Demonstrating Resilience
in a Volatile Market
Recent insights for Q2+ 2024
M Quarterly Updates
Fostering the digital transformation
Telecommunication Sector Insight in Q2 2024, Indonesia
Putri Yasmin Fathina Zahirah; I Putu Agung Aditya Santana; Zavier Gambetta
M Quarterly Updates
4C BUSINESS LANDSCAPE
CHANGE
5G Technology to foster digital transformation
in Indonesia by 2045
COMPETITOR
Implementation of 5G among
competitors
4C
Business Landscape
COMPANY
What should companies do to stay competitive?
CUSTOMER
Demand for high quality and affordable
internet package
CHANGE
Indonesia's underperformance internet network quality urges
a measurable plan for the infrastructure improvement.
Indonesia ranks the third-lowest among other SEA countries
prompting the urgency for internet quality improvement.
Median of Mobile Internet Download Speed in SEA (2023)[1]
Digital Indonesia Vision Milestone[2]
(in Mbps)
Singapore
93.42
Brunei…
91.87
Malaysia
69.92
Vietnam
49.12
Thailand
29.98
Philippines
28.12
Cambodia
26.64
Indonesia
24.96
Myanmar
Sustainable Innovation Development Phase
Encouraging continuous innovation and achieving
national digital technology excellence.
2040-2045
4.16
0
20
Digital Foundation Strengthening Phase
Strengthening digital infrastructure equitably and highquality.
2035-2039
21.29
East Timor
2025-2029
2030-2034
Development of Competitive Digital Ecosystem Phase
Strengthening competitive and innovative digital
ecosystem.
42.14
Laos
Digital Indonesia Vision 2045 aims to make Indonesia
become a major digital power in SEA.
40
60
80
100
Sources: [1] Katadata, 2023; [2] Visi Indonesia Digital 2045, 2023; MarkPlus Analysis, 2024
Global Technology Leading Phase
A leading country in the implementation of global
technology and advancing environmental sustainability.
CHANGE
Digital transformation for economic development requires capable
internet infrastructure which can be fulfilled by 5G.
Emerging technologies demand for advanced digital
capabilities. [1]
4G
5G
55 ms ms
60-98
< 2 ms
Peak
Enhanced mobile broadband
≤ 1 Gbps
20 Gbps
Real
World
1
5G offers more reliable future-ready internet
capabilities than 4G[2][3][4].
10 Mbps
100 Mbps
Base Station
Cell towers
Small cells
OFDM Encoding
20 MHz channels
100-200 MHz channels
Maximum
Connecting
Instrument
100.000/km2
1.000.000/km2
5G technology provides high bandwidth, reaching speeds of
up to 10 gigabytes per second. It enables ultra-highdefinition video and data transfer, supporting applications
such as virtual reality (VR) and extended reality (XR).
2 Massive Internet of Things
5G networks can support up to 1 million devices per square
kilometer, enabling simultaneous connectivity for a vast
number of IoT devices. This capability is crucial for
implementing advanced massive IoT applications.
3
Mission-critical services
Latency
Potential
Download
Speed
5G technology ensures ultra-low latencies, as low as one
millisecond, which is crucial for mission-critical applications
like remote intensive care units. In life-or-death situations,
rapid data exchange can make all the difference.
Sources: [1] Accenture, 2024 [2] Kim, 2019; [3] TechTarget, 2024; [4] Statista, 2020; MarkPlus Analysis, 2024
CHANGE
Meanwhile, the development of 5G is still needed due to its low
coverage and network quality.
Fiber optic penetration and 5G network coverage
in Indonesia[1].
Despite the high penetration of fiber optic,
5G network speeds have yet to reach their expected
maximum of real-world speed.
Average of 5G Download Speed in SEA (2023)[2]
(in Mbps)
60,8%
of fiber optic penetration
across all sub-districts
(equal to 480.000 km)
400
355.5
350
314.9
300
250
0,10%
of 5G network coverage
(equal to 48 cities)
200
134.6
150
100
58.3
82.6
50
0
Indonesia
Sources: [1] Visi Indonesia Digital 2045, 2023; [2] MarkPlus Analysis, 2024
Thailand
Philippines
Singapore
Malaysia
CUSTOMER
Customers are considering the adoption of 5G networks that are
affordable and quality-assured.
Majority of Indonesian citizen are willing to upgrade to
5G network[1].
However, customers are still perceived the effective
product cost as the primary consideration to shift.
(n = 1000)
Top 4 of customer preferences for choosing internet providers(2024)[2]
92%
Yes
No
8%
21%
Consumers are keen to shift due to
the 5G advanced-features it has offered.
