Consumer Electronics and Appliances Market in Indonesia 2016-2020

Overview of the consumer electronics and appliances market in Indonesia

Market research analysts at Technavio predict the consumer electronics and appliances market in Indonesia to grow at a CAGR of more than 10% by 2020. One of the driving forces behind the positive growth of this market is the entry of global retailers into the Indonesian electronics market. Factors such as high consumer confidence, an expanding middle-class population, and rising personal income have attracted numerous foreign vendors to enter this market in Indonesia. Investors can reach new regions which do not have modern outlets and shopping malls, but where demand is growing quickly. Major online retailers are also entering the market to reinforce their global presence. For instance, Alibaba entered the burgeoning Indonesian market through Aliexpress.

At present, vendors have started focusing more on unique promotional and marketing strategies, which attract more consumers. This trend is expected to aid the prospects for market growth in Indonesia. Promotional offers and schemes offered in supermarkets and shopping malls often lead to an impulse purchase. Events like fashion shows, beauty workshops, travel fairs, and music performances, are commonly held in shopping malls to entice visitors and encourage customers to stay longer. This, in turn, will lead to an increase in the number of shopping malls and department store outlets across the country,for consumer electronics in Indonesia.

Product segmentation and analysis of the consumer electronics and appliances market in Indonesia

• Consumer electronics
• Consumer appliances

According to this market study report, the consumer electronics segment accounted for the largest market share in Indonesia, accounting for approximately 84% of the total revenues during 2015. The recent decline in the sale of older technologies like fixed lens cameras, feature phones, e-readers, portable media players, and analog TVs has alleviated the development of newer technologies like smartphones, digital TVs, compact system cameras, and tablets.

Segmentation by distribution channel and analysis of the consumer electronics and appliances market in Indonesia

• Electronic and specialty retailers
• Hypermarkets
• Online

According to this market analysis, the electronics and specialty retailers (EASR) segment dominated the Indonesia home appliance market by accounting for a market share of around 65%  during 2015. The landscape of traditional EASR has been dominated by independent and small retailers but with the advent of new chained EASRs, this market segment will have a positive outlook until the end of 2020. One of the major factors for the growth of this segment is the wide variation and availability of products. For instance, some of the EASRs provide the option for credit card payment or installment purchases via credit cards or by agreements with third-party financing companies.

Competitive landscape and key vendors

The consumer electronics and appliances market in Indonesia is extremely competitive due to the presence of both international and local players operating across the country. As a result, the vendors are under constant pressure to bring in innovations across the country. The competition is expected to intensify during the forecast period due to factors such as affordability, M&A, the rise in urbanization and numerous new vendors, and an increase in the demand for the Internet.

Key vendors in the market are -

• ACE Hardware
• Erajaya
• Electronic City Indonesia
• Hypermart
• Trikomsel Oke

The other prominent vendors in this market include Alfamart, AliExpress (Alibaba), eBay, Lazada, Best Denki, PT. Electronic Solution Indonesia, PT AGIS Tbk, and Gunung Sari Intan.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the consumer electronics and appliances market in Indonesia?
• What are the key market trends impacting the growth of the consumer electronics and appliances market in Indonesia?
• What are the challenges to market growth?
• Who are the key vendors in the consumer electronics and appliances market in Indonesia?
• What are the market opportunities and threats faced by the vendors in the consumer electronics and appliances market in Indonesia?
• Trending factors influencing the market shares of Indonesia.
• What are the key outcomes of the five forces analysis of the consumer electronics and appliances market in Indonesia?

Technavio also offers customization on reports based on specific client requirement.

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