A guide to tap into

new generation moms

August 2020
 Contents

Introduction 2

Rule #1 Identify the new generation of mothers 4

Rule #2 Understand their priorities and walk with them
6
along the journey

Rule #3 Adapt to their needs 8

Rule #4 Change your availability to reach them 9

Rule #5 Revolve around them: learn from the COVID-19
11
impact

Summary 14

1
The excitement of raising a
child is a unique experience
for all parents

Parents go through a series of stages

in supporting their children’s
development, from baby through to
adulthood.

As parents start to explore their new

world, they each have different
considerations as they select which
brands to buy. These evolve over the
years.

With billions of choices and lots of

information to digest, they connect,
share and learn the new behaviour
together.

2
 The baby sector remains a promising market in Indonesia. In 2019, the number of
households with children under six years old grew by 3%. This set of people spend
8.6% more than the previous year on baby products.

In this pandemic era, consumers are prioritising their needs, which benefits some
categories more than others. Baby products are continuing to post growth during
COVID-19.

Indonesia Urban + Rural,

Households with children under six yo, Spend

9.7%
Value Growth

8.6%
Value Growth

Non Baby Categories Baby Categories

MAT 2018 MAT 2019

Baby Categories

Baby Milk Baby Diapers Baby Personal Care Baby Wipes Baby Biscuits

Value
Contribution % 53% 34% 8% 2% 1%
MAT 2019
Growth vs YA +10% +8% +6% +23% +11%

3
 Growth rules for brands in the baby sector
How to support the new generation of mothers in constantly-
changing circumstances.

Rule #1
Identify the new generation mothers
Three-quarters of mothers with children under six years old are
millennials and centennials. According to the Indonesia
Statistics Bureau (BPS), this age group is defined as those born
in between the years of 1980-2000.

This group of mothers is the “window of opportunity” and it is

essential to understand their purchasing behaviour.

Indonesia Urban + Rural, household contribution, spend, MAT 2019

Centennials <=25 y.o Millennials 26-40 y.o Gen X >40 y.o

23

55

67

40

5 11
National Indonesia Households with children under six

4
Higher ambition in Higher interest in
pursuing optimal growth natural ingredients
New generation moms Young mothers are more
have higher aspirations to aware of their children’s
breastfeed their children, overall wellness; therefore,
at least up to six months they are providing home-
exclusively. based menus after their baby
starts weaning.
Products that help boost
breastmilk production are Moreover, they perceive that
growing, such as mung natural products can provide
bean juice, which has better benefits, supported by
gained 1.1 million the fact that brands using
shoppers since 2018. natural images are growing
across lotion, bath gel and
liquid milk (communications
focused on natural)
5
Higher needs towards
specific brands
Unlike the rest of FMCG,
where the younger
generation are the early
adopters for new products,
it doesn’t apply for baby
products.
Across age groups, only one
or two brands are bought
for each category.
 Rule #2
Understand their priorities and walk with them along
the journey

Motherhood is a challenging journey, yet each stage offers an exciting experience.

This translates to different purchase patterns:

■ Moms-to-be: maternity period

Pregnancy is where motherhood begins. More millennials and
centennials purchase pregnancy and lactation milk during their
prenatal stage up to having newborns. This category grew by +17%
compared to last year.

■ New moms: babies under 12 months

Moms with infants put the highest priority on their baby’s needs.
Almost 40% of their FMCG budget is spent on baby categories.

On top of this, other categories used more during the first year of
motherhood are:
cloth stain cheese hand facial
remover sanitizer tissues

+ 350k + 263k + 149k + 80k

buyers buyers buyers buyers

Beyond FMCG, new moms spend more than average on savings and
parties or ceremonies.
6
 ■ Moms with toddlers: children aged one to three
When babies become toddlers and have more activities, spend on baby
needs is reduced to 32% of total FMCG expenditure. This is mainly due
to lower spending on diapers and baby foods, as spending on dairy
remains high at 17%. Yet moms have higher expenditure on housing,
transportation and travel as the toddlers start to walk and have more
activities outside the home.

■ Preschool moms: children aged three to six

Spending on baby needs is further reduced when babies start pre-
school. Moms within this period cut it to 13% (which is only one third of
new moms’ spending). The share of dairy is 8% as the kids start
consuming other types of food and beverages. Now preschool moms
spend more on their children’s education as well as fashion and durable
goods.

Baby product spending – by age

Households under 12 Households with Households with

months children 1-3 years old children 3-6 years old

40% 32% 13%

Indonesia Urban + Rural, Spending at each stage, MAT 2019

7
 Rule #3
Adapt to their needs

It is crucial to adapt to the needs of new generation moms. Products that offer
more value are more attractive. For instance, telon oil (adding 1 million buyers)
which offers additional benefits as it repels insect and lasts for a long time. A
similar trend is also captured for baby liquid soap with the top-to-toe variant
which brings high traction (adding 1.4 million buyers) especially from moms with
babies under one.

Small pack sizes, offering on-the-go

value for the mobile lifestyle, continue
to be popular for moms with babies
under three years old. Diaper sachets
are growing 8% among the middle
upper social class, and pocket baby
wipes are growing 14%.

In the food sector, baby biscuits are

growing by 10% as they are more
convenient than baby cereal which is
declining. A good price point and
convenience are essential for new
generation moms.

