Page 22 - BrandZ Top 50 Most Valuable Indonesian Brands 2015

SECTION 01
INTRODUCTION
CROSS-CATEGORY TRENDS
PROGRESS AND TRADITION IN MODERN BLEND
THE SEARCH
FOR VALUE
Robust economic growth is putting more money in people’s pockets,
but demand is no less intense for great value for money. Consumers are not necessarily buying the cheapest products available, but
they are looking for more efficient ways to buy, and want to strike the right balance between quality and price. Kantar Worldpanel Indonesia has tracked increasing demand for large pack sizes on FMCG products ranging from biscuits to shampoo, which deliver better overall value
for money. Even relatively affluent consumers are on the lookout for great value, and are increasingly buying budget brands. In fact, urban households are more likely than those in rural areas to buy brands that position themselves as economical, and top-tier households (A or B on the SES socio-economic scale) are almost twice as likely to buy these brands as are those shoppers at the lower end of the scale.
A DESIRE FOR
LOCAL MEANING
Across every aspect of their lives, Indonesian consumers tend to be drawn to products and brands that they perceive to be aligned with
their own lives and beliefs. While this puts local brands in a strong position to make meaningful connections with consumers, it also provides opportunities for international brands that can provide a locally relevant expression of their brand – and, in some cases, a localized version of their product – that feels at home in this market. McDonald’s has localized its offering with rice-based meals, British American Tobacco makes hand-made kretek clove cigarettes
for this market, and to many people, Kit-Kat and Oreo are fondly regarded because they have generated a sense of familiarity that has a local ‘feel’ to it.
PREMIUMIZATION
Demand for aspirational brands and products are fuelling the growth of premium goods across categories, from cars and fashion, to soap
and chocolate. Consumers are
willing to pay for the brands they
see as providing something that
goes beyond simply meeting their needs. Those who can afford it are buying top-end BMWs and premium Samsung mobile phones, while
others are treating themselves to little luxuries. Kantar Worldpanel found sales of premium liquid soap, for instance, were up 39 percent in a
year (2013), while premium chocolate sales rose 35 percent and top-end mouthwash saw a 15 percent surge
in sales in the same period. Premium instant coffee, toothpaste and baby products are also on the rise. This is not simply about consumers splashing out; premium products must prove they deliver something extra that justifies their premium pricing.
fff22 BrandZTM Top 50 Most Valuable Indonesian Brands 2015