Indonesia’s national online shopping day has been so hot it shut down some websites as buyers scramble to snap up major discounts before midnight. Aimed at increasing brand awareness and getting more people to take advantage of the country’s ecommerce boom, this year’s event, the third of its kind, has add a number of online shops and big brands, indicating significant growth of the country’s e-commerce industry, say organizers. Inspired by Cyber Monday, which originated in the U.S., Southeast Asian e-commerce giant Lazada started up Indonesia’s online shopping day on Dec. 12, 2012 and dubbed it 1212 day.
“We are only half way into the 1212-day, but I can say that we have already over achieved our targets,” Lazada Indonesia CEO Magnus Ekbom told The Wall Street Journal Friday afternoon.
1 MORE THAN 70 E-COMMERCE COMPANIES PARTICIPATE
They include fashion giants Zalora, Pinkemma and Berrybenka, as well as online bookstore Tokobuku, and travel websites like Traveloka. Many sites are offering discounts of up to 90%, but Lazada has stolen the show, with deals on 120,000 products. Blanja.com, e-Bay’s partner in Indonesia, is practically offering some goods for free, with discounts of 95%.
2 BIG BRANDS JOIN THE TREND
Beauty products from The Body Shop and jeans by Lee Cooper are being offered at discounts of up to 40% and 50%, respectively, while social media app Path is offering its sticker and camera filter for 99,000 rupiah ($ 7.9). Mobile provider Telkomsel and local bank CIMB Niaga are also offering clients additional discounts. A few other notable mentions: budget airline AirAsia, Intel, Microsoft and smartphone vendor Xiaomi.
3 BIGGEST AGENDA FOR E-COMMERCE IN INDONESIA
For the dozens of participating e-commerce companies, today’s shopping event is one of the last chances of the year to increase sales – and they’ve been prepping. Together the participants have built the event’s dedicated website harbolnas.com (short for national shopping day in Bahasa Indonesia) to help ease browsing, which they hope will boost transactions three or four fold. “It is the ‘grand finale’ of the holiday shopping season,” said Mr. Ekbom.
4 MANY WEBSITES DOWN DUE TO INCREASED TRAFFIC
While browsing might be easier thanks to improved server performances for each site, some just haven’t been able to handle the traffic jump. At around 3 p.m., sites such as sports-ware vendor Planetsports.net and smartphone seller Erafone.com were under maintenance.
5 E-COMMERCE IN INDONESIA TO REACH $25 BILLION IN 2016
That’s more than three times last year’s $8 billion in transactions, according to Indonesia E-commerce Association or idEA. Indonesia’s e-commerce industry still needs help from the government since “this kind of business won’t be a success if you don’t have the adequate infrastructure,” minister of communication and information Rudiantara recently told reporters. So to support the nascent industry, Rudiantara said the government and the private sector would invest an additional $24 billion into expanding the country’s broadband network over the next five years.
Source: Wall Street Journal (http://blogs.wsj.com/briefly/2014/12/12/5-things-to-know-about-indonesias-online-shopping-day/)