Final Indonesia slides

1. McKinsey & Company 1
Indonesian consumers are worried about the economic impact of
COVID-19 on their families’ finances.
20
10
26
14
27
24
27
26
20
25
21
25
20
27
14
24
8
10
7
9
5
4
4
3
I think the media coverage on COVID-19 is
getting too sensational and creating more panic
I am afraid to go outside to shop for groceries now
I am very worried that my family’s income
will be impacted by COVID-19 situation to a level
where I will not be able to make ends meet
I am planning to give up something I was planning
to buy because of uncertainly from COVID-19
To what extent do you currently agree with following statements?
% of respondents
Strongly agree Agree Somewhat agree Somewhat disagree Disagree Strongly disagree
During the COVID-19
outbreak …
~50% of consumers
agree that the media
coverage is getting too
sensational and creating
more panic
But 55% worry about the
impact of COVID-19 on
household income
40% are planning to give
up some discretionary
spending
Source: McKinsey & Company COVID-19 mobile survey 3/20-3/25/2020, N = 570. Sampled and balanced to match Indonesia’s general population, 18-65 years old.

2. McKinsey & Company 2
Post COVID-19, 80 percent of respondents plan to better
understand the safety of their grocery purchases.
29
38
30
6
40
41
41
14
25
16
21
11
4
4
5
40
2
1
2
22
1
1
1
6
I will care more about product
safety after COVID-19 situation
I will spend more time to understand
product safety for my grocery purchases,
manufacturing process after COVID-19 outbreak
I will consider grocery products that
are more environmental-friendly after
the COVID-19 outbreak
I will buy more foreign grocery
products after the COVID-19 outbreak
Strongly agree Agree Somewhat agree DisagreeSomewhat disagree Strongly disagree
Post COVID-19 …
70% of consumers will
care more about
product safety
80% of consumers
plan to spend more
time to understand
product safety for their
grocery purchases,
though this does not
appear to translate to an
increasing preference
for foreign brands and
products
To what extent do you currently agree with following statements?
% of respondents
Source: McKinsey & Company COVID-19 mobile survey 3/20-3/25/2020, N = 570. Sampled and balanced to match Indonesia’s general population, 18-65 years old.

3. McKinsey & Company 3
Consumers report a shift in preference toward grocery and away from
all other food service options—a trend that could linger.
1.Q: How has your spending per month changed during the COVID-19 outbreak compared to before the COVID-19 outbreak for each of the below items?
2.Q: For each of the following meal options, how do you expect your spending per month to change after the COVID-19 outbreak compared to now (during the COVID-19 outbreak)?
3.Net intent is calculated by subtracting the percent of respondents stating they expect to decrease spend from the % of respondents stating they expect to increase spend.
Restaurants could
potentially see longer
lingering effects from
COVID-19—particularly in
the dine-in format
In contrast, there appear
to be increasing
preferences towards
non-prepared food—
grocery net intention has
risen +10% and is
projected to continue on
this trajectory
Spend preference during
COVID-19 vs. before,1
Net behavior3
Spend preference after
COVID-19 vs. during,2
Net intent3
Dine in restaurant
+10% +18%Groceries purchased
from grocery stores
-58% -25%
Take out food from
restaurants
-11% +5%
Ready to eat food from
restaurant delivered to home
-15% -2%
Ready made food purchased
from grocery stores
-25% -5%
Decrease Stay similar Increase
Source: McKinsey & Company COVID-19 mobile survey 3/20-3/25/2020, N = 570. Sampled and balanced to match Indonesia’s general population, 18-65 years old.

