Air Care in Indonesia

PROSPECTS

Car air fresheners sales boosted by rise in car ownership

Sales of cars in Indonesia have been increasing rapidly over the past five years, mainly due to the rise in the number of middle-income households and cheap affordable cars. Daihatsu Sigra, Toyota Calya and Honda Brio are now among the top-10 most popular cars in Indonesia, each costing less than USD10,000.

Strong scope for growth given low air care penetration

Despite the growing popularity of fragrances in various home care areas, air care continues to struggle to attract new consumers. A report by Godrej Consumer Products Limited revealed that the penetration of air care products in Indonesia still stands at only around 20% of the population, mainly due to the fact that such products tend to be perceived as premium and non-essential.

Innovation key to attracting consumers

Electric air fresheners is currently the lowest selling product within air care as prices remain too expensive for most people in Indonesia. Consumers are interested in such products but do not see the value in paying high prices compared to cheaper alternatives.

COMPETITIVE LANDSCAPE

Extensive product offering ensures Stella remains in pole position

Megasari Makmur’s Stella brand continues to lead air care sales, posting more than double the sales share of nearest competitor Little Trees from Car Freshener Corp. With continuous product innovation and marketing via various channels and media outlets, Stella has successfully extended its presence in Indonesia.

Ambi-Pur sales boosted by rising car ownership

Procter & Gamble Home Products’ Ambi-Pur brand continues to see rapid growth in line with the rapidly rising number of cars in Indonesia, with most of the brand’s sales being made within car air fresheners. Ambi-Pur has always been associated with car air fresheners, with the brand enjoying a strong consumer base and little marketing effort being required to boost demand.

Growing competition from local brands targeting price sensitive consumers

In some categories, such as car air fresheners, local brands have started to gain traction, thus increasing competition for existing products. For example, Koke and Kopi Bali have started to grow rapidly in large cities in Java, in line with the rising number of coffee lovers in Indonesia.

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