Tuesday, May 31, 2011

DS Research
DS Research is a research company based in Jakarta, Indonesia. We do research on technology industry where we have strong connection to the industry’s most influential people and companies. Our research-based consulting model is designed to quickly deliver actionoriented recommendations by leveraging our existing research. Our analyst consultants enter into projects with a deep, immediate understanding of your business environment and challenges — which means faster, more cost-efficient results for you. We bring together research insights, benchmarking data, problem-solving methodologies and hands on experience to improve the return on your IT investment.

•Our core competencies: •Internet technology web-based products •Mobile technology •Technology investments in Indonesia •Gaming, social network, e-commerce, etc

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Tuesday, May 31, 2011

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Tuesday, May 31, 2011

net Tuesday.Research How Indonesia’s Youngsters Use E-Commerce “ DSResearch. May 31. 2011 .

May 31. Indonesia counts for a very big market for e-commerce. 2011 . The rapid growth of e-commerce website in Indonesia. Tuesday.BACKGROUND • • • • • • The growth of e-commerce in Indonesia. The improvement of the online infrastructure in Indonesia. Young people as influential trend-setter in e-commerce. The growth of service providers for e-commerce in Indonesia.

• To analyze which e-commerce websites are visited frequently. 2011 . • To describe the proportion and frequency of Internet and Mobile use. • To identify behaviour of the young people when using e-commerce services. May 31. • To identify the reason why young people don’t use e-commerce.Research Objectives • To discover the landscape of e-commerce in Indonesia. Tuesday. • To identify which products that young people buy online.

30 year-old. 2011 . • High Internet Literacy (all respondents have smartphone. are able to identify online activities. and are capable of utilising a variety of functionalities that can be achieved using mobile devices and internet tehnology). • From middle to upper class who owns high-end/smartphone. • Married and Single.Research subject n = 500 • Male and Female. May 31. • Between 20 . Tuesday. • Proportion of Female Respondents reach 70%.

specifically in Jakarta Business Districts and in University areas. Tuesday.Duration & Place for Survey Duration: 30 days (1 month) Place: Jakarta and the surroundings area. 2011 . May 31.

There still seems to be a wrong assumption in regards to what ecommerce really is. 2011 . people’s level of knowledge about Internet itself is still developing. a fully integrated payment system maximised by use of Internet network. i. in comparison to the respondents’ behaviour when shopping online.Despite of the high growth of the Internet. May 31. in terms of infrastructure and penetration.e. They still assume that a bank transfer ‘is’ the ecommerce payment system. Respondents still don’t fully understand the real meaning of ecommerce. Tuesday.

The fact that most online stores or ecommerce providers use bank transfer method for their transaction shows that really they are still using the semionline method. More education on this issues are clearly still needed for all parties. May 31. Meanwhile. 2011 . Tuesday. the rapid growth of shopping online will still give a great prospect for e-commerce in Indonesia.On the other hand. online stores or e-commerce service providers still haven’t maximised the payment system that they are offering.

2 % Bekasi: 10% 4% 14% 0% 72% Tuesday. May 31. 2011 .Research Locations Proportion (Where do they live?) 10% • • • • • Jakarta: 72% Bogor: 0.4% Tangerang & Banten: 14% Depok: 4.

May 31. 2011 . Tuesday.The reason why Jakarta counts for a bigger proportion Jakarta has a better Internet Infrastructure (compare to other places). and the consumer in Jakarta has already known about e-commerce sites and the process of buying goods online.

Occupation Proportion (What do they do?) 16% 3% 3% 1% 78% 77. 2011 .6% Student 16% Private staff 3% Entrepreneur 2.8% Government staff Tuesday. May 31.

2011 . Tuesday. Students are one of the most frequent user of the Internet. don’t mind to try new product (including Internet Services) and has a big and growing buying power.The Reason why Respondents are centered on students Students are the widest market. May 31. not only in number but also the fact that they are more Internet literate than other demography.

2011 used Blackberry as their main smartphone .93% Tuesday. May 31.

respondents online all the time are 8% The data shows that average Internet literacy of youngster are still considered low to moderate level • 74% • Tuesday. 2011 . for 50-100 hrs are 19%. May 31.Subject’s Online Behavior • 8% 19% Measured by International standard of Internet literacy Most of respondents (74%) doing online activities less than 50 hours per week.

