The retail market in Indonesia to expected grow at a CAGR of 14.99% from 2017 to 2021, according to a new report by international market research company Research and Markets.
The report, title Retail Market in Indonesia 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years, and includes a discussion of the key vendors operating in this market.
The latest trend gaining momentum in the market is the preference for local brands, said Research and Markets. Indonesians are extremely loyal to their brands and they tend to buy goods and services from the brands that they have been using for years. Indonesian consumers also have a strong preference for local or Indonesian brands. Almost 75% of the people are well aware and pre-decided about where and what products to buy. More than 65% of the people go to the same store for food and beverages.
According to the report, one of the major drivers for this market is the burgeoning middle-class population. The 1980s led to the rise of the middle-class population, with new job opportunities. Additionally, the country quickly recovered from the economic crisis Indonesia faced in 1998 and maintained a stable economic growth, the company said. Middle-class population in Indonesia spends an average of $10 to $30 per day. In 1999, the middle class constituted around 25% of the total population. It has increased by almost 68% in 2016 owing to the spending habits of the consumers. This has led to an increase in sales of goods and services.
Key vendors in the country include Circle K, Hero Group, Indomaret, Super Indo, Sumber Alfaria Trijaya, and other prominent vendors include Lotte Shopping, Matahari Putra Prima, Metro Department Store and Gingersnap, according to the report.