Variety Stores in Indonesia

PROSPECTS

Performance boosted by strong expansion of international players

Variety stores continue to record very healthy growth thanks to the performance of foreign brands. A factor pertaining to this trend is changing shopping behaviour, with consumers moving more towards leisure, cooking and travel.

Operating environment for foreign players improved by government regulation

The imposition of a number of regulations related to modern retailing have helped to foster the development of foreign brands in variety stores at the expense of local entrepreneurs. Existing retailers were impacted by the obligation to sell 80% local products, with companies that failed to meet this requirement being issued warnings.

Strong growth potential given expansion of foreign brands

Since the easing of the Negative Investment List (DNI) in Indonesia in mid-2016, foreign retailers have flooded the country, including in variety stores. This has fuelled rapid growth within the channel, with consumer trust in these brands expected to remain high.

COMPETITIVE LANDSCAPE

Players focus on leveraging strong growth potential

Despite the withdrawal of some brands, others are still putting their trust in expansion and opening new outlets. One of these is Miniso, which is expanding very aggressively in the Indonesian market.

Value growth boosted by expansion of new foreign brands

Attracted by strong growth and the success of recent new entrant Miniso, more foreign brands are entering variety stores in Indonesia, such as Latt Liv from Pakistan and Minigood from Korea. Foreign players have the luxury of offering product variety.

Partnerships with e-marketplaces help players expand online operations

Digital operations continue to develop rapidly in Indonesia, especially with the emergence of various e-commerce players both locally and globally. This is an opportunity for offline retailers to increase their sales through online sales.

Files are delivered directly into your account within a few minutes of purchase.