19 July 2011
Jakarta

Lower to Middle Classes Consumers Spend More on Festive Months : Nielsen

Majority of Indonesian consumers might be fasting during the holy month of Ramadhan (festive), but that does not mean they will spend less on food and beverage. Nielsen homepanel data shows that during the festive months in 2010, spending by lower class consumers increased 30 percent on their shopping trips during festive months compared to the regular months, the increment also happened in both middle class (16%) and upper class (13%).

“Manufacturers can expect to see healthy growth in consumer good sales value as festive months always drive consumers to spend more. Nielsen retail audit recorded a 9.2% percent growth in sales value of consumer goods in 2010’s festive months compared to 2009, a slightly faster growth if compared to 7.7% growth in 2009,” said Venu Madhav, Executive Director of Client Leadership at Nielsen during Nielsen Press Club on Tuesday, July 19 in Jakarta.

Growth in consumer good sales in festive months of 2010 was mainly driven by the increase in spending by the middle class households. Nielsen insight shows that spending by the middle class during festive months of 2009 increased 3.7% if compared to 2008, but last year, they are spending even more, Nielsen recorded a 13 percent growth from 2009’s spending to reach Rp. 488,000 per household during August and September 2010. (more)

11 July 2011
Jakarta

Indonesians The Most Reliant On Mobile Internet Access Across Southeast Asia : Nielsen

Almost half of all Indonesian Internet users access the net via their mobile phones and this number is set to increase, as a more significant amount intend to use this device to get online in the next 12 months, according to a report released today by global insights and measurement company, Nielsen

The report, a pre-release of data from Nielsen’s inaugural Southeast Asia Digital Consumer Report* which will be available on 30 September, found that 48 percent of regular Internet users in Indonesia use a mobile phone to access the Internet making Indonesia the most reliant market in SEA country on this form of Internet access (see chart 1). This trend is set to continue, with 53 percent of Indonesian Internet users indicating they will access the Internet via their mobile phone and 30 percent via an internet capable handheld device within the next 12 months.

“Internet capable hand held devices such as mobile phones and tablets offer easy access to the Internet for many Indonesians without having to rely on the availability of high speed broadband services at their home,” observes Irawati Pratignyo, Managing Director of Nielsen’s Media division in Indonesia.  “Certainly we are seeing all indicators point towards significant growth in Internet access via mobile and handheld devices over the next 12 months and beyond.”. (more)

21 June 2011
Jakarta

One In Four Main Shoppers Is Male : Nielsen

Some things have changed in shoppers’ worlds since last year, and while 74 percent of main shoppers are still females, males are increasingly taking on that role. According to the recently released Nielsen Shopper Trends study, one in four main shoppers (those who shop for the households) is male compared to 19 percent in 2010.

The Shopper Trends study was conducted in five major cities in Indonesia and interviewed consumers with household expenditures of Rp. 1.5 Million (USD 150) and above.

Males are embracing shopping activity, with one-third of male shoppers claiming to really enjoy or like shopping and only 15 percent saying they dislike shopping. There are no surprises for female shoppers, two-thirds said they really enjoy or like shopping. Although not a difficult one, some shoppers (51% males and 37% females) still consider shopping as a chore. (more)

31 May 2011
Jakarta

Indonesia Is The 3rd Most Confidence Nation In The World : Nielsen

Indonesia is the third most optimistic nations in the world and second in Asia Pacific, according to the latest Global Online Consumer Confidence Survey. Indonesia posted a flat confidence index in the first quarter of 2011 with 116, but still positioned itself among the top 10 most confident nations in the world after India (131) and South Africa (118).

 “The consistent positivity remains in Indonesia because the government continues with fuel subsidies despite increasing world oil prices thereby protecting consumers from inflationary pressures,” said Catherine Eddy, Managing Director of Nielsen in Indonesia. of optimism and pessimism. (more)

24 May 2011
Jakarta

Indonesian Households Increased Spending On Male Grooming Products By 15% in 2010 : Nielsen

Male grooming products are becoming more important as households increased their spending and bought more of these products, according to insights from The Nielsen Company (NYSE:NLSN) Homepanel Services.  In 2010, households in five urban cities in Indonesia spent Rp. 57,000 annually, a 15 percent increase from 2009. Although the number of shopping trips made by households to buy these products decreased slightly, households bought larger pack sizes and bought 11 percent more in volume terms per trip.

