CONSUMER EXPENDITURE DURING COVID-19

Consumer Expenditure Level

Overall
Expenditure
Allocation
 Changes in planned expenditure by product category

With the onset of the pandemic, survey respondents across all age groups and monthly household income levels plan to
increase their expenditure on the Food (Packaged & Fresh) category, as they spend more time in their homes and
consume more self-prepared meals. Despite this trend, planned expenditure on the Food (Canned) category has in fact
decreased, pointing to a rise in overall health-consciousness amongst consumers
Purchasing drivers across product categories
 Purchasing considerations during the COVID-19 pandemic
➢ In general, respondents have indicated that they were most inclined to
complete a purchase if they were offered Promotions & Discounts
(58%) and Free Delivery (50%) when making purchase decisions during
the pandemic. This corroborates with our marketplace observations of
many local businesses adapting their offerings, for example, by offering
free delivery services without a minimum order value, to better
compete for online sales during the pandemic.
➢ The effect of value-seeking behaviour appears to be less
pronounced in survey respondents from older age groups and
higher monthly household income levels. For high-income
consumers with monthly household income levels of more than
IDR 15 million, a much heavier emphasis is placed on
Contactless Delivery, Health & Wellness, and Contactless
Payment, while Free Delivery becomes less of an incentive. This
reflects a set of preferences that are less focused on value-for-
money, and more on convenience, safety, and assurance
Brand loyalty by product category
Across all product categories, survey
respondents have indicated a low
degree of brand loyalty, with the
majority of them expressing
inclinations to switch brands if offered
products of similar quality for lower
prices. This underscores the price
sensitivity of the Indonesian
consumer, and highlights the
generally low levels of switching costs
in the consumer industry.
 Changes in channel preferences for Basic Necessities

• As the pandemic heightens consumers’ focus on hygiene and practicality, Modern Trade and e-Commerce/ Online channels are
likely to be perceived to able to better meet their needs for Basic Necessities, including the Food (Packaged & Fresh) and Food
(Canned) categories, with cleaner, more organised surroundings and one-stop shopping solutions.

• It is perhaps for these reasons that survey respondents expressed a shift in channel preferences, with the preference for Traditional
Trade channels decreasing by 8.1% for the Food (Packaged & Fresh) category, which in turn gave rise to the corresponding 7% and
1% increases in the preference for Modern Trade and e-Commerce/Online channels respectively