The affluent segment in Indonesia may be underserved, primarily due to the scarcity of insights into its needs and what makes the segment tick. Karmelia Nurdjalim, Executive Director for Consumer Research at Nielsen Indonesia, warned of the pitfalls for marketers if they dilute the purity of this segment at Nielsen’s inaugural Consumer 360 Conference in Jakarta, Indonesia on October 19, 2010. These and other insights into the affluent segment from recent studies by Nielsen were presented to conference delegates to provide a better understanding of this segment.
Approximately 1.2 percent of the population (about 10 million people) in the capital city Jakarta belong to an affluent segment of consumers. These consumers spend upwards of 15 million rupiah (about US$1,700) or more on routine monthly household expenditures. While this segment is a relatively small, it presents a wealth of opportunities for marketers to gain higher margins, achieve stronger brand loyalty and powerful word-of-mouth endorsements.
Ms. Nurdjalim highlighted some of the changing/emerging values of the affluent consumer segment in Indonesia, which include:
“They now want it all - look good, feel good, be spiritually fulfilled and are also looking at healthy eating options such as organic rice,” she said. In addition, these consumers will not be deterred by the significantly higher prices of products and services that they feel will enable them to achieve their health and well-being objectives.
These investments include sending their children for overseas education. More than 50,000 Indonesian students travel abroad annual for studies, with the majority going to Singapore and Australia. “This trend has not gone unnoticed by financial services firms, some of which are already offering global financial services that facilitate overseas education,” she added.
Five Guiding Principals for How to Reach the Rich:
Nielsen’s inaugural Consumer 360 Conference in Jakarta Indonesia brought together industry and Nielsen experts to share the most innovative and insightful views of the consumer. The conference in Jakarta was themed “Capturing the Consumers’ Minds”. More than 300 guests from a broad range of industries including Fast-Moving Consumer Goods (FMCG), Retail, Media, Telecommunications, Pharmaceutical and Social Media participated in the full-day proceedings.
Please click here if you would like to be included in upcoming Nielsen Consumer 360 conferences in the Asia Pacific region.