January is generally a slow month for retail as people are tightening belts after splurging during the holiday season.
End of year campaigns are also allocated large marketing spend to drive more traffic to Southeast Asia’s November 11/11 sales period and the 12/12 “Online Revolution” driven by Lazada, the region’s largest marketplace.
Looking at SimilarWeb web traffic – a sum of all (non unique) visits both on desktop and mobile – for Indonesia’s most popular B2C marketplaces shows a decline of around 3 to 20% from December to January.
Lazada Indonesia experienced a 3% drop in the number of monthly visitors.
But it was MatahariMall, the country’s biggest department store chain, who noted the largest staggering drop of 62% in visitors to its online marketplace.
The two-year old online venture, MatahariMall.com, raised $100 million in October last year to bolster its share of Indonesia’s ecommerce market. A look at the company’s online traffic shows a buoyant performance in terms of its visitors – spikes in traffic from roughly 7M to 24M shows the difference in organic traffic and the effects of a marketing push.
A more stable performance this year might provide a better indication if it will manage to live up to its ambitions to become the “Alibaba of Indonesia”.
Two players that continuously capture a steady audience are Lazada and Blibli.com, a six year old e-marketplace owned by Djarum Group and BCA, one of the largest banks in Indonesia.
Not surprisingly, the best performing ecommerce sites are the best-funded, making it harder for smaller players to compete unless targeting a niche audience.
Meanwhile, most C2C marketplaces saw site visitors in January increase by 3 to 8%. Jualo, an online marketplace for secondhand goods, saw the biggest lift in web traffic with 8% growth.
Web traffic, of course, doesn’t automatically equate conversions, it’s only one metric in tracking an online company’s traction. The data, however, is useful for marketers, advertisers, merchants, etc. to understand which marketplaces can provide an opportunity to tap into a large pool of existing customers.
How will oil prices shape the Covid-19 recovery in emerging markets?
– After falling significantly in 2020, oil prices have returned to pre-pandemic levels
– The rise has been driven by OPEC+ production cuts and an improving economic climate
– Higher prices are likely to support a rebound in oil-producing emerging markets
– Further virus outbreaks or increased production would pose challenges to price stability
A combination of continued production cuts and an increase in economic activity has prompted oil prices to return to pre-pandemic levels – a factor that will be crucial to the recovery of major oil-producing countries in the Middle East and Africa.
Brent crude prices rose above $60 a barrel in early February, the first time they had exceeded pre-Covid-19 values. They have since continued to rise, going above $66 a barrel on February 24.
The ongoing increase in oil prices, which have soared by 75% since November and around 26% since the beginning of the year, marks a dramatic change from last year.
Following the closure of many national borders and the implementation of travel-related restrictions to stop the spread of the virus, demand for oil slumped globally.
In the wake of the Saudi-Russia price war in early 2020, Brent crude prices fell from around $60 a barrel in February that year to two-decade lows of $20 a barrel in late April, as supply increased and demand plummeted. The value of WTI crude – the main benchmark for oil in the US – fell to record lows of around $40 a barrel last year on the back of a lack of storage space.
While global demand for oil remains low, one factor credited with reversing the trend is the decision to make significant cuts to oil production, which subsequently tightened global supplies.
How the Rural-Urban Divide Plays Out on Digital Platforms
It is one thing for entrepreneurs, whether urban or rural, to create and operate an online store, as some digital platforms have made it relatively easy to manage an e-store – even by using just a smartphone.
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