The retail market in Indonesia is highly competitive and fragmented, with the presence of both small and large vendors. Intense competition and declining profit margins are significant risk factors for the vendors operating in the market. With the increase in competition, the industry has been witnessing consolidation, where smaller entities are acquired by or merged with major players. To survive and succeed in this intensely competitive environment, it is imperative for market vendors to distinguish their product and service offerings through clear and unique value propositions.
The market is primarily driven by the expansion of the retail landscape. Most of the retail operators in Indonesia are replacing their unorganized retail outlets with big retail hypermarkets, supermarkets, and other retail chains. This has increased the availability of all necessary items under one single roof, thereby making shopping more convenient for customers. In 2020, Alfamart announced its plan to open 1,200 new stores in Indonesia and the Philippines. This increased the total number of stores operated by the company and its subsidiaries to 17,294. Such expansion plans by retail operators will have a positive impact on the growth of the market in focus during the forecast period.
In addition, market trends such as the rising preference for local brands will further accelerate the growth of the market during the forecast period. However, the underdeveloped infrastructure in Indonesia might reduce the growth opportunity for vendors. Competitors have to focus on differentiating their product offerings with unique value propositions to strengthen their foothold in the market. Market vendors also must leverage the existing growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
Technavio identifies AEON CO. Ltd., CT Corp., Global Digital Niaga, Lazada Group, Lotte Corp., PT Bukalapak.com, PT Erajaya Swasembada Tbk, PT Hero Supermarket Tbk, PT Lion Super Indo, PT Mitra Adiperkasa Tbk, PT Multipolar Technology Tbk, PT Ramayana Lestari Sentosa Tbk, PT Sumber Alfaria Trijaya Tbk, PT Tokopedia, PT. Indomarco Prismatama, PT. Sinar Sakti Metalindo, PT. INTI CAKRAWALA CITRA, Sea Ltd., SPAR International, and TipTop Rawamangun as major market participants. View Sample Report Here
The retail market in Indonesia is segmented as below:
- Product
- Food and Beverages
- Electrical and Electronics
- Apparel and Footwear
- Home Improvement and Household Products
- Others
By product, the market witnessed maximum growth in the food and beverages segment in 2021. Factors such as an upward trend in the prices of commodities and an increase in the purchasing power of consumers in regions such as Sumatra and Kalimantan are driving the growth of the segment. The market growth in the segment will be significant during the forecast period.
The offline segment accounted for maximum revenue generation in 2021. The proliferation of convenience stores that offer everyday products like groceries, confectionaries, soft drinks, snacks, personal care products, toiletries, and other regular-use items is driving the growth of the segment. In addition, increasing foreign investments in the pharmacy retail sector are fostering the growth of the segment.
Technavio presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources. The retail market in Indonesia report covers the following areas:
Retail Market in Indonesia 2022-2026: Key Highlights
- CAGR of the market during the forecast period 2022-2026
- Detailed information on factors that will assist retail market growth during the next five years
- Estimation of the retail market size and its contribution to the parent market
- Predictions on upcoming trends and changes in consumer behavior
- The growth of the retail market in Indonesia
- Analysis of the market's competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of retail market vendors
Related Reports:
Retail Market in Indonesia: Scope |
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market growth 2022-2026 |
USD 44.13 billion |
Market structure |
Fragmented |
YoY growth (%) |
4.0 |
Regional analysis |
Indonesia |
Performing market contribution |
Indonesia at 100% |
Key consumer countries |
Indonesia and Indonesia |
Competitive landscape |
Leading companies, competitive strategies, consumer engagement scope |
Companies profiled |
AEON CO. Ltd., CT Corp., Global Digital Niaga, Lazada Group, Lotte Corp., PT Bukalapak.com, PT Erajaya Swasembada Tbk, PT Hero Supermarket Tbk, PT Lion Super Indo, PT Mitra Adiperkasa Tbk, PT Multipolar Technology Tbk, PT Ramayana Lestari Sentosa Tbk, PT Sumber Alfaria Trijaya Tbk, PT Tokopedia, PT. Indomarco Prismatama, PT. Sinar Sakti Metalindo, PT. INTI CAKRAWALA CITRA, Sea Ltd., SPAR International, and TipTop Rawamangun |
Market Dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Table of Contents:
1 Executive Summary
- 1.1 Market Overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market Segmentation by Product
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Distribution Channel
- Exhibit 06: Executive Summary – Chart on Vendor Market Positioning
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 07: Parent market
- Exhibit 08: Market Characteristics
3 Market Sizing
- 3.1 Market definition
- Exhibit 09: Offerings of vendors included in the market definition
- 3.2 Market segment analysis
- Exhibit 10: Market segments
- 3.4 Market outlook: Forecast for 2021-2026
- Exhibit 11: Chart on Indonesia - Market size and forecast 2021-2026 ($ billion)