Cost
19%
Reliability
Reasons to use 5G(2024)[1]
1
Faster internet connection
2
Bigger internet capacity
3
Fifth generation of cellular network
4
Lower latency (time gap)
Sources: [1] Medcom, 2022; [2] OpenSignal, 2024; MarkPlus Analysis, 2024
18%
Network Quality
17%
Coverage
This will be a challenge for CSPs to supply internet
packages at a competitive price, but still with good
network quality, high stability, and wide coverage.
COMPETITOR
Local CSPs has made several progress to keep up
with 5G implementation.
Local industry players’ current 5G network product and their recent updates.
Industry Players
Internet Speed
Coverage
Package
Recent Initiatives
150-250 Mbps (download)
More than 50 cities across
Indonesia
Rp 50,000 / 30 GB
(5G only)
Targeting more than 100 cities to be
covered by 5G network by the end of 2024
• Up to 322 Mbps
(download)
• 58 Mbps (upload)
Available in 28 cities
across Indonesia
Rp 100,000 / 29 GB
(4G and 5G)
XL Axiata is concentrating on enhancing its
4G network while also working on expanding its
5G network coverage.
• Up to 600 Mbps
(download)
• 121 Mbps (upload)
Available only in 8 cities
across Indonesia
N/A
Sources: MarkPlus Analysis, 2024
N/A
Rp 100,000 / 25 GB
(4G and 5G)
N/A
Targeting to build 11,400 new network locations
covering 7,660 villages by the end of 2025.
• Smartfren still developing 5G network
for B2B customer.
• Smartfren's 5G network will be prioritized
for companies affiliated with Sinar Mas,
including factories, mining companies
and hospitals.
COMPANY
What should companies do to stay competitive?
Improve the network
infrastructure
Maximize the netork
infrastructure penetration to
bring a good internet quality into
rural area.
Source: Databoks Katadata (2022)
Tailored pricing strategies
High-quality internet products
Changing the pricing strategy to
attract more customers and to
keep up with the large size of
market demand potential.
A telecom company's success
depends on the quality of its
internet products, ensuring
customer satisfaction,
retention, and competitive
advantage.
Campaign Strategies and Insights for Public
The Role of Government Public Relations and Media in
Relations Practitioners in the Indonesia’s 2024
Indonesia's 2024 Regional Elections
Simultaneous Regional Head Elections (Pilkada)
Government and Public Services Insight in Q2 2024, Indonesia
Martinus Kurnia Yunaiko Putra; Sarah Mumtaz
Government and Public Services Insight in Q2 2024, Indonesia
Martinus Kurnia Yunaiko Putra; Sarah Mumtaz
M Q u a r t e r l y Up d a t e s
4C Business Landscape
Campaign Strategies and Insights for Public Relations Practitioners in the
Indonesia’s 2024 Simultaneous Regional Head Elections (Pilkada)
CHANGE
2024 simultaneous regional elections in Indonesia
COMPETITOR
Competing for supporters' votes through
various media and campaign tactics
4C
Business Landscape
CUSTOMER
Gen Z and millennials are critical demographics
with distinct issue priorities
COMPANY
What should PR practitioners do to stay competitive?
©2024 M Corp. All rights reserved
xx
CHANGE
For the first time in Indonesia, province and cities or regencies elections will
coincide in November 2024
Over 204 million eligible voters can participate in this election,
which will be held in…
There are multiple objectives for conducting concurrent elections
in 2024, including:
Increase
democratic
participation
• Encourage widespread voter engagement
• Increase voter turnout and awareness
• Foster a culture of civic responsibility
Ensure
transparent
government
• Build trust in regional governments
• Strengthen accountability mechanisms
• Enhance transparency in electoral process
Enhance
efficiency
• Streamline administrative processes
• Simplify scheduling and resource allocation
• Shared resources to lower cost
38
Provinces
98
416
Cities
Regencies
8
Political parties that have a strong chance
of nominating leader candidates
Sources: MarkPlus Analysis, 2024
Empowerment
and
representation
• Empower individuals with a deep understanding of
local issues
• Diversity of leadership candidates shows
representation of each group within communities
©2024 M Corp. All rights reserved
xx
COMPETITOR
For candidates and supporting parties, the media can have a significant impact on
their electoral prospects, despite the presence of unhealthy media practices
When it comes to winning elections, the use of media as a strategy can be
categorized into two distinct approaches:
Positive Reinforcement
Implication for
candidates
The media landscape in Indonesia
plays a pivotal role in shaping
public opinion and influencing
outcomes of elections
They are used extensively by
candidates to reach voters,
disseminate information, and
engage in various campaign
strategies
•
•
•
•
•
•
•
Informing the public on candidates’
vision, mission, and programs
Broadcasting debates
Media investigations
Fact-checking
Balanced reporting
Public forums
Digital engagement
•
•
•
•
•
•
•
•
Spread misinformation and fake news
Echo chambers
Media bias
Agenda setting
Attack ads
Character assassination
Sensationalism
Information overload
However, Indonesian media continues to be significantly impacted by
unhealthy press practices that promote negative reinforcement because…
3.7%
Verified
Sources: MarkPlus Analysis, 2024
Negative Reinforcement
out of the over 47,000 press media companies in
Indonesia, only 1,767 have been verified by the
Press Council or Dewan Pers as of 2024.
