INSIDER HEADLINE: Local Companies Risk Missing Out On Middle-Class Boom - Report
Indonesian consumer-goods companies will need to double the reach of their distribution networks and target more products towards middle-income consumers or risk losing their advantage over foreign competitors as consumption grows rapidly in Indonesia’s middle class, a consulting firm said, according to The Jakarta Globe.
Boston Consulting Group forecast the number of middle-class and affluent consumers in Indonesia to double to 140 million by 2020, and found in a survey that Indonesians are “staggeringly” optimistic about their future income compared with people in many other countries, the newspaper reported Thursday.
It said instant-noodle maker PT Indofood Sukses Makmur, snackfood producer PT GarudaFood and PT Mitra Adiperkasa, which holds the franchise rights in Indonesia for Starbucks, Burger King and Zara, have enormous growth potential as consumer optimism changes spending habits.
BCG defines middle-income households in Indonesia as those with regular household expenses of IDR2 million ($206) a month excluding rent, it said.
