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Optimism of Online Classified Ad Service Activists in Indonesia

Consumers are increasingly accustomed to transacting online, the industry's total revenue in 2021 is estimated to reach more than 1 trillion Rupiah

Ken Research has just released a report related to the development of online classifieds services in Indonesia. In conclusion, in 2021 it is estimated that the income of players in this sector will pass the $80 million mark (more than 1 trillion Rupiah) in 2021.

Ken Research said the increase in the use of classified ads will be influenced by several special segments, such as advertisements for skilled workers, housing, and used cars.

This report also predicts the industry growth (CAGR) during this period will reach 23%.

Industry players' feedback

COO OLX Indonesia Pray Siscus Lingga to DailySocial conveyed that in the next five years there will be many changes in the e-commerce industry. The synergy between economic growth, technological infrastructure development, and people's willingness to adapt online lifestyles is the fuel for the industry to continue to grow.

"OLX supports this. We see that more and more Indonesians are starting to adapt their online shopping lifestyle, especially in selling goods that are no longer used. This will continue to create a more mature and stable e-commerce market condition," explained Doan.

The same thing was expressed by Rumah123's Country General Manager Ignatius Untung and Lamudi Indonesia's Managing Director Mart Polman.

Ignatius explained that the online classifieds business for the property vertical is predicted to continue to grow considering that its penetration currently only reaches 4% in Indonesia. It is said that growth in other countries in Southeast Asia has touched double digits.

"With more and more applications and services being offered online, in any category, it will directly educate consumers to be more familiar with doing many things online, so that businesses classified property will also grow," said Ignatius.

Separately, Polman sees considerable potential for the Lamudi market. The number of internet users in Indonesia, which reaches 132,7 million people (APJII version in 2016) is one of the factors.

"This growth rate also occurred in our target market, namely property agents and developers, which based on our data experienced a 10 percent increase in using property portals to help sell their products," said Polman.

Obstacle factor

Although it is predicted to experience significant growth, the classifieds industry cannot be separated from a number of obstacles.

Lamudi, said Polman, views cooperation as something central in the online classifieds business. For Lamudi, the collaboration is with professionals in the sector real estate market, such as property agents and developers.

According to Polman, it takes time to educate them on how to respond to potential consumers who are interested in online advertising. Something different than the traditional way of selling property.

"If all work together to raise the level of professionalism in dealing with user who use online classifieds to find their dream home, I strongly believe we can very quickly overcome this obstacle to the benefit of property seekers," said Polman.

Ignatius, on the other hand, thinks that what hinders the online classifieds industry is the business ideas of players who have not been proven, but instead damage or disrupt the existing market.

"Competitors who tried disrupt but instead destroys with business model new, unproven. The idea is todisrupted market in various ways, but not taking into account the factors scalability. thus destroying or at leastdistract market. The new business model being piloted has finally proven not to be scalable, but hastily damaged the dynamics of the market which Existing, said Ignatius.

For OLX, they consider time is a challenge in itself. A lot has changed in a short span of time, including user requirements and product evolution.

Next innovation

Innovation is the key to ensuring the future (remains) fine. The three interviewees agreed that innovation is needed to promote growth in the years to come. Rumah123 has been active for the last few years in the development of VR, big data, and other advanced technology applications in order to improve system quality and improve user experience.

Lamudi also showed the same concern. In addition to user experience, Lamudi is also trying to improve the quality of agents and development partners to make it easier for them to respond and control the quality of the properties being sold.

Meanwhile, OLX is still trying to improve quality by continuously analyzing the quality of its products.

"This analysis is the basis for OLX to develop new features for relevant products, and be able to improve the quality and performance of our platform. (So) the activity of buying and selling used goods on the OLX Platform becomes more convenient and for users," concluded Doan.

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