JAKARTA, 29 November 2019 – Local e-commerce technology company SIRCLO recently launched its latest report, “Navigating Market Opportunities in Indonesia’s E-Commerce”. The report highlights key insights into the growth trends of Indonesia’s e-commerce market, drawing on various external sources as well as SIRCLO’s internal research. The full report was officially released on 25 November 2019 and is available on the SIRCLO website.

Brian Marshal, Founder and Chief Executive Officer of SIRCLO, explained that the report was designed to equip stakeholders with relevant insights and encourage greater collaboration in driving the growth and innovation of Indonesia’s e-commerce industry. “Indonesia’s e-commerce industry is currently experiencing rapid growth, and we see significant potential among local players. With the right technology and greater knowledge-sharing across the ecosystem, they can maximise the growth of their businesses,” Brian explained.

According to SIRCLO’s E-Commerce Report, the average Indonesian consumer shops on marketplaces three to five times per month and spends up to 15% of their monthly income on these purchases. Interestingly, SIRCLO’s data also found that online consumers in Jakarta spend, on average, twice as much as consumers in other cities.

At the time, the most popular payment methods for online shopping were bank transfers (48%) and debit or credit cards (21%). The same research also found that 20% of consumers used e-wallets for payments, reflecting the rapid adoption of digital wallets in Indonesia since their emergence in 2017.  

Indonesia’s e-commerce industry also accounted for more than half of the country’s digital economy value in 2019 and was projected to represent 60% of the digital sector by 2025. The e-commerce market was valued at US$21 billion (Rp294 trillion) in 2019, surpassing other segments of the digital economy, including online travel at US$10 billion (Rp140 trillion) and ride-hailing services at US$6 billion (Rp84 trillion). By 2025, the value of Indonesia’s e-commerce market was projected to reach US$82 billion (Rp1,148 trillion).

However, SIRCLO’s report also highlighted several challenges facing Indonesia’s e-commerce sector. These included 1) intense competition and the risk of excessive spending to acquire customers, 2) a large unbanked population, which was beginning to gain greater access through e-wallets, 3) high logistics costs and uneven service quality, and 4) a shortage of relevant talent, particularly in science, engineering, and mathematics, which are critical to the development of technology companies.

SIRCLO’s Role as an E-Commerce Enabler

As one of Indonesia’s leading e-commerce enablers, SIRCLO has helped brands and business owners increase sales across marketplaces such as Tokopedia, Shopee, Lazada, Bukalapak, and Blibli.com. Through SIRCLO Commerce, the company supports local and multinational brands with end-to-end sales operations across marketplace channels.

“Our latest technology product, Connexi, powers the operations behind SIRCLO Commerce. Through this platform, we have supported more than 40 leading principals representing over 200 major brands, including Reckitt Benckiser, Arnott’s, Arla, L’Oréal Group, Eiger, Levi’s, and, most recently, Unilever,” Brian said. Connexi is no longer used solely for SIRCLO’s internal operations and is now also available to local brands looking to expand their business across marketplace channels.

Eiger, one of SIRCLO Commerce’s clients, experienced a significant transformation after expanding into e-commerce. In 2017, online channels contributed just 0.25% of the company’s total annual sales. By 2019, that contribution had increased to 3% and was projected to reach 10% by 2022, representing a 40-fold increase from 2017.

“As an e-commerce enabler, SIRCLO recognises the important role we play in serving the needs of both brands and marketplaces. That is why we continue to encourage more brands to collaborate with us and regularly develop technology that helps businesses reach a wider market,” Brian explained.

SIRCLO reported that the company was facilitating more than US$4 million (approximately Rp56 billion) in online retail transactions each month.

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About SIRCLO

SIRCLO is a technology company that provides solutions to help brands and business owners sell online through SIRCLO Store and SIRCLO Commerce. Established in 2013, SIRCLO Store is a Software-as-a-Service (SaaS) platform that enables small and medium-sized local businesses to build their own online stores. At the time, SIRCLO Store supported 1,000 active paying users in building their brands and growing their businesses online, including ATS The Label, Benscrub, Namaste Organic, and This Is April. Meanwhile, SIRCLO Commerce is a channel management solution designed to support enterprise brands entering online distribution channels. At the time, SIRCLO Commerce was trusted by more than 200 leading retail businesses, including Unilever, Reckitt Benckiser, KAO, Arnott’s, L’Oréal, Eiger, and Levi’s. The full “Navigating Market Opportunities in Indonesia’s E-Commerce” report is available for download at https://insight.sirclo.com/.