Indonesia Retail

Chapter | Retail & E-commerce from The Report: Indonesia 2020

Indonesia’s large and relatively young population,...

Indonesia is the world’s 16th-largest economy and presents an enticing opportunity for investors, with ongoing reform efforts and attractive demographics. Meanwhile, a booming start-up ecosystem signals the country’s rising consumer power and regional influence. While headwinds are expected to follow Covid-19, Indonesia’s strong foundations will help maintain momentum in the medium to long term.

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What are your projections for changes in Indonesian consumer behaviour patterns?

 

In recent years modest fashion inspired by Islam has shifted from a niche market to the mainstream, with designs that appeal to religious consumers appearing at major fashion weeks, and global clothing brands such as H&M, Macy’s, and Marks & Spencer launching their own labels. Now in the limelight, modest fashion is expected to grow...

 

Indonesia’s large and relatively young population, coupled with a fast-growing middle class and high levels of consumer confidence, has been a key driver of expansion in retail and e-commerce. Physical retail spaces remain prevalent, with new malls opening across the country in 2019. Despite the sector’s positive performance in recent years,...

 

What local and regional growth opportunities do you foresee in the food delivery industry?

Indonesia is the world’s 16th-largest economy and presents an enticing opportunity for investors, with ongoing reform efforts and attractive demographics. Meanwhile, a booming start-up ecosystem signals the country’s rising consumer power and regional influence. While headwinds are expected to follow Covid-19, Indonesia’s strong foundations will help maintain momentum in the medium to long term.

E-commerce firms in Indonesia are reporting higher volumes of online sales as consumers practise social distancing amid the Covid-19 outbreak, with the government looking to the flourishing sector as one means of addressing tax shortfalls resulting from the wider economic slowdown.

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