- Exhibit 12: Data Table on Indonesia - Market size and forecast 2021-2026 ($ billion)
- Exhibit 13: Chart on Indonesia: Year-over-year growth 2021-2026 (%)
- Exhibit 14: Data Table on Indonesia: Year-over-year growth 2021-2026 (%)
4 Five Forces Analysis
- 4.1 Five forces summary
- Exhibit 15: Five forces analysis - Comparison between 2021 and 2026
- 4.2 Bargaining power of buyers
- Exhibit 16: Chart on Bargaining power of buyers – Impact of key factors 2021 and 2026
- 4.3 Bargaining power of suppliers
- Exhibit 17: Bargaining power of suppliers – Impact of key factors in 2021 and 2026
- 4.4 Threat of new entrants
- Exhibit 18: Threat of new entrants – Impact of key factors in 2021 and 2026
- 4.5 Threat of substitutes
- Exhibit 19: Threat of substitutes – Impact of key factors in 2021 and 2026
- 4.6 Threat of rivalry
- Exhibit 20: Threat of rivalry – Impact of key factors in 2021 and 2026
- 4.7 Market condition
- Exhibit 21: Chart on Market condition - Five forces 2021 and 2026
5 Market Segmentation by Product
- 5.1 Market segments
- Exhibit 22: Chart on Product - Market share 2021-2026 (%)
- Exhibit 23: Data Table on Product - Market share 2021-2026 (%)
- 5.2 Comparison by Product
- Exhibit 24: Chart on Comparison by Product
- Exhibit 25: Data Table on Comparison by Product
- 5.3 Food and beverages - Market size and forecast 2021-2026
- Exhibit 26: Chart on Food and beverages - Market size and forecast 2021-2026 ($ billion)
- Exhibit 27: Data Table on Food and beverages - Market size and forecast 2021-2026 ($ billion)
- Exhibit 28: Chart on Food and beverages - Year-over-year growth 2021-2026 (%)
- Exhibit 29: Data Table on Food and beverages - Year-over-year growth 2021-2026 (%)
- 5.4 Electrical and electronics - Market size and forecast 2021-2026
- Exhibit 30: Chart on Electrical and electronics - Market size and forecast 2021-2026 ($ billion)
- Exhibit 31: Data Table on Electrical and electronics - Market size and forecast 2021-2026 ($ billion)
- Exhibit 32: Chart on Electrical and electronics - Year-over-year growth 2021-2026 (%)
- Exhibit 33: Data Table on Electrical and electronics - Year-over-year growth 2021-2026 (%)
- 5.5 Apparel and footwear - Market size and forecast 2021-2026
- Exhibit 34: Chart on Apparel and footwear - Market size and forecast 2021-2026 ($ billion)
- Exhibit 35: Data Table on Apparel and footwear - Market size and forecast 2021-2026 ($ billion)
- Exhibit 36: Chart on Apparel and footwear - Year-over-year growth 2021-2026 (%)
- Exhibit 37: Data Table on Apparel and footwear - Year-over-year growth 2021-2026 (%)
- 5.6 Home improvement and household products - Market size and forecast 2021-2026
- Exhibit 38: Chart on Home improvement and household products - Market size and forecast 2021-2026 ($ billion)
- Exhibit 39: Data Table on Home improvement and household products - Market size and forecast 2021-2026 ($ billion)
- Exhibit 40: Chart on Home improvement and household products - Year-over-year growth 2021-2026 (%)
- Exhibit 41: Data Table on Home improvement and household products - Year-over-year growth 2021-2026 (%)
- 5.7 Others - Market size and forecast 2021-2026
- Exhibit 42: Chart on Others - Market size and forecast 2021-2026 ($ billion)
- Exhibit 43: Data Table on Others - Market size and forecast 2021-2026 ($ billion)
- Exhibit 44: Chart on Others - Year-over-year growth 2021-2026 (%)
- Exhibit 45: Data Table on Others - Year-over-year growth 2021-2026 (%)
- 5.8 Market opportunity by Product
- Exhibit 46: Market opportunity by Product ($ billion)
6 Market Segmentation by Distribution Channel
- 6.1 Market segments
- Exhibit 47: Chart on Distribution Channel - Market share 2021-2026 (%)
- Exhibit 48: Data Table on Distribution Channel - Market share 2021-2026 (%)
- 6.2 Comparison by Distribution Channel
- Exhibit 49: Chart on Comparison by Distribution Channel
- Exhibit 50: Data Table on Comparison by Distribution Channel
- 6.3 Offline - Market size and forecast 2021-2026
- Exhibit 51: Chart on Offline - Market size and forecast 2021-2026 ($ billion)
- Exhibit 52: Data Table on Offline - Market size and forecast 2021-2026 ($ billion)
- Exhibit 53: Chart on Offline - Year-over-year growth 2021-2026 (%)
- Exhibit 54: Data Table on Offline - Year-over-year growth 2021-2026 (%)
- 6.4 Online - Market size and forecast 2021-2026
- Exhibit 55: Chart on Online - Market size and forecast 2021-2026 ($ billion)
- Exhibit 56: Data Table on Online - Market size and forecast 2021-2026 ($ billion)
- Exhibit 57: Chart on Online - Year-over-year growth 2021-2026 (%)
- Exhibit 58: Data Table on Online - Year-over-year growth 2021-2026 (%)
- 6.5 Market opportunity by Distribution Channel
- Exhibit 59: Market opportunity by Distribution Channel ($ billion)
7 Customer Landscape
- 7.1 Customer landscape overview
- Exhibit 60: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
8 Drivers, Challenges, and Trends
- 8.3 Impact of drivers and challenges
- Exhibit 61: Impact of drivers and challenges in 2021 and 2026
9 Vendor Landscape
- 9.2 Vendor landscape
- Exhibit 62: Overview on Criticality of inputs and Factors of differentiation
- 9.3 Landscape disruption
- Exhibit 63: Overview on factors of disruption
- 9.4 Industry risks
- Exhibit 64: Impact of key risks on business
10 Vendor Analysis
- 10.1 Vendors covered
- Exhibit 65: Vendors covered
- 10.2 Market positioning of vendors
- Exhibit 66: Matrix on vendor position and classification
- 10.3 CT Corp.
