Deloitte Consumer Insights

As it becomes increasingly clear that many of these new shifts are here to stay, this seventh edition of the Deloitte Consumer Insights will explore some of the key changes in consumer behaviour and purchasing patterns that we believe will shape the mid- to long-term trajectory of the consumer industry in Indonesia.

In this report, we present our findings from the recent survey conducted between June and September 2020 across 1,500 households through face-to-face interviews in five major cities: Bandung, Jakarta, Makassar, Medan and Surabaya. To facilitate discussions on the consumer journey and highlight segment-specific insights where possible, we have also developed four personas to represent the various key consumer segments in Indonesia: Siti, Gus, Udin, and Tina.

Through their lenses, we will explore the consumer journey while analysing the impact of the pandemic and other macro trends on the Indonesian consumer’s heart, wallet, and mind. We will begin by examining the overall consumer sentiment, including their economic and employment outlook, as well as income expectations. Overall, we observed that the consumer sentiment remains moderate despite economic headwinds, with high-income households and younger consumers exhibiting a more positive outlook.

Next, we explore some of the shifts in consumer spending, which reflect not only a greater prudence amidst the ongoing pandemic, but also a shift in priorities as consumers adapt to new ways of remote working and the accompanying lifestyle changes.

Finally, we take a look at the purchasing drivers and other behaviours exhibited throughout the purchasing journey from pre-purchase, to purchase, and post-purchase. While COVID-19 has undoubtedly accelerated the use of digital channels across Indonesia, we found that several assurance-related considerations still continue to hinder its uptake. Looking ahead, consumer companies should also consider ways to stay ahead of the game by leveraging next-generation technologies to better integrate their offline-online experiences.