Market and Industry Analysis in Indonesia : Supermarket Industry

Industry and Market Analysis

In today's economically growing world, there is found an ever-expanding marketplace for almost any product or service imaginable. In these markets exists an overlap of differing industries working together to produce a final service or product that meets the needs of the end customer, and goes beyond what others in the same market may offer. This is also the case within the Supermarket Market, and for our purposes, more specifically, the Supermarket Industry in Indonesia. Many of these supermarkets are now trying to incorporate more and more technology into their services as a means for the customers to have a better and more time efficient experience.

Today in Indonesia, a country bustling with more than 200 million people, boasting being the fourth most populous country in the world, shoppers have a multitude of choices when it is time for shopping for groceries in Indonesia. This ranges from those who collect and sell vegetables, to the very cultural traditional indonesian markets, to the small street chain owned grocery stores to the ever increasing presence of mini-market, more simply known as minimarts, to the more modern looking supermarkets such as Hero and Yogya Supermarket. And then there are the hypermarkets which have only been recently established after substantial investment from other foreign grocery store chains.

Indonesia has a healthy economic climate and that outlook is likely to continue over the next several years or decades, which will see a resulting higher disposable income amongst the population. This enhanced buying power of Indonesia middle class citizens will likely drive growth upwards in most grocery retailers in Indonesia for the next several years or so. Grocery retailers in Indonesia were reported in general to have posted current value growths of just over 12% in the financial year of 2012, which was set to increase up until the year 2020 at least. A recent study in Jakarta found that the...