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Sep, 2020     

Indonesia E-commerce: Racing Ahead

At a macro level, GDP/Capita in Indonesia is close to 2x that of India and the retail spend is 2-2.5x that of India. The digital funnel is more evolved with highly digitally active consumer base complemented by sellers who are actively exploring the online channel for driving their business.


Indonesia e-tailing market looks poised to overtake India by the end of 2020

We estimate the Indonesian e-tailing market to grow at ~75% CAGR in 2020, aided by COVID tailwinds to reach a gross GMV of 40 Bn USD in 2020.

The Market is thus expected to overtake India aided by a mix of supply and demand side enablers.

​Indonesian vs India Online Retail– Market Size & Penetration

​in $ Bn

At a macro level, GDP/Capita in Indonesia is close to 2x that of India and the retail spend is 2-2.5x that of India. The digital funnel is more evolved with highly digitally active consumer base complemented by sellers who are actively exploring the online channel for driving their business.

From the supply side, while subsidy outflow has been strong to onboard users, there’s also an increased focus on live streaming, gamification etc to drive user engagement and retention – this assumes more relevance in the current Post COVID era.

These factors among others have catapulted the Indonesia e-tailing market over the last 3-4 years.

Interestingly, on the profitability front, Indonesia e-tailers seem to be doing relatively better than their Indian counterparts.

Do reach out to us if you would like to dive in to more granular details.

What is driving such rapid growth in Indonesia vs India?