DUBLIN–(BUSINESS WIRE)–The “Indonesia B2C Ecommerce Market Opportunities Databook – 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics – Q2 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
The market in Indonesia is expected to grow by 19.00% on annual basis to reach US$37.8 billion in 2022.
The medium to the long-term growth story of the B2C Ecommerce industry in Indonesia promises to be attractive. The B2C Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 15.56% during 2022-2026. The country’s B2C Ecommerce Gross Merchandise Value will increase from US$31.7 billion in 2021 to reach US$67.3 billion by 2026.
The global pandemic outbreak and social distancing measures implemented to manage Covid-19 led to the growth of the B2C e-commerce market worldwide, as the pandemic confined most people to their homes. The stay-at-home protocol also accelerated the growth of online transactions globally, and Indonesia is no exception. Ecommerce transactions as a share of total retail sales are also higher in Indonesia compared to other developed markets such as the United States, France, Spain, and Sweden.
The country is set to become one of the largest digital economies in the Southeast Asia region, with approximately 40% of the total regional market share. The young population of Indonesia is expected to play a crucial role in driving the industry’s growth in the short to medium term.
In terms of the competitive landscape, homegrown e-commerce marketplaces such as Tokopedia and Shopee are still leading the e-commerce sector. These players have widened their market share over the competitors, including Lazada, Bukalapak, Blibli, and JD.com Indonesia.
Each of these e-commerce marketplaces in the country has a unique advantage. For instance, Shopee has a closed loop ecosystem with its logistics and payments services, while the merger of Tokopedia with Gojek offers more resources to the firm. On the contrary, the mitra program of Bukalapak focuses on mom-and-pop stores across the country. While there are a lot of differentiating factors, all of these players also become similar in many aspects, including marketing content, free delivery service, and promotional efforts.
Firms are raising funding through a public offering to s support their growth strategy in Indonesia
Amid the rising competition in the Indonesian e-commerce industry and the market’s expected growth over the next three to four years, firms raise funding through a public offering to support their growth strategy.
- GoTo, an Indonesian startup formed by a merger between e-commerce marketplace Tokopedia and ride-hailing giant Gojek, raised US$1.1 billion through an initial public offering scheduled for 4 April 2022. The merged entity GoTo, which has three businesses – ride-hailing, e-commerce, and financial services – under a single ecosystem, is planning to use the public offering proceeds to support its growth strategy.
- The firm also raised US$1.3 billion in its pre-IPO in 2021 from investors including Google, Softbank, Abu Dhabi Investment Authority, Temasek, Tencent, and Fidelity International. In March 2022, the firm said its total addressable market in the country is projected to increase to US$137.5 billion in 2025 from US$44.6 billion in 2020. This shows that the firm will continue to grow its market share in the e-commerce segment from the short to medium-term perspective.
- In August 2021, Bukalapak, another e-commerce firm in Indonesia, raised US$1.5 billion through a public offering, which valued the firm at US$6 billion. Apart from GoTo and Bukalapak, which have already raised a funding round public offerings, Blibli, another Indonesian e-commerce firm, is understood to have plans for raising US$500 million through IPO. The potential listing of Blibli is expected to occur at the end of June or July 2022.
Social commerce startups are raising funding rounds to expand in more markets
The social commerce space has flourished in Indonesia over the last two years, with many innovative startups entering the market. After gaining widespread popularity in Indonesia, these startups seek to expand into new markets. Consequently, social commerce startups are raising funding rounds.
- In June 2022, Dagangan, a rural social e-commerce startup in Indonesia, announced that the firm had raised US$6.6 million funding in its pre-series B funding round, which was led by Sumitomo Mitsui Banking Corporation (SMBC) subsidiary, BTPN Syariah Ventura. The investment round is part of the firm’s strategy to expand into newer markets while also improving its product capabilities. Notably, the e-commerce platform offers same-day or next-day delivery for a wide range of household products, including foods and apparel, among several others.
- In September 2021, Evermos, another social commerce startup from Indonesia, announced that the firm had raised US$30 million in its series B funding round led by UOB Venture Management.
Online travel firms are looking to raise funding rounds to further accelerate their growth in the market
With the travel industry expected to record a strong recovery over the next three to four years, players in the segment are raising funding rounds to further accelerate their growth and consolidate their position as the market leader.
