Celios: Video commerce an opportunity for MSMEs to introduce products more widely
Economist from the Center of Economic and Law Studies (Celios) Nailul Huda said video commerce in Indonesia could be an opportunity for MSME players to introduce their products to consumers with a wider reach.
“The presence of social media, including over the top (OTT) YouTube, can be an opportunity for them to introduce their products to consumers with a wider reach,” said Nailul when contacted by ANTARA in Jakarta on Friday.
He observed a shift in consumption patterns in the online market from those directed at marketplaces to those based on experience with video or live streaming as the medium.
Therefore, many consumers buy using social media such as Instagram, Facebook, X, or TikTok, and now even YouTube, to make purchases.
“They see goods and interact directly or indirectly with sellers using social media. There is a new user experience when people buy goods while watching reviews by content creators. Especially for goods where information from e-commerce stores is still lacking. They search for it through social media to see reviews, even on YouTube,” he said.
With the high use of video on social media and OTT YouTube, it has actually given rise to tiers of content creators, from nano and micro to celebrities.
“For MSMEs, cooperation with nano/micro content creators whose viewers are still limited to their regions is an attractive option for introducing their products. The rates are relatively affordable for nano/micro content creators. Then, for MSMEs that have more human resources, introduction through their own video content can also be done for product introduction plus a sales link,” said Nailul.
Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said video commerce transactions in Indonesia had jumped nearly 90 percent to 2.6 billion transactions.
Airlangga said the number of online sellers in Indonesia currently reaches around 800,000 traders. Meanwhile, video commerce transactions have reached 2.6 billion transactions, growing nearly 90 percent.
Video commerce is the activity of selling products through video content or broadcasts, while the purchasing process is carried out online. For example, traders conduct live streaming on e-commerce platforms.
This practice is now widely carried out by traders in physical stores by utilising devices to make direct sales through digital channels.
According to Airlangga, the development of video commerce shows the increasing convergence of online and offline trading activities.
Although the offline sector still dominates around two-thirds of trade, Airlangga said transactions through e-commerce have reached around one-third.
This growth is considered a major opportunity for micro, small and medium enterprises (MSMEs) to accelerate digital transformation.
The growth of video commerce is also supported by the high number of social media users in Indonesia, which has exceeded 180 million. This number continues to grow by around 26 percent per year.
Airlangga assessed that this digital technology development is a momentum for local industry players and micro, small and medium enterprises (MSMEs) to carry out a more inclusive economic transformation.