©2024 M Corp. All rights reserved
xx
COMPETITOR
There are several alternative methods for prospective candidates to diversify their
campaign strategies beyond traditional media
Conventional
Billboard
Innovative
Door-Knocking
Mass Campaign
In-Person Event
TikTok Live
Reflecting on the 2024 presidential election campaign, prospective candidates used campaign techniques
ranging from the most conventional to highly innovative approach to engage with their supporters and to gain
attention from the swing voters.
Sources: MarkPlus Analysis, 2024
©2024 M Corp. All rights reserved
xx
COMPETITOR
Furthermore, a candidate's campaign strategy can be amplified more broadly with
the presence of the social media
Platform
Implication for
candidates
Social media has become a
powerful tool in the 2024 Indonesian
elections, profoundly influencing
voter opinions and behaviors.
Key Characteristics
•
•
•
•
•
This influence is particularly
pronounced among Gen Z and
millennial voters, who make up the
majority of the electorate.
•
•
•
Candidates who effectively
leverage social media platforms can
significantly enhance their reach
and impact, among younger,
digitally-savvy voters.
•
Sources: MarkPlus Analysis, 2024
•
KOL / Account
Impact
Real-time updates
Trending topics
Quick and spread
information rapidly
Campaign updates
•
•
•
•
•
@NajwaShihab
@Ulinyusron
@RachlandNashidik
@Ernestprakasa
@Afutami
Candidates can leverage X
(formerly Twitter) to engage in
debates, respond to
controversies, and mobilize
support during campaign
Short and engaging
videos
Creative videos
Humorous and fun
Go viral quickly
•
•
•
•
•
@pangeransiahaan
@totalpolitik
@awbimax
@irwanprasetiyo
@xeronav
Instrumental in reshaping
candidates’ images to appear
more approachable and
relatable. For example, Prabowo’s
use of TikTok to present himself as
“gemoy” (cute)
Visual-centric
platform
More professional in
creating branding
image
•
•
•
•
•
@narasinewsroom
@bijakmemilih
@thinkpolicy.id
@pinterpolitik
@asumsico
Helps candidates connect with
younger voters through
aesthetically engaging content
and storytelling, often leveraging
influencers to amplify their reach
©2024 M Corp. All rights reserved
xx
CUSTOMER
Job opportunities, welfare, and graft eradication issues were
perceived as the main issue for Gen Z
Media depiction in seeing the challenges that Generation
Z has
Issue Prioritization for Gen Z
Job
Opportunities
35.0%
27.7%
Welfare
Graft
Eradication
21.3%
Democracy &
Civic Freedoms
Healthcare
7.0%
5.7%
Environment
2.3%
Others
2.1%
Sources: IDN Media (2023)
©2024 M Corp. All rights reserved
xx
CUSTOMER
Personal character is the main factor in choosing a Regional Leader,
followed by the candidate's professional background.
Criteria for regional leaders that are most preferred by voters
Personal
Character
34.5%
Professional
Background
•
•
•
Clothing Style &
Type
Academic
Title
Sources: Populix (2024)
20.8%
•
•
•
14.0%
12.8%
•
•
•
•
•
•
Firm and authoritative;
Close to the people;
Communicative.
Politician;
Activist;
Army / Police.
Suits;
Casual wear;
Traditional wear.
Minimum S3 degree / equivalent
Minimum S2 degree / equivalent
Minimum S1 degree / equivalent
©2024 M Corp. All rights reserved
xx
COMPANY
What should public relations practitioners do to stay competitive?
Political Marketing
Communication
Understanding Voting Behaviour
Models
Legal & Ethical Consideration
➢ Communication strategies, to
emphasize stakeholder relations.
➢ A balanced top-down and bottom-up
approach.
➢ Automatic Identification System
(AIS) machines across institutions to
support these efforts
Analyzing sociological,
psychological, and rational factors
behind voter decisions can provide
valuable insights.
This involves strictly following
election laws, being transparent
in communications, protecting
individual privacy
Source: IJESSS Journal: PUBLIC COMMUNICATION MODEL IN COMBATING HOAXES AND
FAKE NEWS IN AHEADOF THE 2024 GENERAL ELECTION
Digital Banking Services: Maximizing
Potential from Regulation Adjustment
Financial Services Sector Insight in Q2 2024, Indonesia
Amardita Nur Fathia; Sulthan Erland Alfaril; Marcella Guervarra Vallencya ; Pascalis Saka Aryasatya
M Quarterly Updates
4C BUSINESS LANDSCAPE
CHANGE
The emergence of digital banking services
COMPETITOR
Banks that have integrated marketplace
into its digital banking services
4C
Business Landscape
COMPANY
What should companies do to stay competitive?