Based on Nielsen’s analysis, the changes in purchase behavior for male grooming products drove total sales for these products to hit nearly Rp. 1.2 Trillion in 2010, a 29 percent growth. The heightened advertising activities may also have contributed to this growth as manufacturers spent more than Rp, 400 billion in advertising in 2010, up 25 percent from 2009. (more)

3 May 2011
Jakarta

Advertising Spending increased 20% in First Quarter 2011 : Nielsen

Indonesia’s advertising spending reached more than Rp. 15.6 trillion in the first quarter of 2011, according to a recent release from Nielsen (NYSE:NLSN) Advertising Information Services. The advertising industry experienced a healthy 20% growth from the same period in 2010.

TV still dominates the advertising share by reaping 62 percent of the total advertising spend, followed by Newspaper (35%) and Magazine & Tabloid (3%). In first quarter of 2011, spending on television increased 21% from same period last year, newspapers also enjoyed growth as spending for newspapers grew 20%. Spending on magazines and tabloids also increased 10% in Q1 2011.

Telecommunication remains the biggest spender

Telecommunication, though experiencing a slight decrease in the first quarter, remained the biggest spender in all media type in Q1 2011, spending more than Rp. 1.2 Trillion. Growing up milk spent more than Rp. 497 billion this quarter, growing 98% compared to the same period last year. Cars and Motorcycles categories also increased their spending in Q1 2011 by 80% and 49%, respectively. (more)

19 April 2011
Jakarta

Consumers’ Buying Behaviors for FMCG Change as Indonesia Welcomes New Era : Nielsen

As Indonesia economy bounced back from the Global Finance Crisis in 2008-2009 and GDP grew 6.1% from 2009, the country also welcomes the new era with GDP per capita hitting USD 3,000 (based on IMF World Fact Book). We can expect more growth in the future as hitting USD 3,000 in GDP per capita means accelerated growth as happened in China and Korea when they reached that level. We can also expect stronger demand across sectors such as Automotive, Health, Insurance, Travel, durables, etc.

FMCG manufacturers can also expect to experience stronger growth this year as Nielsen (NYSE: NLSN) retail audit reported FMCG industry to be growing double than the economic pace in 2010. As consumers felt improvement in economic condition, they tend to adjust their purchasing habit as well.

“Consumers are more willing to spend their money. They are more adventurous by buying categories they never considered before. Consumers who already buy the products are either using the products more frequently or seeking for more premium version of the current products,” said Venu Madhav, Executive Director of Client Leadership, Nielsen. (more)

15 March 2011
Jakarta

Differentiation is Key to Winning in Retail : Nielsen

Indonesia retail landscape saw a slight 1.3 percent decline in total number of stores in Indonesia in 2010. Based on Nielsen Retail Establishment Survey that was conducted at the end of 2010, there are 2,524,111 stores in Indonesia covering channels in both Traditional and Modern Trade. 57 percent of the stores are located in Java islands (as is the population), 22% in Sumatera and the remaining 21% are in other islands.

Stores in urban areas have grown 0.7 percent compared to 2009, however, people in metro cities such as Jakarta, Bandung, Yogyakarta, Surabaya, Medan have seen lesser fewer stores as the cities experienced declines in number of stores.

“Retailers, as with other businesses, will open their stores in the area with dense population. As people are now keen to live in the sub-urban areas, stores are growing in that area significantly and declining in metro cities,” said Teguh Yunanto, Executive Director of Retail Measurement Service, Nielsen.(more)

1 March 2011
Jakarta

Household Spending for FMCG Grew Double Digit in 2010 : Nielsen

Good news for manufacturers of Fast Moving Consumer Goods (FMCG), Nielsen (NYSE: NLSN) 2010 consumer panel data shows that household spending for consumer goods has increased at a faster rate than price of goods. While price grew 7.9% in 2010, household spending in 2010 has grown double digit from 2009 increasing 19.3% in urban cities to reach Rp. 29 billion, and 18.6% in Java Rural area reaching Rp. 41 billion.

