DUBLIN, May 13, 2022 /PRNewswire/ — The report “Indonesia Social Commerce Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – Q1 2022 Update” has been added. for from ResearchAndMarkets.com offer.
Social commerce industry in Indonesia is expected to grow by 55.0% on an annual basis to reach US$8,675.5 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, registering a CAGR of 47.9% during the period 2022-2028. The GMV of social commerce in the country will increase from US$8,675.5 million in 2022 to reach US$86,750.1 million by 2028.
While the social commerce industry has rebounded globally over the past four to eight quarters, the concept is not new to Indonesia. Local fashion brand Sophie Paris and Swedish cosmetics brand Oriflame, both of which promote group buying, were very popular in the early 2010s. they were selling products for extra income.
When social media platforms began to gain popularity with consumers, these agents turned to platforms such as Facebook to sell products to an even larger audience, generating increased sales. In particular, the largest Internet forum of Indonesia, Kaskus, has a section, especially for commercial activities. The platform recorded US$40.6 million in total transactions in 2012. In addition, several merchants and local businesses have created Facebook pages over the years to sell their goods in the country.
New era social commerce startups Indonesia are looking to leverage this existing base to penetrate and gain market share in the growing social commerce industry. Notably, most social commerce startups in the country have adopted a reseller model, in which the platform acquires agents, who in turn sell their products on various social networks. As social commerce startups support the growth of the industry, big tech giants including social media platforms are also increasing their investments in the space to grab a bigger share of the growing market.
According to the Q4 Global Social Commerce Market Survey, more than 30 million Indonesians have transacted online, with 60% of sales generated through e-commerce platforms. The remaining 40% happened via social media networks in Indonesia in 2021. Therefore, the social commerce market is expected to experience strong growth over the next four to six quarters.
Social commerce startups seek to make products more affordable for consumers in Tier II and Tier III cities
In Indonesia, the retail trade faces two major challenges: a low volume of transactions per household and high prices. Due to high supply chain costs and poor road connectivity, everyday goods are much more expensive in Tier II and III cities than in Tier I cities. This is the problem that many social commerce startups in Indonesia seek to resolve. Notably, social commerce startups see community buying as the answer to expensive products in rural areas.
Super, one of the social commerce startups in Indonesia, has adopted a community-based purchasing model to provide consumers with affordable products in the country. The company uses community leaders and agents to generate more transactions in their communities, thereby providing consumers with products at attractive prices.
The business model adopted by Super has helped the company lower product prices by an average of 10-20% in Indonesia. Even after resellers have earned a margin for themselves, they are still able to offer consumers competitive prices in Tier II and Tier III cities nationwide.
Social commerce startups raise funding rounds to expand operations in Indonesia
As the social commerce industry grows at a rapid pace, startups are raising major fundraisers to support their growth and expand their operations across countries.
In February 2022Grupin, a Indonesiabased on a social commerce platform, announced that the company had raised $3 million in a funding round led by Sequoia Capital. Notably, the company also offers a community shopping experience and bulk purchase discounts to its consumers in Indonesia. Since its launch in August 2021, the company has sold hundreds of store units, including fresh produce, packaged food, cookware, baby products and electronics. During the same period, the company experienced a growth in the number of users of 400 times.
Kitabeli, another social commerce startup in Indonesiaannounced that the company had increased its investments in an extended Series A cycle in September 2021. The extended investment comes after the company raised $10 million in its Series A round, led by Go Ventures. Notably, the company plans to use the investment to further expand its operations in Indonesia. Founded in 2020, the company provides consumers with a platform to purchase everyday items, including cosmetics, fresh fruits, and home and technology products, among others.
Reasons to buy
- In-depth understanding of Social Commerce Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
- Overview of Opportunities by End-Use Sectors – Obtain market dynamics by end-use sectors to assess emerging opportunities in various end-use sectors.
- Develop market-specific strategies: identify growth segments and target specific opportunities to formulate a social commerce strategy; assess key market-specific trends, drivers and risks in the industry.
Scope
Indonesia E-commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Indonesia Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Indonesia Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019 – 2028
- Clothes and shoes
- Beauty and personal care
- Food and groceries
- Appliances and Electronics
- Home improvement
- Others
Indonesia Social Commerce Industry Market Size and Forecast by End-Use Segment, 2019-2028
Indonesia Social Commerce Industry Market Size and Forecast by End-Use Device, 2019 – 2028
Indonesia Social Commerce Industry Market Size and Forecast by Location, 2019 – 2028
Indonesia Social Commerce Industry Market Size and Forecast by Location, 2019 – 2028
- Tier 1 cities
- Tier 2 cities
- Tier 3 cities
Indonesia social commerce industry market size and forecast by payment method, 2019-2028
- Credit card
- Debit card
- Payment
- Prepaid card
- Digital and mobile wallet
- Other digital payment
- Species
Indonesia Social Commerce Industry Market Size and Forecast by Demographics and Consumer Behavior, 2021
- By age
- By income level
- By gender
For more information about this report visit https://www.researchandmarkets.com/r/aiwubq
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