CUSTOMER
Increased internet user and enthusiasm of
adopting digital banking services technology
CHANGE
Digital Banking Service is not Digital Bank
Example of Digital Banking Services
12/POJK.03/2018
Electronic Banking Services developed by optimizing
the use of customer data in order to serve customers
more quickly, easily and according to customer needs
(customer experience), and can be carried out
completely independently by customers, considering
security aspects
Mobile
Banking
E-commerce
Integration
QR Code
Payments
Cardless
Transaction
Mobile Banking Evolution
PHONE
BANKING
INTERNET
BANKING
SMS
BANKING
MOBILE
BANKING
Year Founded
Late 1990s
2000
2001
2007
Pioneer Company
Niaga
BCA
Mandiri
BNI
COMPETITOR
The attractiveness of mobile banking has pushed conventional bank to utilize it
as a marketplace to increase digital transaction volume
3 of 5 Banks with the highest user in digital banking services
have integrated marketplace into their mobile banking
Top 5 Digital Banking Services Used in 2023[1]
By generation; in percentage
43%
BCA Mobile Banking
55%
45%
BRImo
31%
35%
26%
23%
BNI Mobile Banking
15%
14%
22%
23%
Others
Gen Z
Source: [1]Statista, 2024
Marketplace
Integration
Note
No marketplace integration
28%
Livin' by Mandiri
BSI Mobile
Commercial
Banks
Gen Y
Game Voucher, Streaming Voucher,
Travel Ticket
Game Voucher, Streaming Voucher,
Travel Ticket, Daily Needs, Insurance
Game Voucher, Streaming Voucher,
Phone & Data Package
No marketplace integration
COMPETITOR
Conventional banks that integrate marketplace into its mobile banking
experience higher user and transaction growth
Total User and User YoY Growth Comparison
Transaction Volume 2022-2023 YoY Growth Comparison
Mobile banking users: in million
33%
35
77%
30
28
20
31%
26.6
20.8
10
3.46
4.81
14.2
75%
69%
70%
60%
50%
45%
27%
30%
9.82
27%
20%
6.31
10%
0
BSI Mobile
BNI Mobile
Banking
2021
Livin' by
Mandiri
2022
BRImo
BCA Mobile
Banking
Banks with
marketplace
integration
0%
BSI Mobile BNI Mobile
Banking
Livin' by
Mandiri
BRImo
BCA Mobile
Banking
2023
AVERAGE USER GROWTH
43%
80%
40%
15.8
13.6
10.8
30.3
23.8
16.2
15
5
31.6
19%
25
14%
22%
Banks without
marketplace
integration
AVERAGE TRANSACTION VOLUME GROWTH
43%
Banks with
marketplace
integration
22%
Banks without
marketplace
integration
CUSTOMER
Digital banking services transactions in Indonesia have grown by 233,36% over 4
years alongside with increasing number of internet users in Indonesia
Digital banking services transactions in Indonesia 2018-2022
Digital Transactions : in quadrillion[2]
Internet Users : in million[3]
60
205
52.5
50
200
195
40
190
37
This indicates that there is a
potential for increase in the
number of digital banking services
transactions in the next year
185
27.4
30
27.5
180
175
20
17.1
170
165
10
160
0
155
2018
2019
Digital Transactions
Source: [2]Katadata, 2023; [3]Katadata, 2024
2020
Internet Users
2021
2022
The digital banking services market
in Indonesia still has room to
develop, with great opportunities
for future growth
CUSTOMER
Digital transactions from mobile banking applications grew rapidly in recent past
years, as happened in 2 of the largest banks
Bank Central Asia[4]
Transaction Volume Comparison
70.1%
79%
86.1%
Transaction Value Comparison
Q4 2019
19.5%
45.4%
339
8.1%
7.4%
6.4%
5.9%
174
Q4 2022
Q4 2019
Q4 2020
Q4 2021
Q4 2022
Q4 2019
ATM
Mobile Banking
Q4 2021
ATM
Mobile Banking
717
58.1%
10.2%
Q4 2020
Transaction Value Comparison (Tn Rp)
558
54.2%
13.1%
Transaction Volume Comparison (Mn Unit)
89.3%
41.4%
27.8%
Bank Mandiri[5]
BCA’s mobile banking domination have occurred since 2018,
BCA Mobile launched back in 2011
380
486
290
235
271
259
Q4 2020
Q4 2021
Q4 2022
ATM
Mobile Banking
280
333
229
265
Q4 2019
208
197
Q4 2020
Q4 2021
Q4 2022
ATM
Mobile Banking
Livin’ Superapp launching in 2021 encourage mobile banking
domination at Mandiri
Customer convenience and user experience from mobile banking application
plays significant role in this major shift
Source: [4]BCA Corporate Presentation 2022; [5]Mandiri Corporate Presentation 2022
CUSTOMER
Digital banking services offer things that suit the characterisics of today’s society
Today’s Customer Characteristics
TECH-SAVVY INDIVIDUALS
Early adopters of new tech, need
efficient and flexible banking
solutions
BUSY PROFESSIONALS
Person
with
demanding
schedules, prefer time-efficient
solutions
ENVIRONMENTALLY CONCIOUS
CONSUMERS
Concerned
about
their
environmental footprint and
prefer sustainable practices
What does digital banking services have to offer?
