Heaptalk, Jakarta — Kredivo and Katadata Insight Center re-launched the second edition of the annual research on Consumer Behavior of E-Commerce Indonesia 2021, Wednesday (9/6/2021). Previously, they probed about the tendency of Indonesians to shop online. This time, they are doing research that focuses more on the preferences of (new) internet users in shopping in eCommerce by utilizing the Pay later feature.
This research conducted on 26-30 March 2021 showed 27 percent of the 3,560 respondents shopped in e-commerce by installments or paid later during 2020. In the same year, Katadata Insight Center (KIC) and Kredivo’s research also showed that the number of Pay later users in the Marketplace was increased.
The factor is because there is a shift in people’s shopping preferences to online and the demand for shopping needs that are carried outdistance and contactless. Another supporting factor is the increasingly widespread use of Pay later feature services in every leading e-commerce in Indonesia, such as Traveloka, Tokopedia, Bukalapak, and Shopee – also the support for the pay later payment option providers as Kredivo.
“So we ask that we have only used a pay later for only one year. It’s also quite interesting. It turns out that it has something to do with the Covid-19 pandemic,” said Mulya during a virtual press conference launching the Kredivo and Katadata Insight Center research results on Consumer Behavior of Indonesian E-Commerce 2021, Wednesday (9/6).
A payment option alternative
Furthermore, it is said, when viewed from the reasons respondents like to use Pay later, research results show that 69 percent of respondents say pay later can meet their needs when funds are not enough
“Then 67 percent of respondents said the advantages of using a pay later as an alternative payment option for installments other than credit cards,” said Mulya.
Seeing the research results, the General Manager of Kredivo, Lily Suriani, considered that Pay later was one payment option, rather than replacing COD. “Pay later helps consumers buy goods and pay for them later. It does not replace COD, but becomes the flexibility of payment options,” she said.
Meanwhile, VP Marketing & Communications Kredivo Indina Andamari revealed, the pandemic has changed many things in people’s daily lives, including behavior when transacting digitally. According to her, the research conducted by Kredivo with the Katadata Insight Center this year strengthens.
Kredivo concluded that e-commerce adoption would continue to increase every year. Besides increasing public trust in e-commerce, the pandemic has also encouraged people to switch to digital transactions.
According to her, the research conducted by Kredivo with the Katadata Insight Center this year strengthens Kredivo’s conclusion that e-commerce adoption will continue to increase every year. Besides increasing public trust in e-commerce, the pandemic has also encouraged people to switch to digital transactions.
“Research this year shows that the pandemic has also had an impact on accelerating the use of pay later to become a fast, easy and secure payment method of choice in e-commerce,” said Indina.
Indina also said several other exciting findings from the research, including an increase in the average transaction value consistently in almost all product categories caused by consumers shifting to online shopping.
“This shows increasing consumer confidence in digital transactions, even though the distribution has not been evenly distributed in several regions,” she said.
The older generation is more comfortable shopping online
Then, another interesting finding is that older consumers are more comfortable shopping online. Amid the dominance of gen Z and millennials, generation X (age group 36-45) experienced an increase in behavior in online shopping transactions from 13 percent in 2019 to 19 percent in 2020.
Then, the pandemic has also changed consumer shopping preferences when transacting online. Because consumers are more active from home, the pandemic has pushed consumers to buy products that increase productivity and reduce non-primary product spending.
The evidence shows the decrease in the volume of fashion product transactions (30 percent in 2019 to 22 percent in 2020). Meanwhile, there was a significant increase in product categories such as household appliances which in 2020 rose to 11 percent compared to 2019, which was 9 percent.
The increase in transaction volume also occurred in top-up credit and vouchers, namely 14 percent in 2020 compared to last year’s 10 percent, and the food category increased by 7 percent in 2020 compared to 2019 at 5 percent.
Online shopping promotions and festivals still the best strategy to attract consumers
Online shopping promotions and festivals are still become the most effective in attracting consumers to shop. National Online Shopping Day (12.12) and twin date shopping festivals such as 9.9 and 11.11 proved to be the preferred campaign done by Marketplace to engage more consumers to spend money on online transactions.
The average number of transactions on 11.11 and 12.12 in 2020 increased three times compared to the average daily transaction in 2020. Indina said the study shows that nearly 90 consumers are aware that Pay later is a payment option; those who already use Pay later are very satisfied, and 50 percent plan to use Pay later more often than before.
“Pay later has the potential to be increasingly sought after as a fast, secure, and convenient payment option. Pay later is estimated to be one of the fastest-growing digital payments in e-commerce in the past year,” she said.
