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(Last updated: 19 Jul 2007)
Trends and opportunities
The market
According to AC Nielsen, the spending appetites of Indonesians are stronger than the regional average in certain items such as new technology, home improvements and decorating. Indonesians, at 62 per cent, form the largest group of people who expressed that they are more likely to be spending on new goods. This is 20 per cent higher than the regional average of 37 per cent. Meanwhile 44 per cent of Indonesians are expecting to spend on home improvements and decorating, which is higher than the regional average of 28 per cent.
Although most consumer goods available in the market are produced locally, Indonesia also imports a wide range of consumer goods. Australian penetration into the consumer goods industry in Indonesia has been fairly limited (mainly as the supplier of food related goods).
The consumption patterns of the top consumer products, such as soap, instant noodles, toothpaste, toothbrush, cooking oil, shampoo, detergents and seasonings, barely changed prior to, during and after the economic crisis.
Opportunities
Opportunities in the consumer goods industry in Indonesia exist on two levels:
- Consumer goods manufacturing
- Consumer goods retailing
Competitive environment
Foreign investment in this industry, in manufacturing, distribution and retailing, is still dominated by investors from Japan, Europe and USA.
Major manufacturers of non-food consumer goods in Indonesia include Unilever, Procter & Gamble, Elida Gibbs, and Kao.
Major manufacturers of food consumer goods include Indofood, Heinz ABC, Mayora, Van Melle Indonesia, Procter & Gamble, Arnotts and Danone.
Major retailers of consumer goods in Indonesia include Hero, Carrefour, Lion Superindo, Makro, Matahari and Tops.
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