Tuesday. May 31.Some of the questions asked in this research reflect the economic status of the respondents which consist of SES A and B. 2011 .

Yahoo Tuesday. Facebook 2.Most Visited Websites 1. 2011 . Twitter 3. Kaskus 4. May 31. Google 5.

Sites they visited • • • • • • • Facebook: 32% Kaskus: 14% Twitter: 20% Yahoo & products: 9% YouTube: 4% detik: 8% Google & products: 13% 9% 8% 14% 13% 4% 20% 32% Tuesday. May 31. 2011 .

and other Google services. GMail. even though it’s par t of Google. with 14%. Hot on their heals come Kaskus. Three other websites. Again. Then come Google (13%). just like Google.a local online portal services (8%) and Youtube bringing out the rear with 4%. May 31. a local site that has the biggest community in Indonesia. 2011 . Google Translate. are Facebook (32%) and Twitter (20%). respondents recognise it as a product of its own with a high social aspect. following the above big 4. are Yahoo! services (9%).The two most visited websites. according to this research. we include all services provided by Yahoo! and Detik into one umbrella. which includes Google Search. Tuesday. Detik . whilst for Youtube.

Tuesday. 38% surfing for products and purchase it online . while 25% of respondent refer r ing for pr ice before offline buying.HOW THEY USE ECOMMERCE SITES 1% 10% 26% 38% 26% respondent just surfing for products. May 31. 2011 25% .

Window shopping can be described as a process where respondents visit a wide variety of websites before they decide to buy a specific product, online or offline. In a way, they are just using the websites as reference to browse products before they decide for a particular one. Compare Prices constitutes the behaviour where respondents analyse product prices from different e-commerce websites and compare them with the those prices offline. This behaviour shows that respondents recognise the existence of e-commerce websites but still cannot leave their offline shopping pattern. As much as 26% of respondents only compare prices online without actually buy anything, whereas 25% of them use e-commerce website as reference to compare prices before they buy offline.

Tuesday, May 31, 2011

38%
Respondents compare prices AND buy online
Tuesday, May 31, 2011

The number of Respondents who use e-Commerce
224 Respondents 175 Females 49 Males

Tuesday, May 31, 2011

while the other 276 have never used any. in relation to the respondent’s age. The second topic will dig deeper on the behaviour patterns of consumers who don’t buy from e-commerce websites. Tuesday.Based on the background explained previously. this research is also divided into two topics regarding consumer behaviour related to services. The first topic will see in details consumer’s view about e-commerce. 2011 . what attracts them to it. Apart from focusing on young respondents. at the end this research is focusing more on seeing how young people in big cities using ecommerce. May 31. This survey also found that 224 respondents have used e-commerce services. where they find information about e-commerce websites and behaviour patterns related to buying process of products via e-commerce service. what their reasons are and what type of information that is needed by e-commerce sites to increase their service to attract consumers. their activities and and tendencies they showed in answering the questions.

May 31.150 Good e-commerce 112.5 0 e re ble uct ites dat od edu aila ns o pr w av roc pt no m on su ep ore ll k st om cy te pl si e ec we en sim fflin le r par o p ns tra peo ion dat en n = 224 respondents Tuesday. 2011 .5 75 37.

2011 . but are getting more confident with the help of their friend’s recommendations or other user’s positive comments. Another thing that respondents wants from e-commerce sites are a security guarantee.From this research. They also say that a user-friendly sites are one of the important factors. respondents want easier online buying process and nicer look and feel. they need e-commerce services that are trustworthy and easy to be accessed. Tuesday. May 31. it’s been found that respondents still hesitate in using e-commerce services. On the topic of experience in using e-commerce services.