- Exhibit 67: CT Corp. - Overview
- Exhibit 68: CT Corp. - Product / Service
- Exhibit 69: CT Corp. - Key offerings
- 10.4 PT Erajaya Swasembada Tbk
- Exhibit 70: PT Erajaya Swasembada Tbk - Overview
- Exhibit 71: PT Erajaya Swasembada Tbk - Business segments
- Exhibit 72: PT Erajaya Swasembada Tbk - Key offerings
- Exhibit 73: PT Erajaya Swasembada Tbk - Segment focus
- 10.5 PT Hero Supermarket Tbk
- Exhibit 74: PT Hero Supermarket Tbk - Overview
- Exhibit 75: PT Hero Supermarket Tbk - Business segments
- Exhibit 76: PT Hero Supermarket Tbk - Key offerings
- Exhibit 77: PT Hero Supermarket Tbk - Segment focus
- 10.6 PT Lion Super Indo
- Exhibit 78: PT Lion Super Indo - Overview
- Exhibit 79: PT Lion Super Indo - Product / Service
- Exhibit 80: PT Lion Super Indo - Key offerings
- 10.7 PT Mitra Adiperkasa Tbk
- Exhibit 81: PT Mitra Adiperkasa Tbk - Overview
- Exhibit 82: PT Mitra Adiperkasa Tbk - Business segments
- Exhibit 83: PT Mitra Adiperkasa Tbk - Key offerings
- Exhibit 84: PT Mitra Adiperkasa Tbk - Segment focus
- 10.8 PT Multipolar Technology Tbk
- Exhibit 85: PT Multipolar Technology Tbk - Overview
- Exhibit 86: PT Multipolar Technology Tbk - Business segments
- Exhibit 87: PT Multipolar Technology Tbk - Key offerings
- Exhibit 88: PT Multipolar Technology Tbk - Segment focus
- 10.9 PT Ramayana Lestari Sentosa Tbk
- Exhibit 89: PT Ramayana Lestari Sentosa Tbk - Overview
- Exhibit 90: PT Ramayana Lestari Sentosa Tbk - Business segments
- Exhibit 91: PT Ramayana Lestari Sentosa Tbk - Key offerings
- Exhibit 92: PT Ramayana Lestari Sentosa Tbk - Segment focus
- 10.10 PT Sumber Alfaria Trijaya Tbk
- Exhibit 93: PT Sumber Alfaria Trijaya Tbk - Overview
- Exhibit 94: PT Sumber Alfaria Trijaya Tbk - Business segments
- Exhibit 95: PT Sumber Alfaria Trijaya Tbk - Key offerings
- Exhibit 96: PT Sumber Alfaria Trijaya Tbk - Segment focus
- 10.11 PT. Indomarco Prismatama
- Exhibit 97: PT. Indomarco Prismatama - Overview
- Exhibit 98: PT. Indomarco Prismatama - Product / Service
- Exhibit 99: PT. Indomarco Prismatama - Key offerings
- 10.12 SPAR International
- Exhibit 100: SPAR International - Overview
- Exhibit 101: SPAR International - Product / Service
- Exhibit 102: SPAR International - Key offerings
11 Appendix
- 11.2 Inclusions and exclusions checklist
- Exhibit 103: Inclusions checklist
- Exhibit 104: Exclusions checklist
- 11.3 Currency conversion rates for US$
- Exhibit 105: Currency conversion rates for US$
- 11.4 Research methodology
- Exhibit 106: Research methodology
- Exhibit 107: Validation techniques employed for market sizing
- Exhibit 108: Information sources
- 11.5 List of abbreviations
- Exhibit 109: List of abbreviations
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