Page 79 - BrandZ Top 50 Most Valuable Indonesian Brands 2015

The Indonesia Top 50 OUR INSIGHTS
Tough market conditions might be afecting household budgets for
everyday items, but they are not slowing the march of the expanding Indonesian
middle classes, who are continuing to spend regardless. In what was once was dismissed as ‘only a developing market’, with assumptions made about levels of consumer sophistication being behind those in wealthier countries, there is a strong appetite for luxury, and growing levels of connoisseurship. The Indonesian middle classes are buying luxury items at a rate that has turned
the heads of Gucci, Cartier, Hermes
and Louis Vuitton, to name just a few
of the brands to have opened lagship stores in Jakarta. Designer apparel, luxury accessories, and premium beauty products are helping Indonesians project a more global image.
This is only the beginning. Projections from the Wolfensohn Center for Development at The Brookings Institution show that total spend by Indonesia’s middle classes in 2020 will top US$1,000 billion, just behind that of
middle-class shoppers in
Russia and France, and
making Indonesia the
eighth-biggest middle-class
consumer market. By 2030,
the wealthy shoppers of
Indonesia will be in fourth
place in the world, collectively
spending almost $2,500
billion, more than aluent Japanese, Russians and Germans, and just
behind the USA. The division between Indonesia’s haves and have-nots will endure for some time, but the number of people with wealth is on the rise, and that means surging demand for the high-end brands that satisfy consumer desire to be part of the wider world.
A TOUCH OF CLASS – AFFLUENT SHOPPERS SPEND BIG ON LUXURY
Anton Reyniers
Group Strategy Director Ogilvy Anton.Reyniers@ogilvy.com
The island of Java contributes about 60 percent of Indonesia’s economy, and tends to be the focus – at least initially – of brands entering this market. However, with a population as large as Indonesia’s brands risk missing a huge market if they overlook the
people who make up the other 40 percent, who live dotted across the country’s multitude of islands. These consumers’ purchasing power is
on the rise, and their attitudes and preferences need to be understood.
These perspectives are as varied as the diverse landscapes and cultures in which Indonesian consumers live, and have a signiicant bearing on attitudes towards brands and advertising. A recent Millward Brown study in 12 cities across
the archipelago proved that big
diferences
exist in people’s
receptiveness to
advertising messages,
even between regions
that are, geographically, quite close. We commonly consider Jakarta
and Bodetabek as one region, Jabodetabek, or greater Jakarta.
But this study found that even people living in these two areas have signiicantly diferent responses to advertising.
Embracing and understanding the diversity of consumers in this market is no longer an impossible – or prohibitively costly – task. Mobile research makes it easier to conduct truly national studies, to highlight diferences and understand what unites and resonates with the greatest number of consumers.
THE ART OF UNDERSTANDING DIVERSITY
Lioni Halim
Associate Account Director Millward Brown Lioni.Halim@millwardbrown.com
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