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INDONESIA’S RETAIL SECTOR:

Why Now is the Time

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POPULATION

265 MILLION

Working Age 180 million

High & Middle Income 160 million

Urban 140 million

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0% 10%

0

400

Malaysia Thailand

Philippines

Vietnam

Indonesia

RETAIL GROWTH

MA

RK

ET

SIZ

E

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URBAN AREA

63%

URBAN PURCHASING POWER

USD 1,270 billion

URBANIZATION AND INCOME GROWTH

2030 URBAN AREA

53%

URBAN PURCHASING POWER

USD 560 billion

2015

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UNIQUE MOBILE USERS

178 million

INTERNET USERS

133 million

SOCIAL MEDIA USERS

130 million

MOBILE ACTIVE SOCIAL MEDIA USERS

120 million

SOCIAL BUTTERFLIES Population

265 million

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RAPID RETAIL GROWTH Buy less, more often

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URBAN LIFESTYLE The quick fix

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HIGHER INCOME The same but better

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The salted egg syndrome

MORE CONNECTED

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RISE OF E-COMMERCE Shopping for leisure

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CASHLESS SOCIETY?

GO-JEK GRAB LIPPO TELKOMSEL MANDIRI INDOMARET

LARGE INVESTORS

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DIFFERENT

Purchasing power

Foreign influence

Local tastes

“Muslim country”

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DIFFERENT

BUT THE SAME

Hang out culture

Camera eats first

Experimental

Experience reigns

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CHALLENGES

Logistics Regulations Language Marketing

HOW E-COMMERCE CAN HELP

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THANK YOU

E-commerce in indonesia

JD.ID CrossBorder

1. Trends in Indonesia

2. Jd.id overview

3. Jd global program

4. Special promotions

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indonesia

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Countrytrends

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JD.ID

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A lot of this will be driven by E-commerce5, online travel and ride hailing services. The key enablers for this growth will be online payment solutions and e-money. These products are ideal for a country like Indonesia where less than half the population is part of the formal financial system. The use of these tools is already on the rise with the rapid growth in the number of e-money apps, along with the number of searches on how to use them.

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SEARCHES FOR HEALTHIER FOOD CHOICES ARE RISING

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”

“

”

Foodies are curious about global cuisine

JD.ID OVERVIEW

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BusinessPillars

E-commerce Finance Logistics

jd.com

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VISION

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mission

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Milestones

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Promoters: % of those who give score 9 - 10Dectractors: % of those who give score 1 – 6Ref.: Q24, Q28, Q32, Q36, Q40, Q44. On a scale from 0 to 10, where 0 means you would definitely not recommend and 10 means you would definitely recommend, how likely are you to recommend (brand) to your friends, family members, colleague or peers? [SA]

6951 51 53 56 53

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42 43 41 39 38

7 7 6 5 9

n=42 n=163 n=166 n=90 n=61 n=47

Promoters Passives Detractors

TOKOPEDIAJD.ID LAZADA BUKALAPAK BLIBLI ELEVENIA

NPS 69 44 44 47 51 44

Source: Nielsen

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B u s i n e s s L i n e

Online Retail Marketplace

Jd.id

logistics

Warehouse ANDfulfillment

b b social commerce

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24

9 6

19 20

5 3

-

5

10

15

20

25

30

18-24 25-34 35-44 45-54

Male Female

d e m o g r a p h i c

Jd.id

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JD.ID has experienced tremendous growth over the past 3.5 years

Milestones

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Marketing campaign#

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warehouse

Supplier

Regional Distribution Center (RDC)

Jakarta

Surabaya Medan Pontianak MakassarSemarang

Fulfillment Distribution Center (FDC)

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Medan FDC 2500 M²

Pontianak FDC 2500 M²

Makassar FDC 2500

M²

Surabaya FDC 6000 +6000 M²

Jakarta RDC 35000 +20000 M²

Manado FDC 2500

M²

Balikpapan FDC 3500 M²

Palembang FDC 3500

M²

Semarang FDC 4000

M²

Existing

Warehouse & Fulfillment Center

Soon to be

opened this year

warehouse

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J-express logistics

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Online to offline platform

Introducing QR-based shopping experience. Installed simultaneously

at 10 stations around Jabodetabek

Online to offline platform

Strategic partnerships

JD.ID x LenovoJD.ID x Garuda Indonedia JD.ID x Citilink

JD.ID x MaximJD.ID x Barli Asmara JD.ID x Zyrex

Strategic partnerships

Strategic partnerships

Product categories

Smartphone

Tablet

Camera

Laptop &

Computer

Office,

Network

Computer

Peripherals

Smart Device

&

Gaming

TV & Home

Audio

Sports

Lifestyle

Moms & Baby

Fashion

Events

more

Luxury

Cosmetics &

Personal Care

JD global program

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T o p p e r f o r m i n g c a t e g o r i e s

Jd global program

groceries

Mom and baby

Laptops, phones, and accessories

Home appliancesHome living

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Jd global progRamo v e r v i e w

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Jd global programF u l f i l l m e n t b y j d . i d

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Special promotions

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Special promotions