Indonesia Social Commerce Market Report 2022: Market to Reach $86.75 Billion by 2028 - Startups are Raising Funding Rounds to Further Scale Operations

DUBLIN, May 13, 2022 /PRNewswire/ -- The "Indonesia Social Commerce Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.

Social commerce industry in Indonesia is expected to grow by 55.0% on annual basis to reach US$8,675.5 million in 2022.

The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 47.9% during 2022-2028. The social commerce GMV in the country will increase from US$8,675.5 million in 2022 to reach US$86,750.1 million by 2028.

While the social commerce industry picked up globally over the last four to eight quarters, the concept is not new in Indonesia. Local fashion brand Sophie Paris and Swedish cosmetics brand Oriflame, both of which encourage group purchases, have been quite popular in the early 2010s. Their agents, comprised mainly of women, were part of the different groups on WhatsApp, where they would sell products for additional income.

When the social media platforms started to gain increasing traction among consumers, these agents shifted to platforms such as Facebook to sell products to an even wider audience, thereby generating increased sales. Notably, the largest internet forum in Indonesia, Kaskus, has a section, especially for commercial activities. The platform recorded US$40.6 million in total transactions in 2012. Moreover, several merchants and local shops have created Facebook pages for selling their merchandise in the country over the years.

The new-age social commerce startups in Indonesia are looking to leverage this existing foundation to penetrate and gain market share in the growing social commerce industry. Notably, most of the social commerce startups in the country have adopted a reseller model, wherein the platform acquires agents, who in turn sell their products on various social networks. While startups in the social commerce space are supporting the growth of the industry, big technology giants, including social media platforms, are also boosting their investment in the space to gain a larger piece of the growing market.

According to the Q4 Global Social Commerce Market Survey, more than 30 million Indonesians made online transactions, wherein 60% of the sales were generated through e-commerce platforms. The remaining 40% occurred through social media networks in Indonesia in 2021. Consequently, it is expected that the social commerce market to rcord strong growth in the next four to six quarters.

Super, one of the social commerce startups in Indonesia, has adopted a community buying model to offer consumers affordable products in the country. The firm makes use of community leaders and agents to generate more transactions in their communities, thereby providing consumers with products at attractive prices.

The business model adopted by Super has helped the firm in lowering product prices by an average of 10% to 20% in Indonesia. Even after resellers earn a margin for themselves, they are still able to offer consumers competitive prices in Tier II and Tier III cities in the country.

Social commerce startups are raising funding rounds to further scale operations in Indonesia

With the social commerce industry growing at a rapid rate, startups are raising big funding rounds to support their growth and to further scale operations across countries.

In February 2022, Grupin, an Indonesia-based social commerce platform, announced that the firm had raised US$3 million in a funding round which was led by Sequoia Capital. Notably, the firm also provides a community-based shopping experience and bulk shopping discounts for its consumers in Indonesia. Since its launch in August 2021, the firm has sold hundreds of shop-keeping units, including fresh produce, packaged foods, kitchen utensils, baby products, and electronics. During the same period, the firm has experienced user growth of 400 times.

Kitabeli, another social commerce startup in Indonesia, announced that the firm had raised investment in an extended Series A round in September 2021. The extended investment comes after the firm raised US$10 million in its Series A round, which was led by Go Ventures. Notably, the firm is planning to use the investment to further scale its operations in Indonesia. Founded in 2020, the firm provides consumers with a platform to purchase daily items, including cosmetics, fresh fruits, and home and technology products, among others.

Reasons to buy

• In-depth Understanding of Social Commerce Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
• Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate social commerce strategy; assess market specific key trends, drivers, and risks in the industry.

Scope

Indonesia Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028

Indonesia Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028

Indonesia Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019-2028

• Clothing & Footwear
• Beauty and Personal Care
• Food & Grocery
• Appliances and Electronics
• Home Improvement
• Others

Indonesia Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028

• B2B
• B2C
• C2C

Indonesia Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028

• Mobile
• Desktop

Indonesia Social Commerce Industry Market Size and Forecast by Location, 2019-2028

• Domestic
• Cross Border

Indonesia Social Commerce Industry Market Size and Forecast by Location, 2019-2028

• Tier-1 Cities
• Tier-2 Cities
• Tier-3 Cities

Indonesia Social Commerce Industry Market Size and Forecast by Payment Method, 2019-2028

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• Other Digital Payment
• Cash

Indonesia Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour, 2021

• By Age
• By Income Level
• By Gender

For more information about this report visit https://www.researchandmarkets.com/r/aiwubq

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