Variety stores looked set to see value sales decline further in 2021. As in other retailing channels, the COVID-19 crisis has had a marked impact on the performance of variety stores, although it has been less severely affected than channels such as department stores.
Miniso remains the largest player in the variety stores channel in Indonesia. The Chinese company’s marketing strategy, which utilises the aesthetic of Japanese variety stores, is a key reason for its success in attracting consumer interest, as Indonesian consumers believe Japanese products to be of higher quality than those from China.
Variety stores outlets are still amongst the favourite places to shop for younger consumers, especially for the Millennial generation. Sales of cute accessories, affordable prices and good product quality are key reasons behind the success of variety stores and provide the channel’s best hope of surviving the COVID-19 crisis.
With the easing of the PPKM restrictions as the threat from COVID-19 diminishes, the variety stores channel is expected to return to growth during the forecast period. It is expected to take several years for the channel to recover given that spend per person tends to be small and there is a high dependency on traffic for sales growth.
Japanese products are regarded as good quality in Indonesia, but K-culture is also spreading. Indonesians are increasingly knowledgeable about and familiar with Korean brands, and they have a reputation for good quality that will make Korean-made products more appealing as the forecast period progresses.
Leading brand, Miniso, has established partnerships with marketplace players, wherein they organise flash sales online to help in building the brand name. However, as in-store experience and browsing is an important part of the appeal of variety stores, it is unlikely that there will be a total shift to online, especially as products are priced low and not worth paying delivery fees for.
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Understand the latest market trends and future growth opportunities for the Variety Stores industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Variety Stores industry in Indonesia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories. Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories, although they may also sell grocery items. Includes fixed-price stores (e.g. dollar stores) and catalogue showrooms. Example brands include Dollar General, Woolworth (Germany), and Miniso.
See All of Our DefinitionsThis report originates from Passport, our Variety Stores research and analysis database.
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