Deloitte Consumer Insights

With its sheer size as the largest consumer market in Southeast Asia, Indonesia is undoubtedly one of the key markets for consumer business companies in the region. In particular, its main metropolitan areas of Jakarta and Surabaya have emerged as hotbeds for companies seeking to dominate the playing field, with higher levels of urbanisation and income per capita. Additionally, a number of other cities have been exhibiting strong economic growth in recent years and present latent markets ripe for capture.

In this publication, we examine some of the key driving forces in Indonesia’s consumer business landscape. Then, we present the results from the second edition of the Deloitte Consumer Insights survey conducted in the first quarter of 2015 across 2,000 households in five major Indonesian cities: Jakarta, Bandung, Makassar, Medan and Surabaya. Following the inaugural survey conducted in Indonesia in the fourth quarter of 2013, this edition of the survey aims to provide perspectives on Indonesian consumer spending habits and behaviour by product category and channel preferences, as well as reveal some of the new shifts and opportunities that have arisen since the previous survey.

This year, we also introduced a new section to highlight findings from our first Deloitte Retail Insights screening exercise conducted in 200 modern and traditional trade retail outlets in Indonesia across seven different product sub-categories. This was introduced with the objective of augmenting the consumer survey insights to provide a more holistic understanding of Indonesia’s retail landscape.

We then share our point of view on the key considerations for consumer business companies in this diverse and dynamic marketplace. These include the need for a segmented channel and product strategy to capitalise on the changing spending patterns of consumers as they transition into higher income segments; the necessity for a tailored approach for Indonesia’s major geographic regions; as well as the imperative to leverage new media and technology for innovative consumer and business solutions.

For more information on this publication, please contact us here.