2011 . May 31.5 0 friends & relative search engine kaskus offline magazine facebook n = 224 respondents Tuesday.5 75 37.E-commerce sources of information 150 112.

online stores owner often post in Kaskus informing products and services that they provide. as Indonesian biggest community site. This shows that recommendation is an important factor in the online buying process. Search Engine is a dominant reference as the source of information for to-be buyer. Moreover. Kaskus. 2011 . The second biggest source in getting information about e-commerce is by using the Search Engines (325 respondents). Other sources that are used by respondents to get information about ecommerce are Print Media and Facebook. These posts normally include links that send readers or to-be buyers to their sites.Most respondents are getting their information about e-commerce from their friends and relatives (60%). also give quiet an influence in making decision on choosing e-commerce services (9 respondents). Tuesday. May 31.

May 31. Tokobagus 3. Amazon MOST VISITED E-COMMERCE SITES Tuesday. 2011 . eBay 5. Kaskus 2.1. Facebook 4.

they also provide service for sellers to sell their merchandises. they would happily tells their friends and family. 2011 . Tuesday. an online forum with the biggest member in Indonesia has facility for its members to buy goods online. May 31. This integration makes consumers who are looking for a a product they want more easily. Kaskus members are very loyal to the forum. or other medium about Kaskus and get them to search and buy goods as product.Kaskus.

But because Kaskus is just a Forum. this makes users easily find their product. to look for and compare prices. May 31. he/she can easily visit the FJB. and on the other hand it is profitable for the sellers.Kaskus has more or less 2. This means that the barrier of entry to find information for a particular product is . In one hand. Tuesday. Even if a user is not registered to Kaskus.Forum of Buying and Selling. which is one of the most popular market in Indonesia. Although Kaskus always improves their service by providing their own payment method and some additional service. 2011 . things related to security is still get highlighted.4 million users and most of them frequent Forum Jual Beli (FJB) .

Not so long ago TokoBagus aired its TVC ads which gave them expose to customers who want to buy online. Facebook is also picked as alternative to conduct transaction online using social media. The rapid growth of Facebook users. 2011 . May 31. Tuesday. attractive layout and promotion based on relationship graph and networks. Facebook has also a user-friendly interface.TokoBagus is another Online Store picked by respondents. give a boost to users to buy and sell online in Facebook. All of these help Facebook as a good alternative for people to buy goods online. accompanied by a growing number of sellers.

May 31. 2011 .Favourite websites to buy goods online 80 60 40 20 0 us ask k n do s y ber book agu eba em e ob em fac tok r 8 m m et es se rfu e sit lanja8 ou velv gra pa r lin eh lsa be ud i pu ah a et um 't r n = 224 respondents Tuesday.

Although selling product in Facebook is against their TOC. On the third place for the favourite site to buy goods online is Facebook. One of the deciding factor for respondents to choose a particular ecommerce service is recommendation they’ve got from friends and families. 2011 . a big number of users. Viral Promotion from users also helps to promote Kaskus to be the most populur e-commerce service provider. The most preferred site for e-commerce is Kaskus. May 31.Search Engine still holds an important role for respondents to find Online Store. ease of use and the effectiveness of the platform are making Facebook as an alternative place for respondents to shop online. Tuesday. Often respondents don’t remember in which online store they did their last transaction because they had found the store through the search engine.

May 31.92% Tuesday. 2011 customers that they are satisfied with online shopping .

May 31.Respondents say that they are satisfied with their online shopping experience. especially which online store they like the most. Respondents are also actively tell their experience in buying goods online with their friends and families. 2011 . The loyal users of Kaskus and Facebook are also actively share their experience. n = 224 respondents Tuesday.

Types of products bought online 150 112. cd c a ok nd a bo t dge ga n = 224 respondents Tuesday. 2011 .5 0 s the clo s oe sh ac rie sso ce s o er s p n re l ca a s bag l s rie video nima so a . ces s.5 75 37. May 31.

gadgets and gadget accessorises. 2011 . The types of product that are often bought by the female respondents are clothes. shoes and make-ups. Tuesday. they do shopping online compare to their male counterpart. whereas the male respondents tend to buy shoes. May 31.The number of respondents on this research is dominated by female respondents.

2011 .0 p5 0 0. May 31.0 0 rp s les s les ou am any nt les s r han t p 0 0.5 0 1 .0 0 n = 224 respondents Tuesday.0 00 0 5 00 0 0.0 0 r han t .0 0 1.0 0 0 1 han t 0 0 0.5 75 37.The amount of transaction 150 112.

