Wednesday, September 11, 2013

Consumers Characteristics

While scanning for business opportunities one of the important requirements is to try and understand the consumers. It is not recommended to characterize and box the consumers of any country as it needs a granular understanding. However, there are some broad characteristics which would apply to most of the consumers in Indonesia. They are as follows:

1) FOCUS ON FAMILY: As many people I have interacted with and inquired about their purchase decisions, what strikes as a common thread is that most of the people have their family on top of their mind while making purchase decisions i.e. most of them would first make the purchase for family members than for themselves.

2) SHOPPING AVENUE: I have interacted with mostly all age group people and of different classes. Though it is bit different in case of the young generation but most of the Indonesians prefer to shop at small shops called Warungs (in picture below) and Minimarts. Though, many young people prefer the new shopping malls' stores, but it seems like majority still favors small shops that are conveniently located and apparently their prices are lower than the supermarkets in the malls.


3) MEDIA AND WORD OF MOUTH: This again is changing in case of the young generation but most of the Indonesians still prefer the traditional media, advertisements, and recommendation by friends or salespeople. Though, younger generation is looking for recommendation over the Internet.

4) BARGAIN HUNTING: This characteristic

is quite similar to the Indian consumers, as they also enjoy hunting for bargains and is independent of the person's wealth. When I talked to people they seem to enjoy when they are able to make a purchase by striking a bargain and would not mind going to wet (and messy) market for that purpose.

5) INTERCONNECTED: In one way this is a derivate of their family focus. But why I prefer to mention it separately is the fact that they have used the digital platform to strengthen the connection. There are around 64 million facebook users roughly the same number of Internet users. So it is important for any marketer to target the digital media.

Based on the above if one were to think of a new product or service then something that improves the lives of family members (say focused on elderly or children) could be a good idea.


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