Indonesia’s strongest brands are primed for growth
In some ways, 2015 was a year for businesses in Indonesia to forget. While posting strong growth by world standards, GDP growth in Indonesia slowed to its lowest rate since the 2009 crisis, and rising inflation put the squeeze on consumer spending power.
But many Indonesian businesses are now looking ahead with renewed, if not cautious optimism. Growth forecasts are still lower than in the past five years, but most businesses and observers expect to see a recovery during 2016, and Indonesian consumers share this optimism.
GDP per capita has grown from US$790 in 2000 to $3,347 in 2015, one of the strongest rates of growth in the world, World Bank figures show. But beyond the general trend that these averages describe there is tremendous wealth, and also many thousands of people who live in poverty.
The digitization of life in Indonesia – has nurtured a fresh crop of new and disruptive brands that are not just altering markets but consumer expectations across all categories. These challenger brands and challenger business models are quickly establishing strong connections with consumers. They are also underlining the need for successful, valuable brands to innovate and build meaningful relationships with today’s consumers as well as those people who cannot yet afford to buy but who will join the consumer classes in the coming decade.
The long-term growth potential for Indonesian brands is great. And, based on new government regulations these local bands can also look at regional expansion, as can brands from neighboring markets.