1. The Rise of Middle Class
This data is used as reference to build communication platform for Panasonic.
2. Asian Middle Class
• The emerging middle-class consumers differ in their preferences, demands and
habits. People belonging to this class are not wealthy enough to spend as much as
they would like to and they are extremely conscious and sensitive about their status
where they are sandwiched between the wealthy and grassroots.
• The middle class in Asian emerging markets is made up of a younger population
compared to their counterparts in the US and Europe.
• Young middle-class consumers are particular about product quality, trendiness and
user experience, which are reflected by the values associated with a brand. They will
only stick to trusted and widely recognised brands. Apart from the quality of a
product/service, these consumers also take into account the buying experience such
as the vendor’s sales service and product/service knowledge, plus the after-sale
services.
• Thirdly, the emerging middle class is embracing online shopping. Thanks to years of
development of B2C, C2C, group buying and ranking e-commerce websites, online
shopping is gaining popularity through promotions on various social media platforms
including Facebook, blogs and microblogs.
3. Indonesian Middle Class
• There are 75 million middle-class consumers in Indonesia, which will increase by 10
million per year for the next 10 years.
• These emerging middle income earners – said to number 35 million – are proving
eager and discerning consumers, who will seek out and pay for quality. They are a
key driver of the Indonesian economy, tipped to increase by more than 6 percent in
2013.
• Gleen Maguire, chief economist for the Asia-Pacific region at ANZ, believed that
Indonesia's economy will improve in the next five years. In addition 79 percent of
Indonesian people will have an improved financial condition a year ahead as
Indonesia has survived from the Federal Reserve's tapering off.
• By 2020, China’s middle class will become the top consumers, while India and
Indonesia will rank third and eighth respectively. By 2030, the middle-class
population will account for more than half of the overall population in most of the
developing Asian countries. By then, Asia’s annual expenditure will amount to USD
32 trillion, or 43 percent of the global total.
4. • Indonesians are getting more confident with their financial condition that it would encourage
consumption.
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ANZ-Roy Morgan Indonesian Consumer Confidence (2005 - 2014)
January 2014
5. • The survey includes the Top 22 cities, smaller cities and towns as well as many more villages in
the rural hinterland, reflecting all of Indonesia. Men and women aged 14 and over were
randomly selected during the month of January 2014.
• Indonesia’s consuming class — people whose daily spending ranges from US$2-$10 — will
double to 150 million people over next 10 years, ANZ-Roy Morgan Research predicts.
ANZ-ROY Morgan Indonesia Consumer Confidence Table
6. Source
Research Journal
ANZ-Roy Morgan Indonesian Consumer Confidence: Statistical Release , February
2014.
BCCI Bulgaria: Indonesia The Next Economic Powerhouse, 2013.
KPMG Adversory China: The Rise of the Middle Class in Asian Emerging Markets, April
2012.
8. The developing economy of Indonesia is going through an
upgrading phase where consumers are switching to
newer, better, and more expensive technologies. Households
in the world’s fourth largest country are buying more of and
upgrading their small domestic appliances such as rice
cookers, vacuum cleaners, blenders, irons and electric fans, etc
contributing to sales of over 24 million units worth USD595
million in 2012.
“
13. Market Highlight
• Consumers’ purchase of LED TV this year increased so quickly over last year. This
year 2 out of 3 total flat-screen TVs sold were LED, while last year's 1 out of 4 TVs
sold was in this segment. Driven mainly by the manufacturers and cheaper price of
LED TVs are the main reasons in the growth of these products.
• Air conditioner continued to gain around 28% in April, albeit of its slight decline
compared to last year. Inverter share in air conditioner remains small compare to
air conditioner with no inverter which is only 9%, and 91% share still driven by the
non-inverter function. Price remains a consideration for consumer whom still
prefer the non-inverter function.
• Market for cooling/fridge continued to show a strong growth with around 20%
increase compare to previous year. The sales remained dominated by 1 door
cooling which contributed around 64%. However, the shift in trend towards the
middle and mid high segment indicated the increase in consumer purchasing
power as well as the growth of replacement market.
14. Market Highlight
• Washing machine sales increased up to 42% in January 2013 compared with the
same month last year. Although the market is still dominated by segments double
tub at 51%, but there is also a huge growth in the segment front-load, ie up to
75%. It shows the evolution of consumer demand towards products with better
quality.
• The Small Domestic Appliances (SDA) market in Indonesia in the last 12 months
totaled more than USD 1.6 billion, expanding by nearly 6 percent in value
compared to the same period a year ago. According to GFK retail audit findings, this
value growth is a result of consumers buying nearly one million more small
household appliances such as food preparation appliances, irons, rice cookers and
vacuum cleaners compared to the previous year.
Source: GFK Market Insight Indonesia, January-April 2013.
