The retail industry landscape has changed rapidly in recent years. Several factors are the main drivers of this change. Starting from technological developments, new business models, to changes in consumer behavior today.
One certain thing is retail will always grow because this industry has a very strategic role for the Indonesian economy. Therefore, this transformation or change in the retail industry continues, including during the current COVID-19 pandemic
The adaptation process needs to be understood by companies or brands that want to continue to survive. The Ministry of Communication and Information noted that until April 2020, product sales on social media and e-commerce jumped 400%. Reflecting on this data, e-commerce has now become the main choice of consumers, including to fulfill their daily needs.
This change needs to be considered by retail industry players. In order to survive in this era of disruption, offline retail industry players must be ready to adapt and transform following current changes. One of them is by utilizing e-commerce, while still presenting an offline shopping experience (powercommerce.asia).
The migration of conventional retailers to the online realm throughout 2020 has driven the emergence of 40 million new users who shop online for the first time. In 2020, Indonesia's digital economy will reach US$44 billion (Rp619 trillion). Of this figure, US$32 billion (Rp454 trillion) was contributed by the e-commerce sector.
Google also said that the Indonesian e-commerce market has the potential to continue to grow to reach US$83 billion (Rp1.1 quadrillion) by 2025. This figure is the largest when compared to other Southeast Asian countries, such as Malaysia, Thailand and Indonesia. Singapore (id.techinasia.com).
For brands who want to enter the realm of e-commerce, there are two options they can take. First, build your own platform. Second, partnering with marketplace service providers. (Ruhmaya Nida Wathoni. Infographics: McKinsey.com)