|Meet the new Indonesian consumer class of 2020.|
Thursday, 3rd April 2014
Source : Nielsen
Asia's middle class is on track to comprise 52 percent of the region's population by 2020, with the fastest emerging middle classes hailing from Indonesia, the Philippines, Thailand, Malaysia and Singapore, according to Nielsen estimates.
With US$5.3 trillion in new household consumption, expenditures are up for grabs. Are you ready for the next big “shopportunity”?
Indonesia is at the forefront of this trend, with a middle-income segment that we expect to more than double in size by 2020. Much attention has been focused on Asia’s two biggest growth engines—China and India—but now is the time to get better acquainted with what drives and motivates Indonesian shoppers.
RISING CONFIDENCE AND UPGRADING BASKETS
Indonesians are confident about tomorrow, but they are also mindful of their budgets today. Historically, the country’s high consumer confidence scores consistently top Nielsen’s global rankings, and Indonesians typically report household budget flexibility that far exceeds the global average.
So while Indonesians are eager to upgrade their shopping baskets, they will likely do so judiciously and prudently. Indonesian shopping baskets are increasingly dominated with premium-type products, reflecting their rising aspirations.
Analysis undertaken by Nielsen of 13 fast-moving consumer goods (FMCG) categories revealed almost half (46%) of the products were categorized as premium, 32 percent were mainstream, and 22 percent were value-oriented.
About 60 percent of the products that make up the super-premium basket are discretionary items in categories such as chocolates, biscuits and moisturizing creams dominated by multinational companies.
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