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Indonesia’s

Digital Consumer
Behavior Report 2016
A shift in Indonesia
Consumer Behavior
• The Indonesian consumer is ranked as one of
the most confident people in the world and 50%
of Indonesia’s 253 million citizens are under the
age of 30.
A shift in Indonesia
Consumer Behavior
• Indonesia’s internet users right now, are around
83,600,000 with 28.3% people are categorized as late
adopters (40-59 y/o) and 69.3% are categorized as a
digital native (20-39 y/o)

• Active mobile subscription reach almost 282 million


subscribers, 13% bigger than Indonesian population
Social Media
After Office = Happy Hour
06.00 - 10.00 10.00-14.00 • Break = social media time
14.00-18.00 >18.00
• Lunch break is also counts, but
11%
the prime time is after office
14%
hours (above 6pm)
65% 10%
• This is the time most workers
and students in Indonesia
finished their schedules/
activities.
Social Media Activities
• 79% of Indonesians
1
choose to Browse their
0.8 timeline when opening

0.6
social media
• Around 30-35% update
0.4
their information
0.2 (update status, upload
photo, or share
0
links/videos)
Upload Update Share Location Browsing other
photo status links/videos Checkin
Popular Topics on Social Media
0.625

0.5

0.375

0.25

0.125

0
Option 1 : Option 4 : Option 5 : Option 6 :
Acara TV hiburan teknologi Other

While Technology, Sport, and Politics pretty the


popular topics on social media, 49% Indonesians
looks for Entertainment
77% Indonesians open their

social media timeline

while watching TV
Smartphone is the Primary Device
for Accessing Social Media
• Indonesia is a mobile-first
Phone Smartphone Tablet Laptop Others
country with 281,963,665
active mobile subscription
6%
4% • It’s 13% bigger than the
1%
5%
population
84% • That’s the main reason on
why 84% of Indonesians
choose to use smartphone
for accessing social media.
• Instagram is one
of the most Facebook
popular social
media platform,
Remains on Top
they even beats
Twitter and Path.
• But, Facebook
remains on top as
the most popular
social media
platform in
Indonesia.
A Facebook Country
• Facebook’s journey in Indonesia started around
2008-2010, that was when the Facebook user
growth reach to 8223,2%*
• From that point, Facebook kept growing until
Indonesia became the 4th largest Facebook
population in the world.
• Today, 81% of Indonesian still uses Facebook.
*Kompas (2011)
BBM is still the Champion of
Messaging Platform

• Like Facebook, BlackBerry Messenger who had their glorious day


back in 2011* remains on top, 77% Indonesian are still using it today.
• WhatsApp and LINE follows closely in the 2nd and 3rd place.

*IDC
Streaming Services
TV Cable Subscribers
Remains Low
• 57% of Indonesians are not subscribing to
a cable TV

• 64% of them didn’t have a plan to, and


only 36 % are willing to
Budget for a Cable Network

85% of Indonesian
0.9

0.675
thinks
That 250,000 IDR is
0.45 highest price
people are willing
0.225 to pay for a TV
cable services.
0
< Rp 250.000
Rp 250.000 - Rp 500.000
< Rp 500.000
Time Spent for Streaming
(days-weeks)
0.425 • Internet access speed in

0.34 Indonesia is 5x better

0.255 compared to last year*


0.17
• 32,5% enjoy streaming
0.085
service everyday.
0
Everyday Couple of Once in a Never • 32,6% for a couple of days
days week
*Akamai (Q1 2016)
Time Spent for Streaming
(Minutes-Hours)

0.5 • Although many people


enjoy streaming
everyday, only 21% of
0.375
them spent more than
an hour to do
0.25
streaming.

0.125 • 42,5% Indonesians


choose to enjoy
0 streaming under 30
<30 menit 30 menit - 1 jam >1jam minutes.
Video is the Preferred
Streaming Service
• With the explosion of video
content on the Internet, there
Film Music
26% 22% is a sharp increase in viewing
video streams*
• 52% of Indonesians prefers
Video to watch video instead.
52%
(usually YouTube and
Facebook) contents

*Ericsson Mobility Report (2016)


Smartphone as the Primary
Device to Stream
DEVICES • Just like in social
Smart TV Smartphone Tablet Computer
media, majority (67%)
3% of Indonesians use
22% their smartphone to

8% enjoy streaming
67% service
• 22% still rely on
computer.
Internet Connection to Enjoy
Streaming Services
• 4G starts to get attention,
While Wi-Fi stays on top
• Majority of Indonesians 4G
agree that the 15%

implementation of 4G /
Wi-Fi
LTE will drive the 3G 55%
30%
economic growth and
expand the Internet
access in the community*
*DailySocial Survey: Public Opinion on the
Implementation of Technology 4G / LTE (2015)
Offering Paid Content is
still a Big Issue
• Although majority
of Indonesia start to
Yes
enjoy streaming 27%

service, only 27%


choose to pay for it.
No
• 73% are not willing 73%

to pay for a
streaming services.
Willingness to Pay in the Future
Remains Low
• 59% of Indonesians
won’t paying for
No streaming contents,
59%
Yes 33% are still think
7%
about it.
Maybe • The challenge is on
33%
what kind of scheme
that will drive
Indonesians to pay
Budget for a Streaming Services
Majority still choose not
to pay for a streaming
service, with the rest > Rp
250.000
think that 50,000 IDR to 9%
Rp 50.000 -
250,000 IDR is the most Rp 250.000
57%
reasonable pay for a < Rp
50.000
monthly streaming 33%

