Indonesian consumer goods manufacturers are fundamentally adapting their product strategies to succeed in e-commerce channels, according to ProSpace Indonesia’s Digital Commerce Study. E-commerce now accounts for 23% of overall retail sales, with significant variations across product categories.
Package sizes, formulations, bundling strategies, and visual presentations are increasingly differentiated between e-commerce and physical retail. Meanwhile, direct-to-consumer models gain traction, with major manufacturers establishing their own platforms to complement marketplace presence.
“Success in Indonesia’s e-commerce environment requires specific product strategies rather than simply transferring physical retail approaches online,” explains Dian Wijaya, E-commerce Strategy Specialist at ProSpace. “Consumers demonstrate different purchase behaviors online, creating opportunities for products designed specifically for digital discovery and fulfillment.”
Purchase frequency patterns differ significantly, with e-commerce consumers typically buying fewer distinct items but in larger quantities per transaction. This creates opportunities for bulk packaging and bundled offers. Meanwhile, product discovery relies heavily on search algorithms and consumer reviews rather than physical shelf placement.
Data-driven product development has accelerated, with manufacturers analyzing online search trends, review content, and purchase patterns to identify unmet needs. Product launch cycles have shortened, with direct consumer feedback enabling rapid iterations.
Supply chain integration remains challenging, with 37% of manufacturers reporting significant stockout rates in e-commerce channels despite overall inventory adequacy. Dedicated e-commerce fulfillment infrastructure is increasingly implemented to address these challenges while improving delivery speed.
For e-commerce strategy consultation: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates