Indonesia's digital economy is experiencing rapid growth as one of the impacts of accelerating the spread of digital technology and the adoption of online platforms such as e-commerce.
To understand changes in Indonesian online shopping behavior, the iPrice research team has re-released the Indonesian Online Shopping Behavior report for the 2021/22 period.
This report is based on the activity of 125 million users across the iPrice Group website from January 1, 2021 to April 30, 2022. Using this internal data, the iPrice research team found a very fast shift in the Indonesian e-commerce market towards the first "mobile-only country". in South East Asia.
Shoppers Indonesia is more comfortable shopping via cellphone
Based on the 2021/2022 iPrice report, 94% of shoppers use smartphones to search for products. This figure increased by 16% from the 2016/2017 period.
This is likely driven by the fact that half of Indonesia's 278 million people are under the age of 30. Quoted from Insider Intelligence, this digitally literate generation who is also mobile-centric tends to be very connected to social media, shop through a small screen, and also use mobile payment applications enthusiastically.
In addition to the high traffic share, mobile shoppers also have a tendency to buy goods twice as large as desktop users. This shows the opposite of the results obtained by iPrice in the 2016/2017 period when desktop-based purchases were almost three times as large
than mobile.
It is undeniable that the pandemic has driven the digital evolution in Indonesia. According to e-Conomy SEA Indonesia 2021, nearly 15 million Indonesians residing in non-urban areas are using internet-based services for the first time in the first half of 2021.
Wider internet coverage, as well as access to smartphone devices that are easier and more affordable are the main keys to the growth of mobile internet penetration in Indonesia.
The results of the We Are Social Indonesia survey revealed that 96% of respondents own a smartphone, compared to 67% of ownership of a desktop or laptop computer.
As one of the early e-wallet users in Southeast Asia, Indonesian consumers are also more confident in making purchases through mobile payment systems.
This fundamental change in daily lifestyle preferences will certainly spur the formation of a "mobile-only" generation. This momentum can be a catalyst for business people to open up new business opportunities and models, for example by implementing marketing tactics such as exclusive e-wallet features or coupons and promotions that are only available on mobile devices.
Indonesia leads Southeast Asia's e-commerce market as a "mobile-only country"
In the report "Indonesian Online Shopping Behavior in 2016/17", the iPrice research team has observed the high interest of Southeast Asian people in using smartphones to shop online.
During that period, Indonesia led the way with the highest share of mobile traffic at 81%, followed by Thailand (74%), the Philippines (71%), Singapore (70%), Malaysia (69%) and Vietnam (65%).
It seems that, even though times have changed, consumer preferences are still the same. Even the report for the period 2021/2022 shows an increase in the convenience of shopping using mobile devices in the six Southeast Asian countries.
Vietnam has the highest increase in mobile traffic share at 14.97% from 65% in the 2016/17 period to 79.97% in the 2021/22 period. This ranking is followed by Indonesia (12.16%), Malaysia (8.4%), Thailand (4.66%), the Philippines (4.44%), and Singapore (1.95%).
This lifestyle shift is certainly driven by several macro trends, such as:
The rapid launch of mobile broadband and the wider and more affordable spread of the internet and mobile devices (smartphones and tablets) have made it easier for consumers to browse online.
E-commerce companies have optimized websites and launched apps to enhance their consumers' shopping experience.
Interestingly, Singapore, which led the Southeast Asian e-commerce market in the 1st quarter of 2022 with its two unicorn e-commerce companies, actually showed the lowest mobile traffic share growth since the 2016/17 period (70%) to date (71.95%).
On the other hand, Indonesia is still leading the Southeast Asian e-commerce market towards the "mobile-only" region with a mobile traffic share of almost 100% in the 2021/2022 period.
Of course, seven Indonesian e-commerce unicorn companies have played a role in changing online browsing behavior in Indonesia, as well as the intensive optimization of websites for smaller devices, and the launch of applications to increase customer convenience using mobile platforms.