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View all search resultsIndonesia set to surpass India in online retail
Indonesia’s 2020 e-commerce GMV will reach US$40 billion this year, the third-highest around the world.
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M
anagement consulting company Redseer projected Indonesia’s online retail gross merchandise value (GMV), which indicates overall sales value, to surpass India’s this year, driven by a new cohort of e-commerce users amid the pandemic.
Redseer Southeast Asia partner Roshan Raj Behera said Indonesia’s 2020 e-commerce GMV will reach US$40 billion this year, the third-highest in the world and higher than India’s predicted $38 billion. Last year, India’s GMV was higher at $29.2 billion, ranking third, compared to Indonesia’s $23 billion, which followed suit.
The change is backed by Indonesia’s retail spending, which is 2.5 times higher than India’s, according to Redseer. Indonesia’s e-commerce marketing and subsidy outflow are also higher, aiding e-commerce adoption.
“Many people in Indonesia are looking to e-commerce platforms during the COVID-19 pandemic, and most of them will continue to spend money online,” he told The Jakarta Post on Monday.
Behera added that online shoppers grew to 85 million people during the pandemic, from 75 million pre-COVID-19.
Indonesia’s e-commerce gross GMV grew strongly in the second quarter this year, reaching $10 billion and driven by people switching to online platforms to buy consumable products such as health and personal care, groceries and fast-moving consumer goods (FMCG).
“The average order value in e-commerce platforms is down, but the average daily transactions are almost more than double,” Behera said, adding that people used to buy electronics online, which cost more but are bought less often than FMCG and groceries.
