With Ramadan less than a couple of months away, marketers across Indonesia are gearing up for one of the busiest periods in the marketing calendar. Ramadan continues to remain the year’s highest spending window for consumer packaged goods even in the pandemic. The spending on gifts and groceries during Ramadan reached $38.5 trillion in 2021, which exceeded the $35.6 trillion that was spent during the non-festive periods.
Brands that seek to engage with Indonesians during Ramadan 2022 need to identify the latest shopping behavior. There has been a shift in consumer behavior in buying patterns in Indonesian consumers. To identify these patterns, Google carried out a study and came up with the Digital 2022 Playbook that offers marketers unique insights into the Indonesian market.
Here are the major highlights of the report.
1. Digital Becomes a Way of Life
While offline shopping was the preferred medium for most Indonesians, brands also need to be ready to cater to the needs of their Indonesian consumers through online channels and offer them a seamless online-offline experience. It is because 21 million new Internet users came online in Indonesia in 2021.
The demand for online shopping is also expected to grow in non-metro areas as 72% of new internet users reside in non-metro cities. E-commerce transactions for FMCG products have already grown by 2.1X in non-metro cities. Also, 99% of new digital users intend to continue using digital services in the future.
2. Need for a Timely Online Presence
Most Indonesians tend to research a product or service online first to have the confidence to purchase it. While 80% of Indonesians say they need a trusted source of information before they purchase a product, 94% of Indonesians say they want to read as much relevant information as possible before making a purchase. They usually turn to search engines first, with 73% of Indonesian shoppers saying they use search engines to find e-commerce or brand websites.
However, merely a strong presence isn’t enough, it also has to be timely. Brands need to be present when people are searching for information online so that they can stay at the top of their minds.
3. Need for Personalized Video Content
As more Indonesians from non-metro areas come online, brands need to lean into hyperlocal marketing to make sure that their campaigns cater to the diverse needs and shopping behaviors of people across Indonesia.
This can be done through online video at a large scale during Ramadan because 70% of Indonesians consume more content during Ramadan than non-festive periods. YouTube is the most-watched online platform amongst Indonesian viewers as it dishes out content with both mass appeal and deeply personal relevance.
Brands can team up with YouTube content creators to engage diverse audiences across Indonesia. With their deep expertise and extensive audience connections, brands can ensure that they reach out to every major segment of their target audience.
4. Balance Between Online & Offline Shopping
While online shopping has grown by leaps and bounds last year, brands should make every customer touchpoint count in their offline channels too. This is because offline channels remain equally important to shoppers as online mediums.
Many Indonesians live close to shops or markets. 40% of the shoppers say they find shopping at these stores more convenient. 28% of the shoppers say that they prefer to shop offline as it allows them to immediately see or purchase an item.
Bottom Line
As shopping behaviors in Indonesia evolve and digital consumption grows in the country, people will expect brands to meet them wherever they are; whether online or offline. Brands that can establish a solid omnichannel presence and provide customers with helpful and personalized content in their purchase journey will be better placed to get ahead and maximize growth opportunities this Ramadan.
To delve deeper into the findings of the report, click here.