Is South East Asia especially Indonesia the next Gold Rush for eCommerce? In this presentation, Muliadi Jeo presented the current e-commerce landscape in Southeast Asia specifically Indonesia. Why Indonesia, as a market, attracts many investors such as Alibaba, Google and more. We will see what to prepare if you want to expand your business in Southeast Asia region and what the regulation on importing goods, what the customer behavior looks like, what the common pitfall are.

2. Table of Contents
About Me 3-4
01 Why SEA is lucrative? 5-24
02 Challenges in SEA eCommerce 26- End
Contact

3. • 14+ years in ecommerce technology
• Past clients: TOMS, Foot Locker, Oprah Store, etc
• Magento solution partner in Indonesia since 2010
• 60+ Magento developers, over 100+ sites
• Focus on Omnichannel and B2B for Asia Pacific
About me

4. Fashion and Sports Beauty and Cosmetic
Electronics
Industrial and MRO
Food and Beverages
LifestyleOver 100+ Merchants
across APAC and USA

5. “UNICORNS in
Southeast ASIA”

6. 1. Young Population
2. Internet Penetration
3. GDP Growth
4. Conducive Payment
5. Lack of Store Access
70% of SEA's population is under
the age of 40 (vs. 57% in China)
why is SEA is
lucrative?

9. why is SEA is
lucrative?
1. Young Population
2. Better Internet
3. Rise of Middle Class
4. Better Ecosystem
5. Lack of Store Access
Internet speeds in SEA are
expected to reach global average
(23.3 mbps) with more than 80% of
population having access (vs. 46%
today)

12. Source: Akamai – state of the Internet – Q1 2017 report

16. 1. Young Population
2. Better Internet
3. Rise of middle class
4. Better ecosystem
5. Lack of Store Access
SEA as a region has a nominal
GDP of ~2.5 trillion USD (larger
than India) growing at 5.3%
over the next 10 years
why is SEA is
lucrative?

17. SEA
population of
600 million
is 2X than U.S
Southeast Asia is poised to eventually become the third-largest E-
Commerce market in the world after
China India

21. Increasingly “affordable” to
travel, thanks to budget
airlines

22. 1. Young Population
2. Better Internet
3. Rise of middle class
4. Better ecosystem
5. Lack of Store Access
Payment ecosystem is expected to
accelerate with increased access to
financial system, going from 0.7
acct/capita to +1 acct/capita1
why is SEA is
lucrative?

24. 1. Young Population
2. Better Internet
3. Rise of middle class
4. Better Ecosystem
5. Lack of Store Access
Number of organized retail store
available per capita is significantly
less than developed markets,
(1/3rd of US)
why is SEA is
lucrative?

26. What the ecommerce looks like in SEA?

27. MILLENIALS

30. MOBILE FIRST / ONLY

32. MARKETPLACE

34. PAYMENT NIGHTMARE

36. HIGH LOGISTIC COST

37. 1. Understand the key differences on each region of SEA.
They are not equally the same. Indonesia has the highest
potential growth but it will take time. In contrast to
Singapore that is very mature but limited market size.
2. Leverage local partners on the area of payments and
logistics.
3. Social channel still play big role in SEA.
1. Facebook and Instagram for the social platform
2. BBM, Whatsapp and Line for chat
4. Regional marketplace still play big roles even as brand.com
is growing. You need to have omni-channel strategy. Single
channel selling won’t work.
5. Market is very dynamic right now. Watch out for
consolidations.
In conclusion?

38. muliadi@icube.us
@icubeus
THANK YOU
@jeo4long