The COVID-19 cases in Indonesia has surpassed 4,000 (at the time of writing) and the Indonesian government is taking additional measures to curb the spread. President Joko Widodo has recently declared a state of public health emergency, and has ordered a new regulation to carry out public transport control. This comes ahead of the Ramadan period that is grandly celebrated in Indonesia, and sees several Indonesians visiting friends and families across cities.
In lieu of these changes, a new digital norm has emerged in Indonesia. About 30% of Indonesians have increased their online shopping activities and in average, 40% said they will continue purchasing via online means even after the pandemic. According to a Nielsen study, the convenience and accessibility to products online, especially during COVID-19, have converted many offline shoppers to online.
The report also found a 28% surge among younger aged Indonesian consumers using food delivery services during this period. This comes following a 40% dip in consumers dining out at restaurants and F&B establishments.
COVID-19 also drove higher penetration of online shopping for FMCG products (personal care, home care, beverages) as overall 30% have reduced their frequency of visiting brick and mortar stores. Among the non-FMCG products, the home appliance and health and wellness categories had a consistent number of respondents who would continue online purchases after the outbreak.
In addition, as more companies implement work-from-home measures, social network activities and online reading have seen an increase in usage. Half of the respondents have increased their social media activities, while 59% have increased their online reading habits.
Online entertainment activities have also become more popular. About 40% are tuning into online video streaming, followed by 27% playing more online games and another 27% keeping engaged via radio programs or music streaming platforms.
This is evident not just in Indonesia but several parts of the world. Recently, Netflix resolved to reduced streaming quality in Europe and in Malaysia by about 25% to ensure the system does not collapse, while still allowing users to access and watch content on its platform amid the increase in streaming.
The Nielsen ‘COVID-19: Where consumers are heading?’ ssurvey was conducted between 6 to 17 March 2020, and the insights from this report aims to assist FMCG brands, retailers and manufacturers to identify purchase trends as consumers shift their preferences while making FMCG purchases amid COVID-19 pandemic in their respective markets.