Retail Market in Indonesia 2017-2021
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.
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.
Circle K, Hero Group, Indomaret, Super Indo, Sumber Alfaria Trijaya, Lotte Shopping, Matahari Putra Prima, METRO Department Store, and Gingersnaps.
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