Anytime and anywhere
services, real-time
financial monitoring
AI-driven financial
planning tools and
biometric security.
Instant transfer,
payments, and access
to funds
Ability to manage
finance without
physical presence
Reduced need for
paper statements and
physical documents
Lower energy
consumption compared
to traditional banks
CUSTOMER
Practical and Easy to Use become the main reasons why Indonesian customers
willing to accept digital banking services
Reasons Customers Use Digital Banks[6]
Indonesia Fintech Trends of 2023[7]
1,000 respondents across major cities in Indonesia
1,500 respondents aged 17 to 54 years across Indonesia
Practical
75
Easy to use
74
Time-saving
67
Many features
65
Easy to track expenses
62
E-wallet integration
61
63
Transfer
12
Virtual Account
10
E-wallet top-up
0
10
20
30
40
50
60
70
56
E-commerce integration
43
More secure
29
Recommended
0
20
40
60
80
This trend is driven by the convenience and efficiency of
conducting financial transactions anytime and anywhere,
eliminating the need for physical branch visits.
Source: [6]Populix, 2022; [7[Jakpat, 2023
1
Transfers are the most popular feature, showing that users
value quick and easy money transfers.
2
Virtual Accounts are used by a smaller segment, suggesting a
need for better user education and promotion.
3
Top-up e-wallets are the least used, which may indicate a
preference for dedicated e-wallet apps.
COMPANY
What should companies do to stay competitive?
Integrate Marketplace with
Strategic Partnership
Develop Integrated
Payment Features
Enhanced User Experience
and Personalization
Create partnerships with
established e-commerce
platforms, fintech companies,
and local businesses to create a
comprehensive marketplace
ecosystem within the mobile
banking app.
Develop payment features
integrated with the
marketplace, in-app
transaction, without having to
use third-party applications.
Focus on improving user
experience in mobile banking
applications integrated with the
marketplace, ensuring easy
navigation and smooth
transaction processes.
Challenging Localized Chinese Products
in the Indonesia Beauty Market
Consumer Goods Sector Insight in Q2 2024, Indonesia
Fathia Andini Putri; I Kadek Danan Jaya Antara Putra; Jennye Maria Paule Awuy; Asmara Rani
M Quarterly Updates
4C BUSINESS LANDSCAPE
CHANGE
Social media as a method
to promote beauty products
COMPETITOR
Localized Chinese beauty products
through marketing strategies
4C
Business Landscape
COMPANY
What should companies do to stay competitive?
CUSTOMER
Increased consumption of Chinese
beauty products due to accesibility and
affordability
CHANGE
Tiktok continues to integrate significantly in Indonesia, releases a
major increase in the duration of consumers using the app.
Tiktok is becoming one of the most favorite social
media applications amongst Indonesian citizens.
As Tiktok is becoming one of the most popular social
applications, Tiktok's time usage also increases over the year
Time spent using Tiktok amongst Indonesian Citizens (hours per month in
average of a year)
*Survey by Data Reportal that asked Indonesian citizens aged 16 to 64
of their favorite social media platform in 2023
Source: Data Reportal
CHANGE
Hence, ongoing trends—beauty-based contents—on Tiktok has made
an adjustment in the lifestyles of its users
Being an originally Chinese brand, Tiktok has brought Chinesebased beauty contents towards its users—Douyin Makeup.
There is also an increase of contents showing the usage of
Chinese beauty products by various Indonesian figures.
Tiktok influencers or key opinion leaders (KOLs) are actively promoting
Douyin Makeup. Some of each could reach millions of viewers and likes.
Live Streams
Periodic live streams from
Chinese
beauty
brands
to disseminate promotions and
giveaways that reach hundreds
of viewers each time.
Affiliates & Influencers
Brands collaboration with ecommerce affiliates that create
more
contents
of
brand
promotions on Tiktok
Source: (1)West Science Interdisciplinary Studies,
CUSTOMER
In following social media trends, there are factors that contribute for
Indonesians in choosing beauty products.
The factors that contribute to consumers' decisions in
buying beauty products[1]
1
Product Ingredients
Indonesia's concern about buying is primarily due to the quality
and safety of the ingredients used.
68.5%
Product Ingredients
63%
22.3%
brands originate from China, such as Skintific.