services.
Online Transportation
A shift in using Transportation
Service Behavior
• In 2015, on-demand service started to getting the
people’s attention.
• These traction are showing no sign of slowing down in
2016, both from investor side and consumer side
• People behavior start to change on using
transportation service
• Today, three online transportation services in
Indonesia with significant marketshare: Uber, Go-Jek,
and Grab.
Online Transportation Used in
a Monthly Basis
• Majority of Indonesia now use
transportation apps often. But
most of them choose to use it on a
monthly basis Weekl
y
• Only 15% use the transportation
29%
Monthl
app on daily basis. y
• One of the main reason of this 55% Daily
15%
usage is to evade traffic jam.
Preferred on-demand App for
Transportation
Car transport Motorbike transport

UberMOTO
GrabC R
2%
ar
45% GoCar GrabBike
14% 14%
Gojek
83%
Uber
41%

Go-Jek dominant in motorbike services since it starts early. And


for car services, Uber and GrabCar have tight competition while
Go-car show some traction.
Preferred on-demand App for
Delivery
On-demand delivery Food
delivery

Grab KlikEat Foodpanda


2% 4%
Send
16% Go-food GrabFood
87% 7%
Go-Send
84%

In term of delivery services, Go-Jek remains dominance,


both in on-demand delivery and food delivery.
Payment Method
Cash Credit card e-wallet

Although cashless
4% starts getting the
traction, cash in still
8% the king in Indonesia
for preferred
89%

payment method.
Why do you choose
those services?
Good Service, Easy
Good Payment, and
App Afforda
11% ble Affordable are top
23%
Good three reason for
service
Easy
39%
payme Indonesia to pick the
nt
27% online transportation
service
Why you DON’T choose other
services?

Meanwhile pricing, Bad


App
bad service, and 12% Expensive
39%
trouble with payment
Bad
are top three reasons service
32% Trouble
for not switching to with
payment
the other services 18%
Smartphone Buying Decision
Price is still the Major Factor for
Buying New Smartphone
87.5

70.0

52.5

35.0

17.5

0.0
4G support Battery Model/Design Price User Interface Other
Screen Size Preference
< 4.5 inch 5 inch 5.5 inch
6 inch > 6 inch

5 Inch to 5.5 Inch is


24%
the new standard
5%
4% for smartphone
50%
18% screen size
Impact of Local Brand Community
for Buying a Smartphone

Local brand
community
Yes
31% play a small
role on
No
affecting
69% buying decision
Public Figure
Endorsement Impact

Public figure Yes


endorsement 23%
don’t really
play for this No
decision also 77%
Online Shopping Behavior
Spending (monthly) Behavior
for Shopping Online

Majority (84%) of
Rp. 1 - 2 million
Indonesians still 12%

spend less than 1 < Rp. 1 million Rp. 2 million <


84% 4%
million rupiah for
Online Shopping.
Intensity for Online Shopping
Rarely once a month 1-2x a month
2-5x a month More than 5x a month

Can’t expect people to


22%
shopping online
regularly. 65% of
9%
Indonesia are shopping
5%
65%
less than once in a month
Popular Item for
Online Shoppers
• Most of fashion item 75%

price are below 1


million rupiah. That’s 60%
60%
one of the reason why
45%
fashion item become 45%

popular for online 30%

shopper.
15% 21%
• This is followed by
electronics in second
0%
place with 45% Fashion items Electronics Others
Popular E-commerce Platform

Bukalapak • Tokopedia, Lazada


11%
Lazada Indonesia and
Indonesia
20% Bukalapak are the most
Tokopedia
23% popular platforms.
Others
13% • While Instagram and
OLX Facebook Facebook still play
Indonesia 10%
9% significant part in
Instagram
14% “online shopping”
Impact of Advertising

Google Ads
Obviously
Instagram
15% Facebook Ads and
Ads
24% Twitter Ads Instagram Ads
1%
have major
impacts to drive
Outdoor
billboards

Indonesian people
11%
Others

to do online
Facebook 11%
Ads

shopping
38%
Pricing remains major factor

• Majority still consider


the price before buying Merchant
Site
security
11%
something online. 32%
Others
• Awareness for the Site brand 2%
13%
site’s security start to
Price
rise too 42%
Campaign and Promotion
Discount and free
Free shipping are two
shipping
32%
Others
most popular
Cashbacks
7%
1% campaign and
promotion that
Buy 1 get 1
19% Discount consumers find
40%
attractive
E-Commerce Activities for
Mobile
0.7
• Although activity on
65%
mobile is high, the 0.525
51%
conversion (until
paying) is the 0.35

opposite.
0.175 22%
19%
• Most are just browse
and comparing prices 0
Just Comparing Order only Order and
browsing prices pay
Preferred Payment
Method to Shop Online
Indonesians, as always,
Others
1% prefers bank transfer for
Credit card
ATM
7% their primary payment
Transfer
Vouchers COD
19%
method, followed by COD
71%
e-wallets
2%
and credit card in the
distance.
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