By 2030 Indonesia could become the fourth-largest economy in the world ranked by nominal GDP at purchasing power parity based on the projections of several global institutions. The same year is predicted to coincide with the peak of Indonesia’s demographic bonus when the population of productive age will be at its highest both in terms of numbers as well as a proportion of the overall population as Indonesia’s current younger generation enter the work-force in significant numbers. Harnessing their productivity and contribution as they enter the workforce will be an important driver of Indonesia’s future economic activity as well as ensuring the growth in consumer demand which is today and into the future, an important part of the country’s GDP. Already making their presence felt as consumers with distinctive characteristics as compared to earlier generations, this high proportion of Millennials to the overall population will bring these emerging trends into greater focus as their purchasing power will become the dominant contributor to overall domestic consumption.
Facing this evolution of expectations and consumption behaviors, the retail industry is and must be adaptive to go through an evolution where the business model have to be more customers centric and put customer experience as a top priority to win customers' heart. Already a trend previously, but accelerated by the COVID-19 pandemic, digitalization and the adoption of technology to drive business growth is going to be critical in the future consumer world. The use of technological tools will be needed to go beyond facilitating the transactional nature of retail sales and truly assist businesses to engage and build relationships with a customer who will be increasingly experientially motivated as compared to the more necessity and status-driven consumption which has driven some earlier generations.
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