Retail Market in Indonesia to record USD 44.13 Bn growth — AEON CO. Ltd., CT Corp., and Global Digital Niaga emerge as key vendors – QNT Press Release


NEW YORK, Aug. 5, 2022 /PRNewswire/ — The retail market size in Indonesia will record an incremental growth of USD 44.13 billion between 2021 and 2026, according to the latest research report by Technavio. The report expects the market to observe a YOY growth of 4.0% in 2022 and accelerate at a CAGR of 4.6% during the forecast period. The report offers an up-to- date analysis of the current market scenario, the latest trends and drivers, and the overall market environment. Download Sample PDF Report Here

The retail market in Indonesia is highly competitive and fragmented, with the presence of both small and large vendors. Intense competition and declining profit margins are significant risk factors for the vendors operating in the market. With the increase in competition, the industry has been witnessing consolidation, where smaller entities are acquired by or merged with major players. To survive and succeed in this intensely competitive environment, it is imperative for market vendors to distinguish their product and service offerings through clear and unique value propositions.

The market is primarily driven by the expansion of the retail landscape. Most of the retail operators in Indonesia are replacing their unorganized retail outlets with big retail hypermarkets, supermarkets, and other retail chains. This has increased the availability of all necessary items under one single roof, thereby making shopping more convenient for customers. In 2020, Alfamart announced its plan to open 1,200 new stores in Indonesia and the Philippines. This increased the total number of stores operated by the company and its subsidiaries to 17,294. Such expansion plans by retail operators will have a positive impact on the growth of the market in focus during the forecast period.

In addition, market trends such as the rising preference for local brands will further accelerate the growth of the market during the forecast period. However, the underdeveloped infrastructure in Indonesia might reduce the growth opportunity for vendors. Competitors have to focus on differentiating their product offerings with unique value propositions to strengthen their foothold in the market. Market vendors also must leverage the existing growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

Technavio identifies AEON CO. Ltd., CT Corp., Global Digital Niaga, Lazada Group, Lotte Corp., PT Bukalapak.com, PT Erajaya Swasembada Tbk, PT Hero Supermarket Tbk, PT Lion Super Indo, PT Mitra Adiperkasa Tbk, PT Multipolar Technology Tbk, PT Ramayana Lestari Sentosa Tbk, PT Sumber Alfaria Trijaya Tbk, PT Tokopedia, PT. Indomarco Prismatama, PT. Sinar Sakti Metalindo, PT. INTI CAKRAWALA CITRA, Sea Ltd., SPAR International, and TipTop Rawamangun as major market participants. View Sample Report Here

The retail market in Indonesia is segmented as below:

  • Product
    • Food and Beverages
    • Electrical and Electronics
    • Apparel and Footwear
    • Home Improvement and Household Products
    • Others

By product, the market witnessed maximum growth in the food and beverages segment in 2021. Factors such as an upward trend in the prices of commodities and an increase in the purchasing power of consumers in regions such as Sumatra and Kalimantan are driving the growth of the segment. The market growth in the segment will be significant during the forecast period.

  • Distribution Channel
    • Offline
    • Online

The offline segment accounted for maximum revenue generation in 2021. The proliferation of convenience stores that offer everyday products like groceries, confectionaries, soft drinks, snacks, personal care products, toiletries, and other regular-use items is driving the growth of the segment. In addition, increasing foreign investments in the pharmacy retail sector are fostering the growth of the segment.

Technavio presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources. The retail market in Indonesia report covers the following areas:

Retail Market in Indonesia 2022-2026: Key Highlights
  • CAGR of the market during the forecast period 2022-2026
  • Detailed information on factors that will assist retail market growth during the next five years
  • Estimation of the retail market size and its contribution to the parent market
  • Predictions on upcoming trends and changes in consumer behavior
  • The growth of the retail market in Indonesia
  • Analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of retail market vendors
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