Online Factors are Affecting 30% of All Consumer Purchases in Indonesia
— March 6, 2015
Google announced its latest results from the Consumer Barometer survey conducted with research firm TNS. The survey confirms that Indonesia is first and foremost a mobile nation and the people rely heavily on smartphones in making purchase decisions although traditional word of mouth and television advertisements still play very strong roles as sources of original information.
The research, which was conducted throughout 2014, involved thousands of respondents per country and roughly 50 questions regarding use of electronic devices, shopping behaviors and decision making processes. The results of the comprehensive global survey were then presented on the Consumer Barometer website which allows visitors to discover the numerous findings for themselves and produce their own reports using the available data.
In its Indonesian media release, Google highlighted how Indonesians are increasingly choosing to go online using their smartphones instead of traditional computers and in most cases, going exclusively mobile for their Internet connected devices.
According to Google, Indonesia’s smartphone adoption doubled from 14% in 2013 to 28% in 2014 which is almost double that of PC adoption rate at 15% last year. “88% of Indonesians have mobile phones and in the future, it makes sense that those phones will be smartphones”, said Ricky Tjok, account strategist at Google Indonesia said in a statement.
Smartphones and e-commerce
The survey also found that smartphones play a significant role in the consumer journey towards making purchases as 66% of those surveyed in Indonesia said that they use the smartphone for online product research, ahead of any other country in ASEAN and even ahead of Australia and Hong Kong.
Price comparison sites would be ecstatic with the findings from this research as 34% of respondents in Indonesia use their smartphones for price/product comparisons, far ahead of any other nation in the region.
However, it’s far more interesting to note that despite all these online research, 70% of the respondents claim that their purchase decisions are not affected by online influences and among those who do research online, only 7% proceeded to buy through the Internet and 23% decided to buy in store. This says that while conversion from research to online purchase is still very low especially when compared regionally, online sources are already affecting 30% of all purchases.
14% of those who do online research though say that they use social networks to determine purchase compared to just 7% from brand’s own websites. This contrasts very highly to those who rely on offline factors such as in-store research (59%).
Perhaps it’s also worth mentioning that QR isn’t happening in Indonesia. Far from it.
Video
Aside from online commerce, Consumer Barometer also sought to find out about online video consumption. The results of which for Indonesia is quite mixed. 34% said that they have never watched online videos while 22% watch fewer than once a month. However 36% of respondents do watch online videos between several times a day to 2–3 times a month.
As for places where they watch online videos, an overwhelming majority (86%) said that they watch them at home although they don’t watch the videos through a landline or wifi connection, but through mobile networks instead. 76% of the people watch online videos on websites or apps such as YouTube while 25% watch videos that show up on social networks.
In an encouraging sign for video creators, Indonesians have a higher tendency to watch online videos longer than 10 minutes and these videos are more likely to be from the entertainment industry such as music, movies, or comedy than any other. News, gaming, and fashion videos though, are also popular though not as much.
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