A sharp outlook of Indonesian economy in 2011 where the country reach, for the first time in its history, the GDP/capita of US$3000 (nominal). US$3000 is a threshold number where a country will experience an "accelerated development" after it reaches the number. What are the implications of this change for consumer behavior and marketing strategy?

1. YUSWOHADY
www.yuswohady.com
@yuswohady
CONSUMER
3000BRAND NEW CONSUMERS THAT REVOLUTIONIZE YOUR STRATEGY

2. CONSUMER 3000
THE THREE PARTS
I. THE EARTHQUAKE
II. THE IMPACT
III. THE STRATEGY

3. Part I
The Earthquake

4. “Masyarakat Adil dan Makmur” is
Not A Dream Anymore

5. Let us look back a little
KRISIS 1998

6. Comparing with Chindia
SAME PATTERN

7. What happen now?
1942
2271
2394
2963
3270
3532
3822
4131
4440
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2007 2008 2009 2010 2011 2012 2013 2014 2015
GDP Per Capita Indonesia($)
What happen when we reach GDP
Per Capita $3000?
Source: International Monetary Fund, 2010

8. Reaching the $3,000 per capita GDP level will result in
“accelerated development”. South Korea experienced surging
economic growth for 11 years after achieving that level.
Source: Indonesian economy with a US$3,000 per capita GDP by Cyrillus Harinowo Hadiwerdoyo

9. Source: Indonesian economy with a US$3,000 per capita GDP by Cyrillus Harinowo Hadiwerdoyo
In 2002, China set a target to achieve a per capita GDP of $3,000
GDP by 2020. Apparently the Chinese economy achieved that
level not in 2020, but in 2008-2009.

10. The Economist, February 12, 2009
Special Report: The Middle Class in Emerging Countries

12. Sumber: ADB, BPS, BI, dan LitBang Kompas 2010
Middle Class: Indonesia vs China
Indonesia’s Middle Class (spending > $2/day): 93,7 Mio (2009)

13. CONSUMER EXPLOSION

14. What will happen next?
Some signals...

15. A New Wave of Demand!!

16. Traffic Problem: When supply can not
meet the demand

17. Traffic Problem: When supply can not
meet the demand

18. Everything starting to look affordable

19. Why airport are so crowded ?

20. Holiday is not only to Bali...
“Everybody Can Fly”
Democratization of Consumption

21. People need a place to talk!

22. People need a place to talk!

23. Mall is not a fancy place anymore

24. Holiday is not only to Bali...

25. The Rise of mass luxury products

26. This is a good sign...

27. .....with a great momentum

28. Economy is looking good
Pada Oktober lalu, inflasi mengarah ke 5,6 persen dan diprediksi plus-minus 5
persen pada akhir 2010. Adapun inflasi 2011 diprediksi plus-minus 6 persen.
Indonesian GDP Growth
Nilai tukar rupiah juga berada di kisaran Rp 9.000

29. Politic is relatively stable:
 SBY second period
 No “Pemilu” in the near future
 10 years political transition

30. Merapi: “Our social bonding is high”

31. All of these changes will trigger:
“The birth of Consumer 3000”

32. Part II
The Impact

33. CONSUMER
REVOLUTION
THE BIRTH OF
CONSUMER 3000

34. How is Consumer 3000?

35. Basic needs are over!!!
Esteem Needs
Belonging Needs
Basic Needs
Actualization
Needs
love, acceptance, affiliation
Food, shelter, sex, sleep
Self-respect, social status
Maslow’s “Theory of Human Motivation”

36. Economics of Hapiness

37. Sumber: ADB, BPS, BI, dan LitBang Kompas 2010
Economics of Hapiness

38. Consumer 3000: The 3 Dimensions
More Buying Power; More Consumption
More Knowledgable; More Informationalized
More Technology Savvy; More Connected

39. Consumer 3000: The 3 Dimensions
HIGH
BUYING
POWER
CONNECTED
KNOW-
LEDGABLE
CONSUMER
3000

40. Road to Consumer 3000:
We have seen the trend already

41. The Nexian BOOM:
The Rise of Hyper Value-Consumers
Nexian has the third biggest market share in Indonesia with 7%
Source: detik.com

42. The BOOM is happening because Value-Oriented Customer is growing
The Nexian BOOM:
The Rise of Hyper Value-Consumers

43. Flying solo in the upper segment

44. Fast Food Trend: Goes Outside The Mall
Not just a place to eat, but a place to talk and play

45. 24 Hour Retail Evolution
A whole new concept of 24 hour retail: “Gathering spot”

46. Midnite Sale: Customers Become Smarter

47. Modern Channel Is Going to Grow
Modern channel in becoming more favorable

48. Source: Nielsen
Modern Channel Is Going to Grow

49. Source: Nielsen
Modern Channel Is Going to Grow

50. E-commerce Will Thrive: Bhinneka.com
Transaction through e-commerce is increasing

51. People are more “on-the-go”
People are more busy, more interactive, more mobile, and of course
more productive.

52. People are more “on the go”
The need for “one-time consumed” product (packaging) is increasing
Family
SIze
Individual
SIze

53. Private Labels Will Be Soaring
People are more value concious

54. More Disposible Income Means More Money to
be Invested
Franchising is the way to invest their Disposible Income

55. More Civilized, More Educated
Ilegal software and movie DVD will decrease... and movie theatre will
surge again

56. More Civilized, More Educated
Sex and horor movie like these will be facing off

57. Part III
The Strategy

58. What kind of changes
happened in the market
segmentation?

59. Segmentation “before 3000”
Changes in Market Segmentation
Upper
Middle
Lower
Segmentation “after 3000”
More civilized,
Knowledgable, and
Modern
More Buying
Power
Demographic Psychographic
Brand
minded
consumer
Value
consumer
Price-minded
consumer

60. Segmentation Beyond 3000
Brand-minded Consumer
Price-minded consumer
Value consumer
“Hottest segments”
“Reasonable” – Value Consumer
“Critical” – Value Consumer
“Functional” - Value Consumer
“J-Co Lover”
“Nexian Hunter”

61. Segmentation Beyond 3000 – several examples
“Reasobale” value brands
“Critical” value brands
“Functional” value brands

62. What to target?
“Reasonalbe” – Value Consumer
“Functional” - Value
Consumer
1 2
1 2
“Critical” – Value Consumer 3
Price-minded
Consumer
5
Brand-minded Consumer 4
1
2
Priority #1
Priority #2 ... etc.

63. Know Your Strategy
Generic Strategy Generic Tactic
“Reasonalbe” Value
Consumer
RATIONALIZE YOUR BRAND
(Benefit is The King)
• Global Image, Local Price
• Unique Differentiation with
Reasonable Price
“Critical” Value Consumer
INNOVATE YOUR VALUE
(Value is The King)
• Be Creative, Deliver More
• “Higher benefits, lower cost”
Mindset
“Functional” Value
Consumer
MAKE YOUR PRODUCT
AFFORDABLE
(Price is The King)
• Be a Smart Imitator;
Be a Smart Follower
• More Function, Less Brand

64. “Reasonable” Value Consumer
• Global Image, Local Price

65. “Reasonable” Value Consumer
• Unique Differentiation with Reasonable Price

66. “Critical” Value Consumer
• Be Creative, Deliver More

67. “Critical” – Value Consumer
• “Higher benefit, lower cost” Mindset

68. “Functional” Value Consumer
• Be a Smart Imitator; Be a Smart Follower

69. “Functional” Value Consumer
• More Function, Less Brand

70. Thank You
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