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B2B e-commerce companies upbeat about coming years
The Indonesian e-commerce sector is looking to growing the business-to-business (B2B) e-commerce model.
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An e-commerce application (JP/Donny Fernando)
T
he local e-commerce sector basked in the international spotlight when homegrown Tokopedia hit unicorn status in 2017. Now, business-to-business (B2B) e-commerce players are confident that their company will be the next to step into the spotlight in following similar trends in digital platforms.
Alexander Lukman, COO at B2B marketplace Ralali, said B2B e-commerce in the United States and India peaked two to five years after their consumer-facing counterparts peaked.
“But with Industry 4.0 accelerating economic growth in Indonesia, I think we can expect that B2B’s time will come two to three years after consumer e-commerce reaches its peak,” he told The Jakarta Post.
Alexander explained that consumer e-commerce would peak when 50 percent of the population used C2C e-marketplaces such as Bukalapak, Lazada and Tokopedia.
A recent Hootsuite-We Are Social report predicts consumer e-commerce will penetrate 40 percent of the Indonesian population (107 million users) this year.
In comparison, the report projects that penetration will reach 79 percent in the US (259 million users) and 71 percent in China (1 billion users) this year.
Ralali – which targets small and medium enterprises (SMEs) – would only hit its peak when it captured around 5 million such enterprises, with internal calculations showing this figure comprised 50 percent of its target market.