- In June 2022, Skift reported that Traveloka, the leading travel-based platform in Indonesia, is planning to raise more than US$200 million in a funding round. As of June 2022, the firm had raised a total of US$1.2 billion across six investment rounds, including the US$250 million round in July 2020, which was led by the Qatar Investment Authority.
- In Indonesia, Traveloka is the biggest online travel agency having a market share of 43%. The firm, along with Agoda and Booking.com, also dominates the online travel sector in Malaysia, Thailand, and Singapore. This funding round will help the firm to further grow its businesses and valuation, which will also support Traveloka in issuing the public offering at an attractive price in the future.
On-demand grocery delivery startups are raising funding rounds for product development and customer acquisition
As in many countries around the world, the on-demand delivery segment is also gaining popularity in Indonesia. This has led to many existing and new players entering the e-grocery segment over the last two years. With the market becoming increasingly competitive, startups are raising funding for product development and customer acquisition. For instance,
- In May 2022, Astro, which offers a 15-minute grocery delivery service, announced that the firm had raised US$60 million in its series B funding round. The May 2022 investment takes the total funding raised by the firm to US$90 since its inception in 2021. The investment round led by Accel, Tiger Global, and Citius will be used for product development and customer acquisition.
- In March 2022, Sayurbox also announced that the firm had raised US$120+ million in its series C funding round, which was led by Northstar and Alpha JWC Ventures.
In the online grocery space, the quick commerce segment is also gaining rapid momentum, with startups looking to deliver orders within 10 minutes to consumers in the country. Startups in the rapid grocery spare are also raising funding rounds.
- In February 2022, Bananas, the rapid commerce startup in Indonesia, announced that the firm had raised US$1 million in its seed funding round to speed up the process of grocery delivery.
Indonesia B2C Ecommerce Market Size and Future Growth Dynamics
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Gross Merchandise Volume Trend Analysis
Indonesia User Statistics and Ratios of Key Performance Indicators
- User Statistics
- Card Abandonment Rate and Product Return Rate
- B2C Ecommerce Per Capita and GDP Per Capita
- GDP Per Capita Trend Analysis
Indonesia B2C Ecommerce Market Share by Key Players
- Indonesia Retail Shopping Ecommerce Market Share by Key Players (Bukalapak, JD.id, Lazada, Shopee, Tokopedia)
- Indonesia Travel Ecommerce Market Share by Key Players (Agoda, Bobobox, PegiPegi, Tiket.com, Traveloka)
- Indonesia Food Service Ecommerce Market Share by Key Players (GoFood, Grab Food, Kulina, Wahyoo)
Indonesia B2C Ecommerce Market Size and Forecast by B2C Ecommerce Segments (Gross Merchandise Value Trend Analysis, 2017-2026)
- Retail Shopping (breakdown by clothing, footwear & accessories, health, beauty and personal care, food & beverage, appliances and electronics, home improvement, books, music & video, toys & hobby, auto)
- Travel and Hospitality (breakdown by air travel, train & bus, taxi service, hotels & resorts)
- Online Food Service (breakdown by aggregators, direct to consumer)
- Media and Entertainment (breakdown by streaming services, movies & events, theme parks & gaming)
- Healthcare and Wellness
- Technology Products and Services
- Other segments
Indonesia B2C Ecommerce Market Size and Forecast by Retail Shopping Sales Channel
- Platform to Consumer
- Direct to Consumer
- Consumer to Consumer
Indonesia B2C Ecommerce Market Share by Travel and Hospitality Sales Channel
- Market Share by Travel and Hospitality Sales Channel
- Aggregator App – Gross Merchandise Value Trend Analysis
- Direct to Consumer – Gross Merchandise Value Trend Analysis
Indonesia B2C Ecommerce Market Size and Forecast by Online Food Service Sales Channel
- Aggregator App
- Direct to Consumer
Indonesia B2C Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2017-2026)
- Website Based
- Live Streaming
Indonesia B2C Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis, 2017-2026)
Indonesia B2C Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis, 2017-2026)
Indonesia B2C Ecommerce Market Size and Forecast by Operating System
- Other Operating Systems
Indonesia B2C Ecommerce Market Size and Forecast by City
Indonesia B2C Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2017-2026)
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
Indonesia B2C Ecommerce Consumer Demographics
- Market Share by Age Group
- Market Share by Income Level
- Market Share by Gender
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