Monspace Multinational Corp celebrated the first anniversary of Monspace Indonesia on 30 July 2017, at the Medan International Convention Center. Founder and CEO, Dato’ Sri Jessy Lai arrived in Indonesia personally to celebrate the milestone with the staff and members of Monspace Indonesia.
Founded in 2014, MONSPACE was built on the success of its flagship project, MONSPACE Mall. Since then, it has expanded the e-commerce site has gained more than 10 million members, and Monspace expanded into fields including agriculture, entertainment, tourism, telecommunications, aviation and more. It has also penetrated markets across the globe, including China, Indonesia, and Hong Kong. After a year of hard work, Monspace Indonesia has finally set it roots deep into the Indonesian e-commerce market, with the ambition of becoming one of the best-performing online malls locally.
E-commerce was not always a popular market in Indonesia, but as the use of internet becomes more widespread, online retail enjoyed exponential growth. The top 5 e-commerce site in Indonesia, including Amazon, Lazada, Bhinnecka, eBay, and Lion Air, are all proof that e-commerce is on the rise.
More and more international corporations have realised the great potential of the Indonesian market, and invested heavily in the country. This has facilitated the growth of the Indonesian economy and created a big middle class. Internet users have increased significantly due to growing purchasing power and stiff competition between telco providers, lowering the price of mobile and internet usage. All these contribute to a conducive environment for e-commerce.
Looking at data from 2015 provided by the Indonesian E-Commerce Association, there were 7.5 million online shoppers, a mere 2.9% of a 255 million strong population. E-commerce would only grow, and is forecasted to generate 246 million USD worth of transaction in 2016; that’s 3 times of what was made in 2013. In 2020, experts predict that the middle and upper class will further balloon to 141 million people—significantly higher than the 88 million in 2014.
“Online shopping is taking over the world by storm, and retailers would be foolish to not take it seriously. Though Indonesia might not have the most perfect of infrastructure and facilities, it makes the country a great place to develop a virtual market,” said the CEO of Monspace at the anniversary celebration.
While internet penetration in Indonesia remains at 23%, the lowest among Southeast Asia, average internet usage is 30 hours per week. It is also the fourth biggest user of Facebook and Twitter in the world. Undoubtedly, this means great potential for e-commerce.
Monspace has started researching the e-commerce market in Indonesia as early as 2016, and after detailed analysis decided to bring Monspace Mall into the market. The plan was to secure a prominent place in the market within a year.
“In our research, we found that Indonesians often have two or more mobile phones. The market is also flooded with cheap phones and tablets, making them accessible to the middle and lower middle class. As the market gets itself familiar with online browsing, shopping, and socialising, this is the perfect time to enter the market,” said Lai.
Lai also said that Monspace’s entry to Indonesia has brought a new wave of stimulation to the local economy. It helped accustom locals to the convenience of e-commerce, and has improved the quality of lives of people.
“This is precisely what we mean when we say ‘life inspiring life’. Businesses shouldn’t just generate profit, but make lives better for people,” said Lai.
Lai also shared that the greatest challenge of e-commerce in Indonesia is to gain the consumers’ trust. Furthermore, the usage of credit or debit cards is at only 5%, and credit card transactions make up a mere 10% of online retail transactions. This is another challenge Monspace have to overcome.
Monspace Indonesia held a first anniversary celebration in Indonesia on 30 July, 2017. Many local artists and celebrities were invited to perform at the event.
The gala was as spectacular as imagined, with celebrities singing their hearts out on stage and the crowd going wild for the performance. The magic show was also well-received by participants.
There were also prizes and gifts given away in appreciation of their members’ support over the year. Participants were not only able to watch great performances, but win prizes as well.
“I want to thank the team in Indonesia for their passion and professionalism. They have created amazing results within a year, and this further strengthens my faith in the market. In future, let us walk hand in hand to further spread the message of ‘life inspiring life’. May we change societies, and make the world a better place,” said Lai.