Digital Growth In Indonesia: One of the major sectors in Indonesia is the fast-moving consumer goods (FMCG). A business that makes an important contribution to the economic evolution of the nation. Some of the major factors for growth in the industry are:
- Increased buying power
- Increase in personal revenue
- Expanding on urbanization
This was one of the sectors that were not greatly affected by the COVID-19 epidemic. Moreover covid 19 lead an emerging need of digitization in this sector. The FMCG market value of Indonesia in the third quarter of 2020 shows a positive annual change of 8.8% year-on-year. In recent decades Indonesia’s FMCG sector has helped increase disposable incomes. Also it move to a consumption-based society in new development patterns.
Diversification And FMCG Sector – Digital Growth In Indonesia
More diversification of food and non-food goods, more wellness product propagation and a larger age and gender segmentation are important elements. They have contributed to alter the Indonesian industry. Online shopping has become a new normal among the consumers of Indonesia. There has also been a stronger tendency in the years. Since people became more aware of the need to eat healthy foods.The marketing of products as ‘healthier and ‘herbals.’ Due to pandemic no one was wishing to move out of their house to buy daily need goods this made FMCG to take off digitally.
The FMCG industry is now the 4th largest sector in the Indonesian economy, with 50% of its market in-home, cosmetic and personal care segments, and 31% and 19% in the food and drink market. In the next few years, the FMCG industry will remain on a path to development despite its recent slowdown in Indonesia’s economy. The FMCG industry is expected to increase by 9-10 per cent in 2021 by digital advertisement.
The rising usage of digital technology is a significant element that will keep driving the FMCG industry towards higher growth shortly. The growing number of industry participants now actively employ digital technology from increased usage of digital marketing. More customization in the context of e-commerce, drives the next stage of development amid to frantic competitors. The capacity to digitize rapidly will also be a major difference between businesses. As they adapt to shifting time requirements.
The increased role of global digitization In FMCG Sector
By 2021, the market is anticipated to reach 100 billion in the Indonesia FMCG industry. In addition, 650 million people are projected to cross the Internet in India this year. The FMCG sector is understood to develop as a digitally intelligent industry throughout the next decade. The increased use of mobile analysis, artificial intelligence and cloud technology.
Process automation is the fundamental factor for change and makes it possible for companies to become more efficient and efficient. Automated systems supported by AI technologies are utilized for aggressive inventory management, supply chain management flaws and distribution networks.
Keeping digital sales records and digital inventory accounts assist in minimize human error while enabling companies to obtain rapid demand and supply data. In addition to improving our client experience, automation of service is increasingly employed. The FMCG industry must also enhance the benefits of digital marketing through strategic tools aimed at various demographic groups – urban, rural, male, female, young and old.
Globalization Of the FMCG Sector
In the recent five years, the Industry of Indonesian Fast Moving Consumer Goods (FMCG) took shape. A significant element of the Indian economy, as it affects many aspects of human existence, is the FMCG industry. This is an opportunity for FMCG firms. In rural Indonesia, consumer incomes increase and lifestyles change. In rural regions, there are as many middle-income families as in metropolitan areas.
As a consequence, rural marketing has been gradually expanding throughout the years and is currently greater than FMCG’s urban market. With increasing levels of literacy and media exposure in rural areas, individuals like their urban counterparts become aware of their purchasing choices.
Digital Growth: Digital Marketing Perspective And Impact Of COVID-19 On FMCG Sector
Given Indonesians’ conduct in the context of the COVID-19 epidemic towards FMCG items. The prospects for the market of the FMCG in the nation will remain solid. During this period, the average consumer purchase volume has changed positively across all categories of FMCG, with greater changes in-home care, dairy and personal care. Although the FMCG forecast may be favorable, a larger distribution channel that includes e-commerce can be taken into account to enhance the shopping experience of customers.
Intelligence Of Customers
Customers must now be centered to have a competitive edge. To have a thorough grasp of and better fulfill the demands of our consumers. We need not only to require (and enough of) customer data but also a way of collecting and interpreting the data for useful views and trends. Brands continue to try to provide an ever more connected consumer with distinctive experiences.
Customers are looking for a personal experience and a human brand connection. Digital automation contributes to contact consumers on an extensive scale, not only with emails and personalized content. Also geolocation and growing usage of local products.
Digital marketing has so diversified the behavior of consumers that they represent more currently. More information, alternatives, difficulties, solutions. More choices may be explored before buying anything, further information can be found on the firm. The pricing can equal its direct rivals and more methods to obtain a basic product that was purchased from a local store near the house before.
In this world of more, customers want something more than just the product As that’s one of the oldest and the best ways where Product A beats product B, by simply offering more. In the digital space, brands need to offer more than just the product like free samples with the product. Also,other kinds of freebies or mini versions of products, discounts on birthdays/anniversaries, exclusive offers for regular buyers. A free product on the purchase of a particular amount, enhancing the user experience the entire process of buying / interacting with the brand.
Until one offers more, one is going to have a hard time winning the FMCG game in the digital age. As it is the new normal. However, with the changing times and penetration of the internet in our lives. Attention is the most importantly, a brand need. To comprehend that if one has the attention of a modern customer, one has won half the battle already.
The rise of global awareness, competition and available options, customers possess to get rid from the clutter of brands. Connecting with customers on a personal level, understanding their real as well as secret needs. Providing customer delight is the only way, a brand can stand out and create customer stickiness.
Retaining a customer is always cheaper than acquiring a new one. Brands, retailers, marketers need to understand the real and the opportunity cost of losing a customer. One wrong move and your customer is using your competitor’s product.
How Hopbug Can Help: Digital Growth
Hopbug can help you in promoting your product or services. we can run your advertising campaign among the target audience. This will help you in boosting your online sales in the markets of Indonesia.
We have a funnel of segmented audiences and we run our campaign accordingly for more query;