Consumer electronics in Indonesia - statistics & facts

The growing middle class and their increased purchasing power, among other factors, have resulted in increased spending by Indonesian consumers on non-essential products such as consumer electronics. Consumer electronics encompass communication and entertainment devices as well as devices that are used for information purposes. As of the third quarter of 2020, the most common digital devices that the Indonesian adult population owned included mobile phones, smartphones, and laptop or desktop computers. The increase in consumer electronics purchases among Indonesian consumers is well reflected in the total market revenue of consumer electronics that has been ascending in recent years. The growth is forecast to continue despite the ongoing coronavirus (COVID-19) pandemic that has hit the country since the beginning of 2020. However, some movement constraints imposed by the government to curb the spread of the virus have caused the purchasing channel structure to move slightly toward online channels.

The impact of coronavirus (COVID-19) pandemic on consumer electronics market

The mandatory closure of offline businesses selling non-essential products during various stages of Large-Scale Social Distancing, locally known as PSBB, has increased the overall use of e-commerce in the country. A recent study revealed that 55 percent of Indonesian consumers purchased more online during the coronavirus (COVID-19) pandemic. This also holds for the consumer electronics market, where there was a seven-percent growth in e-commerce sales in 2020 compared to the previous year. Specifically, 27 percent of total consumer electronics revenue was derived from online channel sales that year.

Where do Indonesian purchase consumer electronics?

Despite the higher use of e-commerce that was fueled by the coronavirus (COVID-19) pandemic, offline channels are still the most preferred purchasing channels for consumer electronics in Indonesia. As of recent findings, 55 percent of Indonesian consumers chose official brand offline stores as their preferred purchase channels for gadgets. Furthermore, the majority of Indonesian consumers purchased audio and video electronics products via modern trade such as supermarkets, department stores, and specialty stores. However, for those who are keen on shopping online, Jakarta Notebook was the most preferred e-commerce site for electronics among Indonesian online shoppers.

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