DSInnovate Report: Social Commerce Report 2022
Summarizing the development of the “social commerce” startup business model and ecosystem in Indonesia
Over the past decade, E-commerce has succeeded in becoming an industrial locomotive that drives various digital innovations in various sectors. Call it digital payments, smart logistics, to the MSME empowerment platform. Nevertheless, behind the clamor of the industry E-commerce there is still a fairly obvious gap in Indonesia, especially when it comes to equity.
Unlike people in urban areas who are used to digital services, conditions in rural areas ---especially in rural areas---the conditions are still much different. Many factors are the cause, ranging from the level of digital literacy to the reliability of infrastructure. In terms of infrastructure, for example, users in rural areas find high shipping costs because goods are sent from the city.
The existence of these issues encourages innovators to give birth to "Social Commerce", a version of E-commerce modified with various feature adjustments. Its business model is also unique, such as through partnerships to address digital literacy issues, through group buying to deal with the issue of high shipping costs, until the system hub-and-spoke to handle complex distribution systems.
Slowly but surely, model social commerce began to be accepted by the Indonesian people, making this business more and more in demand by local startups.
To see the development of this business, DSInnovate launched the "Social Commerce Report 2022" with the big theme "Digitizing the Second-Tier Cities in Indonesia". This report summarizes a number of things, including:
- Discussion of social commerce business concepts and models
- Social commerce ecosystem in Indonesia
- A case study of social commerce in Indonesia
- Trends in the development of social commerce in Indonesia
There are several interesting data findings, one of which is from 16 social commerce startups in Indonesia, 14 of which have announced investment gains. It shows that the business model that was carried out was successfully validated by early adopters and the hypothesis of venture capitalists. In addition, the concept of sharia-based business is also considered by several players in Indonesia.
On the industrial maturity side, the researcher also conducted analysis and measurement of several variables --- which showed that social commerce still has a lot of wiggle room to explore. In addition, there are other interesting data and findings. For more details, download the report via the following link: Social Commerce Report 2022.
- Disclosure: Trade supports the launch of this report