We conducted an online survey (“Mom & Baby Shopper Survey”) in February 2018 to understand the shopping behavior of Indonesian females (N=1,144), specifically mothers, when buying items in the Mom & Baby product category i.e. diapers, milk formula, toys, etc.
The results revealed whether these women preferred to buy baby products online or offline, how much they spent on average per order, what item they purchased on a frequent basis, their age, the family household income and what would convince them to increase shopping frequently.
The survey sheds light on the following topics:
- What factors are causing consumers in the Mom & Baby category to continue to buy offline rather than online?
- What aspects of ecommerce marketplaces are most important to Indonesian female shoppers and which marketplaces are most popular?
- What items do Indonesian female consumers prefer to shop for online in the Mom & Baby category?
- How do Mom & Baby category consumers start their online purchasing journey?
- What is the shopper profile and annual spend of Mom & Baby shopper in Indonesia?
Chapter 1: The Online Potential for Mom & Baby Brands in Indonesia
The birth of a baby is a life changing event for a household in regards to its finances, hours of sleep received per night, and especially, the ongoing adjustment to becoming parents.
For every minute that passes, approximately 250 babies are born into the world.
Indonesia is a country with a population of more than 260 million and on average, 2.44 births per woman in 2015/2016 – the fourth highest among all Southeast Asian nations. It is approximated there are 1.6 million births per year in the country.
To care for each new life, parents need to invest heavily in categories like diapers, milk formula, toys, clothing, education and especially, time. Over the next eight or ten years as the child grows older, starts school and requires different products and nutrition, certain shopping habits in the parents have already cemented.
This includes what brands they trust, what products they will recommend to friends and family and which channels to buy them from.
As the median age of new mothers in Indonesia at first birth is 22.8 years of age, younger than found in Thailand, Singapore and the Philippines, she is commonly already digitally savvy.
Indonesia is predicted to have the fourth largest middle-class consumption on a global scale by 2030.
Considering the country’s middle-class household count is also expected to rise to 23.9 million in the next 12 years from 19.6 million in 2016, retailers are looking to capture common characteristics of middle class consumers – more spend on travel, holidays and family.
The purchasing power of Indonesians will also rise for the next two years as the country’s gross domestic product is expected to reach US$1.7 trillion by 2020 (Figure 2).
This is why companies are allocating massive budgets to build credibility with customers early in the journey of motherhood and more importantly, influence the behavior of future generations.
Not only does Indonesia house 132.7 million internet users, 1 out of 4 of the internet users in the country is a mother (Google & Kantar WorldPanel Indonesia). The number is expected to rise over the next three to five years as the majority of the population are females aged 10 to 19 years of age (Figure 3), meaning Indonesia can also expect a rise in new mothers.
All of this makes the Mom & Baby category a highly attractive and rampant industry in Indonesia in the coming years.
How can companies capture new mothers and help them adapt to parenthood?