Deloitte Consumer Insights


Deloitte Consumer Insights

The evolution of the Indonesian consumer

May 2016

The Indonesian consumer has come a long way. Buoyed by rapid economic growth and the corresponding surge in disposable household incomes, the Indonesian consumer is an optimistic and increasingly sophisticated one. Over the last few years that we have conducted the Deloitte Consumer Insights survey, we have witnessed how the price-sensitive Indonesian consumer’s focus has shifted from price-based purchasing decisions into a quest for value-for-money propositions as they weigh price considerations against desirable product attributes.

In this third edition of the survey, we reveal some of the recent evolutions of the Indonesian consumer that have emerged from the results of the third edition of the Deloitte Consumer Insights survey conducted in the first quarter of 2016 across 2,000 households via face-to-face interviews in five major cities: Jakarta, Bandung, Makassar, Medan and Surabaya.

We begin by exploring a number of developments in the overall Indonesian consumer sentiment, as well as in their spending patterns, buying behaviours, brand preferences, communication channels, and buying channels. To account for the increased consumption and expenditure of the Indonesian consumer, this edition of the report will feature insights on a list of product categories that have been expanded from the previous two editions. Specifically, as incomes increase, Indonesian consumers are purchasing greater quantities of electronics products and appliances as these products – typically perceived as non-essentials – are increasingly becoming necessities for many.

Then, we take a look at some of the latest developments of the e-commerce landscape in Indonesia, which has begun to offer a number of innovative solutions to previously unserved, or underserved, markets. At this point, it is worth mentioning that the rise of online communication channels and e-commerce is fuelling a radical change in the way Indonesian consumers make purchase decisions. As you will see later in this publication, the average Indonesian consumer today often does his or her pre-purchase research online and, depending on the type of product in question, adopts a myriad of different strategies to complete the purchase either online or offline.

Finally, we examine a few of the geographic differences between the key retail markets of Indonesia. It suffices to say that Indonesia is a very vast and heterogeneous market. We hope that this publication, as a snapshot of the evolving Indonesian consumer, provides a glimpse into the considerations that consumer and electronics products companies as well as retailers will need to make when crafting their strategies to enter and grow in this diverse archipelago.

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

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