It’s 2016. What is your plan?
To kick start this year, another series will commence that will look at the Business Optimism Index (BOI) among ASEAN countries as presented by Dun& Bradstreet. This quarterly conducts surveys from a sample selected from the Dun & Bradstreet database. The respondents are asked six standard questions on their perceptions of businesses around their area.
For Indonesia, there has been a drop in BOI since the beginning of 2015. The steady decline has brought a significant drop in terms of retail. All these are due to the weakening of the Indonesian Rupiah against the US Dollar.
From their survey of the 4th Quarter of 2015, it can be seen that the entire BOI index fell. It consists of the volume of sales, net profit, selling price, new orders, inventory and employment. It all seems like bad news…
However, do keep in mind that it is now 2016 and the possibility for a revived economy is expected. The thing is, consumer demand may drop, but it will never diminish.
According to McKinsey & Company, a global management consulting firm, Indonesian power house retail that consists of convenience stores will lead the retail modernisation in the country for the year 2016. Although the growth in 2015 is slow, there is growth nonetheless. In fact, competition amongst the retailers is still on the rise.
Looking at the future by glancing into the past, McKinsey and Company believes that growth in modern retail in Indonesia is for certain. According to NRF Foundation’s, modern retail encompasses an omni-channel business. It is the building of a brand that engages and serves customers online and offline.
Although traditional markets are still has the upper hand, hypermarkets have started pushing towards modern retail. Looking at the figures, modern retail will inevitably score better with a younger dynamic consumer pool. We are looking at 90 million Indonesians in the consumer class by 2030, a number just under China and India. As it is, Indonesians are one of the most mobile savvy people in the South East Asian region.
Looking at numerations of the past has no use without an action plan to induce a boost in the Indonesian economy. Here is a suggestion, think modern retail, if you have not gotten the hint in the previous paragraph. Set your brand footprint by investing in modern avenues. Market towards the future!
If you have not heeded this advice from other avenues, it’s going to be the same call again to go digital. Internet access in Indonesia is rising at an annual rate of 20% with an expected 100 million Indonesians connected by the end of 2016.
That being said, don’t you think it’s time you add to your business’s new year resolution to explore modern retail?