“Today, manufacturers have spoiled consumers by offering new products or variants so that consumers can choose different products that are suitable for them. This, and the marketing activities from the manufacturers have driven consumers to try on new things / products or adding their consumptions for certain products,” said Soon Lee Lim, Director of Consumer Panel Services, Nielsen.

In 2010, household spending for FMCG products per household in urban cities has reached more than Rp. 3.7 million, growing 33% from 2007. In Java rural, household is spending more than Rp. 2 million annually or increasing 36% from 2007. Though consumers spent more, Nielsen data shows that they made fewer trips to the stores in 2010 compared to 2007. In 5 urban cities, frequency of shopping decreased 9% from 2007 with 239 visits, while consumers in Java rural area made 255 visits to the store, dropping 5% from 2007. (more)

22 February 2011
Jakarta

FMCG Categories Grew 11% in 2010 : Nielsen

FMCG categories experienced faster growth in 2010 with 11% increased in all 43 categories, last year's growth was 8.5%. Nielsen reported a total of Rp. 121 Trillion in sales for Indonesia total groceries.

Food categories enjoyed double digit growth in 2010 with 12.7%, double from 2009's 6.5%. Food categories remained the biggest contributor with total sales close to Rp.77 trillion or 63% of Indonesia's total sales. Other categories such as households (+4.3%), personal care (+13.3%) and pharmaceuticals (+4.5%) experienced slower growth compared to their growth in 2009.

All leading categories experienced healthy volume and value growth compared to 2009. Instant noodles, coffee, detergent, sweet condensed milk and shampoo enjoyed double digit growth in 2010. (more)

8 February 2011
Jakarta

Mobile Consumers are Getting Younger : Nielsen

From texting to video to social networking, cellular phones are taking an ever-expanding role in most Indonesian’s daily lives. Nielsen data shows that cellular penetration has tripled since 2005.

“The Telecommunications generally develops from not being connected at all to having landline connections then to cellular phones. It is different in many growth markets like Indonesia, where telecommunication developed from being not connected to connected through cellular phone,” said Viraj Juthani, Director Telecom Practice Group, Nielsen.

Landline connections never really took off in Indonesia as Indonesians went straight to mobile phones as their means of communication. (more)

1 February 2011
Jakarta

Advertising Spend in Indonesia Jumped 23% to Hit Rp 60 trillion in 2010, a Bumper Year : Nielsen

2010 was a bumper year for the advertising industry, with the media spend for the year jumping 23% year-on-year to hit almost Rp. 60 trillion.  According to the Nielsen Company (NYSE:  NLSN), the 23% jump also represented the highest increase since 2006.

“The World Cup in June/July and AFF at the end of 2010 were two special events that drove the significant increase in media spending.  Together, they created an overall buzz of positive sentiments,  The result was that advertisers were more willing to invest in promoting their products and services, as they were more confident that consumers will continue to spend,” said Irawati Pratignyo, Managing Director for Nielsen Audience Measurement. (more)

28 October 2010
Jakarta

Indonesians Remain Optimistic but More Cautious in Spending: Nielsen

Consumers in Indonesia remained optimistic in September 2010 reaching an index of 115, as stated in the latest Nielsen Global Consumer Confidence Index. While from a global perspective, after an upbeat start to the year with two consecutive quarters of increases in optimism, global consumer confidence fell three points to an Index of 90 as consumers’ hopes for a full economic recovery this year fade in most parts of the world.

Consumer Confidence Index levels above and below the baseline of 100 indicate degrees of optimism and pessimism.  The 90 Index mark reflects the reality that consumers around the world remain largely pessimistic about job prospects, personal finances and their ability to buy the things they want and need over the next year.

