Understanding Digital Trend of Baby and Mom Industry

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Section

1. E-commerce Landscape

2. Baby’s Product Digital Trend

3. Future Opportunity

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A. Population in Indonesia

Indonesia’s population is entering the middle-class and affluent consumer (MAC)

Source : The Boston Consulting Group

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• The rapid growth of the middle classis generally a phenomenon indeveloping countries. The growth ofthe middle class is driven by a goodeducation, high employmentopportunities, and good purchasingpower so that their consumptionactivity is also good. The averagemiddle class in Indonesia expressthemselves through theirconsumption activities, especially intech products.

• Smartphone users will increase by103 million people and by 2018 arelikely to increase in the next years.

27.4

38.3

52.2

69.4

86.6

103

0

20

40

60

80

100

120

2013 2014 2015 2016 2017 2018

Mill

ion

Years

Monthly Active Smartphone Users in Indonesia

Source : id.techinasia.com

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34.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2010 2011 2012 2013 2014 2015 2016

Pen

etra

tio

n P

erce

nta

ge

Years

Indonesia Internet Penetration

Source : APJII, We Are Social, Techinasia

6

82.0

14.7

9.88.5

5.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Debit/ATM Card Mobile Banking User e-Money Card Internet Banking User Credit Card

Use

r (i

n M

illio

n)

B. E-banking User in Indonesia

Source : OJK, Buku Bijak Ber-Ebanking 2015

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C. E-commerce in Indonesia

• E-commerce consumers in Indonesia are still centralized in Java and Bali with 4,6 Million internet users.

• Internet users in Indonesia has reached as much as 85% access the Internet via mobile devices. Startup companies in Indonesia could expect to benefit from the mobile internet growth to finally become one of the interesting and fast growing sector

• Indonesia has become the e-commerce center of the world after China and India. E-commerce sales in Indonesia is forecast to grow 22% in 2016, while it is only 0.24% in India and 0.15% globally.

• Investors have shown interest in E-commerce business, with 13% investing in 2016. 11% on other technology service like on-demand app.

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D. E-commerce Market Prediction

Source : E-conomySEA, Google & Temasek Report

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E. E-commerce Online Traffic Q2 2016

• 41.6% of the respondent havemade transaction via Mobile App.

• Next is PC/Laptop Browser with30.3% and followed by

• Mobile Browser with 28.1%.

• This condition indicated thatMobile Commerce (m-commerce)will be the next online shoppingtrend in Indonesia.

Source : Internal survey of Nusaresearch

Mobile App, 41.6%

PC/ Laptop Browser, 30.3%

Mobile Browser, 28.1%

Transaction

10

20%

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F. Logistic Service Provider

92.98%

45.61%

14.04%

10.53%

8.77%

8.77%

3.50%

1.75%

5.27%

JNE

TIKI

Pos Indonesia

DHL

EMS

Fedex

Go-jek

Wahana Express

Others

Go-jek unexpectedly become most reliable logistic for same day delivery service in regional basis.

Source : Spire research and consulting

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G. Popular Brand Index

Rank of Popular

E-Commerce PBI IR

1 Lazada 26.4

80%

2 Tokopedia 19.9

3 Bukalapak 13.2

4 OLX 10.7

5 Elevenia 6.7

6 Blibli.com 6.3

7 Mataharimall 4.3

8 Zalora 3.7

9 Shopee 2.3

10 Sale Stock 1.4

11 Qoo10 0.8

12 Berrybenka 0.6

13 Bhinneka 0.4

14 FJB Kaskus 0.4

15 Blanja 0.4

16 Orami by Bilna 0.2

17 Alfacart 0.1

18 Jakartanotebook 0.1

19 Hijabenka 0.1

20 JD.id 0.1

PBI is obtained by the Internet sampling (Online Panel) and with samples of 1200 respondents in the W&S onlinepanel. The results obtained for E-Commerce Category with PBI concept is as follows:

leading as the most popular E-commerce site in Indonesia with

a score of 26.4


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H. E-commerce Landscape in Indonesia

Marketplace FashionB2C

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I. Baby E-commerce Brand Awareness Comparison

Orami by Bilna BebeloveMothercareIndonesia

BabyZania DuniaBayi AdikBayi Tororo BundaBayi IniBayiku Blibli

2015 62.0 26.0 27.0 20.0 21.0 13.0 37.0 18.0 18.0 10.0

2016 91.0 21.0 18.0 18.0 17.0 17.0 16.0 14.0 14.0 11.0

0.0

20.0

40.0

60.0

80.0

100.0

2015 2016

Source : Internal Survey of Nusaresearch

Still leading the baby e-commerce segment in

Indonesia

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J. E-commerce Challenges

Logistic Infrastructure

Internet Penetration

Government Policy

Customer’s Trust Payment System Human Resource

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Section




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A. Popular E-commerce Categories

