India | ME | SEA Access My Account  

‘Amazon effect’ in India and learnings for Indonesia

Published in Oct, 2018

Executive Summary

Amazon’s impending launch in Indonesia could lead to meaningful changes in the country’s ecommerce ecosystem. Incumbents might need to undertake a thorough review to “Amazon-proof” their operations. We note that Amazon’s entry into India played a crucial role in driving a 10x growth in the country’s e-tailing market size in five years. It became the #2 player in the market in less than three years of launch. It worsened the sector’s unit economics and forced many competitors to delay their IPO plans.

Amazon’s key strengths were in its:

  1. Access to a large pool of capital committed from its US HQ
  2. Bottom-up innovation to rapidly build marketplace and expand selection, and
  3. Clear intent to build extensive warehouse network to drive FBA program and to build its own logistics network for high delivery speeds and reliability

Broadly, these aspects could hold true for Indonesia, in our view.  To know more on how this can impact Indonesia’s ecommerce market and how our advisory can be helpful in this fast-evolving sector, feel free to reach out to our Partner for the SEA region, Roshan at Roshanb@redseer.com

This report covers sector-level insights such as Ecommerce Revenue as well as player level insights such as or related to Adidas NMV, Adidas revenue, Sephora revenue, Tokopedia revenue and Lazada revenue, among others.