Skip to main content

Courier giants to benefit from Indonesia’s e-commerce boom

Indonesia boasts 90 million internet users with online retail sales of USD2.6 billion in 2014. The e-commerce boom has fed robust growth in express courier services. Recognizing this trend, the Indonesia Supply Chain & Logistics Summit 2015 gathered industry leaders and government officials to discuss key industry trends, opportunities and challenges.

Jeffrey Bahar, Deputy Chief Executive Officer of the Spire Research and Consulting group, was invited as a guest speaker at the Supply Chain & Logistics Summit 2015. In his presentation, Bahar highlighted Indonesia’s booming e-commerce industry, focusing on the surge in the express courier services market.

Bahar mentioned that outsourced/contract logistics services in Indonesia are worth approximately USD29 billion, with more than 2,500 players in 2015. The industry is supported by growth in Gross Domestic Product (GDP) and domestic consumption.

At the same time, Indonesia’s e-commerce market continues to shine. A population of 255 million with an expanding middle-class drive the growth of this sector. Popular e-commerce platforms including OLX, PinkEmma and Bhinneka; there are many more.

Moreover, logistics providers are cashing in on the e-commerce wave. Industry leaders like FedEx Express, First Logistics and DHL Express support deliveries for e-commerce platforms.

Nevertheless, roadblocks remain. Due to inadequate infrastructure, higher logistics costs are incurred – which means longer shipping lead times that dampen consumer enthusiasm. Moreover, Indonesia is a cluster of around 20,000 islands, which poses a geographical disadvantage. Other limitations include poor execution of government initiatives as well as limited skilled logistics workers.

Bahar’s presentation deck on “The Rise of Express Courier in E-commerce Business” can be found here.


Labels:

Comments

Post a Comment

Popular posts from this blog

FIFA World Cup 2018 holds lessons for successful team building

The FIFA World Cup 2018 is widely seen as one of the best World Cups in recent memory, with many surprises and goals aplenty. One talking point was the role of teamwork as opposed to just superstar talent. What lessons can businesses learn from the beautiful game? Leon Perera, CEO of Spire Research and Consulting, shared his thoughts in The Business Times – Views from the Top section on 23 July 2018. As World Cup fever draws to an end, the game lived up to its hype with breath-taking goals and outstanding performances. Perera highlighted the role of 'team effort' over mere individual talent, which was evident in the early failure of teams with world-class superstars like Argentina and Portugal. Perera also pointed out the importance of investing in new talent pipeline development, which paid rich dividends for France, the winning team and also one of the youngest teams in the World Cup. The game also highlighted the role of risk-taking. A relentless approach t...
Post a Comment
Read more

Can India sustain its dependence on oil?

By 2035, India’s oil consumption will double from 7 Billion Barrels per day. Other nations are shifting towards alternative energy sources. India will contribute a third of the global growth in oil consumption in the next 15 years, and is set to replace China as the largest driver of oil demand growth. The country is becoming one of the largest oil consumers and is also home to some of the most polluted cities. Can disruptive renewable technologies break India’s dependence on oil? Read more :  https://www.spireresearch.com/newsroom/spirethoughts/can-india-sustain-its-dependence-on-oil/
Post a Comment
Read more

Spire talks about key trends in Asia’s Franchise Industry

Spire was honored to participate at the 26th International Franchise and Exhibition , Malaysia, 2019. The event was held on 6th April in Kuala Lumpur. Jeffrey Bahar, Deputy Chief Executive Officer of the Spire Research and Consulting group, shared insights on key trends in franchise industries in the Asia. Bahar discussed key trends in three sectors suitable for franchising, namely pre-school education, facilities management and laundry services. Global cleaning services are expected to reach USD74 billion at 6 per cent CAGR (compound annual growth rate), accounting for 5 per cent of the global facilities management market by 2022. With urbanization, construction and smart cities as some of the growth drivers and by using robotics, IoT(Internet of things) and analytics, cleaning services would see improved performance. In 2015, USD260 billion was spent on private education in the Asia- Pacific, with Singapore being the highest spender in the region at USD700 million. A...
Post a Comment
Read more

Spire shares business advice to start-ups on Indonesian market entry

On 17 July, Spire participated as a market advisor at the National University of Singapore (NUS) Market Validation Program in Jakarta, Indonesia. Jeffrey Bahar, Deputy Chief Executive Officer, Spire Research and Consulting Group held sessions with Singaporean companies planning to expand their business into Indonesia. Jeffrey pointed out the utility of high-tech approaches for start-ups entering Indonesia, such as online advertising, usage of the Internet of things (IoT), data analytics and even Artificial Intelligence (AI). These approaches enable starts-ups to bypass mature importer-principal relationships that may be hard to overcome through conventional means. He also shared with individual companies his thoughts on developing customized strategies for Indonesian market entry. Get more information :  https://www.spireresearch.com/newsroom/events/spire-shares-business-advice-to-start-ups-on-indonesian-market-entry/
Post a Comment
Read more

Spire talks about emerging Tech Retail trends in ASEAN

Spire was honored to participate at the GATES Consumer Channel Summit, Southeast Asia, 2019. The Summit was held on 20-22 March, in Bangkok. Hafidz Omar, Thailand Country Manager at Spire Research and Consulting, shared his insights on key trends in consumer tech and challenges encountered in ASEAN. Omar discussed how the IOT (Internet of Things) is impacting the retail industry in ASEAN countries. He also discussed the growth opportunities in geofencing, mobile payment and retail operations, to name a few recent innovations in retail technology. With the expansion of Geofencing technology (defined by GPS or RFID technology) , in the next five years retailers will be able to customize merchandise and promotions according to the customer profile. Online payment is still a challenge for e-commerce retailers in Asia-Pacific as most customers prefer cash on delivery and 73 per cent of the Southeast Asia’s population do not own a bank account. However mobile payment may be a s...
Post a Comment
Read more