4. McKinsey & Company 4
In addition to increasing their purchasing frequency and spending
at the top two formats, consumers are doing more online shopping.
1. Q: Among the below grocery shopping channels, which ones do you visit more/less frequently during the COVID-19 outbreak compared to before?
2. Net behavior/intent is calculated by subtracting the percent of respondents stating they do/expect to decrease frequency/spend from the % of respondents stating they do/expect to increase frequency/spend.
3. Q: Within the below store types, which ones do you think you will visit more/less frequently after the COVID-19 outbreak stabilize?
4. Q: Which store types have you increase your spending per month during the COVID-19 outbreak compared to before? (Percentage of consumers who have used each channel).
5. Q: Which store types have you decrease your spending per month during the COVID-19 outbreak compared to before? (Percentage of consumers who have used each channel, excl. those who increased their spend at a particular channel).
6. Q: Which store types do you expect your spending per month to increase after the COVID-19 outbreak stabilizes? (Percentage of consumers who have used each channel).
Change in grocery purchase frequency,
% of respondents who visited each channel before COVID-19
Decrease Stays similar Increase
During vs. prior,1
Net reported behavior2
After vs. during,3
Net intent2
Change in grocery spending,
% of respondents who visited each channel before COVID-19
During vs. prior,45
Net reported behavior2
After COVID-19,6 % of
shoppers per channel who plan
to increase spending
Convenience store
Wet market
Local grocery vendor
National chain
supermarket
Modern wholesale
Hypermarket
+47%
+40%
-3%
-4%
-3%
-15%
+49%
+33%
+18%
+15%
+21%
+9%
+32%
+19%
-5%
-2%
+3%
-9%
+47%
+36%
+41%
+35%
+46%
+29%
Online +16% +16% +16% +33%
Source: McKinsey & Company COVID-19 mobile survey 3/20-3/25/2020, N = 570. Sampled and balanced to match Indonesia’s general population, 18-65 years old.

5. McKinsey & Company 5
Availability of products and hygienic service are the top drivers of
in-store experience during COVID-19.
62
59
31
30
24
23
22
21
15
12
Product availability
Availability of hygienic services for in-store use for customers
Availability of private brands
Able to shop without interacting with staff
Product prices for branded products
Store staff demonstrating cleanliness practices
Transparent communication of changes in what the store provides
Proactive communication of store cleaning procedures/policies
Promotions
Availability of assistance from store staff
Most important factors impacting consumers’ current in-store experience,1
% of respondents selecting factor as top three
1. Q: What have been the most important factors for creating a positive in-store grocery shopping experience during the COVID-19 outbreak?
Source: McKinsey & Company COVID-19 mobile survey 3/20-3/25/2020, N = 570. Sampled and balanced to match Indonesia’s general population, 18-65 years old.

6. McKinsey & Company 6
For the next few weeks, consumers say cleanliness and availability
of fresh food matter more than competitive prices.
50
42 41
29 28
25 23
20 20
16 16
12
Ability to
shop and
pay without
interacting
with staff
Robustness
of cleanliness
/hygiene
practices in
store
Store has
special
opening
hours for me
(concession
card access
only)
Store location
(close to
home or
work)
Stable
availability
of fresh food
products
Stable
availability of
packaged/
frozen food
and other
non-fresh
products
Competitive
prices on
branded
products
Crowd levels
/number of
people in
store
Stable
availability of
home brands
Store is
open until
late at night
I can order
online before
going to store
and pick up
or get
delivered
Store is
open early in
the morning
Most important factors in choosing a grocer to go to in the next four weeks,1
% of respondents selecting factor as top three
1. Q: What are the top 3 most important factors that will influence which physical store you do grocery shopping in during the next 4 weeks?
Source: McKinsey & Company COVID-19 mobile survey 3/20-3/25/2020, N = 570. Sampled and balanced to match Indonesia’s general population, 18-65 years old.