27%
Influencer Reviews
16.4%
47.5%
Skintific patented technology "Trilogy Triangle Effect" to provide a
combination of active ingredients and barrier ingredients that work
together to repair and strengthen the skin barrier.
Skin Barrier
23.1%
Advertising
The Indonesian Food and Drug Authority (BPOM) has strict
regulations to ensure that products meet certain
standards. BPOM data revealed that many registered
+80%​
"Skin barrier" is highly searched on YouTube
as consumers research ingredients that
meet their specific skincare needs.[2]
17.2%
1.6%
2023
2021
2019
Source: [1]Statista, [2] Google Newsletter, [3]Asia Pasific News
“Previously, I used (South) Korean skincare products, but I
have switched to China’s Skintific because it is more
comfortable for my face.”
Asia Pacific News Interview with Wardhana, a customer[3]
CUSTOMER
Social media figures serve as an important role in the disruption of
the beauty market due to their reputation and trustworthiness
2
Influencer Reviews and Advertising
One of the key marketing strategies for Chinese beauty brands
that consumers digest easily is by utilizing social media, especially
collaborating with social media figures—influencers, KOLs,
affiliates, and live streamers on TikTok[1].
Channels used across consumer purchase journey
Discovery
Evaluation
Purchase
Social media contents
E-commerce and
marketplace
E-commerce and
marketplace
E-commerce and
marketplace
Social media reviews
Going to physical
stores
Word-of-mouth
Going to physical
stores
Live buying
Offline word-of-mouth
Online communities
Direct website
Source: [1]Dwinanda, 2023 , (1)West Science Interdisciplinary Studies,
There is a complex relationship between social media figures
and its viewers that significantly impact consumers based on
loyalty and trust[2].
Reputation of social
media figures
Social media
contents
Consumer’
purchasing decisions
Chinese beauty brands often collaborate with shopping affiliates
that promotes their brands more intensely using their contents.
CUSTOMER
Customers have their preference mostly fulfilled by the options given
by Chinese beauty brands, rather than other regionally-based brands
Chinese brands have the upper hand of being more
preferred by consumers rather than Western brands[1].
Chinese beauty brands effectively leverage social
media as their primary marketing strategy[2]
Question: "Why did you buy a product from these brands?"
Collaboration with influencers, KOLs, and
affiliates
External
Advertising
Actively participate in beauty events
Giving big promos on special event
Internal
Boosting videos from influencers, KOLs, and
affiliates
Building community group
*A survey by Blueprint Ventures asking 150 Indonesian consumers on choosing each quality
of each brand
Source: [1]Blueprint Venture (2024), [2]Hudiyono & Syafira (2023)
Combining these strategies, Chinese beauty brands
can drive brand visibility and customer loyalty.
COMPETITOR
The beauty market in Indonesia was previously a mixture of various
multinational brands, yet the most favored brands were local brands
Indonesian beauty brands have been the key player in the
beauty market for a long time due to its affordability and brand
reputation.
Classes of beauty brands are classified based on its
affordability and the brand reputation and/or prestige.
Prestige
However, It changes drastically when Chinese beauty brands started to come in
2016.
Periods of beauty brands establishments in Indonesia
Korean Brands
Western Brands
1990 – 2010
Local
Brands
Korean
Brands
Local Brands
2010 – 2015
Local
Brands
Korean
Brands
Western
Brands
Chinese Brands
Korean
Brands
Source: [1]7.5 Degrees
Chinese Brands
Chinese
Brands
Local Brands
2021 – present
Chinese
Brands
Price
Western
Brands
2016 – 2020
Local
Brands
Korean Brands
Local Brands
Western
Brands
COMPETITOR
As Chinese beauty brands successfully penetrated Indonesian beauty
market, it has severely disrupted beauty markets in Indonesia
In just two years, China has successfully dominated
the beauty market in Indonesia.[1]
Several Chinese beauty brands have become major
key players in the Indonesian beauty market.[2]
5.70%
42.80%
57.20%
94.30%
Chinese Brand
Local Brand
2020
Chinese Brand
Local
2022
The rising penetration of Chinese brands could reshape
Indonesia's beauty market by influencing trends, product
availability, and consumer expectations.
Source: [1]Kumparan [2]7.5 Degree, [3]Statista,
In 2022, Indonesia imported around
130.85 million U.S. dollars' worth of
beauty or makeup and skin care
preparations from China.[3]
COMPETITOR
The use of foreign branding has become a strategy for Chinese
beauty brands to promote their products
Chinese beauty brands often use local people as models
1
Massive promotion through social media using
Indonesian people as models
Result from foreign branding
Top 3 imported beauty products that were mistaken for local products (n=2000).[1]
25%
16%
10%
Female workers for Skintific’s campaign
#KamuJugaBisaMencapaiImpianmu
2
Choosing the right endorsement strategy by utilizing
famous Indonesian celebrities as brand ambassadors
Nicholas Saputra as Skintific’s
Brand Ambassador
Source: [1]SnapCart
Amanda Manopo as Y.O.U.’s
Brand Ambassador
There are several reasons why Indonesian customer use
imported products that they thought as local brands
Affordable
price
Comfortable or
suitable for skin
Good and
guaranteed quality
COMPANY
What should companies do to stay competitive?
