FESTIVE FOR
DIFFERENT
DEMOGRAPHIC
While shoppers in Java Islands spend the most on their festive FMCG purchases, the growth opportunities lie in Outer Islands within the archipelago, where population growth is strong. Java and Greater Jakarta will remain a key backbone of growth, but areas such as Sumatra, where the population has increased 10% over the last 4 years and festive spending saw a 7% uplift, is an attractive market.
Manufacturers should be aware that different growth drivers in different areas. For example, in Java shoppers favor food, whereas the fastest value growth in Sumatra and the Outer Islands is seen beyond food, such as beauty categories. This suggests each area may attract different categories and become an opportunity for food manufacturers to fasten growth beyond Java.
The movement to online shopping during festive period has continued, post-pandemic, across Indonesia. Personal care and beauty categories make up the biggest share of the online basket, with 30% growth in spend compared with the previous year. This highlights a potentially exciting opportunity for personal care brands during the festive season.
Housewives aged between 36 and 45 are still the primary buyers of festive FMCG, but there is a buyer growth among younger age groups. They will become the main shoppers in the future so it’s important to engage with them now. Targeting them in specialty stores and online platforms is a good strategy. They are also can be part of the reason that spend in modern trade and online channels is rising.
These younger shoppers spend more on personal care during the festive season, which can be driven by the fact that they attend more social gatherings: the ‘Social Media generation’ wants to look and feel good when they meet with friends and family to celebrate the end of Ramadan, for example.
Meanwhile, older shoppers (46+ yo) spend more during festive with the highest uplift. Home care and food are the main segments bought by these older shoppers, as they might be hosting the family gathering during festive, hence higher spend for those categories.
