Millennials Dominate Indonesia’s Online Shopping Scene
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Millennials are driving growth in Indonesia’s e-commerce industry as they buy a wide range of items, from clothes and gadgets to phone credit and electricity tokens, from online outlets with increasing frequency, according to a recent report from market research and consulting firm Ipsos Indonesia. The E-Commerce Outlook 2018 report released on Monday looked at the profiles of 32 million online shoppers in the country.
The study drew results from an online survey in August. Ipsos Indonesia said the study served as an exploratory stage to be followed up by a more extensive survey planned for next year.
The study found that 64 percent of online shopping is dominated and driven by millennials, both in terms of product categories and revenue, Ipsos research director Andi Sukma said, referring to the 25-30 age group.
“They are made up of young families that have a minimum income of Rp 4 million [$280] per month,” said Indah Tanip, an associate director at Ipsos Observer.
Most millennials are drawn to e-commerce for its convenience and competitive prices, the rise of financial technology and online payment platforms, such as OVO and Go-Pay, which have also encouraged more millennials to purchase their phone credit and pay bills through e-commerce apps, the Ipsos report said.
The report also identified the five most-visited e-commerce sites: Tokopedia, Shopee, Lazada, Bukalapak and Blibli.com.
Citing data from the Indonesian Internet Service Providers Association (APJII), Ipsos said the wider availability of broadband internet in the country has helped fuel e-commerce growth. About 72 percent of Indonesians living in urban areas and nearly 50 percent in rural-urban areas have internet access.
The E-Commerce Outlook 2018 report also looked at community habits, online service accessibility, popular e-commerce sites and consumers’ preferred payment methods.
Questions & Answers
Q.What age range is considered ‘millennials’ in this report?
What age range is considered ‘millennials’ in this report?
The report defines millennials as individuals within the 25-30 age group. This group dominates online shopping in Indonesia, influencing both product categories and revenue generation for e-commerce platforms.
Q.Which specific payment platforms are encouraging millennials to use e-commerce apps?
Which specific payment platforms are encouraging millennials to use e-commerce apps?
Online payment platforms like OVO and Go-Pay are encouraging millennials to purchase phone credit and pay bills through e-commerce apps. This rise of financial technology contributes to their increased use of online shopping.
Q.What are the five most-visited e-commerce sites mentioned in the report?
What are the five most-visited e-commerce sites mentioned in the report?
The report identified Tokopedia, Shopee, Lazada, Bukalapak, and Blibli.com as the five most-visited e-commerce sites. These platforms are popular among Indonesian online shoppers.
Q.What is the minimum monthly income for the young families described in the report?
What is the minimum monthly income for the young families described in the report?
The young families among the millennial demographic are described as having a minimum income of Rp 4 million per month, which is equivalent to approximately $280. This income level supports their online shopping habits.
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