Creative product innovation
and brand agility
Develop indigenous
attractiveness and sense of
community
Optimizing marketing
strategies
Companies should innovate
beauty products to catch the
eyes of consumers. The product
development can be done
through innovative product
packaging and benefits to users.
Local beauty companies should
integrate indigenous and
traditional beauty practices,
through marketing strategies
and/or products ingredients,
and building a sense of
community with consumers
To attract consumers,
companies should enhance
their marketing strategies. This
can be done by using
personalized content,
innovative digital marketing,
or community-focused
initiatives.
Post-Pandemic Demand Increase of Instant
Grocery Delivery Services in Indonesia
Automotive, Transportation, and Logistic Insights in Q2 2024, Indonesia
Rais Aqil Haryono, Jessica Nathania Annabelle
M Quarterly Updates
4C BUSINESS LANDSCAPE
CHANGE
Preference in simplified groceries
in the post-pandemic era
COMPETITOR
Increasing number of instant groceries
delivery services player post-pandemic
and the rise of omnichannel shopping
4C
Business Landscape
COMPANY
What should companies do to stay competitive?
CUSTOMER
Gen Z’s tendency to continue using instant
groceries delivery services post-pandemic
CHANGE
The COVID-19 pandemic has driven a behavioral change of Indonesian in many aspects
of life, including the demand for instant delivery of groceries
Post-pandemic Purchasing Channel Preference
Growth (E-Commerce)3
COVID-19 Timeline in Indonesia1
2021
(n = 1.500)
• 1st Case of COVID-19.
• PSBB & PPKM Implementation.
• 1st Dose of Vaccination started.
35%
2022
25%
• Booster vaccination started.
• PPKM Revoked.
20%
2023
15%
33%
30%
10%
• Wisma Atlet Kemayoran recovery center closed.
• Indonesia officially transform into endemic period.
Private label / store brand
38%
New shopping method (including curbside
pick-up and delivery apps)
39%
27%
20%
16%
18%
17%
10%
43%
0%
Food (Packaged & Fresh)
Food (Canned)
Personal Hygiene Products
Household Cleaning Products
64%
Different retailer/store/website
0%
20%
40%
41%
5%
42%
Different brand
Willingness to Purchase Fresh Food
Products from E-Commerce due to the
pandemic4
60%
Cosmetics & Beauty Care Products
80%
Since the COVID-19 Pandemic, 39% Indonesian consumers have
tried new shopping method including delivery apps2
Source: (1)Antara News (2023), (2)Statista (2022), (3)Deloitte (2021), (4)Snapchart (2022)
Much more willing
Somewhat more willing
No change
Clothing & Footwear
Indonesian shows an increasing preference towards ecommerce as a purchasing channel for grocerie
More than 50% of Indonesian said that they are
willing to buy groceries from e-commerce
©2024 MCorp. All rights reserved
42
CHANGE
Between the two latest generation, Gen Z used instant groceries delivery services more
compared to Millennials
Past
Present
Digital Platform Used by Gen Z and
Millennials
(n = 4.937)
Daily Groceries Online
53.33%
35%
(n = 4.937)
26%
Millennials
46.67%
4-6 Hours
21%
2-4 Hours
24%
0%
1
Frequency of Daily Online Grocery Before
and After COVID-19
Daily Internet Activity of Gen Z &
(n = 10.000)
Millennials
> 6 Hours
Gen Z
Future
Gen Z shows bigger number of using online
grocery delivery services compared to
Millennials1
2
Gen Z
Millennials
52.98%
47.02%
17%
Grocery Shopping Online
More Now than Before
25%
20%
Gen Z
40%
Gen Y
60%
80%
A higher percentage of Gen Z spends more than
6 hours online daily compared to Gen Y2
3
Gen Z shows a higher initiative to use instant
groceries delivery services after the pandemic
compared to Gen Y (Millennials)3
Before and after the COVID-19 pandemic, Gen Z shows a more significant increase of interest to use instant
groceries delivery services compared to Gen Y (millennials)
Source: (1)&(3)Snapchart (2023), (2)Databoks (2022)
©2024 MCorp. All rights reserved
43
CHANGE
The grocery delivery market is growing rapidly, driven by a variety
of influential factors.
