Online sales of halal products increase by 62% in Indonesia | Salaam Footbridge
Jakarta: Transactions of halal products through e-commerce reached 12.18 trillion rupees ($850 million) from January to October 2021, growing by 62.22% over the same period in 2020, Bank reported. Indonesia, the central bank.
The surge mainly occurred in May 2021 due to the Eid al-Fitr festival, which is a peak season for consumer spending. “In line with the national economic recovery, the Sharia economy is also making a positive contribution. In October 2021, halal value chain transactions in e-commerce increased significantly, by more than 62% year-on-year,” said Perry Warjiyo, Governor of Bank Indonesia.
Transactions are dominated by modest fashion products with a 91.93% share, followed by personal care and cosmetics with 2.57%, books and writing tools with 1.8%, and food and beverages with 1.66%. Figures show that online sales of modest fashion products have grown much faster than offline sales as the pandemic has led to changes in shopping behaviors.
Modest fashion transactions via e-commerce reached 11.19 trillion rupees ($780 million), a growth of 72.1% over the same period in 2020. The easing of social distancing policies and adding shopping mall hours does not necessarily change people’s preferences. to buy Muslim fashion products online, the report notes. This gives a signal that Muslim fashion designers need to migrate product and sales presentation to digital and online concepts. Some designers have adapted innovative ways to survive, including virtual fittings.
In contrast, halal food and drink transactions fell to 202 billion rupees ($14 million). The reopening of restaurants along with people returning to work in a hybrid manner are the main factors that have caused the slowdown in Halal food and beverage transactions via e-commerce.
From January 2021 to October 2021, the highest halal food and beverage transactions were recorded in April, May and June with a total transaction value of 99.14 billion rupees ($7 million), a increase of 6.69% compared to the same period in 2020.
At the same time, the transaction volume reached 123.63 million transactions, a growth of 57.06% compared to 2020, indicating that the purchasing power is relatively stable and is changing in the behavior or preferences of consumer purchase.
In terms of means of payment, electronic money (e-money) and bank transfers are the two main digital means of payment in Halal product transactions with a share of 49.7% and 14.1%, respectively. Means of payment by electronic money increased by 88.98%, while means of payment by bank transfer decreased by 0.21%. Additionally, the share of cash on delivery (COD) payment methods increased to 16.72%. Promoting the use of e-money by digital banks in conjunction with e-commerce providers is increasingly encouraging people to use digital payment methods.
“As a regulator supporting the digitalization of the national payment system, we launched Bank Indonesia Fast Payment (BI-FAST) to complete the payment system infrastructure to support retail payment transactions. faster, easier, cheaper, safer and more reliable,” Warjiyo said.
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