Consumer electronics and appliances in Indonesia: Key market research findings
- Increased discretionary spending drives market growth
- Consumer electronics account for the majority share of the market
- Key vendors – ACE Hardware, Erajaya, Electronic City Indonesia, Hypermart, and Trikomsel Oke
Technavio’s market research analysts predict the consumer electronics and appliances market in Indonesia to grow at a CAGR of more than 10% between 2016 and 2020. The shift towards discretionary spending is the primary driver for growth in this market. With the growing affluence, more Indonesians are using electronic goods and appliances such as smartphones. The increased spending on discretionary goods and services and growing inclination towards an information-based society is prompting more Indonesians to use mobile devices. The rising loan demand and credit options are also encouraging more number of consumers to purchase electronic goods and appliances. Factors such as urbanization and a rise in the middle-class population, entry of global retailers in the Indonesian market, and the expansion of retail chains across several Indonesian cities are some of the factors that will propel growth in the consumer electronics and appliances market in Indonesia during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the consumer electronics and appliances segments based on the product.
“Increasing focus on promotional and marketing strategies is the latest trend in the consumer electronics and appliances market in Indonesia. Vendors today focus more on unique promotional and marketing strategies to attract more consumers. The use of promotional offers and schemes offered in supermarkets, hypermarkets, and shopping malls is stimulating an increase in the rate of impulsive purchases. For instance, Electronic City Indonesia has been signing agreements with suppliers on an annual basis for promotion on its store network, instead of store-by-store basis,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
During 2015, the consumer electronics segment dominated the consumer electronics and appliances market in Indonesia by accounting for around 84% of the market share. In terms of sales, the modern retail stores such as hypermarkets and specialty retailers are rapidly expanding to make their presence more prominent in the market. Furthermore, there is an increasing demand for electronic goods such as smartphones through the online channel due to the increasing popularity of online shopping. Panel TVs are the largest contributing product in the consumer electronics market in Indonesia.
The key vendors in the market include ACE Hardware, Erajaya, Electronic City Indonesia, Hypermart, and Trikomsel Oke. The consumer electronics and appliances market in Indonesia is extremely competitive due to the presence of both international and local players operating across the country. As a result, the vendors are under constant pressure to bring in innovations across the country. The competition is expected to intensify during the forecast period due to factors such as affordability, M&A, the rise in urbanization and numerous new vendors, and an increase in the demand for the Internet.
A more detailed analysis is available in the Technavio report, Consumer Electronics and Appliances Market in Indonesia 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