49.3%

26.2%

24.2%

21.0%

19.8%

15.9%

14.2%

11.9%

9.2%

9.0%

8.4%

7.4%

7.4%

6.9%

6.4%

6.3%

62.4%

43.4%

41.4%

29.0%

35.7%

27.0%

26.9%

16.6%

16.4%

17.4%

15.3%

11.1%

13.3%

9.7%

9.7%

10.6%

Fashion

Handphone

Electronic Devices

Health and Beauty

Home Appliances

Computer

Food

Baby Product

Ticket dan voucher

Camera

Office tools

Book

Motorbike Parts

Music

Industrial

Car Parts

Transaction

Accessed


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n=500

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B. Ever Purchased vs Last Purchased

63.0%

74.5%

75.4%

29.4%

45.7%

37.5%

34.5%

51.3%

63.4%

57.0%

Infant Milk Formula

Diaper

Baby Soap

Stroller

Baby Porridge

UHT Milk

Baby Carrier

Baby Biscuit

Baby Powder

Baby Massage Oil

26.0%

25.7%

7.6%

6.0%

5.5%

5.5%

4.6%

4.4%

3.4%

1.8%

Infant Milk Formula

Diaper

Baby Soap

Stroller

Baby Porridge

UHT Milk

Baby Carrier

Baby Biscuit

Baby Powder

Baby Massage Oil

Source : Internal survey of Nusaresearch n=500

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Baby Diapers

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C. Baby Diapers Brand Awareness Index

84.6

77.4

69.6

49.2

41.0

32.8

27.824.8

10.07.8

12.2

MamyPoko Pampers Sweety Merries Huggies Goo.n Fitti HappyNappy

Pokana Nepia Lainnya


Most engage brand through TV ads for people in Indonesia

n=500

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D. Most Impactful Baby Diaper Source

83.2

48.5

47.7

47.7

45.9

41.7

41.7

36.1

34.3

33.7

27.7

10.4

TV Commercial

Brochure / Flyers

Recommendation from others

Social Media Ads

Internet (browsing)

Newspaper / Magazine

Billboard

Event sponsorship / exhibition

Recommendation from doctor / nurse

Recommendation from retailer / seller

Radio Ads

Others

Traditional ads like TV and flyers tend to be

most impactful source of information to choose Baby Diapers Brand

n=500Source : Internal Survey of Nusaresearch

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E. Place to Buy Baby Diapers

37.2

36.6

11.4

7.0

3.8

2.6 1.2.2

Minimarket

Supermarket

Hypermarket

Grocery Store

Baby Shop

Warung / Kiosk

Online Shop

Exhibition


Buying Online

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Infant Milk

24

25.0

16.615.2

10.0

6.6 6.45.2 4.6

2.6 2.0

5.8

SGM (Ananda, BBLR, Eksplor,

LLM+, …)

Dancow(Batita, Datita,

Nutrigold)

Bebelac Morinaga(BMT, Chil Kid,Chil Mil, Chil

School,Chirumiru,

Hagukumi, NonLactose)

Lactogen(Lactogrow)

Nutrilon Frisian (Baby,Flag)

S-26 (Gold, NutriSure,

Procal, Procal Gold, Promise, Promise Gold,

…)

Pediasure Enfagrow Lainnya

has the highest TOM score compare to other infant milk

brand

F. Infant Milk Top of Mind Brand

Source : Internal Survey of Nusaresearch n=500

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G. Infant Milk Brand Parent Index

83.4

80.2

70.8

53.4

47.8 47.244.4

37.8

29.2

24.823.4

5.6

Nutricia Nestle Sari Husada(SGM)

MeadJohnson

Morinaga Frisian Abbott WyethNutrition

Sustagen Anmum Friso Lainnya


Leads the baby’s infant Milk market in Indonesia with their

wide line brand product

n=500

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H. Most Impactful Infant Milk Baby Source

82.0

52.2

50.6

48.4

47.0

44.8

42.2

39.6

37.2

34.0

31.2

.4

TV Commercial

Recommendation from others

Brochure / Flyers

Social Media Ads

Internet (browsing)

Newspaper / Magazine

Billboard

Event Sponsorship / Exhibition

Recommendation from doctor / nurse

Recommendation from retailer / seller

Radio Ads

Others

TV + Word of Mouth become most impactful source of information to choose Infant Milk

Brand


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I. Place to Buy Baby Infant Milk

31.8

31.4

9.6

9.4

6.8

5.4

4.8 .8

Supermarket

Minimarket

Hypermarket

Baby shop

Grocery store

Online shop

Warung / Kiosk

Exhibition


Buying Online

n=500

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Section




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Strategies to Acquire Baby & Mom in Digital Market

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Focus business strategy into mobile user acquisition. Place and engage more ads on mobile or list up in marketplace.

Baby product e-commerce still widely open market, more segmented product would be better option in current state.

Be innovative with delivery service. Make useful of same day delivery to send your product in neighborhood area.

Bundle baby care products tend to be more attractive for people to buy online. Subscription model is upcoming trend.

Offer flexible payment with bank instalment or mobile payment option for further buying convenient.

Understanding Digital Trend of Baby and Mom Industry

Data & Analytics

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