Tech Winter Looms; Shopee Dominates Indonesian E-commerce Market

TEMPO.CO, Jakarta - E-commerce in Indonesia continues to strive amidst global economic conditions that are threatened by the recession by adjusting their business strategies.

The threat of tech winter forced e-commerce businesses to change their strategy, not only offering the best deals and discounts to attract users but also becoming a place that can support sellers to survive and maintain the continuity of their business.

Recently, all e-commerce businesses are competing to launch interactive features to bring more fun for shoppers in doing transactions.

In this competition, three online shopping platforms dominated the Indonesian e-commerce market. They are Shopee, Tokopedia, and Lazada.

Katadata Insights Center's research entitled 'MSME Study Report: The Role of Marketplace for MSMEs' revealed that 57% of businesses explained that their biggest sales value came from Shopee, followed by Tokopedia (28%), Lazada (6%), Bukalapak (3%), Blibli (2%), and others (3%).

Chairperson of the Indonesian E-commerce Association (idEA), Bima Laga, believed that the growth of e-commerce will persist even though public activities return to normal before the COVID-19 pandemic as the mobility restrictions or PPKM policy was lifted.

“Online shopping has now become a lifestyle and a way for fulfilling daily needs,” said Bima in an official statement.

However, the players' strategy battles to maintain their business will certainly go on, especially after all the big players have made adjustments together in a bid to create a more mature ecosystem.

"It's interesting to pay attention to the journey of e-commerce players in the coming years in which passing through the economic conditions which won't be easy for sure," said Bima.

ADE RIDWAN YANDWIPUTRA

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