Grocery delivery market revenue in SEA
E-Grocery Journey In Indonesia
from 2020 to 2028, by country
30
27.03
25
23.87
20.7
20
(Launched in 2020)
(Launched in 2020)
(Launched in 2015)
(Launched in 2018)
(Launched in 2020)
(Launched in 2017)
(Launched in 2021)
17.12
15
13.4
10
10
5.21
5
0
(Launched in 2015)
7.21
2.28
2020
2021
2022
Indonesia
2023
Malaysia
2024
2025
Singapore
2026
Thailand
2027
2028
Vietnam
Indonesia has significant potential in the e-grocery market,
with projected revenues reaching $27.03 billion by 2028,
far exceeding those of other Southeast Asian countries.
Source: (1)Statista (2023),
(Launched in 2016)
Since 2015, Indonesia's e-grocery market has surged, driven
further by COVID-19. Today, nine major firms dominate
the market, showcasing strong potential in Southeast Asia.
©2024 MCorp. All rights reserved
44
CUSTOMER
Efficiency and Convenience: The Key Drivers for Customers Staying Online
Reasons for Continuing to Use Instant
Groceries Post-Pandemic
Customer Factors
Implications
(n = 4.937)
100%
90%
Ease and Quality
89%
Customers praise instant groceries
for the ease of shopping, product
quality, and good courier service
80%
70%
65%
60%
50%
44%
40%
30%
20%
37% 34%
30%
Promotion & Discount
Attractive
promotions
vouchers are a major draw.
and
Enhanced Customer
Experience
Increase Market
Share
10%
0%
Convenience
Plenty of Promotions
Fast Shipping
Good Product Selection
Affordable Prices
Good Product Quality
Source: (1)Snapcart (2022)
Enhanced Customer Experience
The user-friendly app with realtime stock updates is highly
appreciated by customers.
Boost Efficiency
©2024 MCorp. All rights reserved
45
CUSTOMER
The Trade-Offs of Instant Groceries: Convenience Meets Challenges
Reasons to discontinue shopping online among
consumers in Indonesia2
Reasons behind not trying Instant Groceries1
(n = 4.937, 52% Gen Z and 48% Gen Y)
(n = 4.937, 52% Gen Z and 48% Gen Y)
60%
50%
50%
60%
40%
30%
70%
33%
28%
28%
28%
50%
40%
29%
30%
20%
21%
20%
10%
0%
60%
20%
19%
10%
Higher Prices
Already have
regular shopping
place
Lack of product
selection
Prefer to shop
offline
Long delivery time
Most Indonesian consumers prefer to shop offline rather than trying
Instant Groceries Delivery Services.
0%
Prefer inspecting
products in-store
before buying
Want to support
Had negative
Prefer in-store
local shops
experiences with e- interaction with
commerce
salespeople for
product advice.
Easier to find deals
in physical stores
Most Indonesian consumers stop using the Instant Groceries Delivery
services because they prefer to inspect the products in-store before
buying.
While prior data paint a promising picture for instant grocery delivery services, the offline shopping experience still win
in several areas
Source: (1)(2)Snapcart (2023)
©2024 MCorp. All rights reserved
46
COMPETITOR
Among the key players of the industry, some have distinctive value which keep them
competitive in the market
E-Grocery Key Players Across Different Business Models
Starting out as a digital-based
company, Astro are sourcing,
keeping, and distributing the
groceries by them selves.
Self-Manage Delivery
Light
Inventory
Heavy
Inventory
Being
part
of
e-commerce,
Bliblimart and Shopee Supermarket
have a leaner business with no
inventory and self-manage driver
Grab and Gojek are using their
strength in self-manage delivery
services combine with partnership
with retailer and local store.
Outsourced Delivery
Source: (1)001 Partners (2021)
©2024 MCorp. All rights reserved
47
COMPETITOR
Fallen Business: Key Factors Leading to Competitors' Shutdown
Company
Start
End
2017
2022
2022
2022
2018
2023
2022
2024
2016
2022
Reason
Financial
Difficulties
Intense
Competition
Unsustainable
Business Model
Insufficient
Funding
Post-Pandemic
Consumer Behavior
Business Review
After Consolidation
Key Challenges
Intense Competition
Unsustainable Business Model
Post-Pandemic Consumer Behavior
©2024 MCorp. All rights reserved
48
COMPANY
What should companies do to stay competitive?
Driving Growth and
Engagement
Strategic B2B Business Models
Integrated Omni-Channel
Strategies
Implementing marketing
strategies that stand out
from competitors by
embracing the latest
trends, personalized
campaigns, and unique
approaches.
Expanding the market
segment to B2B will create
a unique value proposition
for Instant Grocery Delivery
Services which may lead to
a more sustainable
business model.
Connecting online and
offline shopping to
enhance customer
experience and meet
consumer expectations will
improve the customer
journey and increase
customer loyalty.
©2024 MCorp. All rights reserved
49
Thank you
Recent insights for Q2+ 2024
M Quarterly Updates