Deloitte Consumer Insights

Embracing bricks and clicks in Indonesia

Indonesia is often described as Southeast Asia’s most populous economy. With its consumers increasingly gravitating towards online consumption, it is not inconceivable that it might one day become the region’s leader in e-commerce and a priority destination for digital innovation.

In this fourth edition of the Deloitte Consumer Insights report, we explore some of the latest consumption patterns of the Indonesian consumer that emerged from the results of the recent survey conducted in the first quarter of 2017 across 2,000 households via face-to-face interviews in five major cities: Bandung, Jakarta, Makassar, Medan and Surabaya. In addition, we review some of the insights uncovered in previous editions of the survey, and reflect on the evolution of the Indonesian consumer over the last few years.

One unmistakeable shift has been the acceleration in the trend towards online shopping. In the short, one-year span between the previous and this edition of the survey, the percentage of respondents possessing prior online shopping experience has increased significantly. Given Indonesia’s vast potential, however, this is only the tip of the iceberg. Companies hoping to tap into the growth of this digital channel have much to look forward to – that is, if they can adequately satisfy the consumer’s demands along a trinity of dimensions: Practicality, Price and Product Range.

It must be said, however, that some barriers to digital adoption remain. These deterrents – which vary significantly between the different cities – include concerns over security, lack of knowledge and perceived difficulties in returning or exchanging products, and are best addressed with the use of customised strategies and campaigns tailored to the needs of the local market.

Finally, the take-off of digital channels does not imply that traditional channels will diminish in relevance. Consistent with our previous reports, we have also captured and discussed the latest trends and insights on consumer sentiments, behaviours and motivations on the non-digital aspects of the market, including spending patterns, buying behaviours, buying channels, and information sources.

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