Page 61 - BrandZ Top 50 Most Valuable Indonesian Brands 2015

Thought Leadership DEMANDING CONSUMERS
The economic winds of change, through their impact on both the demand side, and the supply side, have led to a fundamental transformation of consumer behavior in Indonesia.
There are more consumers in a position to be more demanding
than ever before of the products and brands they choose. Rising aluence fuelled by rising incomes means consumers can aford to consider a greater range of brands, and be more demanding when they do. They want products that ofer more, and brands that make them feel special.
The growth of new markets within Indonesia is also expanding the ranks of the consumer class. Residents of urban centers in Sumatra, Kalimantan, Sulawesi, and in burgeoning small towns in Java, are now in a better position than ever to buy. The increasing number of women in the workforce, in part due to the new business opportunities the internet ofers, is giving women greater individual spending and decision- making power, and boosting overall household incomes. There is a rise
in both drive and personal ambition, particularly among millennials and Generation Y – people born from the 1980s onwards. They want to achieve more, be it at work or through rising entrepreneurial ambitions.
While consumers’ list of wants has been growing and changing, the supply side of the consumer equation has been, too.
The rise of mini-markets across the country means many more people have access to a greater range of goods, and for manufacturers, it is becoming easier to achieve national distribution. As more people live within reach of self-service mini- markets, there is a new pressure
to contend with: the agony of
choice. People now have to stand
in front of an aisle or wall of goods and decide what they want to buy. This is becoming a bigger issue for consumers by the day, as the appeal of Indonesia’s lucrative market attracts new companies with new brands
and there are more new product launches. In the food and beverage category in particular, the explosion of choice in recent years has been tremendous. Further, increasing internet access provides greater access to a whole new world of opportunities.
So, consumers want more, and
there are more ways for them to get it. But they don’t just want more of the same. With plentiful choice and heightened demands, here are three ways brands can help consumers ind what they really, really want.
1. CELEBRATE DIFFERENCE
People want to feel special,
and are drawn to products and brands they feel are speciically targeting them. Specialization can cater for people in diferent demographics, people pursuing diferent lifestyles, for men and women, or for consumers with difering budgets. The power of
specialization is already evident
in rising sales of milk powder developed speciically for children, at the expense of standard milk sales. Likewise, there has been growth in personal care products marketed speciically at men,
and there is a rise in price tiering across categories.
2. EXCEL IN SPECIALIZED NEEDS
Good for everything will become good for nothing. More need- specialized brands will be the order of the day as consumers become more informed and bored of the old. By focusing
on sensitive teeth, Sensodyne
is making inroads into a mature category. The SIM card brand 3, from Hutch, has focused almost exclusively on its data advantage, and this single-mindedness has enabled the brand to outgrow others in a highly competitive category.
3. TARGET OCCASIONS
Consumers are already shopping across a range of brands and price bands within a category, using diferent brands for diferent consumption occasions, particularly in the food and beverage category. Occasion-focused marketing is a way to inspire more frequent consumption and drive growth.
The macro-economic winds
of change have already caused signiicant diferences in the behavior of Indonesian consumers. These winds of change are only going to get stronger. Specialization is imperative in this environment if brands are not to get left behind.
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