Respondents also choose to buy goods that cost more than Rp. e. 500.The amount that respondents spend for each transaction is less than Rp.000.000 offline so that they can try it themselves directly. Respondents also prefer to get the more expensive goods offline so that they can haggle for them. shoes.000 because of credibility issue. 500. Respondents still don’t feel safe to spend more money than Rp. tend to cost around Rp. 500. Tuesday.g. May 31. as well as check the items physically.000. 2011 . 500. The reason of this rather small amount of transaction is because the products that they usually buy. clothes and accessories.

May 31.Payment Method 200 150 100 50 0 bank transfer cash credit card paypal n = 224 respondents Tuesday. 2011 .

On this issue. As many as 36 respondents choose to pay cash when shopping online. May 31.g. respondents choose to mix payment methods. whereas only 8 respondents would use Credit Card. 2011 . Tuesday. ATM Transfer and also to maximise the use of Internet and Mobile Banking. e.Payment method is one of the deciding factors of ecommerce services. and as few as 2 people use Paypal.

The Ideal Payment Method 200 150 100 50 0 bank transfer cash credit card paypal n = 224 respondents Tuesday. May 31. 2011 .

This payment method via bank transfer is also the most popular because its processing speed. Respondents need to be educated and given more information on already existing payment methods they could use. 2011 . easily found and trust in term of security as well as the bank wide coverage. This lack of knowledge on respondents in regards to online payment method could be seen as an opportunity by itself. Tuesday.One thing that we found from this research was the fact that a big number of respondents have this view that the only solution to do online transaction is via the bank transfer. May 31. and of course the challenge is to provide payment platform that suit consumers need.

May 31.276 respondents RESPONDENTS NOT USING E-COMMERCE Tuesday. 2011 .

May 31. 2011 .Reasons why don’t buy online 120 90 60 30 0 i tr ust ss n eu es o co rce mme sites es st issu tr u cts produ on of thing uy r to b prefe fline n = 276 respondents Tuesday.

either with the e-commerce sites themselves or the goods sold. They also say that they worry that the goods they buy and receive is not what the site was originally offered. This trust issue is the main reason why respondents have no confidence to buy products online.The reason why respondents don’t buy online is mainly about trust. 2011 . There is also the reason that they prefer to buy goods offline. May 31. hence become one of the reason why respondents don’t go shopping online. Respondents choose to browse the products online where they can physically touch and see the details of the product before they choose to buy it. The ability to haggle to find the ideal price after checking the product offline is also one feature that online shopping experience still cannot match. Tuesday. Respondents say that the problem has to do with past experience or assumption that the goods they buy and pay for will not be sent by the seller.

5 75 37.5 0 What can be improved from e-commerce services? t tr us e pric titive mpe co ue uniq ded tion bility men puta vaila a m re uct ller reco d se prod goo n = 276 respondents Tuesday.150 112. May 31. 2011 .

Respondents need to be reassured that e-commerce is safe. The trust factor has been highlighted quite heavily by the respondents. a unique product and price offers can be a value-added proposition by e-commerce. 2011 . unique product. Tuesday. May 31. E-commerce sites must be able to convince consumers that their service is safe and trustworthy. there are a few things that can be improved from e-commerce services to make it more attractive to more consumers. Moreover. recommendation and stock availability. Respondents need to know if a site is registered and has license (to trade). This issue has the biggest proportion.Looking at the fact that many respondents don’t conduct their shopping online. leaving the biggest gap compare to the other reasons why respondents don’t do their shopping online such as price.

Conclusions Respondents who use e-commerce sites The growth and development of Internet in Indonesia has pushed businesses in the tech industries to create e-commerce based services. Tuesday. The behaviour of Indonesian young people also indicates they have potential as consumers of e-commerce service. Indonesia with its massive number of population and still relatively low growth (unsaturated) of Internet penetration has a big potential in term of business opportunities for e-commerce. The young people is the drive behind e-commerce because they the ones who are technology literate and an active user of the internet. 2011 . May 31.

the proportion of females are 80% of the whole respondents. Tuesday. They seem to be the ones that are more familiar with the internet world and shop online more often compare to their male counterpart.Conclusions From 500 respondents from this survey. 2011 . whilst 276 of them (55%) haven’t not done any online transaction from e-commerce services. 224 respondents (45%) have used e-commerce services. May 31. From the gender point of view.

