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Indonesia’s Small Domestic Appliances raked in nearly USD232 billion in 2013: GfK

Consumers spending more on premium products

26 February, 2014, JAKARTA: The growing population and number of households along with the natural replacement cycle in the fourth most populous country in the world have been key in the healthy expansion of the Small Domestic Appliances (SDA) sector in Indonesia. Demand for appliances such as rice cookers, food preparation equipment, irons and vacuum cleaners have intensified in 2013, driving the strong performance of the overall market with incremental sales of 20 and 15 percent in value and volume respectively.
Three of the four SDA segments—Irons, Food preparation, and Rice cookers managed to turn in robust double digit volume growth of 16, 15 and 10 percent, while Vacuum cleaners grew 7 percent. Sales value on the other hand surged at a higher pace of 24, 21, 17 and 6 percent respectively, attributed to the emerging trend of consumers buying more expensive appliances.

“The Indonesian market is moving towards premium appliances which promise users better durability and features,” said Guntur Sanjoyo, Managing Director for GfK in Indonesia. “This development in the market reflects growing consumer sophistication as they become more quality conscious and are willing to invest more for better products.”

The most common item purchased in the country, making up two in every five (44%) small household appliances sold is a rice cooker. GfK retail audit reveals that consumers in the country are buying more rice cookers than ever. In 2013 alone, over 92 million was generated by sales of 4.2 million units—nearly 1.5 million more than the previous year. Total worth of the rice cooker market has correspondingly grown 17 percent over 2012.

GfK expanded its report coverage from its original two regions of Greater Jakarta and East Java (Include Bali) to four regions in October 2012 to include Central and West Java. Commencing October 2013, another six regions across Sumatera, Kalimantan and Sulawesi have also been added to its retail audit tracking with official data available in January 2014.

“With the comprehensive coverage, our reports are able to more effectively identify growth trends in more localized areas which is important information for manufacturers since Indonesia is a huge market,” explained Sanjoyo. “For instance, findings revealed that the Greater Jakarta region consisting of Jakarta, Bogor, Tangerang, Bekasi sold the most number of the higher-end vacuum cleaners compared to the other parts of the country, whereas the North Sulawesi region garnered negligible sales volume for the same price range.”

According to latest GfK report, consumers in the more affluent region of Greater Jakarta are more inclined to go for the more expensive vacuum cleaner models, with almost one in every five vacuum cleaners purchased costing above USD100. In the lesser developed North Sulawesi region, over four in five vacuum cleaners sold cost USD 51—75, while the next and also the highest range there that cost less than USD100 made up only 4 percent of total volume sales.   

With a turnover of 3.3 million units and USD 35.7 million in 2013, irons are the second biggest contributor to SDA in Indonesia in terms of sales volume; whereas the country’s food preparation segment worth USD 40.5 million is the second largest sales generator in the sector. Last year, almost 1.9 million units of such appliances, which include choppers, food processor, hand blender, hand mixer, kitchen machine and liquidizer, were snapped up.

“These days, there are a lot more selection of local and foreign brands in the rapidly developing Indonesian market at a variety of prices to suit all budgets,” noted Sanjoyo. “With consumers’ better purchasing power, the premium range is becoming more affordable and we can anticipate this segment to be the key propeller of continued growth in the appliances sector in Indonesia,” he concluded.

About GfK

GfK is one of the world’s largest research companies, around 13,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK’s sales amounted to €1.51 billion.

To find out more, visit or follow GfK on Twitter:


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