An illustration of Tokopedia. (SP Photo/Ruht Semiono)

Survey Names Tokopedia the Most Supportive of Local Products

OCTOBER 19, 2021

Jakarta. A recent survey by marketing consulting firm MarkPlus has named Indonesian tech giant Tokopedia as the e-commerce that is the most supportive of local products or small and medium enterprises, SMEs.

The survey saw participation from 500 respondents —aged 18-44 across the archipelago— who are active e-commerce users, and had previously purchased a local product. 

Among the survey respondents, 57.2 percent found Tokopedia was the e-commerce that is the most supportive of local products and SMEs. Followed by Shopee with 34.8 percent, and Lazada (3.8 percent).

Rhesa Dwi Prabowo, the head of high-tech, property and consumer goods at Markplus, listed several reasons as to why Tokopedia ranked first in the survey. About 65 percent of respondents said Tokopedia provides a specific category for SMEs of choice. 

“Whereas 48.6 percent of respondents found that the e-commerce [Tokopedia] promotes many local products in its various promotional programs,” Rhesa said in a recent virtual conference, as quoted from a local online media Tabloid Pulsa.

At least 75.7 percent said Tokopedia’s discounts for the locally-made products were helpful to these brands. The same survey also revealed that 51 percent chose Tokopedia as their go-to e-commerce for local products.

According to Rhesa, consumers are increasingly buying locally-made products, thanks to the intensive online marketing amid the Covid-19 pandemic. These local businesses also participate in numerous e-commerce programs, and create great contents that captivate the consumers.

The competition between local brands and its global counterparts are also increasingly competitive amid globalization. The ease of digital transactions in this modern age has enabled customers to shop with convenience anywhere, anytime.

"Not to mention how businesses continue to innovate their products by updating their models, designs, product variations, and begin selling pandemic essentials such as masks. Businesses also often offer promos, product samples, as well as guarantees,” Rhesa said.

The Markplus survey also revealed the top five local products in e-commerce favored by consumers. About 63.8 percent of respondents chose fashion products, followed by food and beverages (49.4 percent),household products (48.2 percent), games and hobbies (40.6 percent), and mom and baby products (36.2 percent) respectively.

As of March 2021, Indonesia is home to at least 64.2 million MSMEs, government data shows. The MSME sector is also the country’s economic backbone, as it accounts for 61.07 of the national GDP.

The Covid-19 pandemic has taken a toll on MSMEs, as people stay home to keep the virus at bay. And this has forced local businesses to take a digital shift. According to Markplus, the MSMEs who have adopted technology enjoy an increase in sales. However, only 18 percent of MSMEs are selling their products online.

The government has set an ambitious target of getting 30 million SMEs go online by 2040.