During the COVID-19 pandemic, Indonesia’s e-commerce sector achieved a substantial growth. After this phenomenal growth, Indonesia is more focused on building strong social commerce.
Social Commerce Indonesia, is now redefining the way of online purchasing. It has created new ways and ease for online shopping and that is why people are now more engaging towards social commerce in Indonesia.
Why is Social Commerce on the Rise in Indonesia?
One of the main reasons for the rise of social commerce in Indonesia is the high social media engagement by people. Influencer marketing in Indonesia has no doubt played a paramount role in this rise. It has been noted that consumers’ purchasing decisions are mostly based on social media recommendations. People opt for the products and things that influencers are promoting, and trust factors play a huge role here.
Virtual storefronts are another reason for the popularity of social commerce in Indonesia. Most of the popular brands are now offering users shoppable content on their social media feeds. According to a recent survey, 40% of people in the country regularly shop through these virtual storefronts.
Social Commerce Indonesia Market Report
According to recent statistics and reports, Indonesian social commerce is expected to grow by 1.71% reaching $5.25 billion by the end of this year. The Indonesian market had a historic CAGR of 24.9% from 2021 to 2024. The GMV is expected to grow rapidly by the year 2028 by marking around $22 billion.
TikTok Shop Indonesia
Indonesia is one of the largest markets for TikTok Shop having over 22 million active users in the country. The main reason for its popularity is that it has integrated entertainment and purchasing into a single platform creating ease for users.
TikTok Shop Indonesia was launched in 2021, and ever since the platform has managed to gather user’s attention. It has also collaborated with some other small platforms which has benefited them to grow as well.
TikTok Shop became popular because of its video content. Most of the people prefer the video content to make the purchasing decisions. Around 40% of the people turn to the video content when they decide to purchase online
Instagram Shopping Indonesia
Instagram is also another major platform that is boosting the social economy of Indonesia. As social commerce is growing rapidly in the country, businesses find it easier to connect and engage with customers through Instagram. They are able to create more customizable experiences to better serve their customers.
According to a survey by Ipsos:
- 81% of the users in the country use Instagram when it comes to online shopping.
- 76% of the people say that they have bought products because of recommendations by the app.
- 82% of the Indonesian SMBs use Instagram DMs to directly engage with clients.
Short Form Video Marketing
Short Form Video marketing has a very powerful role in boosting Indonesia’s social commerce. Short-form videos are short videos typically of 15 seconds to 3 minutes designed for entertainment or marketing purposes to engage users. It is the best and smart move to expand the user base quickly.
Short-form videos are nowadays very popular because they:
- Grab the user’s attention quickly.
- Showcase your productivity in a few seconds which attracts users a lot.
- Boosts engagement easily.
- Are easily shareable.
- Are easy to expand reach.
- Are Cost-effective
Social Commerce and E-Commerce Indonesia Trends
Indonesia has wisely used social media platforms and artificial intelligence to build online stores that are convenient for users to use and shop.
Let’s have a look at the trends Indonesia is following:
- Social media platforms for shopping (TikTok Shop, Shopee etc)
- Short-form videos for promotional and online shopping through platforms like TikTok and YouTube.
- Build user interest through influencer marketing.
- Making more mobile-friendly applications that easy to use.
- Introducing new and easy methods for online payments like digital wallets etc.
- AI-based recommendations for users when they are shopping online.
- AI chatbots to make online shopping easy.
How to Master Social Commerce in Indonesia?
Indonesia’s social commerce will surely get a huge rise in future. So it will not be a wrong decision to step into any such domain. We have seen that with the use of different social media platforms Indonesia’s social commerce platform has got a boost.
TikTok is among the top contributors among all the social media platforms in Indonesia. Along with it, Instagram, Facebook and YouTube are also playing their role. The rapid increase in the social commerce sector has also paved new ways for small businesses. It has opened the doors and created new opportunities for them.
If you are a startup and want a boost through Indonesian social commerce, you can collaborate with influencers and other strong businesses to expand your reach. You can leverage the use of social media platforms like TikTok, Instagram etc to reach more customers. If you are an investor you can benefit by providing digital infrastructure support to different businesses.
If you are using any social media platform for a startup, you might have to invest some amount in the beginning. But it will be worth it if you make wise use of these platforms to build your presence in social commerce.
The Indonesian government is supporting the social commerce sector as well. So this is the right time to invest and start working for social commerce Indonesia.
Before you start, keep this thing in mind to adopt the policy that aligns with Indonesia’s local business and government regulations as well. Also, if you are using a social commerce platform like TikTok Shop Indonesia, the imports under 100$ are restricted. So you must be very well aware of any such policies before you step in.
Stay updated with the latest social and e-commerce Indonesia trends. If you want to give it a try and are still confused or have some doubts, then we are here to help you and guide you.
