UMKM and Local Brands in the Era of E-commerce Competition: IPSOS Research Reveals the Development Landscape in 2025

The Shiro Copr In the era of industrial landscape growth E-commerce , competition is constantly shifting direction. Main actors such as Shopee, TikTok Shop, Tokopedia, and Lazada are no longer just competing for numbers and market share. The main battle has gone beyond conventional metrics, moving towards a more essential area: who can play a role in building an ecosystem that empowers MSMEs and brand Sustainably local?

UMKM and brand Local players play a crucial role in the structure of Indonesia's economy. According to data from the Indonesian Chamber of Commerce and Industry (KADIN), micro, small, and medium enterprises (UMKM) contribute more than 61 percent to the Gross Domestic Product (GDP) and absorb around 97% of the national workforce. In the digital era, their role is no longer limited to traditional sectors. Instead, they have become key actors in driving economic transformation through the use of digital technology, particularly through platforms. E-commerce .

For UMKM actors and brand local, E-commerce Opening opportunities that were previously difficult to reach. E-commerce to expand market reach, improve operational efficiency, and open access for MSMEs to global consumers. Amid the increasingly complex e-commerce landscape, favoring MSMEs and brand Local now becomes the main differentiating factor. Competition is no longer just about who is the biggest, but who has the greatest impact.

Research Reveals the Leading E-commerce Platform for MSMEs

The latest E-Commerce Seller Satisfaction 2025 research released by the leading market research company IPSOS Indonesia attempts to answer the big question "Which e-commerce platform is the most trusted, most impactful, and most effective in supporting SMEs and local brands in Indonesia?"

This research finding provides a clearer picture of the current digital competition landscape, while highlighting the platforms that have successfully built strong connections with local business actors.

What is interesting is how each platform starts to compete not just by competing for transactions, but also by demonstrating its role in supporting SMEs and brand local to grow. That is where the most interesting side of this IPSOS research: measuring the level awareness Sellers, loyalty towards the platform, as well as perception of the features and campaigns offered. Hopefully, the results of this research can provide a comprehensive picture of the e-commerce competition landscape in Indonesia, including performance and perception towards major players such as Shopee, TikTok Shop, Tokopedia, and Lazada," said Andi Sukma, Executive Director of Ipsos Indonesia.

This research involved 350 MSME respondents and brand local across Indonesia with the Online Panel method. The result, the majority of sellers (66%) mentioned Shopee as the first platform that comes to their mind ( Top of Mind ). 70% of sellers also use Shopee as their main platform that is most frequently used to run their businesses ( Brand Used Most Often )

However, the strength of a platform as a preferred partner for MSMEs and brand Local is not only measured by how well-known or frequently used, but also by how strong the user's loyalty is. This was revealed in the results Net Promoter Score (NPS). 77% of SMEs and brand Locally, they feel confident to recommend Shopee to other business people, followed by Tiktok Shop at 69%, while Tokopedia and Lazada at 67%.

Through the above elements, the preferences of MSME actors and brand local in choosing an e-commerce platform is influenced by a number of factors relevant to their business needs. The three main reasons most often mentioned by respondents in this study are: expanding the business reach (71%), convenience and flexibility (66%) which allows seller operating from anywhere, as well as the factors of ease of access and process in the marketplace (59%).

When these reasons are converted into business practices, there are three impacts most felt by MSMEs and brand selling at local time marketplace : marketing products more widely (69%), increasing the number of consumers (67%), and increasing profits (65%). These findings indicate that E-commerce Not only a digital solution, but also a driving force for significant business growth for SMEs and local brands in Indonesia.

E-Commerce Performance Competition

For SMEs and brand local, E-commerce It is not just a place to display products, but a living space, a container for telling stories and building relationships with consumers from scratch. Inside, every product is not only economically valuable, but also a tangible representation of struggles, principles, and identity that are at stake.

Traversing this landscape, the competition between E-commerce It is not enough to be measured by popularity scale, but by its ability to build an ecosystem, a dynamic system, full of interactions, bringing in relevant traffic, as well as opening up opportunities for sustainable growth.

The latest IPSOS research once again records Shopee's position as more superior in three key perceptions that are the main benchmarks for micro, small, and medium enterprises and brand local in choosing e-commerce platform:

1. As a platform offering the most free shipping for customers (67%)

2. As a platform with the most diverse product categories (66%)

3. As a platform, it provides the highest net profit (63%)

The data above shows that what is most important is not just the choice of platform, but how much the platform truly drives real results for business owners through the various programs and features it offers. In this context, Shopee stands out as the most superior, followed by TikTok Shop, Tokopedia, and Lazada.

