The outbreak of COVID-19 has brought about a new normal across all segments of the Indonesian economy.
Though many segments of the Indonesian economy were in the brink of recession, some new age segments including B2B e-commerce witnessed strong growth due to the changing customer preferences
The outbreak of COVID-19 has provided an impetus for the growth of B2B e-commerce in Indonesia.
- Definition / Scope
- Market Overview
- Market Risks
- Top Market Opportunities
- Market Trends
- Industry Challenges
- Technology Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Distribution Chain Analysis
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
With social distancing as the primary method adopted to tackle the COVID-19 pandemic and the subsequent lockdown measures taken globally by governments, the mandated closure of brick-and - mortar stores has resulted in almost complete immediate dependence on digital sales. Completely different industry propositions are B2B and B2C e-commerce.
B2B transactions are more complex and have a higher price value than those in the B2C space, requiring a more complex collection of capabilities, such as product configurators and real-time inventory information, quote requests, and the flow of approval of procurement.
However, for B2B businesses, COVID-19 has increased the imperative need for digital platforms. According to a new McKinsey survey, on average, sales leaders now score digital channels about twice as significant as they were before the pandemic.
B2B e-Commerce in Indonesia is at an inflection point, starting from a low penetration rate and looks poised for exponential growth. B2B is now poised to catch up with a big market to capture, similar to B2C, which went through a rapid adoption period with many unicorns emerging (e.g. Tokopedia, Bukalapak).
Although the growth of B2B retail online has for some time seemed inevitable in Indonesia, COVID-19 has accelerated its timeline. The epidemic has forced changes in purchasing behaviour, with the consequences of modern social distancing standards and lockdowns being felt through physical outlets.
Market Share of B2B e-commerce compared to the total market by segment in 2020
|Country||Internet Penetration (%)||Online Population||Market Share of B2B e-commerce (%)|