Indonesia Retail Market Analysis | Opportunities and Forecast to 2024

INDONESIA RETAIL SECTOR - GROWTH, TRENDS, AND FORECAST (2019 - 2024)

THE MARKET IS SEGMENTED BY PRODUCTS CATEGORY, DISTRIBUTION CHANNEL, AND MARKET DYNAMICS - GROWTH, TRENDS, AND FORECAST (2019 - 2024)

PURCHASE REPORT

P1

Study Period:

2015-2024

Base Year:

2018

Key Players:

PURCHASE REPORT

Market Overview

Indonesia retail sector is projected to witness a CAGR of 13.8% by 2024. The market is segmented by Product category, Distribution Channel, and Market Dynamics.

  • The retail sector in Indonesia remains one of the most promising markets among Asian Countries, on the back of its large population and growing middle class with higher household purchasing power and increasingly modern spending habits.
  •  In 2017, private consumption was affected by higher prices for food, electricity, and fees for vehicle registration, and in 2018, it is supported by lower credit cost, increasing employment, and an expansion of social welfare.
  • In Indonesia, household consumption has slowed down in the past two years, which is a great concern, as household consumption has been the biggest driving factor for the economy, of greater importance than investment, exports, and government spending.
  • Private consumption in the form of household spending has always accounted for more than 50% of the nation’s GDP yet, there has been a slowdown in consumption growth.
  • The Retailers profit margins decreased in 2017 and are expected to remain stable in 2018. Previous year some initiatives were taken to boost sales after the more subdued retail performance, 

Scope of the Report

A complete background analysis of the Indonesian retail sector, which includes an assessment of the parental market, emerging trends by segments and regional markets, significant changes in market dynamics; and market overview is covered in the report

By Product Category
Food and Beverage and Tobacco Products
Personal and Household Care
Apparel, Footwear and Accessories
Furniture, Toys and Hobby
Industrial and Automotive
Electronic and Household Appliances
Pharmaceuticals, Luxury goods, and Other Products
  • MARKET SEGMENTATION
    • By Product Category
      • Food and Beverage and Tobacco Products
      • Personal and Household Care
      • Apparel, Footwear and Accessories
      • Furniture, Toys and Hobby
      • Industrial and Automotive
      • Electronic and Household Appliances
      • Pharmaceuticals, Luxury goods, and Other Products

Key Market Trends

Private Consumption Accounts For Major Contribution To GDP

  • In 2017, Household consumption is an important component to watch because it accounts for about 56.6% percent of Indonesian GDP. A sustained recovery in private investment and increased public spending on infrastructure may keep the growth momentum going.
  • Consumption expanded 5.14% in the first quarter of 2018, breaking the 5% threshold for the first time, after President Joko Widodo introduced several measures to preserve purchasing power, including freezing retail fuel and electricity prices.
  • Distribution of holiday bonuses and civil servants 13th month wage strengthened peoples’ purchasing power, and therefore, trigger rising consumption. Meanwhile, stable food prices come on the back of the government's decision to open the gates to import items, such as rice, sugar, meat, packaged cooking oil, and fuel.
  • Bleak household consumption is often cited as reason for Indonesian sluggish economic growth in recent years. Despite falling interest rates, consumers remain hesitant to spend on various items, such as cars, homes, and such.
  • Moreover, Indonesia's retail sales grew just 2.6 percent in December. Analysts claim that the Indonesian consumer now prefers to safe his/her funds on a bank account rather than spending it.
  • Traditionally, the Indonesian food and beverage industry is a lucrative sector for foreign direct investment (FDI) in Indonesia. FDI in Indonesian food and beverage industry totaled USD XX billion in 2018.

 

P3

The Food and Beverage Sector Plays a Vital Role in Indonesian Economy

  • The F&B sector plays a vital role in the Indonesian economy. In the primary sector, production of raw material for the F&B industry by plantation, agriculture, and fisheries accounted for around 14.3% of Indonesian GDP, as of 2018. In the secondary sector, manufacturing of F&B accounted for 5% of GDP, and 27% of all manufacturing output.
  • Indonesia’s position in the global F&B market is uncertain, as on one hand, Indonesia is one of the largest producers of palm oil, fish, cocoa, and coffee, exporting its production surpluses abroad.
  • While on the other hand, Indonesia relies on imports of products that cannot be produced (either at all or in sufficient quantity) locally, such as wheat, dairy or processed food products.
  • However, in an attempt to transform the Indonesian economy, the government is pursuing policies both to reduce the country’s reliance on imports and to strengthen the manufacturing sector, which also benefit the F&B sector.
  • Next to the contributions of the F&B sector to GDP, several other indicators also confirm the strength of the Indonesian F&B market. During the past two years, Food and beverage Industry has grown tremendously, and it is anticipated to show snowballing profits, during the forecast period.

 

P4

Competitive Landscape

The report covers major international players operating in Indonesia Retail Market. In terms of market share, few of the major players currently dominate the market. However, with the technological advancement and product innovation, mid-size to smaller companies are increasing their market presence, by securing new contracts and by tapping new markets.

Major Players

  1. PT Matahari Putra Prima Tbk
  2. Ramayana Lestari Sentosa
  3. Mitra Adiperkasa
  4. Alfartmart
  5. PT Trans Retail Indonesia
  6. Hero Supermarket group
  7. Erajaya Swasembada

* Complete list of players covered available in the table of contents below

P5

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Table of Contents

  1. INTRODUCTION
    1. Key Deliverables of the Study
    2. Study Assumptions
    3. Scope of the Study
  2. RESEARCH METHODOLOGY
  3. EXECUTIVE SUMMARY
  4. MARKET INSIGHTS AND DYNAMICS
    1. Market Overview
    2. Customer Behavior Analysis
    3. Industry Attractiveness - Porter's Five Forces Analysis
    4. Drivers
    5. Restraints
    6. Opportunities
    7. Industry Value Chain Analysis
    8. Technology Snapshot
    9. Insights On Distribution Channels In Retail Trade
      1. Hypermarkets and Supermarkets and Convenience Stores
      2. Specialty Stores
      3. Department Stores
      4. Other Distribution Channels
    10. E- Commerce Trend in Retail Sector
  5. MARKET SEGMENTATION
    1. By Product Category
      1. Food and Beverage and Tobacco Products
      2. Personal and Household Care
      3. Apparel, Footwear and Accessories
      4. Furniture, Toys and Hobby
      5. Industrial and Automotive
      6. Electronic and Household Appliances
      7. Pharmaceuticals, Luxury goods, and Other Products
  6. COMPETITIVE LANDSCAPE
    1. Vendor Market Share, Mergers & Acquisitions
    2. Company Profiles
      1. PT Matahari Putra Prima Tbk
      2. Ramayana Lestari Sentosa
      3. Mitra Adiperkasa
      4. Alfartmart
      5. PT Trans Retail Indonesia
      6. Hero Supermarket group
      7. Erajaya Swasembada
      8. AEON Group
      9. Lotte Mart
      10. Indomarket*
    3. *List Not Exhaustive
    4. INVESTMENT ANALYSIS ON THE INDONESIAN RETAIL SECTOR
    5. FUTURE OF THE INDONESIAN RETAIL SECTOR
  7. DISCLAIMER
  8. ABOUT US