Millennials are driving growth in Indonesia's e-commerce industry as they buy a wide range of items from clothes and gadgets to phone credits and electricity tokens from online outlets with increasing frequency, according to a recent report from market research and consulting firm Ipsos Indonesia. (Reuters Photo/Darren Whiteside)
Millennials Dominate Indonesia's Online Shopping Scene
BY :JOY MUCHTAR
NOVEMBER 30, 2018
Jakarta. 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.