Millennials still gravitate towards Indonesia e-commerce services

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Millennials still gravitate towards Indonesia e-commerce services

CEO and Founder of Alvara Reseacrh Center Hasanudin Ali highlights the result of a research on digital services favored by millennials in Jakarta on Tuesday (9/7/2019). (ANTARA/Asep Firmansyah)

Jakarta (ANTARA) - The country's millennials seem to have a penchant for Indonesian digital e-commerce services, according to an independent research group Alvara Research Center.

"The current momentum of millennials, who are digital natives, prefering to use e-commerce applications made by Indonesians should be maintained, so that Indonesia can become a key player in the digital economic era," CEO and Founder of the Alvara Research Center Hasanuddin Ali noted at a discussion on e-commerce here on Tuesday.

Ali remarked that the research was conducted by Alvara and IDN Research Institute by employing the cluster random sampling method, with 1,204 respondents in Greater Jakarta, Bali, Padang, Yogyakarta, and Manado.

The data was segregated into five favorite categories among millennials of transportation service, food delivery, shopping application, hotel and ticket booking, and digital payment.

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In transportation service, most respondents, or 70.4 percent, use Gojek application while 45.7 percent use Grab. Similarly, in the food delivery category, Go-Food dominates the market, with 71.1 percent respondents opting for the service and 39.9 percent opting for GrabFood.

In terms of shopping application, most respondents, or 47.9 percent, preferred using foreign platforms, such as Lazada, while 32.2 percent used Shopee, while domestic applications, such as Tokopedia and Bukalapak, have become online shopping alternatives, with 15.4 percent and 14.4 percent users respectively.

"Millennials associate Lazada with COD (cash on delivery), while Shopee has the highest net promoter score for its free delivery fees. Tokopedia and Bukalapak are associated with well-known shopping applications," he pointed out.

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Indonesian applications -- Traveloka, Tiket.com, and BliBli.com -- are hotel and ticket booking applications that seem to be ruling the roost.

Digital wallet arm Go-Pay has become the preferred application among millennials, with nearly all respondents using the application, followed by 96.2 percent using OVO that links to Grab, 50.3 percent opting for Dana, 47 percent choosing PayTren, and 35 percent favoring LinkAja.

"Consumers have promoted Go-Pay more than any other digital payment provider of its kind. This is based on its higher net promoter score," he stated.

According to the research, only online shopping service was dominated by foreign applications while domestic applications dominated four other categories.
 

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