8
 Rule #4
Change your availability to reach them

■ Channel evolution
General trade is the most penetrated with more than 90% of
moms purchasing their baby products in the last year. Value-
wise, the minimarket is the largest having around a 40% share.
Despite the domination of general trade and minimarkets, the
fastest growth comes from other alternative channels such as
specialty stores (baby stores, milk store, personal care stores)

Milk & Baby

General Trade Minis Hyper/Super
Store

Value Growth +21% -1% +11% +4%

Spend% 8% 31% 43% 13%

Penetration 12% (+1.4) 93% (+0) 65% (+0.5) 30% (-1.3)

Monthly Almost every 2-3x every 1-2x every Once every 1-2
Frequency month month month months

Spend per trip

118 20 68 87
(‘000 idr)
Indonesia Urban + rural, Total Baby Product, Youngest Baby Age 0 – 6 y.o,, MAT 2019

What drives the growth of speciality stores?

1. Proximity - located mostly in residential areas,
2. Flexibility - can get products delivered to their doorstep,
3. One-stop service - not a self-service format store, hence moms, particularly new
moms, can consult with the store attendant,
4. Competitive pricing; especially for bulk purchases.
9
■ Online word-of-mouth

The online channel is on the rise driven by highly-affluent moms, who mainly
purchase baby diapers and baby milk powder. Online is important not only as a
marketplace but also for the community that it creates. Almost a quarter of
new moms access social media every day. Supporting one another through this
time gives them a new sense of belonging.

Online word-of-mouth has been powerful in sharing advice from fellow moms
and mom-fluencers that are found to be reliable. With the spirit of supporting
each other. baby-birth clubs are set-up to help gather and share information.
Brands should look at these opportunities to advise and educate consumers.

10
 Rule #5
Revolve around them: learn from the COVID-19 impact
During this global pandemic, it is wise for brands to adapt to the
‘new’ normal and cater to the needs of customers to survive in this
uncertain times.

■ Higher concern when it comes to family health and well-being

This pandemic era feels more challenging for moms with kids.
Therefore, they have higher concerns about their family's health and
safety. Households with kids under six years old have a higher fear of
getting infected by the virus and this impacts their attitude towards
financial planning and security.

Concern towards personal and family health conditions Top two score details

By Youngest
19% 7% 48% 15% 11%
Baby Age

1 5 29 25 24
I am sure that I will I am highly scared of
remain healthy, being infected,
because I have taken although I have
preventive health taken preventive 0-6 6-12 >12
measures health measures y.o y.o y.o

Impact towards personal and households financial planning and security

Top two score details

By Youngest
18% 30% 21% 20% 13%
Baby Age

36 30
1 5 29
No impact on how I I become very
manage and plan for cautious in planning
personal &/ my personal &
households finance households finance
0-6 6-12 >12
y.o y.o y.o

Source: Worldpanel FMCG, LinkQ Study. N=1500 FMCG Main Shopper, Indonesia Urban + Rural Conducted from
March 9 to March 13 2020
11
■ Stockpiling behaviour for kids’ essentials
A higher concern about the pandemic translates to purchasing more for their kids
and moms had stockpiled groceries as result. They visit retailers less frequently
but have higher spending and buy more on each trip.

Growing categories during the COVID-19 outbreak

Among households with with children under six, these are the fastest growing
categories compared to the same period (March-April) in 2019.

BABY WIPES BABY BISCUITS INFANT MILK

39% 42% 26%

value growth value growth value growth

-4% +13% +22%

Frequency Spend per trip Volume per trip

Baby biscuits was the top growing baby products during the COVID-19 outbreak with an
increase in value of 42% in March-April 2020 compared to 2019. Additionally, moms also
increased their purchase for infant milk formula (+26%) and baby shower gel (+24%).
12
■ Rising needs for germ-killing products
As well as meeting their basic needs, moms are also looking for products with
antibacterial and germ-killing benefits. The baby wipes category has reached 1.6
million more moms compared to the same period last year. It is also notable that
38% of the new buyers of hand sanitizer have come from households with
children under six.

■ The minimarket remains crucial, despite the growth of online

During the outbreak consumers still largely purchased baby products in the
minimarket. While bigger store formats like hyper and supermarkets had less
customers following the implementation of lockdown, online grew. The diaper
category was the main contributor to this growth, especially among mothers with
children under two years old as some brands push their online efforts harder.

13
A guide to tap into
new generation moms

Rule #1
Identify the new generation mothers

Rule #2
Understand their priorities and walk with them
along the journey

Rule #3
Adapt to their needs

Rule #4
Change your availability to reach them

Rule #5
Revolve around them: learn from the COVID-19
impact
 ABOUT US

OUR CONTRIBUTORS

Venu Fanny Nafira Anindya

Selviani
Madhav Murhayati Meutia Laksmita
Senior Account Senior Account Senior Account
General Manager Marketing
Manager Executive Executive
Kantar Indonesia Director
Kantar Indonesia Kantar Indonesia Kantar Indonesia
Worldpanel Division Kantar Indonesia
Worldpanel Division Worldpanel Division Worldpanel Division

Kantar is the world’s leading evidence-based insights and consulting company. We have a complete, unique and
rounded understanding of how people think, feel and act; globally and locally in over 90 markets. By combining
the deep expertise of our people, our data resources and benchmarks, our innovative analytics and technology,
we help our clients understand people and inspire growth.

In Indonesia, we are tracking 4,000 households baby panel, which are having kids aged 0-6 Years Old, a constant
panel which allows purchase behavior tracking since baby was born

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