Home and Garden Specialist Retailers in Indonesia - New Report Available

As the Central Bank of Indonesia maintained its interest rate at 7.5%, sales of residential property saw a significant slowdown in 2015, an ongoing trend from the previous year. Coupled with declining purchasing power, Indonesian consumers halted purchases or long-term investment in houses during the year. Consequently the demand for home improvement and gardening products continued to slow down in 2015 to record a single-digit value growth only, below the general price increase during the year. Consumers also witnessed a tradedown to more affordable products with premium to luxury products recording poorer performance during the review period.

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Competitive Landscape

Ace Hardware Indonesia Tbk PT continued to lead home improvement and gardening specialist retailers in 2015 in terms of value sales. The retailer continued to expand in the market through adding more outlets during 2014-2015. There were 110 outlets in 2014 and 119 outlets by 2015. Whilst the market is dominated by independent home improvement stores in the traditional format, there is relatively less competition in the modern retail format for Ace Hardware. Whilst it led in terms of scale, established retail brands and large product selections, the continuous shift of consumer shopping behaviour towards the modern retail format also contributed to its success in the Indonesian market. Some products offered are available at more competitive pricing than in traditional stores due to their direct supply chain to the manufacturers, whereas traditional home improvement stores source products from wholesalers.

Industry Prospects

Demand for housing in Indonesia will continue to drive sales for home and garden specialist retailers in the forecast period. The Indonesian economy is expected to improve over the forecast period at an accelerating rate; therefore, spending on home improvement and gardening products is expected to grow alongside at an accelerating rate. Although in the near term, Central Bank in Indonesia will keep its current interest rate, the strengthened economy is expected to boost spending power due to increasing disposable income per capita. Prices of housing are expected to be corrected, which will attract more buyers in the future.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the Home and Garden Specialist Retailers industry in Indonesia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

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