12 August 2010
Jakarta

Consumers Spend More, Watch More during Festive Seasons: Nielsen

Marhaban ya Ramadhan, or in English, Welcome oh Ramadhan! As Moslems prepare themselves for the holy month, consumers also prepare to spend more and watch more during this festive season. Nielsen takes a look at trends during Festive Seasons to provide comprehensive view on what will happen in 2010 festive season.

In 2009, sales in Indonesia’s Total Grocery during 2 festive months reached Rp. 18 Trillion, increased only 3% from last year’s festive. This growth is slow compare to 2008’s increase of 19% from 2007’s festive months.

 “The high increase in 2008 was mainly caused by price hike due to financial crisis during that time,” said Teguh Yunanto, Executive Director of Retail Measurement Services, Nielsen.

Nielsen Retail Audit also shows that total sales of all categories during average festive months is higher compare to average months. Due to price increase in 2008, sales during festive months that year increased 11% compare to regular months. While in 2007 and 2009, sales only increased around 7- 8 percent from average months.. (more)

29 July 2010
Jakarta

70% of Indonesian Consumers Online Intend to Shop Online in the Next 6 Months: Nielsen

Advertising spending increased 29% this first half compares to 2009, totaling to Rp. 28.5 trillion. Though the trends for the past 3 years always show increase, this year’s figure is the highest.

Spending on Television reaches more than Rp. 17 trillion and dominates the advertising spending with more than 60 percent share. TV also enjoyed the highest 35 percent growth from previous year, this is driven by spending on two world cup broadcasters in June.

Newspapers come at second place with almost Rp. 10 trillion spent on this print media and contribute to 35 percent of spending share. Newspapers experienced 21 percent growth from last year. Other monitored print media: Magazine and Tabloid grab the rest 3 percent, with the total of Rp. 973 billion.. (more)

14 July 2010
Jakarta

70% of Indonesian Consumers Online Intend to Shop Online in the Next 6 Months: Nielsen

Indonesian consumers show high intention to shop online in the next 6 months, according to a recent Global Online Shopping Report compiled by The Nielsen Company. Almost 70 percent of the Indonesian online users who participated in the Nielsen Global Online Survey in March 2010 stated that they intend to make an online purchase in the next semester, with a quarter of them planning to allocate more than 10 percent of their monthly shopping expenditure to online buys, while the rest will allocate less than 10 percent.

7 July 2010
Jakarta

Traditional Remains the Most Visited, but Increasing Repertoire towards Modern Trade: Nielsen

With conditions look positive in this first half 2010, Consumer Confidence is increasing, volume growth is showing positive growth, Nielsen Shopper Trends 2010 also reports that consumers will also spend more this year as monthly expenditure shows growth from 2008 to 2009. The monthly expenditure includes spending for Food, Grocery and Personal Care, however more than half of the spending is from Fresh Food.

This could probably cause by the frequency of visiting Traditional Grocery, Wet Market and Vegetable Vendor that remains high compare to Modern Trade. Consumers visit the traditional markets 25 times per month for Traditional Grocery, 12 times per month for Wet Market and 19 times in Vegetable vendors. However, repertoire for modern trade is increasing from 2008 to 2009. Though traditional still high, the repeat visit to modern trade has increased... (more)

29 June 2010
Jakarta

Global Consumer Confidence Hits Pre-Recession Levels: Nielsen

Global consumer confidence in the first quarter of 2010 rebounded to reach its highest level since the third quarter of 2007, providing the most definitive sign that the world is beginning to recover from the recession, according to the latest edition of the Nielsen Global Consumer Confidence Index. As the world’s consumers started to spend again, they drove the global index up to 92 points (100 = average) in the first quarter. This represents a six point increase from six months ago and only two points short of the 94 point index mark in Q3 2007, just prior to the decline into world recession. Consumer confidence hit an all time low of 77 index points in early 2009, following the collapse of the international financial system, before steadily increasing again last year.

Consumer confidence rose in 41 of the 55 countries surveyed during the quarter, with India (127 index points), Indonesia (116) and Norway (115) remaining the world’s most confident nations. Meanwhile, Lithuania (46), Croatia (48), and Portugal (51) were the most pessimistic nations. Taiwan (+14 pts), Singapore (+11), Israel (+10), Mexico (+10) and Colombia (+9) were among the highest increases in consumer confidence in Q1, while Greece (-15), in the midst of a financial collapse, recorded the steepest decline.

