CONSUMER BEHAVIOR IN

THE ERA OF DISRUPTION:

WHAT'S NEXT?
INDONESIA C360
Agus Nurudin
Managing Director, Nielsen Indonesia
8 March 2018

Copyright © 2018 The Nielsen Company. Confidential and proprietary.

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 THE GROWTH OF INTERNET USE – DRIVEN BY MOBILE

2013 2017

INTERNET INTERNET
USE YESTERDAY USE YESTERDAY

20% 45%
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

ACCESSING INTERNET ACCESSING INTERNET

THROUGH SMARTPHONE THROUGH SMARTPHONE

30% 78%

Source: Nielsen Consumer & View Q4 2013 vs 2017, in % 3

 INTERNET
INTERNETIS
ISFOR
FORALL
ALLGENERATIONS
GENERATION
GENERATION Z

Born early 2000s and on

97% 7%
TV Pay TV

MILLENNIALS 50% (+31%) 4%

Internet Print
Born 1980 to late 1990s 33%
Radio
98% 9%
TV Pay TV

58% (+49%) 9%
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

Internet Print

35%
Radio

BABY BOOMERS GENERATION X

Born roughly 1946-1964 Born early 1960s – 1980s

95% 97% 11%

7%
TV Print TV Print

32% 4% 37% 10%

Radio Pay TV Radio Pay TV

9% (+76%) 33% (+74%)

Internet Internet

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 GROWTH OF INTERNET USAGE IS NOT ISOLATED TO JAVA

All People Gen Z Millennial Gen X Baby Boomers

54 50 57 50
42 46 49 45
37 38 33
26
INTERNET
PENETRATION 11 7 9
Greater Jakarta Rest Java Outside Java
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

66 61
56 59
44 47 41 44 42 47
33 32
SMARTPHONE 14 11 10
OWNERSHIP
Greater Jakarta Rest Java Outside Java
Source: Nielsen Consumer & View Q4 2013 vs 2017, in % 5
 SIGNIFICANT SYNERGY BETWEEN OFFLINE AND ONLINE
ACTIVITIES FOR GEN Z

GEN Z

HOBBIES

INTERNET FUNCTION

PLAYING MUSIC
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

PAINTING MOVIE
ONLINE PLAY NEWS ACCESS VIDEO
LEARNING GAMES FORUM CONTENT

READING
BOOKS

CHATING STREAMING SOCIAL

TV NETWORKING

Source: Nielsen Consumer & Media View Q4 2017, Use Internet Yesterday, in Index 6
 MILLENNIALS RELY ON THE INTERNET TO EXPLORE
CAREER OPPORTUNITIES

MILLENNIALS

HOBBIES

INTERNET FUNCTION
PLAY
WINDOW MUSIC
SHOPPING INST.
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

PLAYING MOVIE AT
GAMES CINEMA
JOB COMPANY STREAMING ACCESSING
HUNTING REVIEW TV ADS

FINANCIAL VIDEO ONLINE READING/

SERVICES CONFERENCE SHOPPING BLOGGING

Source: Nielsen Consumer & Media View Q4 2017, Use Internet Yesterday, in Index 7
 FOR GEN X, THE INTERNET IS A PRACTICAL TOOL
TO USE

GEN X

HOBBIES

INTERNET FUNCTION
SEWING/ READING
HANDYCRAFT QURAN
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

GARDENING TRAVELLING

EAT AT WINDOW FINANCIAL ELECTRONIC INTERNET PRODUCT

RESTAURANT SHOPPING SERVICES MAIL PHONE CALL REVIEW

WATCHING
COOKING TV

READ ACCESS GENERAL COMPANY

ELECTRO NPP NEWS SURFING REVIEW

Source: Nielsen Consumer & Media View Q4 2017, Use Internet Yesterday, in Index 8
 BABY BOOMERS HAVE UTILIZED INTERNET
TO RE-CONNECT

BABY BOOMERS

HOBBIES

INTERNET FUNCTION

GARDENING COOKING
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

SEWING/ WATCHING
HANDYCRAFT TV
ELECTRONIC READ PRODUCT CHATING
MAIL ELECTRO NPP REVIEW

READING
QURAN

GENERAL ACCESS INTERNET SOCIAL

SURFING NEWS PHONE CALL NETWORKING

Source: Nielsen Consumer & Media View Q4 2017, Use Internet Yesterday, in Index 9
 THREE INDUSTRIES THAT ARE UNDERGOING REVOLUTIONS
3 INDUSTRIES THAT ARE UNDERGOING REVOLUTIONS
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

NEWS AND INFORMATION ENTERTAINMENT FINANCIAL

High penetration across generation, Music, Video, Knowledge. Internet will change the way we are
and becoming the preferred Online provides an easy access to using financial product. Internet is
references of news information by entertainment and grants freedom able to cross AGE and SES
younger generation to choose boundaries
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 INTERNET ACCESS SUPPORTS THE EMERGING
LOGISTICS AND SERVICE INDUSTRY
IN INDONESIA
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

TRANSPORTATION COURIER SERVICE FOOD DELIVERY

ONLINE ONLINE SERVICE

Source: Nielsen Consumer & Media View Q4 2017, Survey Period June – Nov 2017, in %
Copyright © 2018 The Nielsen Company. Confidential and proprietary. 11
 ENGAGEMENT WITH THE INTERNET IS BECOMING MORE
ESSENTIAL TO DAILY LIFE
MOBILE PHONE IS VERY CONVERSION OF
43% NECESSARY, I CANT LOSE IT THE PARTICIPATION

