Warc, 16 May 2014
JAKARTA: Indonesia is poised to become the launch pad for
new, low-cost, products from global brands Nissan, the Japanese automaker, and
BlackBerry, the struggling Canadian smartphone vendor.
Both companies are seeking to capitalise on the country's
buoyant consumer confidence, its huge population of 250m people, and its
concentration of wealthier consumers who live within reachable distances, the
Financial Times reported.
Nissan launched an economy Datsun last week and is selling
the marque – one it hasn't used since phasing it out almost 30 years ago – for
Rp85m ($7,400).
Although Toyota continues to dominate, smaller Japanese
automakers like Nissan and Honda are beginning to improve their position in an
Indonesian market that has seen 20% annual growth over the past three years.
Meanwhile, BlackBerry is hoping its ebbing market share will
strengthen on the back of its Z3 handset, which it will launch in Jakarta this
week accompanied by a marketing campaign.
BlackBerry held more than half the Indonesian smartphone
market at the beginning of 2012, but this declined to just 13% by the end of
2013, according to research firm IDC which believes the Z3 device will be the
company's "final stand" in the country.
Indonesia could prove to be an encouraging choice to test an
emerging market strategy because a recent survey from Nielsen found Indonesians
to have the highest levels of consumer confidence in the world.
The market research company predicted that Indonesia's
"consuming class", or those people who buy non-essential items, will
grow from 45m to 145m by 2030.
In addition, consultancy McKinsey published an in-depth
study in January that identified 70m Indonesians as a "consuming
class", who are optimistic about their future and increasingly
sophisticated about their spending choices.
"The march of the consumer in Indonesia is almost
relentless," agreed Nirgunan Tiruchelvam, an analyst at Standard
Chartered.
"There are not many emerging markets that have the same
opportunities as Indonesia, where you can roll out new products easily,"
he said.
Data sourced from Financial Times, International Business
Times; additional content by Warc staff
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