Five ways to create a hit through innovation
Caught in the midst of rapid economic and social changes, Indonesian consumers are becoming more discerning. Those with low purchase remain very value-focused. On the contrary, those with higher purchase power aspire to improve their lifestyle and FMCG compete for share of their wallet against dining out, entertainment, holidays and savings.
One very tangible impact of this is the decline in frequency of FMCG purchase: over the last year, shoppers have, on average, been skipping one shopping trip a month. This means that, suddenly, millions of shopping baskets have vanished, and are highly unlikely to be recovered in the future.
Similar trend is not only seen in Indonesia, but also in other Asian countries where up to 596 million FMCG basket vanish year-on-year. Therefore, with significantly fewer opportunities for brands to be picked up, brands need to work harder to ensure they secure their place in shopping baskets.
In addition, while Indonesians are still very fond of their regular visits to traditional toko and warung stores, they are progressively moving towards modern trade, where they are exposed to a much wider range of options. This shift is also contributing to the decline in shopping frequency.
In this context, marketers are not short of challenges. With fewer potential baskets to feature in and greater competition at the point of purchase, staying relevant and standing out from the crowd becomes more critical than ever. The most powerful way to do so is through innovation. Launching new products offers excitement and dynamism to consumers, keeps brands ahead of competition and helps to justify a premium price.
Discover the five golden rules to maximize the opportunity of getting your brands into Indonesians’ shopping basket through Kantar Worldpanel Indonesia Thought Leadership Series.
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