Retail Market in Indonesia 2019-2023
Retail Market in Indonesia: About this market
Retailing involves business entities selling products and services to individual consumers. Technavio’s Retail Market in Indonesia analysis considers sales from retail formats including convenience store, department store, drugstores and pharmacies, supermarkets and hypermarkets, and online retailers. Our analysis also considers sales generated from food and beverages, electrical and electronics, apparel and footwear, home improvement and household products, and others. In 2018, the convenience store segment had a significant market share, and this trend is expected to continue over the forecast period. Factors such as the availability of convenience stores at gas or petrol stations enabling consumers to purchase goods during emergency will play a significant role in the convenience store segment to maintain its market position. Also, our retail market in Indonesia report looks at factors such as economic growth factors, expansion of retail landscape, and rise in tourism. However, underdeveloped infrastructure, increasing number of counterfeit products, and government regulations may hamper the growth of the retail in Indonesia industry over the forecast period.
Retail Market in Indonesia: Overview
Expansion of retail landscape
Vendors and customers are increasingly inclining towards organized retailing due to the availability of all the necessary items under one roof. This is encouraging retail companies to invest in the retail space of Indonesia and expand their stores to new areas. Most of the unorganized retail outlets will be replaced with big retail hypermarkets, supermarkets, and other retail chains during the forecast period. This expansion of the retail landscape will lead to the expansion of the retail market in Indonesia at a CAGR of almost 6% during the forecast period.
Growth in e-commerce
Major retailers are launching mobile websites and applications to offer their products online and provide a convenient shopping experience to their customers. In addition, online shopping and smartphone penetration are driving the growth of m-commerce. This will support the retail market trends in Indonesia and have a positive impact on the overall market growth.
For the detailed list of factors that will drive the retail market in Indonesia during the forecast period 2019-2023, click here.
With the presence of several major players, the retail market in Indonesia is fragmented. Technavio’s robust vendor analysis is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading retail manufacturers in Indonesia, that include PT Circleka Indonesia Utama, PT Hero Supermarket Tbk, PT Indomarco Prismatama, PT Multipolar Tbk, and PT Sumber Alfaria Trijaya Tbk.
Also, the retail market in Indonesia analysis report includes information on upcoming trends and challenges that will influence market growth. This is to help companies strategize and leverage on all forthcoming growth opportunities.
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