10 June 2010
Jakarta

50% of Consumers in Indonesia to Follow Football World Cup 2010: Nielsen

In the Asia Pacific region, Indonesians declares themselves the most avid followers of football with more than half (54%) saying they are fans of the game, followed by Vietnamese (52%) and Indians (47%). But the appeal of the World Cup finals appears to reach far beyond football’s usual fan base – the Nielsen figures reveal that in all Asia Pacific countries, intent to follow the World Cup is much higher than the traditional football fan base. Countries with the highest level of intent to follow the finals were South Korea (76%), Vietnam (68%) and China (65%).

While in other markets, we would expect to see bigger growth in beers, in Indonesia, categories like snack, soft drink, peanuts, cigarettes, and energy drink will enjoy more sales. Peanuts experienced the highest growth with 72 percent, followed by Cigarettes (37%), Energy Drink (35%), Snack (28%) and Soft Drink (19%).

The sales were high especially during the week with most watched broadcast such as Germany vs. Argentina in the quarter-final that had won the most TV viewers between 10.30 pm to 2 am with 6.25 million people aged above 5 years. Another sales peak was during the final week that aired the final match between Italy and France which broadcasted at 11.30 pm to 4.30 am and reached 4.2 million people.

Looking at World Cup in 2002 and 2006, advertising spending in June rose to the average of 12%, compare to only 5% in non-World-Cup years. However, the world cup did not push the total advertising spending to grow higher than usual. During World Cup 2006, products that advertised during live broadcast of World Cup 2006 was Djarum Super with more than 1000 spots, Extra Joss (476 spots) and KratingDaeng (110 spots).

24 May 2010

Jakarta

FMCG Sales Grow 8% in First Quarter of 2010: Nielsen

FMCG sales shows a good 8% growth in the first quarter 2010 compare to the same period last year, and compare to only 5% growth in 2009 vs 2008, Nielsen reports. Consumers are gaining much more confidence to spend more, as we see positive grow in both volume and value of sales in FMCG Categories, excluding Cigarettes.

Market will enjoy stronger and healthier growth this year compare to last year, with all the indicators showing upward moves: FMCG sales are up 8%, advertising spending jumped 26%, even automotive sales are up 74% this quarter!"

20 April 2010

Jakarta

Advertising Spending increased 26% in First Quarter 2010: Nielsen

Good News welcomes us in the begining of 2010: Advertising Spending rose 26% in Q1 2010 compare to 2009. Nielsen Advertising Services that conducts advertising monitoring to 103 Newspapers; 165 Magazines & Tabloids; and 24 TV Stations, reports that the advertising spending during the period of January - March 2010 reached Rp. 13 Trillion in value.

Different from the trend in the past 2 years where newspapers have the highest growth, in the first quarter of 2010, Television jumps the highest with 31% reaching Rp. 8 Trillion. Koran has slower growth compare to the same period with 19% with Rp. 4.6 Trillion, while Magazines & Tabloids increased 10% to Rp. 403 Billion.

14 April 2010

Jakarta

News Audience rose 22%: Nielsen Audience Measurement

According to TV Audience Measurement survey in 10 cities in Indonesia, news program has a very segmented audience: male 40+ yo, SES AB. This segment is called the news audience and has a total population of 1.9 million people. The news audience spend most of their watching TV times to see news and entertainment programs with 52 hours for each genre on the first quarter of 2010. This figure doubles from the general audiences (aged 5+ yo.) who spend only 26 hours for news program, these people allocate their watching TV times to see entertainment (60 hours) and series (49 hours).

News audience watched the most in March 2010 by spending more than 20 hours to see the news programs, compare to 16 hours in January and 17 hours in February. While the general audience only spent 8 to 10 hours to watch the news. The live cast of House of Representative (DPR) hearing to Century Bank case and the shot of terrorist suspect, Dulmation, contributed with the increment in news audience.

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