technology

The Competition In Indonesia's E-Commerce: Shopee Favored By Local Brands And SMEs, Tokopedia In Second Place

As a crucial component of the digital economy ecosystem, marketplaces, now commonly referred to as e-commerce, play a significant role in driving Indonesia's economic growth, particularly in enhancing the competitiveness of local products.

According to the Economy SEA report by Google, Indonesia's digital economy is projected to reach USD 82 billion in 2023, with a target of achieving USD 110 billion by 2025. This figure underscores the potential of marketplaces as vital catalysts for local economic growth and national competitiveness.

Consequently, e-commerce players such as Tokopedia, TikTok Shop, Shopee, and Lazada continue to serve as platforms that strengthen opportunities for local brands and SMEs.

Helena Suri, Senior Research Manager at Snapcart, stated on Thursday, November 14, that in the increasingly competitive landscape of Indonesian e-commerce, major players are racing to offer innovative programs, strategies, services, and interactive features that are becoming increasingly appealing to explore.

What is the impact of this competition on the success of SMEs? Who emerges as the market leader in Indonesia? Snapcart will release research findings titled "Marketplace of Choice for SMEs: The Best Selling Experience" in the fourth quarter of 2024.

Conducted over the last three months, this online study involved 250 respondents from local business operators aged 24 to over 35, distributed across various regions in Indonesia.

This research aims to analyze the marketplace choices of small and medium-sized enterprises (SMEs) and local brands, as well as to assess their contributions to enhancing the overall competitiveness of the digital economy. Additionally, it seeks to provide insights into satisfaction levels, preferences, and the factors influencing their success, as stated by Helena.

The factors influencing the selection of e-commerce platforms for selling encompass various aspects, with preferences distributed across a wide business network, the convenience of operating a business from any location, the ease of setting up a store on the marketplace, numerous promotions and free shipping options that attract consumers, and a variety of payment methods that facilitate transactions.

According to Helena, these aspects not only enhance appeal but also add value through a more efficient and effective selling experience. This, in turn, strengthens the performance of local brands and SMEs, as evidenced by the significant consumer reach of a given platform, which plays a crucial role in contributing to sales profits.

Tag: Digital Economy Ecosystem Helena Suri Shopee TikTok Shop Tokopedia