Why Brands Should Expand to Indonesia? thumbnail

Why Brands Should Expand to Indonesia?

  1. Indonesia is the largest ASEAN Digital Population

Do you know that among the 10 ASEAN countries, Indonesia is the largest ASEAN Digital Population, with 274,9 million population, 202,6 million internet users, 170 social media statistics, and 345,3 million mobile connections? You can compare it on the table below:

Do you think these numbers show a promising future for brand expansions in Indonesia? Hundreds of millions of people across Indonesia are already shopping online, and the region enjoys some of the highest rates of eCommerce adoption in ASEAN.

The latest trends also indicate that Indonesia will continue to enjoy double-digital growth in eCommerce spend well into the next decade, fuelled by increasing numbers of internet users, greater familiarity with online shopping, and improved consumer spending power.

  1. There is a Culture Called “Jastip” that is very popular in Indonesia

“Shopping entrusted goods service or most commonly known as jastip (jasa titip) becomes a quite popular phenomenon in today’s online shopping business. In this kind of service, people who will visit a particular place (usually when they’re going abroad) will announce their plan and offer others if they want to entrust them with buying any goods in the place they are about to visit. The way they announce their jastip offering may be done by making a specific social media account for jastip, or just using their personal social media account. The person who offers jastip then will receive benefit from the jastip fee they add to the customers’ ordered product”

Technological advances have now given birth to new media. The information environment arises from the simultaneous and rapidly interconnected Internet evolution of transmission systems, content, quality, and structure of the new media itself.

One example of new media is social media, including Instagram. Instagram is now not only an arena for uploading photos but as a means to carry out digital marketing activities.

The social media platform has developed as a form of global communication and bridges the relationship between humans and products. As time goes on, a new business model has been born on Instagram.

One business model is “jastip,” a synonym for entrusted services, allowing Instagram users to buy goods through providers of services that are usually in different cities or countries. You really need to know about “jastip,” and its impact on business activities and digital marketing, especially in Indonesia.

Isn’t this a great opportunity for brands to connect with resellers in Indonesia? This is because the demand for “jastip” in Indonesia is very high. 

With eseahub, we are helping brands to expand to Indonesia and remove the need for middlemen, so the jastip hunters don’t have to worry about paid service like a jastip fee.

“What are the items that are usually of interest to “jastip”  hunters?”

  • Makeup, Skin, and Body Care
  • Outwears
  • Jewelry and Accessories
  • Food
  • Electronics
  • Luxury Goods
  • Korean stuff
  • etc,

  1. The consumption of Korean popular culture has increased continuously in Indonesia. Most Indonesian consumers tend to have a higher intention to purchase everything related to their favorite Korean Dramas and Kpop stars.

Korean popular culture is one of the phenomena that happens in Indonesia. Many people are affected by this situation which influences them to pay more attention to this phenomenon. 

This phenomenon influences consumer behaviour such as the way youth in Indonesia buy some products and purchasing decisions will be affected by someone who promotes it or the ambassador of the products especially Korean celebrities or idols.

Therefore, as Korean pop culture develops rapidly in Indonesia, it influences youth purchasing decisions, the Korean drama phenomenon, and Korean pop music development in society.

Korean celebrity endorsement influences youth buying behavior. Consumer behavior refers to someone who satisfies his/her needs by selecting or purchasing some products.

In terms of endorsement or advertisement, Korean products involve the Korean celebrity or idol by persuading and influencing consumers to be more interested to use or buy the products.  

Therefore, it changes the Indonesian youth purchasing decisions when it relates to Korean stuff since Korean popular culture is booming in Indonesia.

  1. 60% of Indonesian consumers prefer to buy various foreign products than those made in Indonesia.

Many Indonesians prefer to buy clothes and accessories from foreign brands. Even according to the famous designer Ali Charisma, local brands are still less competitive with international brands in their own country.

Ali also said that 60% of Indonesian consumers prefer to buy various foreign products than those made in Indonesia. The chairman of the Indonesia Fashion Chamber (IFC) admits that foreign products are of good quality.

“60% of consumers are still pursuing foreign brands because I admit that their quality is good and the prices are affordable. Garment companies in Indonesia are also still working on external products because they are more salable in the market.” He said.

You’ll be shocked to know there are more advantages to explore for your business to expand to Indonesia!

We’re known for helping companies increase sales by connecting them to resellers. Do you want to know more?

Sign up for our webinar and meet our more than 2000 resellers, link below!