FMCG MONITOR / An integrated view of Indonesia FMCG market

MAT Q1 2021 (In Home Consumption - National)

 EXECUTIVE SUMMARY

Design designed by Hanif Revano

Revano Hanif

1 2 3 4 5 6

MARKET FMCG SHOPPER SEGMENT RETAILERS EMERGING

UPDATE PERFORMANCE BEHAVIOUR PERFORMANCE SNAPSHOT TRENDS

Indonesia’s GDP has still As Fresh Food and FMCG More affluent shoppers Higher growth seen for Proximity channel Upper and middle class
contracted in latest continues to increase, grow their spending and Dairy, Food & Beverage remains prominent, while dominate the
quarter, but we are shoppers are trip size faster while categories, driven by there is a significant contribution within online
seeing signs of recovery. rationalizing their spends maintaining their shopping basket size and spending growing purchases from FMCG buyers, especially
Household consumption in purchasing FMCG trips per trip. online channels. in purchasing food and
is also recovering in the products. personal care.
latest quarter

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 INDONESIA ECONOMY GROWTH
Indonesia’s GDP is still contracted in recent quarter with a sign of recovery. Household
consumption is also recovering in the latest quarter.

INDONESIA GDP INDONESIA GDP

GROWTH RATE % ANNUAL GROWTH RATE %
2,97 5,2
5 5,1 5,02
GDP Growth
Q4 20 Q1 21
YoY%
Household
-3.61 -2.23
Consumption
Q1 '20 Q2 '20 Q3'20 Q4 '20 Q1 ' 21
Investment -6.15 -0.23
-0,74
Government
1.76 2.96
Spending
-2,19
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
Export -7.21 6.74
-3,49
Import -13.52 5.27
-2,07
-5,32

Source: Trading Economics, Central Bureau on Statistics (BPS) 3

 INDONESIAN CONSUMERS
As government kicks off Covid-19 vaccination program, consumer confidence continues
to recover

INFLATION RATE CONSUMER CONFIDENCE INDEX USD EXCHANGE RATE

94 14.269

1,37

Sep '19 Mar '20 Sep '20 Mar'21 Mar' 19 Sep '19 Mar' 20 Sep '20 Mar'21 Sep '19 Mar '20 Sep '20 Mar'21

Source: Trading Economics 4

 FMCG EXPENDITURE SURVEY
Primary needs, including Fresh Food and FMCG, continues to increase, along with growing allocation of
Durable Goods.
Top 3 Spending Increased
Q1 ‘21 vs LY

Overall Household Household spending | Total Indonesia | Q1 2021 vs Q1 2020

Spending Growth Q1 2020 Q1 2021
Fresh Food FMCG Durable Goods
Q1 ‘21 vs Q1 ‘20
Fresh Food 20 18
-0.6% Top 3 Spending Decreased
FMCG
Necessities 11
25
11
26

Q1 ‘21 vs LY
Entertainment 19 20
26 26
Others

Transportation Utilities Eating Out

Source: Kantar, Worldpanel FMCG, Expenditure Survey, Indonesia Urban and Rural, Q1 2021
*Necessities: Housing, Utilities, Education, Healthcare, Transport, Communication.
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Entertainment: Durable goods, Ceremony, Clothes/Fashion, Travel/Holiday, Eating Out, Entertainment.
Others: Saving, Investment, Tax, Agriculture, Others.
 FMCG PERFORMANCE
Shoppers are rationalizing the cost for FMCG products as they maintain their shopping trips.
Along with the continuous restriction on outdoor activity, it is important to secure every shopping
trip.
FMCG IN HOME | INDONESIA URBAN+RURAL | 12 weeks YOY growth trend

VALUE, VOLUME & PRICE FREQUENCY, UNITS BOUGHT &

SPEND PER TRIP
Price per Unit Units Bought per Shopping Trip
Value
No of Shopping Trips
Volume (Unit) 20
20 Spend per Shopping Trip FMCG IN HOME MAT Q1 MAT Q1
2020 2021
15
15 Value 9% 8%
10
Volume (units) 5% 5%
10
5 Price per unit 4% 3%
5
0 Frequency 1% 0%

0
-5
19 19 19 19 20 20 20 20 21
1 20 2 20 20 20 20 20 20 20 1 20 19 19 19 19 20 20 20 20 21
Q Q Q 3 Q 4 Q 1
Q 2 Q 3 Q 4 Q 1 20 20 20 20 20 20 20 20 1 20
Q Q 2 Q 3 Q 4 Q 1 2 3 4 Q
Q Q Q
FMCG IN HOME | INDONESIA URBAN+RURAL | MAT YoY

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 CONSUMER PURCHASE BEHAVIOUR
Basket size and spending per trip are able to grow across SES; particularly among the more affluent
class, at the expense of maintaining their trip number.

Value Buyer Frequency Spend per Trip (IDR) Volume per Trip (Units) Price per Unit (IDR)
Share % Share %
280 300 320 20000 40000 10 20 2000 4000

NATIONAL HH
100 100 EXPENDITURE -0% +6% +3% +3%

38 26 SES A&B -0% +8% +4% +3%

39 40 SES C
-0% +6% +4% +2%

23 34 SES DE
+1% +4% +1% +4%

FMCG IN HOME | INDONESIA

MAT Q1 2020 MAT Q1 2021 URBAN+RURAL

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 FMCG SEGMENTS PERFORMANCE
Higher growth seen for Dairy, Food & Beverage categories, driven by basket size and spending per
trip.

