GENERAL INFO
- Indonesia is the largest middle-income country in Southeast Asia comprised of more than 300 ethnic groups. Javanese and Sudanese are main ethnic groups representing 40.6% and 15.0% of the people respectively in 2000;
- GDP per capita fluctuates around $ 4123 in 2019. It is anticipated to go up to $ 5704 by 2024. Then, economic growth is forecasted to reach 5.2% in 2019;
- Indonesia consists of 34 provinces that have different incomes. For example, according to data from 2017, the nominal GRP per capita was equal to $ 17,374 in Jakarta, $11,732 in East Kalimantan, $ 4,386 in Papua and $ 1,708 in Maluku. So we suggest targeting more profitable regions if you want to generate positive results. Soon, MGID dashboard will have zip code targeting in order to make your targeting more precise;
- There are more than 700 regional languages. But only Indonesian is the official language.
DEVICE USAGE
Device usage is the following: 60% smartphone, 22% laptop or desktop and 8% tablet.
Average daily time spent using the internet via the device is 8 hours 36 minutes.
E-COMMERCE VALUE
- eCommerce market continuously grows and amounts to US$11,133m in 2019. As the annual growth rate equals 10.3%, so market volume is expected to reach US$16,464m by 2023;
- The number of eCommerce consumers is expected to amount to 241.5m by 2023;
- Average annual revenue per user of consumer goods e-commerce (ARPU) is US$75.66;
- In 2019, 32% of total eCommerce goods will be purchased via E-wallet.
INDONESIAN CONSUMERS
Affluent consumers represent the biggest consumer segment. They are excited to try new products like energy drinks, hair vitamins, auto insurance, etc as a way of self-indulgence.
Indonesian consumers are also price-sensitive, which means they are highly interested in low prices, discounts, and special offers. Besides, they value quality and product attributes, so you should not promote cheap products of dubious quality. You should prioritize quality products at affordable prices. Moreover, keep in mind, that low-income Indonesians prefer Chinese products, high-income families favor Western products and Japanese products.
PAYMENT METHOD
The most popular payment method was bank transfer (45%) and cash on delivery (45%). Credit card accounts only for 2%.
BEST PERFORMING VERTICALS
Nutraceuticals and BFSI (Banking, Financial Services, and Insurance) are dominant verticals on the Indonesian market. The annual growth rate for financial services (savings and investments) is about 10,5% and is projected to reach $ 565 billion by the end of 2030. As to health & beauty products, the annual growth rate is about 6,2%. Indonesian people are highly interested in skin products based on aloe vera. Then, Google research showed that personal loans were very popular in 2018.
You can see top queries on search below:
- What is the best loan? what facilities are offered?
- Which banks offer the lowest rates?
- Is there any promotion?
- What are the terms & conditions?
Moreover, data proves that people from Bali, Jakarta, and Riau are highly interested in buying a home, auto, and health assurance.
We also suggest you pay attention to Ramadan and Harbolnas (National online shopping day) which represent the two biggest shopping seasons in Indonesia, especially for health & beauty products, apparel, and clothing.
CREATIVE’S TIP
- Triple-check the copy! You need to be sure you have the right headline;
- Well, as usual, real-looking people have higher CTR, but keep in mind, they should be local;
- Don`t be afraid of something provocative. Indonesian people like it;
- If you are promoting not a certain product but some service you should put people in a situation with your creative that will be solved with the service you are promoting;
- The short mention of the benefits the person will get from the service in the headlines brings you higher CTR;
- Promoting a brand you shouldn't hesitate to use its name in a picture. The name will bring clicks;
- Interact with people with the creatives to drive interest to a promoted brand or service;
MGID TRAFFIC DISTRIBUTION
MGID traffic distribution is the following: desktop (12%), mobile (87%) and tablets (1%). Overall, MGID processes around 3 million clicks per week in Indonesia.
Share your insights or experience with us in the comments below!
References
eCommerce - Indonesia | Statista Market Forecast
Payment Methods in Southeast Asia | ecommerceIQ Data
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