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Around three in five Indonesian consumers plan to increase shopping budget for Ramadan this year

by Aliza Carmona

-

February 22, 2024

Indonesia – Three in five consumers in Indonesia are planning to spend more than Rp 3 million+ on Ramadan shopping this year, a research report by InMobi and Glance revealed. 

The survey report showed that Ramadan celebrations are set to reach new heights this year, as 60% of survey respondents said they plan to increase their online shopping budgets, while 41% intend to increase their offline shopping expenditures. 

With digital channels now having a stronger hold on consumers, the report places emphasis on the importance of brands utilising a mobile-first approach pre-Ramadan period. 

In fact, the survey report revealed that a staggering 97% of consumers in the country now rely on their smartphones for research and are swayed by app-driven promotions when making purchasing choices. Additionally, over 73% of consumers depend on their mobile devices for making purchases. 

A major reason that mobile shopping has been on the rise in recent years is because it offers easy payments, app-only special offers, and free shipping. Though shopping in stores allows people to see or try products and avoid buying the wrong item, mobile is still by far the biggest platform for research (97%), followed by physical stores (62%), and just 34% on desktop.

These results underscore the importance of leveraging cutting-edge mobile marketing technologies and focusing on top content categories like news, games, and video for brands to deliver experiences that can establish stronger connections with consumers.

A part of the report highlighted brands that effectively utilised the smart lock screen in the market. An example of this is the campaign for Indofood Freiss, which successfully reached the 102% coupon redemption target by capitalising on awareness generated through the smart lock screen. 

InMobi and Glance’s report also looked through who and what consumers plan to shop for this Ramadan season, revealing that the spirit of giving is alive this year. 

The report showed that while more than half, or 57%, of Indonesians are shopping for themselves, there are also spending priorities given to their family, neighbours, and charity. Furthermore, household staff, business partners, and clients are in line for festive generosity as well.

Items like clothing and accessories (89%), groceries (71%), and gift packs (70%) are expected to be the top purchases, with clothing, health and beauty products, and gadgets most frequently bought on mobile. Meanwhile, Indonesians prefer to shop in physical stores for groceries, gift packs, and vehicles.

There are three types of shoppers in Indonesia that brands should be aware of for this season. The unplanned shoppers (17%) are mainly undecided on products and brands; thus, they are more keen to explore the biggest deals and are more likely to be older consumers, with 61% having budgets under Rp 3 million. 

Meanwhile, the category explorers (68%) are those who have already decided on products but are still actively exploring which brands. These are more likely to be younger consumers, with 59% having budgets over Rp 3 million.

Lastly, there are the brand lovers (15%) who have already decided on brands and are loyal to their favourites. Consumers in this segment are typically older, with 45% having budgets over Rp 5 million. 

Aside from shopping, everyone can also expect the Mudik movement, as the report recorded that 74% of travelling Indonesians plan to take a trip to visit loved ones who live in their hometowns or outside.

A travel wave is expected, as 41% plan to travel in the last week of Ramadan, just days before Idul-Fitri, while a further 20% will travel on the actual holiday. Only 22% of Indonesians are planning to travel ahead of the month of Ramadan or at the start.

Vasuta Agarwal, chief business officer at InMobi Group, stated, “There’s no denying the central role of smartphones in influencing purchasing decisions among consumers in Indonesia. To win in this market, brands must engage with their audience through seamless, single-tap mobile experiences and state-of-the-art technologies that are built to foster meaningful brand-consumer connections.”

She added, “One such technology is the Glance smart lock screen, which empowers consumers to discover premium, personalised content directly on their smartphone lock screen without the need for unlocking, downloading, or searching. With Glance, brands in Indonesia are achieving remarkable success, driving deep and seamless engagement with consumers even before they unlock their phones.”

Related Tags Consumer Insights Mobile shopping InMobi Ramadan Glance
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