High growth of the middle class

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Due to the high online shopping activity in Indonesian e-commerce , its market capitalization in 2019 reached IDR294 trillion. According to McKinsey, this value will continue to increase to reach $40 billion in the next 2 years. What causes the Indonesian e-commerce market to grow so aggressively like this?

The middle class in the country is growing very significantly. As much as 21% of the total population of Indonesia in 2019 is the middle class. This growth is also seen in the increasing spending on consumer goods made by the community online . There was an increase of up to 23% in 2018 compared to the previous year.
Increasing internet penetration. As mentioned list of romania cell phone numbers earlier, one of the factors that triggers the increasing e-commerce movement in the country is the increasing number of internet users. Mobile device sales are also growing rapidly. This further widens the gap for people to enjoy online shopping services, either through social media, marketplaces , or regular online stores .
The advancement of financial technology. Financial technology or fintech is a trigger that plays a significant role in the advancement of e-commerce . These companies provide a variety of payment options that make it easier for people to shop. Based on July 2018 from Google, there are at least 66% of the Indonesian population who do not have bank services (do not have an account). The existence of fintech companies with online payment services through e-wallet applications or credit systems ( paylater ), makes the online shopping process even easier .
Domestic e-commerce companies receive funding from foreign investors. The fertile e-commerce field in Indonesia has made many investors look at local companies. In 2017, Alibaba poured $1.1 billion in investment funds into Tokopedia. This funding injection then raised Tokopedia's class to become a unicorn company.
Companies are starting to build their online presence . The increasing public demand for online shopping services has a symbiotic mutualism relationship with entrepreneurs. This is evident from the increasingly aggressive online promotions and sales carried out by companies. The increasing public demand for various online products also provides an opportunity for companies to start utilizing e-commerce in marketing their products.
With this great opportunity, producers only need to read the market, including consumer trends and habits, in order to prepare appropriate products and promotional methods. In this way, entrepreneurs can manage and develop their business so that their sales results are maximized.