Latest News- Retail Market in Indonesia: Offline is expected to lead the Distribution Channel segment during 2025-2029

The Retail Market in Indonesia is being driven by Expansion of retail landscape

The Retail Market in Indonesia is expected to grow at a CAGR of 4.7% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 49.9 billion. Indonesian consumers exhibit strong brand loyalty and a preference for local brands, with approximately 75% of the population pre-determining their product purchases. Over 65% of individuals consistently shop at the same store for food and beverages. Local Indonesian brands, such as PT Fujita Indonesia and PT Hino Motors Manufacturing Indonesia, cater to consumers' needs and offer superior value for money. Foreign companies seeking to penetrate the Indonesian market have employed localization and acquisition strategies to connect with consumers and compete effectively. 

Get more information on Retail Market in Indonesia by requesting a sample report

Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Distribution Channel
  • Offline
  • Online
• Product
  • Food and beverages
  • Electrical and electronics
  • Apparel and footwear
  • Home improvement and household products
  • Others
• Ownership Structure
  • Local Retailler
  • International Retailer
• End-User
  • Urban
  • Rural
• Payment Type
  • Cash
  • Digital Payments (Mobile Apps
  • Cards)
  • BNPL (Buy Now Pay Later)
• Consumer Segment
  • Urban
  • Rural
• Geography
  • Indonesia

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Expansion of retail landscape
• Growing popularity of private-label brands
• Rising prominence of in-store bakeries

However, the market also witnesses some limitations, which are as follows:

• Underdeveloped infrastructure
• Increase in number of counterfeit products
• Imposition of stringent governmental regulations

Benefits of Buying Global Retail Market in Indonesia Research Report by Technavio

Rich Experience: 20+ years leading global market research, trusted insights across industries.

Unlock Business Potential with Technavio: Maximize ROI with Technavio's tailored market research: deep dives and actionable insights.

Your Guide to Market Success: Empower your business with Technavio's market research and future-proof your decisions.

Market Scope in Retail Market in Indonesia Research Report

Find out which segment is leading the market by accessing the free PDF report

Research Analysis Overview

The retail industry in Indonesia encompasses various sectors including grocery, apparel, electronics, pharmaceuticals, cosmetics, home goods, furniture, automotive, food service, convenience stores, department stores, specialty stores, pop-up shops, and more. DTC brands and private labels join value and luxury retailers, discount stores, warehouse clubs, and multi-channel retailers. Technology advances such as mobile wallets, digital wallets, blockchain, AI, ML, big data analytics, and predictive analytics enhance customer experience through loyalty programs, sales forecasting, demand planning, inventory control, warehouse automation, and last-mile delivery innovations like drones. Additionally, AR, VR, and 3D printing add to the retail landscape.

Market Research Overview

The retail market in Indonesia is a significant segment of the global broadline retail industry, which encompasses revenue from various retail sectors, including online retailers and marketplaces, department stores, and discount merchandise providers. According to Technavio, this market's size is determined by the income generated by Internet retailing service providers, third-party online platforms, door-to-door retailers, and other general merchandise companies. Factors driving the growth of this market include the increasing use of retail technology such as e-commerce platforms, mobile commerce, social commerce, and online marketplaces. Furthermore, the adoption of digital payments, logistics and delivery solutions, inventory management systems, supply chain optimization, and data analytics are enhancing the efficiency and convenience of retail operations. The proliferation of advanced mobile devices and high Internet penetration rates in Indonesia are key catalysts for the increasing popularity of online retailing, enabling consumers to access on-demand products and services anytime, anywhere.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/