About the Consumer Electronics and Appliances Market in Indonesia
Joint ventures and franchising with a local company are two most common entry modes followed by foreign retailers. Due to the stiff competition in the market, franchising offers a quick way for foreign retailers to grow their chain stores. A local partner is beneficial in helping the foreign company navigate Indonesia’s retail landscape.
Technavio’s analysts forecast the consumer electronics and appliances market in Indonesia to grow at a CAGR of 10.21% by revenue during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the consumer electronics and appliances market in Indonesia for 2016-2020. To calculate the market size, the report takes into account the revenue generated from retail sales of consumer electronics and appliances in the country.
The market is divided into the following segments based on product type:
Technavio Announces the Publication of its Research Report – Consumer Electronics and Appliances Market in Indonesia 2016-2020
Technavio recognizes the following companies as the key players in the consumer electronics and appliances market in Indonesia: ACE Hardware, Electronic City Indonesia, Erajaya, Matahari Putra Prima (Hypermart), and Trikomsel Oke.
Other Prominent Vendors in the market are: Alfamart, AliExpress (Alibaba), eBay, Lazada, Best Denki, PT. Electronic Solution Indonesia, PT AGIS Tbk, and Gunung Sari Intan.
Commenting on the report, an analyst from Technavio’s team said: “One trend majorly impacting market growth is the changing retail format. Historically, traditional retailers accounted for the majority of sales in the Indonesian market. However, with the need for shopping convenience and the availability of a wider product range, consumers are now shifting toward modern retail. Consumer electronics and appliances are sold mainly through specialty retailers. However, hypermarket and the online medium are some of the other options available to consumers for purchasing electronic goods and appliances. It is estimated that around 60% of the sales are generated from the specialist retailers in Indonesia.”
According to the report, a key growth driver is the entry of global retailers into the Indonesian market. The growing number of foreign players entering the Indonesian market will have a positive impact on the growth of the retail sector in the country during the forecast period. High consumer confidence, an expanding middle-class population, and rising personal income have allowed private consumption to be one of the important components of Indonesia's economy and have attracted numerous global retailers.
Further, the report states that one challenge that could restrict market growth is trade risks. Several factors adversely affect the cost of goods and also the delivery/availability of imported merchandise.
ACE Hardware, Electronic City Indonesia, Erajaya, Matahari Putra Prima (Hypermart), Trikomsel Oke, Alfamart, AliExpress (Alibaba), eBay, Lazada, Best Denki, PT. Electronic Solution Indonesia, PT AGIS Tbk, Gunung Sari Intan.
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