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4 ways Indonesian FMCG firms can score during the 2020 festive season

Kantar Worldpanel, a division of market research company Kantar studying shoppers’ behaviour, has revealed four key festive trends in Indonesia that FMCG firms can leverage to create winning marketing strategies next year. They are promotion strategy, the role of bigger product pack sizes, as well as insights into eCommerce and gifting.

Festive seasons have typically created an uplift in FMCG market performance, and in Indonesia, Ramadhan is one of the biggest celebrations of them all. This year’s Ramadhan made a deep impression in particular, with the presidential election pre-festive period, and a longer school holiday from Eid-Al-Fitr to the new academic year.

Kantar Indonesia marketing director Fanny Murhayati added that the higher consumption in this year’s Ramadhan were captured in all consumer segments – upper, middle and lower. “The momentum of Ramadhan provides a great opportunity to grab consumer’s heart,” she said.

According to the report, mini-market saw more than 10% value growth over Ramadhan this year. Generally, mini-market has also always attracted more consumers by offering more aggressive consumer promotions. The most typical promotion offered in this channel are “price off” (67%), and “extra volume” (19%).

Kantar Worldpanel said: “Having these promotions enables better access to middle and lower socio-economic status to make their purchases in modern trade channels such as mini-markets.”

Over the festive season, eCommerce has achieved a significant penetration of 2.2%, growing from last year’s 0.9%. Based on data from Kantar Worldpanel, 60% of Indonesian households are using the internet and more people are exposed to online experiences.

As more Indonesian consumers live in a “multi-screen environment”, Kantar said eCommerce should be one of the key strategies during festive periods. It added: “Promotion isn’t the key main driver of e-commerce, but rather it is convenience. As the Indonesian lifestyle is becoming more convenience-oriented, investment in e-commerce could be a great growth driver especially during festive periods.”

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Product categories such as biscuit and carbonate soft drink have both seen growth during the festive period, driven by consumers purchase of upsized packaging. For biscuits, consumers were attracted to new formats such as cans and jars, while in carbonate soft drinks, consumers were buying into larger packs.

Gifting tradition

The value of the gifting occasion in this year’s Ramadhan has grown above the level from the previous year. This higher level is driven mainly by necessity categories. The top gifting categories this year are biscuits, liquid cordial, cooking oil, loose tea and soft drinks.

Read more:
Brand loyalty takes a back seat during Ramadan in Indonesia, says new study
Ramadan opportunities for mobile marketers as app spending rockets

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