In Southeast Asia, there is a common perception among consumer product outbound players that no matter whether it is Indonesia, Thailand, or the Philippines, if you do well in one Southeast Asian country, it does not guarantee that you will do well in another. And what is market expansion involves overall resource allocation, investment direction, product adaptation to local culture, and the most important, whether you have an advantage in local resources.
Many new entrants to the Southeast Asian consumer market will choose Indonesia as their starting point for entrepreneurship. There have been many articles analyzing the Indonesian market before. The largest population, a very high proportion of young people, etc., are all key factors that promote consumption.
And in Indonesian culture, there is a large part of the culture of enjoying the present and valuing consumption. Young people like to spend money, like to try new products, and are very receptive to new brands, new product concepts and ideas, and new shopping methods. Indonesia has a special status in Southeast Asian countries: Indonesia contributes nearly 40% of the total GDP in Southeast Asia, and it is the country with the largest population in Southeast Asia, with a population of nearly 280 million now and a growing middle class foundation with economic development.
Among the most important factors, Indonesia has a very young population that loves to spend money and has a strong purchasing power. "Indonesia is actually a very consumption-driven economy, so we are very optimistic about the Indonesian market," Melina Anlin told Xiaguang News. "In terms of structural market fundamentals, it is very attractive."
If we look back in time and compare the current Indonesia with a more familiar Chinese consumer market, we can see that today's Indonesia looks like this: In 2014, China's per capita GDP was around $7,500, and at that time, more than 50 consumer companies were preparing for IPOs, aiming to list between 2014 and 2018. Now, Indonesia's per capita GDP is around $5,000 and growing rapidly, with an expected GDP of $7,500-8,000 by 2030, which means that many new consumer brands and companies will be able to list through the Indonesian market. Therefore, the present time of 2024 is a very suitable time for early investors to invest in Indonesian consumer market.
After Indonesia, the Philippines may be the second choice for many investors and entrepreneurs in Southeast Asia. "Interestingly, if you look at the Manila subway, you'll know that it's a very densely populated area, almost as dense as Jakarta, and in fact, even more dense," said Melina Anlin. The Philippines has a population of 110 million, which is about one-third of Indonesia's population and the second largest country after Indonesia. In fact, nearly 10% of the Philippines' GDP comes from overseas Filipinos, many of whom are wealthier in more developed countries while still maintaining a very close connection to their homeland Philippines and sending a lot of money back, actually improving the domestic consumption capacity of Filipinos.
On the other hand, the Philippines is very influenced by Western culture. They speak English, so new brands can be sold in English, and video content for marketing can also be in English, making it easy to enter the market.
But at the same time, the new consumer brand entrepreneurs in Southeast Asia also need to bear in mind: "Southeast Asia" is not a unified overall market, but a lot of market segments with great differences in various countries, so it is also necessary to make targeted localization and localization content marketing for different national markets.
The Southeast Asian market is still full of vitality, if you want to enter the Southeast Asian market but are worried about cross-border transactions, you can consult Xtransfer, we can provide you with some transaction assistance.
