The outlook of daily

activities, shopping channels,

and purchasing behaviors
of Indonesians and how
Covid-19 has affected them

Disclaimer:

This report is prepared and written based on our survey to 936 respondents from the 1st of July to the
6th of July, 2020.

The findings, interpretations, and conclusions expressed in this report do not necessarily reflect the
views of Sampingan or its affiliates. Sampingan does not guarantee the accuracy of the data included
in this report.

The material herein is subject to copyright. This may be reproduced, in whole or in part, for non-com-
mercial purposes as long as full attribution to this report is given.
Table of Content

Covid-19 in Indonesia 04

Research Questions 06

Respondent Demographics 07

Financial State 09

The Livelihoods 13

Consumption Behaviour 14

Spending Prioritization 15

Shopping Channels 17
Covid-19 in Indonesia

Based on data provided by the World Health Organization (WHO),

the confirmed cases of Covid-19 in Indonesia had increased by
160% in July 2020 since the preceding month. The rise of the
Covid-19 pandemic in Indonesia and the rest of the world has
changed the way we conduct our daily lives.

The Indonesian Government has taken several measures to control

the spread of the disease, including a Large-scale Social Restriction
regulation in several cities in Indonesia, commonly known as PSBB
which was in effect some time around April to June. Such measures,
in prolonged period, would pose impacts in numerous sectors in
society.

This research aims to find the answers of how most Indonesian’s

financial capability has been changed in May compared to July,
including their shopping channels, purchasing behaviours, and to
what degree these changes have impacted their daily lives.

04
Knowing this will provide the
capacity for businesses to
understand the changes that
are relevant to their industry,
and how they’re able to
reorient their strategies better
to said changes.
In conducting the research,
we’ve initiated a survey
distributed to our respondents
in July to monitor the
consumer’s key aspect
changes, surveying a total of
936 respondents.
We will compare the results
between data that has been
gathered in May, with data that
has been gathered in July.
The grounds for this being the
many changes that took place
between those 2 periods as
the result of the pandemic,
one of which is the PSBB
regulation which was in effect
in May, with July being the
transitive/new normal period.
05
Research
Questions

What are the changes in people's

financial state in May versus July
period?

What are the changes in people’s

consumption behavior in May
versus July period?

What are the changes in people’s

shopping channels in May versus
July period?

What are the changes in people’s

behaviour on their social media
usage in May versus July period?

06
Respondent
Demographics

D.I. Yogyakarta Bali

5.0% 3.5%
Central Java East Kalimantan
5.3% 5.3%
South Kalimantan
1.4%
Riau
1.7%
South Sumatra
2.8%
West Sumatra West Java
2.0% 32.2%
North Sumatra
4.0%
West Nusa Tenggara
2.7%
North Sulawesi
1.2%
South Sulawesi
4.2%
Bandar Lampung
2.5% Bali
1.2%
Ewst Nusa Tenggara
0.7%
DKI Jakarta East Java
18.1% 10.0%

Male 62% 51% Female 38%

15-24
y.o

40%
25-36
y.o

8%
37-48
y.o

1%
>48 y.o

07
SES

Occupation

08
Financial State

In May, 78% of people in Indonesia experienced a decline in income,

with 21% of the population still managing to retain their existing
income.

Despite PSBB being lifted in July, it has not yet brought any
significant impact in decreasing the number of people who have
experienced the said income decline.

The impact on people’s income in May vs July

09
There are varying degrees of impact among those who experienced
a decline in income. In May, 27% of Indonesian workers experienced
a reduction of up to 41-60% from their total income.

Around 24% even experienced a reduction of up to 61-80% from

their total income. In July, the percentage of income reduction had
begun to show a decrease to a smaller percentage, even though
such reduction still persists.

During PSBB, the reduction percentage spanned from 41-80%,

whereas in the New Normal period, this reduction declined to around
1-60%.

The percentage of income reduction in May vs July

10
We then broke down our data to view the composition of our
respondents who experienced a decline in income based on their
occupations.

During the transitive period between PSBB and the New Normal
period, the amount of people who had an income reduction had
decreased to a certain degree, with students and the unemployed
being the exception.

