5 December 2015

Rising Indonesian incomes and living standards create new opportunities

Economic growth in most Southeast Asian economies, including Indonesia, has slowed recently. But in the medium and long term, Indonesia remains highly attractive to companies operating in emerging markets due to increasing affluence and urbanisation, says the Boston Consulting Group (BCG).

To capture this opportunity, companies need a detailed understanding of the brand preferences, shopping behaviours, and purchasing decisions of Indonesian consumers across demographic segments. A series of research reports released by BCG provides just such in-depth findings that can guide companies in three core industries: consumer durables, fast-moving consumer goods (FMCGs), and financial services.

The three publications summarise the findings of an extensive quantitative and qualitative survey of more than 3,000 consumers across all socioeconomic groups in 19 locations throughout Indonesia. A central element of all three reports is identifying the key demographic groups within the country—from “young professionals” to “modern housewives”—which each unique habits, preferences, and needs.

“Companies need a targeted approach that understands each group in order to apply the right points of influence for their brands,” said Edwin Utama, a BCG partner and a co-author of the reports. “Those that try to apply a one-size-fits-all approach will struggle.”

Vaishali Rastogi, a Senior Partner at BCG and another coauthor added, “Indonesia’s economic expansion has clearly hit some turbulence lately. Despite these bumps, Indonesia is still a growth story, with a consumer base that is growing larger and more economically empowered each year. But growth will not be straightforward for companies. That makes it even more important to use a targeted approach and to rely on deep insights into the behaviour of shoppers in key demographic segments.”


Download the report
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