce in the past two years. The emergence of online transportation services with the shipping feature also becomes the solution to this problem.

The speed and price that is quite affordable compared to conventional logistics delivery services, is the reason consumers prefer shipping services on the same day (same day service delivery) and one day (one-day service delivery). However, this only applies to shipments within the city, conventional logistics shipping services are still an option for intercity shipping.

Another note, idEA rated that the interest of the Indonesian people to engage in the world of e-commerce is increasing. This is evidenced by data on Top10 trending searches on Google throughout 2018.

From these data, Indonesians are curious about how to become Bukalapak Agents, Reseller Online Shopping and Lazada Sellers, which are ranked 6th, 7th and 9th. Not only that, in 2017 online sellers on social media, such as Instagram and Facebook also more popping up.

Furthermore, in 2019 a new phenomenon will occur, namely online sellers, especially on Instagram, starting to move stalls to e-commerce platforms, such as Shopee. This rising e-commerce platform has the Instashop X Shopee feature, which allows sellers on Instagram to enter products they sell on Instagram to Shopee accounts and sell them to millions of Shopee users.

The shift in the pattern of shopping behavior of the Indonesian people, of course, has an impact on ticket sales. In addition to ticket sales in the transportation sector, ticket sales for shows, music and sports also began to be sold online. Recently, ticket sales for the match against the Icelandic Indonesia match also set a ticket sales record online.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com