Indonesia is currently trying to keep up with the retail market by engaging into Internet marketing. Some of the country’s biggest companies are approaching this transition by adopting the strategies and techniques from the already mature e-commerce markets in countries such as USA, Japan and China.
Rise of Internet Users in Indonesia
The world’s fourth-most-populous nation will have doubled the number of Internet users to 125 million by 2017, and smartphone ownership will rise from 20 percent now to 52 percent in that same time period. At the moment, the Internet retailing business remains small and fragmented, as home Internet access is slow and expensive.
Integration of Business Operations
With the Internet retailing in Indonesia flourished on the back of increasing internet penetration in Indonesia. The growth of internet subscribers was also supported by the rapid adoption of smartphones and tablets due to growing affordability both in terms of pricing of the products and the rising disposable incomes among Indonesians.
While e-commerce is stil small, the nation’s 250 million people are finding their company Internet a lot friendlier to online shopping.
Retailers will now have to design and strategize their services in order to be consistent not just for their stores, but for the web and mobile gadgets. This is on such a way that customers may use any of these domains when selecting and buying merchandise.
Role of Mobile Technology and Social Media
Mobile technology is playing an increasingly important role as Indonesian in-store shoppers use their smartphones and tablets to read reviews, compare prices and check product availability. This is due to the young market and demographic groups who often rely on in-store staff, company advertisements or product listings as their only source of information.
The younger customers of today are open to connect with stores and retailers through a variety of social media channels like Twitter, Facebook, Instagram etc. E-mails and chat apps like WhatsAPP, Line, WeChat, etc. are also rampant. It is expected that consumers will be able to have access on instant and detailed product information through these sources.
A number of foreign companies, including eBay and Sumitomo, as well as local startups and more established conglomerates like the Hartonos, owned by Indonesia’s wealthiest family, have entered the market, hoping to cash in on the market.
It is predicted that Indonesia will pick up the pace of e-commerce in the next two years. All in all, this is great news for Indonesian shoppers, retailers, and international companies who want to penetrate through the Indonesian market.
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