Indonesia ranks third in e-commerce penetration, cash on delivery drives millennial consumption

Comscore data shows that in the Asia-Pacific region, Indonesia ranks third after India and Taiwan in terms of the impact of the retail e-commerce market. Among them, Shopee is the most popular e-commerce platform in Indonesia.

Indeed, in recent years, Indonesia's e-commerce market has developed rapidly, with multiple e-commerce platforms emerging one after another, and a variety of payment and delivery methods also emerging one by one, providing consumers with more choices and convenience, cash on delivery being one of them.

Currently, most online sellers offer cash on delivery services, which is undoubtedly a very meaningful service for consumers who are staying at home during the epidemic. Among them, millennials have made certain contributions to the development of e-commerce in Indonesia.

On the one hand, the long-term home life has caused many millennials to buy a large number of interesting but not very practical products online. The convenience of cash on delivery is one of the reasons for the increase in purchasing power. On the other hand, millennials do not have a strong sense of "savings" and pay more attention to the material life in front of them.

In addition, following trends, vanity, e-wallets, and star-chasing are also factors that influence millennials' online shopping.

1. Follow the trend. Indonesians like to live in groups, and their shopping behavior is easily influenced by others. If they see others buying a certain product, they will also be very likely to buy it.

2. Vanity is also a common psychological trait among young consumers. They are very interested in higher-priced goods, and they hope that the goods they buy at high prices will be praised and appreciated by others.

3. Nowadays, young people are quickly adapting to the development of technology. The development of e-wallets has greatly increased the order rate and made shopping easier.

4. Celebrity-chasing: One of the reasons many brands engage in influencer marketing is that shoppers tend to buy products used by public figures.

Indonesian Parliament Deputy Speaker Fahri Hamzah said this model of consumerism is emerging through e-commerce and must be paid attention to.

At present, millennials have gradually become the main force of consumption on Indonesian online platforms. The future market is still very huge. Interested sellers can pay more attention to it and seize the opportunity.

Indonesia

Southeast Asia