Four ways to optimise festive shopping occasions in Indonesia

1. Extend recruitment beyond Java and key cities.

While FMCG is still concentrated in Java and Sumatra, the growth opportunities in rural areas and outer islands like Kalimantan are vast, especially with the new capital city project. It is also important to pay attention to how preferences are evolving in each region – for instance the rising appeal of affordability and convenience in Java, the desire for local and classic flavours in Sumatra, and the potential for FMCG uplift in Kalimantan.

2. Optimise the price-pack strategy.

Competitive price points have become even more important during the festive season, since every brand is fighting to win every shopping occasion. Promotions might help to drive a short term uplift, but it is important to create a sustainable price point that will provide a post-festive consumer pull. For general/traditional trade, it’s vital to combine an optimum price point with the relevant pack size. Seasonal or sharing packs will benefit some categories such as biscuits, beverages and confectionery, which became growth drivers during the 2024 festive period.

3. Leverage higher spending from adult shoppers.

As the key shopper group, adults are the backbone of festive spending, especially for the most relevant categories such as food and beverages. Their higher spending should be leveraged with attractive offerings such as bulk purchase or bundling promotions to drive higher consumption, or offering premium variants with better value for money.

4. Engage with the shoppers of the future.

Young shoppers present more opportunities for brands beyond the ‘usual’ festive categories. Notable growth for the beauty sector among this group suggests that a relevant campaign during the festive season might work for shopper recruitment. Despite the fact that they have a more limited budget compared to older consumers, they are the shoppers that brands need to cultivate for sustainable growth in the future.