most respondents are around 20-25 years old and are studying in universities. Here respondents only browse for products and compare prices but there is still no intention to buy yet. The age of respondents show that this time we focused on university students and early job seekers as the subject of this research. 2011 . How respondents use e-commerce for is evidently differently from one person to the other. This explains about their social-economic status which is at level A & B. These usage-patterns can be divided as follows: Window-Shopping.Conclusions From age point of view. May 31. Tuesday. More than 94% of respondents have Blackberry as their main mobile phone.

respondents analyze prices from products sold in e-commerce sites and compare them with ones offline.Conclusions Compare prices for several products from several online stores. Tuesday. May 31. An e-commerce site can be used like a catalog to browse products and prices. Window-shopping means that respondents visit online sites before they decide to buy the product either online or offline. 2011 . not online. In term of price comparison. Compare prices before deciding to buy product ‘offline’.

Recommendations and positive comments from other users lend a big hand in buying decision. Respondents want trustworthy and easy to find site. 2011 . Respondents want nice look and feel and userfriendly site. Tuesday. May 31.Conclusions Respondents who doesn’t use e-commerce sites Respondents still hesitates to use e-commerce sites.

Respondents usually search online stores via the search engines and 9 respondents found them via Kaskus. about 60% of respondents do their online shopping using this behaviour pattern. Kaskus is also functioned to promote services for online store owner by putting links into the forum which sends visitor to their sites. May 31. Tuesday.Conclusions Most respondents tend to buy based on advice from their friends or families. 2011 .

4 million users. TokoBagus as one of e-commerce service provided received some expose when their ads was aired at several national tv channels. Tuesday.Conclusions Customer satisfaction plays an important part in buying decision. Facebook strength is on its attractive look and feel and ease of use. not only for registered users but also for non-members. loyal users who satisfied in a buying process from Kaskus will virally share their experience to their friends and families. May 31. With more than 2. mostly using FJB (Buy-Sell Forum) service. This has made Facebook as one of alternatives to buy goods online. 2011 . and would influence them to use Kaskus as a place to do their online shopping. or the latest prices for products. Kaskus has provided a tool for online store so that users can easily search a particular product.

May 31. 2011 .000 . Bank is also regarded as the main choice for payment due to the fact that it’s easy to reach. women would by clothes. The price of products bought online is around Rp. whereas men would by shoes and gadgets. The main challenge is to provide payment method that suits what consumers need. Payment method type chosen by most respondents is bank transfer.000. Respondents also think that bank transfer is the only type of payment method available for e-commerce.Rp. Tuesday. Knowledge about other alternative ways of payment is still low. 500. accessories and beauty cares. 100.Conclusions From the point of view of types of product bought online. quick and has wide reach. Respondents need to be more educated on the subject of better and simpler payment methods.

from product point of view or from the ecommerce site itself. Tuesday.Conclusions Trust issue. Respondent prefer offline transaction because: they can haggle. May 31. feel and try the product physically. they can see. 2011 . touch.

Competitive price . May 31.Be trustworthy .Legally trading Tuesday.Unique product . 2011 .Conclusions What can be improved by e-commerce service provider to persuade to-be customer or ones who don’t use e-commerce: .

social network. problem-solving methodologies and hands on experience to improve the return on your IT investment. etc Contact our representative Rahmat Harlyadie +62 857 1532 6032 rahmat@dailysocial.DS Research DS Research is a research company based in Jakarta. immediate understanding of your business environment and challenges — which means faster. more cost-efficient results for you. benchmarking data.net http://dsresearch. e-commerce. We do research on technology industry where we have strong connection to the industry’s most influential people and companies. May 31. •Our core competencies: •Internet technology web-based products •Mobile technology •Technology investments in Indonesia •Gaming.net/contact/ Tuesday. Indonesia. We bring together research insights. Our analyst consultants enter into projects with a deep. Our research-based consulting model is designed to quickly deliver actionoriented recommendations by leveraging our existing research. 2011 .

2011 .Tuesday. May 31.