SOURCE: The Boston Consulting Group
December 03, 2015 22:00 ET
Southeast Asian Economies Have Slowed, Yet Consumer and Financial Services Companies in Indonesia Can Still Profit Through a Deep Understanding of Shopper Behavior, According to New Research by The Boston Consulting Group
JAKARTA, INDONESIA--(Marketwired - Dec 3, 2015) - Economic growth in most Southeast Asian economies, including Indonesia, has slowed recently owing to a number of factors. But in the medium and long term, Indonesia remains highly attractive to companies operating in emerging markets, for one principal reason: increasing affluence and urbanization are leading to an upwardly mobile base of consumers. To capture this opportunity in a volatile economy, companies need a detailed understanding of the brand preferences, shopping behaviors, and purchasing decisions of Indonesian consumers across demographic segments. A series of research reports being released today by The Boston Consulting Group (BCG) provides in-depth findings that can guide companies in three industries: consumer durables, fast-moving consumer goods (FMCGs), and financial services.
The three publications summarize 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 -- including "young professionals" and "modern housewives" -- which each have 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 coauthor 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 behavior of shoppers in key demographic segments. "
Critical Insights in Three High-Growth Industries
Key insights of BCG's research for durable goods manufacturers include the following:
A copy of the report can be downloaded at www.bcgperspectives.com.
From The Straits Times, Dec 22, 2015:
MS MARIAM JAAFAR, partner and managing director (Singapore), The Boston Consulting Group
I am particularly interested in the opportunity to accelerate the development of a digital economy - from leveraging new digital technologies across sectors to new digital business models to embracing digital lifestyles - entrepreneurship and innovation, opportunities in our regional backyard even as we seek to grow global players, and the impact of all these on jobs and social cohesion.