Frequency Volume per Trip (Unit) Spend per Trip (IDR) Price per Unit (IDR)
100 200 300
5 10
0 10.000 20.000 0 2.000 4.000 6.000 8.000
HOME CARE
-4% +7% +5% -2%

PERSONAL CARE
-1% +5% +4% -1%

DAIRY
1% +7% +5% -2%

FOOD
0% +4% +10% +6%

BEVERAGES
-2% +2% +6% +5%

FMCG IN HOME | INDONESIA

MAT Q1 2020 MAT Q1 2021 URBAN+RURAL

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 SNAPSHOT CHANNELS
Proximity channel remains prominent while online channel shows strong performance by recruiting
and generating higher frequency among the shoppers.

Occasion % Purchase Behavior Across Channel

3 2 Penetration % Frequency Volume per Trip (Unit) Spend per Trip (IDR)
100 200 400 10 20 0 50.000 100.000

Total
-0% +3% +6%
Indonesia +0%
Other Channels HSM +8% +7%
-13% +4%
84 83 TOTAL GT

Traditional Trade Minimarket

-1% +3% +6%
-0%
Total
Specialty Store* Traditional
+0% +4% +7%
Trade -1%
TOTAL MT Specialty Store -4%
+6% +3%
Minimarket +11%
4 5
Online
+42% +23% -8%
8 8 +21%
2 2 HSM
MAT Q1 20 MAT Q1 21
FMCG IN HOME | INDONESIA
MAT Q1 2020 MAT Q1 2021 URBAN+RURAL

*Specialty Store: Depot Air Isi Ulang, Drug Store, Personal Care, Baby Store, Cosmetics Store, Milk Store. 9
SPOTLIGHT ON ONLINE
Upper and middle class dominate online FMCG market, especially in Food and Personal Care
segments
Heavy Buyers Medium Buyers Light Buyers
>16 unit (vol) >4-16 unit (vol) >0-4 unit (vol)

8
25 23
24 39 36

68
37 42

SES AB SES C SES DE SES AB SES C SES DE SES AB SES C SES DE

SES AB (68%) SES AB (39%) & SES C (37%) SES C (42%)
mostly purchase: mostly purchase: mostly purchase:
Food Personal Care Personal Care Food Personal Care

36% 24% SES AB: 51% SES AB: 20% 79%

SES C: 55% SES C: 24%

Source: Kantar FMCG In Home Indonesia Urban+Rural | Heavy Medium Light Analysis | Volume (in Unit) Share% | MAT MAR 2021 10
 TERMS GLOSSARY

TRADE CHANNEL DEFINITION IN HOME CONSUMPTION

Specialty Store Milk Store, Baby Store, Cosmetics Store, Drug Store, The consumption of FMCG products within home of panelist after the
Apothecary, Refill Water Kiosk purchase made and being reported in In Home dairy

Internet based marketplace which displays products Category Tracked 90+ (Exclude tobacco and fresh food)
Online
virtually via dedicated websites that can be accessed Scope Indonesia Urban + Rural
anytime. No direct face-to-face transaction occurs in Household representatives 68 Million
the purchasing process.
OUT OF HOME CONSUMPTION
MEASUREMENT DEFINITION The consumption of FMCG products outside panelist home and it is
consumed right away after the purchase made at the shop. The panelist
Penetration The percentage of households do purchase at least
will bring the used pack as proof of consumption and being reported in
once in a given period of time
out of home dairy.
Frequency The average number of shopping trips made to
purchase the product in a given period of time Category Tracked 22
List of Categories Ready to Drink (RTD) RTD coffee; isotonic drink;
Occasion / Trip The actual number of purchase occasion / shopping
D tea; energy drink; RTD juice; RTD milk;
trip in a given period of time
carbonated soda drink; mineral water; cultured
Spend per Trip The average amount that buyers payed in a single milk; soya milk; yoghurt drink; health food drink;
shopping trip Ready to Eat (RTE) potato snack; extruded snack;
chocolate; ice cream; candy; cold cereal; biscuits;
Volume per Trip The average volume that buyers purchased in a single
cup noodle; RTE sausages; chewing gum
shopping trip
Price per Unit The average price that buyers payed for a single unit Scope Indonesia Urban

Individual representatives 130+ million from the same Household

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Kantar is the world’s leading data, insights and consulting company
We understand more about how people think, feel, shop, share, vote and
view than anyone else. Combining our expertise in human understanding
with advanced technologies, Kantar’s 30,000 people help the world’s
leading organizations succeed and grow.

These findings are based on Worldpanel FMCG data. In Indonesia, Kantar

monitors in home and out of home consumption, in the FMCG front, every
single week. We track household purchases of over 90 different FMCG
categories across food and nonfood. Our in-home data represents 68
million of Indonesia Urban and Rural Household population. Our out of
home data represents 130 million of Indonesia Urban population.

FIND OUT MORE AT

www.kantarworldpanel.com/id
www.kantar.com

www.linkedin.com/company/worldpanelbykantar/

OUR OFFICE
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