3 Key Takeaways from Matrade’s Export to Indonesia Via Cross Border eCommerce Webinar

Benedict Leong

MATRADE and Global Shoppers Malaysia (GSM) Export to Indoensia via cross-border eCommerce banner for 24th November 2020 webinar

Malaysian businesses who attended the “Export to Indonesia via Cross Border eCommerce” webinar on November 24th were treated to a morning filled with useful insights on Indonesian eCommerce scene and the options available for simplifying their eCommerce sales and deliveries to potential buyers.

The event was organised by Global Shoppers Malaysia and supported by MATRADE. Janio’s COO Syed Ridha Ali Madihid was invited to speak alongside MATRADE’s Director ASEAN and Oceania Section YM Raja Badrulnizam Raja Kamalzaman, Global Shoppers Malaysia Co-founders and Directors Alan Toh and Wai Kit Lew, along with Payoneer’s General Manager Miguel Warren.

Each speaker covered different aspects of Indonesia’s cross-border opportunity from market insights to cross-border challenges and how to overcome them. We sum up three key takeaways from the webinar below:

1. By 2025, Indonesia’s will make up more than 40% of ASEAN’s digital economy, growing at a 23% CAGR

Quoting various sources including Indonesia’s Badan Pusat Statistik, Matrade’s YM Raja Badrulnizam Raja Kamalzaman shared that Indonesia has 150 million internet users, of which 138 million are active online shoppers. With 2020 requiring more people to practice social distancing, daily eCommerce transactions (as an alternative to physical retail) rose to 4.8 million in April 2020, with the first quarter seeing growth in categories including beauty, fashion and personal care.

He credited Indonesia’s eCommerce growth to its growing middle-class population, high internet penetration rate and fast growth of fintech and alternative financing options.

 

2. Indonesia’s young workforce and recent 2020 events have accelerated eCommerce’s uptake in the country

On a more granular level, Janio’s Ali added that Indonesia’s eCommerce is also driven by young executives entering the workforce with higher spending power, looking for brands that are not easily found in Indonesia.

He also mentioned that female shoppers are a key segment to target and that a good way to reach them is to work with local Indonesian influencers. With Indonesia’s large population size, local Indonesian influencer followings are also similarly large. Macro-influencers with hundreds of thousands of followers are more common in Indonesia and are more accessible compared to macro-influencers in countries with smaller populations.

Global Shoppers Malaysia’s Wai Kit Lew also added a few insights about how the pandemic is shaping Indonesian consumer habits. He shared a survey by Inventure-Alvara showing that Indonesians are less likely to continue buying from offline stores due to virus fears and lack of confidence that cleanliness and safe-distancing regulations will be sufficiently followed.

He also showed the results of another survey that the pandemic has more Indonesians considering taking up beauty regimes at home that they would otherwise have gone to spas and salons for had times been safer. Needing to stay home more has also revived television as a marketing channel, which could lead to an era of social tv marketing where television has a place alongside social and digital channels for marketing communications.

3. Cross-border shipping solutions can simplify Malaysian businesses’ international eCommerce sales to Indonesia

Ali presenting Janio’s Cross-border shipping solution at the Export to Indonesia via Cross Border eCommerce webinar

Ali presenting Janio’s Cross-border shipping solution at the Export to Indonesia via Cross Border eCommerce webinar

The right cross-border shipping solution enabled by the right partners can help get products into Indonesia’s market faster than traditional methods, which tend to face barriers to entry such as complex customs procedures.

Traditional methods include developing supply chains and business agreements with offline distributors while at times requiring registration of each of their products with relevant Indonesian authorities, all of which can add many months of lead time that can lengthen your time to market.

Cross-border shipping, on the other hand, does away with the need to set up local distribution networks while helping to get your products into the hands of Indonesian shoppers faster as your products are shipped directly to consumers. This makes it great for testing and learning about the market with fewer sunk costs before deciding whether to invest more in developing your presence in the market. To find out more about how this works, check out our article on how cross-border shipping works.

Wai Kit Lew from Global Shoppers Malaysia shared about how their end-to-end cross-border shipping solution, supported by Janio Asia and Payoneer, can help Malaysian businesses.

Via Global Shoppers Malaysia, Malaysian businesses can set up their e-stores on Blibli and Bukalapak, two of the leading eCommerce marketplaces in Indonesia. Businesses are then able to manage product listing, pricing, inventory, order fulfilment and customer enquiries via their merchant centre on the marketplace of their choice.

This solution is supported by the international shipping services provided by Janio Asia and the global payments services powered by Payoneer. When shipping direct-to-consumer, Malaysian merchants require less documentation to get started. To ship cross-border, businesses just need to print and attach their labels onto the parcel and drop them off at Janio’s Malaysian drop-off address. Larger orders or more supply chain solutions for larger volumes can be supported by other shipping solutions including our trading house.

 

Janio is proud to support Malaysian businesses who are looking to export their products overseas. To find out more about our services or how we can help you, contact us via the button below.

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