Deloitte Consumer Insights

As in previous reports, we have captured and discussed the latest trends and insights on the overall consumer sentiments and behaviours, spending patterns, preferred purchasing channels and information sources. Compared to previous reports, we have put more focus on understanding the e-commerce landscape such as the review of key growth drivers, preference of consumers in purchasing from different product categories and potential for alternative e-commerce models (e.g. Auction).

Our study indicates potential shifts in the Indonesian market as compared to previous years. For example, there has been a notable decrease in consumer spending from 2017 into the early part of 2018 across all income levels. The decline in spending has influenced products in the Basic Necessities cluster, particularly the Food and Packaged Food category. For Cosmetics and Beauty Care, most of the consumers have expressed Supermarkets and Minimarts as their preferred channels for purchase.

We also observed that the growth of new e-commerce users has stabilised in contrast to last year, where the size of new e-commerce users doubled in major cities. There are also signs indicating that Chinese brands may be positioning successfully across different income levels with certain products within the Electronic Products cluster. For example, Chinese player Xiaomi has invested in branding activities with direct owned branded stores that may have impacted penetration across different consumer segments.

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