7. McKinsey and Company 7
Around half of respondents have switched from their regular
grocers during COVID-19, but 98 percent of them plan go back.
52% of consumers are
still visiting their regular/
primary store for grocery
needs
48% of consumers
have tried/ switched to a
different store
Reason for switching brands1
98% of
consumers
plan to switch
back to usual
brand after
COVID-19
1. Q: Why have you switched from your regular/ primary store for your grocery store?
60
44
32
21
20
20
16
16
13
11
Offers better delivery service
Offers better curbside or in-store
pick up service
Feels not to be safe/infection free
Closer to home
Closer to work
Out of stock of a lot of items
Stocked out on their private brands
Changed to an online store/mobile
app-based store
Did not have good quality of
fresh products
Does not offer competitive prices
on national brand products
Primary driver for switching stores during COVID-19,1
% respondents who have switched stores
Post-COVID-19
situation3
Source: McKinsey & Company COVID-19 mobile survey 3/20-3/25/2020, N = 570. Sampled and balanced to match Indonesia’s general population, 18-65 years old.

8. McKinsey & Company 8
There has been increasing consumption of grocery products during
COVID-19, particularly in health care items and fresh produce.
39
31
28
27
24
20
24
20
19
18
15
14
16
14
14
12
12
11
37
37
37
36
36
37
31
35
30
27
26
26
23
23
22
19
15
14
17
21
27
28
32
37
35
32
33
43
33
37
38
36
42
31
38
33
4
7
5
6
7
5
7
9
12
6
16
16
15
16
16
20
18
29
3
3
3
4
2
2
3
5
6
5
10
6
9
11
7
18
16
12
Household Care
Health Care
Eggs
Personal Care
Fresh Fruits
Household Paper Goods
Non-alchoholic Bev
Bottled Water
Food Prepared in Stores
Frozen Food
Dairy
Packaged Food
Baby
Pet Care
Snacks
Beverages
Deli Meals
Beer
Significantly increased (+20% or more) Somewhat decreased (-5 to -20%)Somewhat increased (+5 to +20% ) Significantly decreased (-20% or more)No change in spending
32
30
27
27
24
22
21
19
15
14
14
14
14
14
11
6
7
11
36
38
36
38
32
34
33
33
26
19
19
29
24
23
20
11
11
18
23
25
31
27
32
35
38
37
42
62
42
41
47
44
59
65
63
50
7
5
4
6
9
7
7
9
14
3
19
14
12
15
8
9
8
17
2
1
2
2
2
2
2
2
3
3
6
3
3
4
3
8
11
5
1. Q: How did you or your family’s spending per month change during the COVID-19 outbreak compared to before the COVID-19?
2. Q: How would you expect you or your family’s spending per month to change after the COVID-19 outbreak compared to now?
3. Net inflow is calculated by subtracting the percent of respondents stating they stop buying the item they have bought before during the outbreak from the % of respondents stating they only start purchasing the item during the outbreak.
0%
0%
0%
-1%
0%
0%
-4%
-3%
-4%
-1%
-4%
-2%
-5%
-4%
-2%
-4%
Net Inflow3
Consumption during COVID-19 situation vs. before,1
% of respondents who buy each item
Anticipated consumption after COVID-19 situation vs.
during,2 % of respondents who buy each item
-4%
-8%
Source: McKinsey & Company COVID-19 mobile survey 3/20-3/25/2020, N = 570. Sampled and balanced to match Indonesia’s general population, 18-65 years old.

9. McKinsey and Company 9
35 percent have tried different brands due to availability, but 94
percent of them plan to return to their usual brand.
65% of consumers have
not tried new/alternate
product brands
35% of consumers have
tried new/alternate product
brands
Reason for switching brands1
94% of
consumers
plan to switch
back to usual
brand after
COVID-19
1. Q: If yes, why did you switch from the brands you usually purchase to new/ alternate options?
77
42
32
31
22
Brands that I usually purchase
were not available
New/alternate options offer
better value (are cheaper)
New/alternate options are
easier to consume
New/alternate options
are safer
New/alternate options were
under promotions/ display
Primary driver for switching to a new brand/product during
COVID-19,2 % respondents who have tried new/alternate product
brands
Post-COVID-19
situation3
Source: McKinsey & Company COVID-19 mobile survey 3/20-3/25/2020, N = 570. Sampled and balanced to match Indonesia’s general population, 18-65 years old.