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Retail Market in Indonesia 2017-2021

Retail Market in Indonesia 2017-2021

About Retail

Retailing involves a business entity selling its products or services to an individual. The business transaction can occur over different sales channels such as online or brick-and-mortar storefront. In 2016, Indonesia was one of the top five developing retail markets in the Global Retail Development Index, which showcases its strength and future potential in the retail sector. In the 2015 edition, Indonesia was in the 12th position. China is the leading market in this sector, followed by India, Malaysia, and Kazakhstan.

Technavio’s analysts forecast the retail market in Indonesia to grow at a CAGR of 14.99% during the period 2017-2021.

Covered in this report

The report covers the present scenario and the growth prospects of the retail market in Indonesia for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.Technavio's report, Retail Market in Indonesia 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors

  • Circle K
  • Hero Group
  • Indomaret
  • Super Indo
  • Sumber Alfaria Trijaya
Other prominent vendors
  • Lotte Shopping
  • Matahari Putra Prima
  • METRO Department Store
  • Gingersnaps
Market driver
  • Burgeoning middle-class population
  • For a full, detailed list, view our report
Market challenge
  • Low consumer purchasing power due to high electricity tariffs
  • For a full, detailed list, view our report
Market trend
  • Preference for local brands
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2021 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?


Press Release

Technavio Announces the Publication of its Research Report – Retail Market in Indonesia 2017-2021

Technavio recognizes the following companies as the key players in the retail market in Indonesia: Circle K, Hero Group, Indomaret, Super Indo, and Sumber Alfaria Trijaya.

Other Prominent Vendors in the market are: Lotte Shopping, Matahari Putra Prima, METRO Department Store, and Gingersnaps.

Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Preference for local brands. Indonesians are extremely loyal to their brands. They tend to buy goods and services from the brands that they have been using for years. Indonesian consumers also have a strong preference for local or Indonesian brands. Almost 75% of the people are well aware and pre-decided about where and what products to buy. More than 65% of the people go to the same store for food and beverages.”

According to the report, one of the major drivers for this market is Burgeoning middle-class population. The 1980s led to the rise of the middle-class population, with new job opportunities. In spite of the economic crisis Indonesia faced in 1998, the country recovered fast and maintained a stable economic growth. Middle-class population in Indonesia spends on-an-average of $10-$30 per day. In 1999, the middle class constituted around 25% of the total population. It has increased by almost 68% in 2016 owing to the spending habits of the consumers. This has led to an increase in sales of goods and services.

Further, the report states that one of the major factors hindering the growth of this market is Low consumer purchasing power due to high electricity tariffs. Indonesian households pay around $6.01 million every month for electricity, before the adjustments of the prices. This results in the lower middle-income segment having less money to spend on buying other products or services. In relation to the total economic growth in Indonesia, the household consumption growth is around 58.25%, which links the economic growth and the consumer purchasing power.

Companies Mentioned

Circle K, Hero Group, Indomaret, Super Indo, Sumber Alfaria Trijaya, Lotte Shopping, Matahari Putra Prima, METRO Department Store, and Gingersnaps.

  • Executive summary
  • Scope of the report
  • Research Methodology
  • Introduction
    • Market outline
    • Economic indicators
      • Table GDP per capita PPP 2012-2016 ($)
      • Table Population of Indonesia 2012-2016 (millions)
      • Table Population by age group 15-64 years 2012-2016 (% share of total population)
      • Table Employment to population ratio 2012-2016 (% share of total population)
      • Table Inflation at consumer price 2012-2016 (annual %)
      • Table Household final consumption 2011-2015 (annual %)
      • Table Urbanization in Indonesia (% share of total population)
      • Table Growth of urbanization in Indonesia 2012-2016 (annual %)
      • Table FDI in Indonesia 2012-2016 (annual %)
  • Market landscape
    • Table Retail market in Indonesia: Segmentation
    • Market size and forecast
      • Table Retail market in Indonesia 2016-2021 ($ billions)
    • Five forces analysis
      • Table Five forces analysis
  • Distribution channel in retail market in Indonesia
    • Distribution channel in retail market in Indonesia
      • Table Distribution channels
  • Market segmentation by retail format
    • Retail market in Indonesia by retail format
      • Table Retail market in Indonesia by retail format 2016 and 2021 (% share of revenue)
    • Convenience stores market in Indonesia
      • Table Convenience stores market in Indonesia 2016-2021 ($ billions)
    • Department stores market in Indonesia
      • Table Department stores market in Indonesia 2016-2021 ($ billions)
    • Drugstores and pharmacies market in Indonesia
      • Table Drugstores and pharmacies market in Indonesia 2016-2021 ($ billions)
    • Supermarkets and hypermarkets market in Indonesia
      • Table Supermarkets and hypermarkets market in Indonesia 2016-2021 ($ billions)
  • Market segmentation by product category
    • Retail market in Indonesia by product category
      • Table Retail market in Indonesia by product category 2016 and 2021 (% share of revenue)
    • Food and beverage retail market in Indonesia
      • Table Food and beverage retail market in Indonesia 2016-2021 ($ billions)
    • Consumer electronics retail market in Indonesia
      • Table Consumer electronics retail market in Indonesia 2016-2021 ($ billions)
    • Apparel and footwear retail market in Indonesia
      • Table Apparel and footwear retail market in Indonesia 2016-2021 ($ billions)
    • Home improvement retail market in Indonesia
      • Table Home improvement retail market in Indonesia 2016-2021 ($ billions)
    • Beauty and personal care retail market in Indonesia
      • Table Beauty and personal care retail market in Indonesia 2016-2021 ($ billions)
  • Decision framework
  • Drivers and challenges
    • Market drivers
    • Market challenges
  • Market trends
    • Preference for local brands
    • Leveraging social media platforms for marketing
    • Expansion of organized grocery retailers
      • Table Urbanization of ASEAN countries 2015 (%)
  • Vendor landscape
    • Competitive Scenario
    • Key players in retail market in Indonesia
      • Table Key players in retail market in Indonesia
  • Key vendor anaysis
    • Circle K
      • Table Circle K: Product overview
    • Hero Group
      • Table Hero Group: Brand overview
    • Indomaret
      • Table Indomaret: Product overview
    • Super Indo
      • Table Super Indo: Product overview
    • Sumber Alfaria Trijaya
      • Table Sumber Alfaria Trijaya: Product overview
    • Other prominent vendors
      • Table Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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