Big rise predicted for Indonesia’s “consuming class”
16/05/2014
People who fit into this category are those who buy things that they want rather than things that they need.
Another factor that could make Indonesia attractive for brands is that, while big logistical challenges remain (the country consists of more than 13,000 islands), wealthier consumers are concentrated in and around the capital city, Jakarta, and a few other booming cities, including Bandung, Medan and Surabaya.
In recent comments in the Financial Times, the Indonesian managing director of market research firm Nielsen, Catherine Eddy, said that Indonesia is fast growth in consumption at the moment. She said people there “feel good about themselves” and are spending money. For example, sales of cars have been growing by 20% year on year for the last three years, reaching 1.2 million in 2013.
Nirgunan Tiruchelvam, a consumer goods analyst at Standard Chartered in Singapore told the FT that “the march of the consumer in Indonesia is almost relentless”.
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