67%
INTERNET IS THE FIRST
27%
CONVERSION OF
24% SOURCE OF INFORMATION THE USAGE

45% 64% I OFTEN POST

11% 18% COMMENTS/REVIEWS ONLINE

BABY BOOMERS
61%
7% 29% 54%
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

83% 79%
24% 43%
GENERATION X 79% 67%
19% 29%

GENERATION Z

MILLENNIALS

Source: Nielsen Consumer & Media View Q4 2017, Smartphone Users Pop. 23,923,000, in %
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 THE IMPACT OF DIGITAL TECHNOLOGY
ON VALUES AND PRIORITIES

GROWING ON DECLINING ON
IMPORTANCE IMPORTANCE

I like to keep up with the latest It’s important to respect

fashion traditional customs and beliefs

How I spend time is more It's important to look young

Copyright © 2018 The Nielsen Company. Confidential and proprietary.

important than the money I make

Enjoy life/don't worry about future I want to get to the top of my

career

I'd be willing to volunteer my

I don’t make rush decisions
time for a good cause

I love my home, spend energy

to decorate and fix it Men should also do housework

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 THE IMPACT OF DIGITAL TECHNOLOGY
ON VALUES AND PRIORITIES

I Need a
I want to quality time I want to
look cool!! and great contribute to
experiences.. society
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

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 Copyright © 2018 The Nielsen Company. Confidential and proprietary.

NEXT?
WHAT’S

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 WE RAN A STUDY AMONG 2,000
HOUSEHOLD IN 6 CITIES
TO CONNECT THE DATA BETWEEN THE
‘MOOD’ WITH SHOPPING AND SPENDING
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

BEHAVIOR.
WHAT WE FOUND ….

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 PERCEPTION OF INTERNET

AMONG HH HOW THEY SEE THE INTERNET AMONG HH

WHO SEES ECONOMY WHO SEES ECONOMY
AS BETTER AS WORSE
13 14
33
42
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

POSITIVE NEGATIVES

POSITIVE FACTORS: NEGATIVE FACTORS:

• Easy Access to News, and • Lazy Children

Knowledge • Exposure to inappropriate
content
• Hoax
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Copyright © 2018 The Nielsen Company. Confidential and proprietary.

Copyright © 2018 The Nielsen Company. Confidential and proprietary. 18

 POSITIVE OUTLOOK
WILL LEAD TO
POSITIVE 26%
ACTIVITIES 20% INDEXED TO TOTAL: 1.69
INDEXED TO TOTAL: 1.20
Dining out
Shopping at mall

29%
INDEXED TO TOTAL: 1.53

Setting up
small business
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

43%
52% INDEXED TO TOTAL: 1.24

Internet access
INDEXED TO TOTAL: 1.33

Meet up with friend

and family

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 ACTIVITIES AMONG INTERNET USERS
POSITIVE MINDSET NEGATIVE MINDSET

NO HOBBIES

GARDENING
UPDATING
STATUS SOCMED
OFFLINE
ENTERTAINMENT
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

SELL THINGS IN SOCMED UPLOADING

PICTURE SOCMED

HAVE A PET
PLAY GAMES

* Based on Nielsen CPS survey study at 6 cities Indonesia in July - August 2017 20
 CONSUMER MINDSET DEFINES SHOPPING BEHAVIOR

POSITIVE CONSUMER WILL NEGATIVE CONSUMER WILL

PUT QUALITY AS HIGH LOOK FOR PRICE AS THEIR
VALUE MAIN CONSIDERATION
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

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 POSITIVE MINDSET MIGHT SEEM LESS RELIANT ON
PROMO

% EVER SHOP DURING PROMO

POSITIVE MINDSET NEGATIVE MINDSET

71% 79%
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

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 Copyright © 2018 The Nielsen Company. Confidential and proprietary.

JAVA
99
110
OUTSIDE JAVA IS STILL MORE POSITIVE

OUTSIDE JAVA

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 OUTSIDE JAVA IS STILL MORE POSITIVE

SURABAYA
GREATER 152 OUTSIDE OUTSIDE JAVA
JAKARTA JAVA
(3 CITIES)
85
110

GREATER
BANDUNG
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

96

JAVA

JAVA
(3 CITIES)
99

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 BUILDING POSITIVE AND HEALTHY ENVIRONMENT
FOR CONSUMERS

BRAND OWNER

CONSUMER
MEDIA / DIGITAL
Copyright © 2018 The Nielsen Company. Confidential and proprietary.

REGULATOR

25
 Copyright © 2018 The Nielsen Company. Confidential and proprietary.

WHAT WE NEED TO DO

26
 Copyright © 2018 The Nielsen Company. Confidential and proprietary.

EXCITEMENT
POSITIVE COMMUNICATION

KNOWLEDGE
EXPERIENCE

27
 2 FIGHT BACK HOAX & INAPPROPRIATE CONTENTS

Be responsible of our opinions Take actions!

Copyright © 2018 The Nielsen Company. Confidential and proprietary.

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 Copyright © 2018 The Nielsen Company. Confidential and proprietary.

3
GO BEYOND JAKARTA & JAVA

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