Give Opportunities for MSMEs and Local Brands to Grow

Like a marathon race, not all platforms E-commerce Move at the same speed. Each step is determined by the strategy they present.

Starting from presenting relevant local pages, educational programs that empower, interactive features that promote visibility and conversion, to thematic campaigns and opportunities for global expansion, the question arises again: who truly excels and consistently paves the way for local business owners to grow and develop?

• Special Page and Educational Program

The local product curation page presented by e-commerce players is like a house containing stories from various corners of the country through products created with hands, heart, and creativity.

Among the four players, Shopee is rated by the majority of micro, small and medium enterprises (MSMEs) and local brands (56%) as the most consistent platform in providing a dedicated local page to promote business growth, followed by Tokopedia (20%), TikTok Shop (15%), and Lazada (7%).

Most respondents who chose Shopee also mentioned the Shopee Pilih Lokal feature as the most well-known and impactful in boosting sales, while also serving as a broader promotional space, although other players such as Tokopedia and TikTok Shop (Beli Lokal), and Lazada (Hiperlokal) also offer similar programs.

More than just a sales platform, 57% of respondents also chose Shopee as the most active platform in introducing educational programs and guidance for MSMEs and brand Local, followed by TikTok Shop (19%), Tokopedia (18%), and Lazada (6%). These programs include Shopee UMKM Campus and Shopee Tutoring Program, which consistently provide educational centers for business actors to be able to grow independently and sustainably.

• Effectiveness of features live stream and video, & ads

If in the past buyers could only passively view products, now e-commerce provides a more interactive, immersive, and informative shopping experience. Features such as live streaming dan short video plays a strategic role in driving purchasing decisions. Amid this trend, Shopee is once again considered by the majority of respondents (54%) as E-commerce With the entertainment features (live streaming/short videos) that are most helpful for sales, followed by TikTok Shop (29%), Tokopedia (11%), and Lazada (5%).

Interesting, among SMEs and brand Local sellers using Shopee's interactive features mostly agree that Shopee Live and Shopee Video have significantly impacted their sales. The presence of these features not only serves as an effective promotional channel, but also as a communication tool that builds consumer trust.

If interactive features build an emotional connection between sellers and buyers, then advertising features allow micro, small, and medium enterprises (UMKM) and brand Local advertising reaches a broader audience with cost efficiency adjusted according to the scale of needs. In this context, 62% of respondents evaluated Shopee's advertising program as the most effective and felt a significant increase in sales during the advertising period.

• Influence of thematic programs and campaigns

For local business operators, participation in large-scale campaigns during moments such as the month of Ramadan becomes a significant opportunity in their business journey. With high shopping intensity during this period, the platforms E-commerce punish each other with competitive and attractive thematic campaigns, such as Shopee Big Ramadan Sale, Ramadan Ekstra Seru on TikTok Shop and Tokopedia, as well as Lazada's Ramadan Mega Sale. To understand how effective each campaign is, here is the result of IPSOS Indonesia's research:

High total participation percentage indicates that many MSMEs & Brand Local areas that participate in multiple cross-platform campaigns simultaneously, maximize the opportunities from various available channels. However, the Shopee Big Ramadan Sale campaign is the most followed by MSMEs and brand local and are considered to have the most significant impact on sales during the promotional period.

• Export Program Promotes MSMEs to Enter the Global Market

On the other hand, expanding into the global market remains a challenge for SMEs and local brands due to limited logistics, insufficient understanding of foreign markets, and lack of guidance. Therefore, export programs proposed by the players E-commerce is also becoming a competitive field. According to the data, the majority of respondents, 62%, rated Shopee as the e-commerce platform most helpful for SMEs to enter the global market, followed by other players, Tokopedia (16%), TikTok Shop (15%), and Lazada (6%). More than that, the majority of SMEs and brand Local participants in the Shopee Export program stated the positive impact of the initiative on business growth.

2025 Ipsos Research shows that in this era of increasingly complex digital competition, the platforms that will survive and win are those that can become a catalyst for sustainable growth for MSMEs and brand local.

"In the end, those who win the hearts of entrepreneurs are those who are adaptable to change, loyal in guiding, and become solutions when challenges arise. Not only providing a sales space, but they need to create a growth ecosystem," said Andi Sukma.

"In this competition arena, Shopee is assessed by the majority of SMEs and Local Brands as a platform that provides the most tangible contribution and impact in creating a sustainable growth space by building capabilities, strengthening digital literacy, sustainable programs, and bridging business operators to a larger scale, including the global market," he concluded.