Agenda
Indonesia – the country
The digital space
Challenges faced
Top 8ps to win
Worried?
Not me :)
Remember 1998?
2014?
2001? 2009?
2nd fastest growth
Source: McKinsey, The Economist
Most stable, with lowest standard devia8on
Young… produc8ve…
Bonus demography this decade Source: Indonesia Economic Master Plan (MP3EI)
Growing middle-‐affluent popula8on
Source: BCG
Indonesia digital space…
…possibly the most aVrac8ve in the world
3rd largest …possibly the most aVrac8ve in the world (2) 2nd fastest
2nd lowest
Could this be the next big thing?
“…e-‐commerce in Indonesia is very much like the early days of the e-‐commerce boom in the US – customers are not sure that they trust online payments, the logis8cs infrastructure is not yet built …
But in other ways, it is more like the early days of the e-‐commerce boom in China – a lively entrepreneurial base of sellers is clamouring to get online, users are placing great emphasis on social recommenda8ons, and innova8ve payment systems are emerging ….
Over the next few years, Indonesia is likely to create its own unique hybrid version...” Redwing Asia
Fragmented
Nobody could claim as winner…
… (Not that they haven’t tried)
… yet …
UNIQUE
1. Close social knit 2. Young user base 3. Mobile first 4. Agile – entrepreneurial 5. Strong cultural heritage
Close social knit… ChaVy… TwiVy…
Jakarta is the TwiVer capital of the world
Jakarta is #2 FB city, Indonesia is #4 FB country
Indonesia has the highest Path users in the world
Young user base
~60% internet users between 12-‐34 yrs old
Source: APJII
Mobile first country
Already more SIM cards than human popula8on
Only 40% adults have bank account… …yet 85% have mobile phones
Mobile browsing intensity is highest in the world (661 pages per mth/person – >double than US/UK/China)
Source: DeloiVe, Opera 2nd largest mobile ad impression aker US
Agile – entrepreneurial
40mn+ SMEs
Employing 90%+ workforce
Pervasive tradi8onal businesses
Strong cultural heritage
Par8cular need
Par8cular ac8on trigger
Par8cular price point
Par8cular taste
Indonesia digital space
has its specific challenges
1. (Lack of) trust
2. (Lack of) seamless payment
“Less than 10% of Indonesia internet users have done online transac8on” *
* eMarketer
Trust
Source: APJII
>50% reason for not buying because fear of fraud/ can’t trust seen item
Payment
20% Banking penetra8on 4.5% Credit card penetra8on
No seamless way to do online transac8on for majority of customers
Top 8ps for successful digital integra8on
Truly understand the market -‐ Use local wisdom
-‐ What they need?
-‐ What trigger the ac8on?
-‐ What would make it viral?
“Remember that while we are talking about digital world, real people will always come back to real world”
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