Respondents who experienced a decline in income

by occupation in May vs July

11
In July, although there were 68% of respondents who still
experienced a decline in income, 4% of respondents claimed they
had an increase in income.

Among those 4% who experienced an increase in income in July, the

highest impacts were those who worked as a part time worker, ride
hailer, and as a student.

Coincidentally, all of these groups were the hardest hit by Covid-19

back in May.

Respondents who experienced an increase

in income by occupation in May vs July

12
The Livelihoods

In May, the reason for people to engage in outside activities is

primarily only to fulfill their daily needs and traveling to their jobs.

In July, more people went out to travel to their jobs, with the number
of people who travelled for their daily needs being less compared to
how it was in May.

The impact on people’s income in May vs July

13
Consumption
Behaviour

Compared to May, fewer people

are cutting back their consumption
in July.

The percentage of people who

reduced consumption in May vs July

14
Spending Prioritization

People still prioritize basic needs products such as food and

personal care items, but the consumption pattern is starting to shift

Products prioritized by consumers in July

15
In terms of consumer spending in May versus July, there’s a major
positive growth in the ice cream and cosmetics category of products.

Interestingly, there’s also a downturn in medicine and vitamin products

though it’s within the top 5 priority for the majority of people.

Conversely, Ice creams, snacks, cosmetics, ready to drink (RTD)

beverages and cigarettes are the top 5 least prioritized products, but
their sales are starting to grow.

The impact on consumer spending by

product categories in May vs July

16
Shopping Channels

Shopping place
In terms of shopping places, Indonesians are currently more
confident to shop in crowded markets as compared to how it
was in May.

During the earlier stage of PSBB in May, several people relied

on peddlers (travelling street vendors) and e-commerce
services for shopping.

In July, there’s been a significant change in this area in which a

larger number of people have shifted back to offline markets to
shop.

shopping channel of choice in May vs July

17
Looking back to our previous
research, Mini Markets were the
most popular option for the
respondents given their proximity,
while supermarkets were chosen
for its vast range of products that
they offer, and traditional markets
being chosen due to their value for
money.

In July, many consumers went

back to their preferred shopping
place before the outbreak began
as the number of people who shop
at minimarkets, supermarkets, and
traditional markets increased.

18
Products bought on online vs offline channels
In July, more people began to shop outside and purchase basic
food needs in offsite markets.

Proximity (25%) was the main factor that determined people’s

decision to shop offline, while cheaper price (16%) came in
second.

On the other hand, many people are still purchasing products

related to personal care and healthcare through online
channels. Affordability (22%) and availability and options (21%)
are the most mentioned reasons that backed this result.

Offline vs online product purchases in July

19
Stockpile intention
In terms of volume, in May, around a quarter of people intend to
stockpile their basic needs items in anticipation of the
pandemic’s prolonged period.

However, although the number of cases related to COVID-19

are still on the rise, fewer people follow through with this survival
tactic in July.

The percentage of people who have stockpile

intentions in May vs July

20
Behavior on social media
There is no significant change in the use of social media in May versus
July except a slight change in the number of logged users and time
spent on social media.

In July, more than half of the respondents spent only up to six hours on
social media platforms, as people had begun to go out more often.
WhatsApp, YouTube, and Instagram are still the most used apps in
both May and July.

The most-used social media

app in May vs July

Time spent on social media in May vs July

21
Social media Ads effectiveness
In terms of effectiveness of Ads in social media, it appears that
the influence of online ads on consumer's purchase intention is
declining.

The percentage of people who are influenced by social media ads

to purchase products in May vs July

On a different note, purchase intention is also affected by the

ads' type. Video ads appear to be the most effective to positively
influence consumers' purchase intentions in July.

The types of Ads that influence people’s purchase intention in July

22
Financial Optimism
Despite the pandemic bringing a severe financial impact towards
most of the society, with people earning less and working more hours,
there’s still an increase (albeit slight) in the numbers of Indonesians
who predict a positive near-term viewpoint in their finances.

Percentage of financially optimistic people in May vs July

23
Reasons behind people’s optimism
(n = 353)

Reasons behind people’s pessimism

(n = 333)

24
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