ASEAN KEY DESTINATIONS
More than 11 million liters of car engine oil sold in Jakarta and Surabaya: GfK
Synthetic oil slowly but surely gaining market share
11 March 2013, JAKARTA – Cars in the main Indonesian cities of Jakarta and Surabaya consumed nearly 11.7 million liters of car engine oil in the full year of 2012. GfK Indonesia’s retail audit of car engine oil reported the open market channel to be worth around USD 61.3 million last year.
Findings in the two major cities of Indonesia where vehicle concentration is highest showed an increase in receptivity towards synthetic oils, which sold over 5.6 million liters. This segment of oil registered slight increment in market share for overall volume consumption, from 47.5 percent to 48.5 percent over the 12 months period.
“The rising number of new cars on the road is anticipated to increase the popularity of synthetic oil further as owners are likely to turn to synthetic oil to match the new engine requirements,” highlighted Guntur Sanjoyo, Managing Director for GfK Indonesia. “Despite being costlier, its perceived benefits over mineral oil makes synthetic oil a wiser choice for owners who would like to sustain the overall performance of a car’s engine,” said Guntur Sanjoyo, Managing Director of GfK Indonesia.
Around 36 international and local manufacturers currently exist in the synthetic oil market. However, the market is dominated by foreign players which cumulatively sell over 80 percent of the total market volume. Three popular international brands in particular appear to be most readily available, having a distribution level of more than 80 percent across all stores in these two cities.
“The engine oil segment is less price sensitive as consumers tend to derive assurance on product quality from the brand image established by the manufacturers,” said Sanjoyo. “Therefore it is important for manufacturers to market and clearly package their products, which in this case could highlight the product’s USP or one or more of its key benefits, be it endurance, protection, performance, or cleansing, etc.”
Since the beginning of 2011, GfK Indonesia commenced tracking of passenger car engine oil sales in open retail channels, which covers car garage, fast fitter, oil specialist and tire specialist channels.
The GfK Group
GfK is one of the world’s largest research companies, with more than 11,500 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 most intelligent methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2011, GfK’s sales amounted to EUR 1.37 billion.
To find out more, visit www.gfk.com or or www.gfkrt.com/asia. Follow GfK on Twitter: www.twitter.com/gfk_group
- GfK Indonesia’s retail audit of car engine oils cover Jakarta and Surabaya only.
- Engine oil audit is for open retail channels only.
Manager I PR & Communications
GfK Asia Pte Ltd | One George Street #22-02 | Singapore 049145
T +65 6826 8622 | M: +65 9385 0222
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