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Indonesians most satisfied with Grab, Shopee: Survey

Ride-hailing firm Grab is "confident" of meeting the digital banking licence requirements that include "a path towards profitability" on a five-year projection, the unicorn told The Business Times on Thursday. PHOTO: ST FILE. Sketched by the Pan Pacific Agency.

JAKARTA, Sep 25, 2020, Jakarta Globe. Indonesian consumers are most satisfied with ride-sharing app Grab and online shopping platform Shopee when it comes to digital platform experience, which has seen a spike during the coronavirus pandemic, according to results from a regional research, Jakarta Globe reported.

According to the research jointly conducted by Singapore-based data content and social research agency Blackbox Research and consumer intelligence platform Toluna, Indonesian consumers reported a spike in online spending amid social restrictions during the pandemic, “with 57 percent of those surveyed now spending more online, and the total online spend for the average Indonesian consumer increasing by 28 percent”.

“Despite only ranking as the third most used platform, Grab had the highest brand satisfaction,” the report says.

Grab has a 45 percent market size in Indonesia to rank third after Shopee (76 percent) and digital marketplace Tokopedia (61 percent). Please note that one user can use multiple ecommerce platforms.

When brand use and brand satisfaction are combined, Shopee emerges as the strongest among ecommerce players in the country. The research found that Shopee not only achieved a 76 percent market share among respondents, it also had the second highest satisfaction rating.

Yashan Cama, International Commercial Director of Blackbox Research, attributed some of the factors behind these brands’ popularity to their focus on localizing their offering, as well as tapping into the purchase motivations and behavioral ticks of consumers in Indonesia, such as through celebrity endorsements.

He noted that not all brands with high usage rates find themselves with happy customers.

For example, while 61 percent of respondents use Tokopedia, the local ecommerce giant’s performance was only rated average when it comes to consumer satisfaction.

“At the end of the day every platform needs to be on edge — even the likes of Shopee — because consumer sentiment can change overnight if service quality starts to slip,” Cama is quoted as saying in the report.

“With 5G technology on the verge of transforming platform capabilities, current market leaders may wake up to find that one day they are no longer the leader if they don’t continue to push for a more frictionless experience.”

Overall, almost half of consumers (45 percent) said they are less than satisfied with their digital commerce experience, citing delivery costs, reliability of reviews, and product prices as their top three concerns.

The report, titled “Into the Light: Understanding What has Changed for the ASEAN Consumer During Covid-19”, is based on a regional research that involved 4,780 respondents in six Southeast Asian countries including Indonesia, Singapore, Malaysia, Thailand, the Philippines and Vietnam.

Grab also tops customer satisfaction level in Malaysia, Vietnam and the Philippines, according to the research.

The research identified key trends as a result of the pandemic, notably a shift in consumer sentiment towards local brands. It found that 91 percent of Indonesian consumers said they were more likely to support local brands in the future, driven by a desire to strengthen their local communities and economy.

“When asked to identify brands that they are pleased or impressed with during the Covid-19 crisis, homegrown multi-service platform Gojek emerged as the second most favored brands by Indonesians,” the report says.

“Gojek is a great example of how national pride will be a growing part of consumers’ purchasing consideration. Consumers are looking to support their own economy, and they are letting their spending speak for itself,” Cama said.

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