The growth of information technology in Indonesia, especially mobile usage, is exploding, presenting profitable opportunities for companies to undertake market expansion in Indonesia.
IT News Today reports that Brazil, Russia, Indonesia and China will provide the foundation for the biggest near-term growth in mobile usage.
In addition, as companies move from other parts of Asia, Indonesia is attractive because it is:
- The world’s fourth largest mobile market.
- Home to a consumer-based economy and a growing middle class of 74 million (projected to double by 2020).
- Improving its infrastructure to support technology and mobile growth.
- A country with a very tech-hungry, young population.
Indonesia’s people are also highly social: It is fourth in the world for Facebook usage, third for Twitter, and home to 5 million blogs. More tweets are issued from Jakarta than any other city in the world. According to Jana, an innovative advertising venture, the usage of social media such as Facebook will shift heavily to non-Western markets in the next few years.
Indonesia is culturally and historically a collectivist society, which is the underlying reason for its heavily social media usage. Savvy companies that know how to leverage their traditional product marketing expertise with social media technology can find great success in the Indonesian market.
Firms that have done their market research in Indonesia know that while social media is important for introducing a brand, consumers in the country still value personal recommendations above all else. In fact, TNS Digital Life points out that nothing is more powerful for driving a consumer decision than a personal recommendation.
According to TNS, the nature of Indonesian society is precisely why brands must have an equally strong physical and digital presence in the country. In addition, Indonesians’ innate distrust of Indonesian e-commerce makes a strong dual presence even more important. Consumers in this country may use social media to make a connection but they still prefer to make the transaction off-line. This is the opposite of Western cultures, where some consumer goods stores are being hurt by “show-rooming.” This is a practice where customers come to the store to browse the merchandise only to return home and purchase the same products from an on-line seller.
The issue of trust is also a key in connecting with consumers in a collectivist society such as Indonesia. Marketers know that building relationships with people through off-line activities is an important step in creating the trust that will allow them to connect successfully online.
The domestic Maicih cracker company is a good example of how even very small companies can successfully combine technology-based marketing with traditional direct selling methods. Although the company has a presence in stores and markets across the country, a lot of its marketing efforts are spent on social media. By using Twitter to drive customers to the locations of mobile distribution vehicles, it creates a social media buzz that quickly multiplies, driving customers to the mobile locations.
Firms that want to import merchandise must first pursue company registration or trademark registration and product registration in Indonesia. While regulations are stringent, the process will be much smoother with the right business partner in Indonesia. Providers like Cekindo assist companies with locating the proper distributor in Indonesia, which is an absolute necessity.
Successfully launching your product and growing a physical as well as virtual brand reputation requires a trusted business partner in Indonesia.
Cekindo is prepared to help you grow and thrive in this exciting consumer market. Contact us to find out more.
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