THE BIRTH OF CONSUMER 3000

THE

RISE OF

YUSWOHADYwww.yuswohady.com

@yuswohady

MARKETING 3000

INDONESIA OUTLOOK 2011

THE BIRTH OF CONSUMER 3000

RISE OF MARKETING 3000

THE THREE PARTSTHE THREE PARTS

I. THE EARTHQUAKE

II. THE IMPACT

III. THE STRATEGY

Part I

The Earthquake

“Masyarakat Adil dan Makmur” is

Not A Dream Anymore

Let us look back a little

KRISIS 1998

Comparing with Chindia

SAME PATTERN

What happen now?

29633270

35323822

4131

4440

3000

3500

4000

4500

5000

GDP Per Capita Indonesia($)

19422271

2394

2963

0

500

1000

1500

2000

2500

3000

2007 2008 2009 2010 2011 2012 2013 2014 2015

What happen when we reach GDP Per Capita $3000?

Source: International Monetary Fund, 2010

Reaching the $3,000 per capita GDP level will result in

“accelerated development”. South Korea experienced surging

economic growth for 11 years after achieving that level.

Source: Indonesian economy with a US$3,000 per capita GDP by Cyrillus Harinowo Hadiwerdoyo

Source: Indonesian economy with a US$3,000 per capita GDP by Cyrillus Harinowo Hadiwerdoyo

In 2002, China set a target to achieve a per capita GDP of $3,000

GDP by 2020. Apparently the Chinese economy achieved that

level not in 2020, but in 2008-2009.

The Economist, February 12, 2009

Special Report: The Middle Class in Emerging Countries

Middle Class: Indonesia vs China

Sumber: ADB, BPS, BI, dan LitBang Kompas 2010

Indonesia’s Middle Class (spending > $2/day): 93,7 Mio (2009)

CONSUMER EXPLOSION

What will happen next?

Some signals...Some signals...

A New Wave of Demand!!

Traffic Problem: When supply can not

meet the demand

Traffic Problem: When supply can not

meet the demand

Everything starting to look affordable

Why airport are so crowded ?

Holiday is not only to Bali...“Everybody Can Fly”

Democratization of Consumption

People need a place to talk!

People need a place to talk!

Mall is not a fancy place anymore

Holiday is not only to Bali...

Twit on Consumer 3000 at @yuswohady

This is a good sign...This is a good sign...

.....with a great momentum

Economy is looking good

Pada Oktober lalu, inflasi mengarah ke 5,6 persen dan diprediksi plus-minus 5

persen pada akhir 2010. Adapun inflasi 2011 diprediksi plus-minus 6 persen.

Nilai tukar rupiah juga berada di kisaran Rp 9.000

Indonesian GDP Growth

Politic is relatively stable:� SBY second period

� No “Pemilu” in the near future

� 10 years political transition

Merapi: “Our social bonding is high”

All of these changes will trigger:

“The birth of Consumer 3000”“The birth of Consumer 3000”

Part II

The Impact

CONSUMER

REVOLUTION

THE BIRTH OF

CONSUMER 3000

How is Consumer 3000?How is Consumer 3000?

Basic needs are over!!!

Actualization

Needs

love, acceptance, affiliation

Esteem Needs

Belonging Needs

Basic Needs

love, acceptance, affiliation

Food, shelter, sex, sleep

Self-respect, social status

Maslow’s “Theory of Human Motivation”

Economics of Hapiness

Economics of Hapiness

Sumber: ADB, BPS, BI, dan LitBang Kompas 2010

Consumer 3000: The 3 Dimensions

More Buying Power; More Consumption

More Knowledgable; More InformationalizedMore Knowledgable; More Informationalized

More Technology Savvy; Social Media Freak

TECHNOLOGY

SAVVY

Consumer 3000: The 3 Dimensions

HIGH

BUYING

POWER

KNOW-

LEDGABLE

CONSUMER

3000

Road to Consumer 3000:Road to Consumer 3000:

We have seen the trend already

The Nexian BOOM: The Rise of Hyper Value-Consumers

Nexian has the third biggest market share in Indonesia with 7%

Source: detik.com

The BOOM is happening because Value-Oriented Customer is growing

The Nexian BOOM: The Rise of Hyper Value-Consumers

Flying solo in the upper segment

Fast Food Trend: Goes Outside The Mall

Not just a place to eat, but a place to talk and play

24 Hour Retail Evolution

A whole new concept of 24 hour retail: “Gathering spot”

Midnite Sale: Customers Become Smarter

Modern Channel Is Going to Grow

Modern channel in becoming more favorable

Modern Channel Is Going to Grow

Source: Nielsen

Modern Channel Is Going to Grow

Source: Nielsen

Nostalgic Restaurant: Romantizing the Kampoeng

Rural middle class will always remember their kampoeng

E-commerce Will Thrive: TokoBagus.com

Transaction through e-commerce is increasing

E-commerce Will Thrive: Bhinneka.com

Transaction through e-commerce is increasing

People are more “on-the-go”

People are more busy, more interactive, more mobile, and of course

more productive.

People are more “on the go”

The need for “one-time consumed” product (packaging) is increasing

Family

SIze

Individual

SIze

Private Labels Will Be Soaring

People are more value concious

More Disposible Income Means More Money to

be InvestedFranchising is the way to invest their Disposible Income

More Civilized, More Educated

Ilegal software and movie DVD will decrease... and movie theatre will

surge again

More Civilized, More Educated

Sex and horor movie like these will be facing off

Part III

The Strategy

What kind of changes

happened in the market happened in the market

segmentation?

Segmentation “before 3000”

Changes in Market Segmentation

Upper

Segmentation “after 3000”

More civilized,

Knowledgable, and

Modern

Brandminded

consumerUpper

Middle

Lower

More Buying

Power

Demographic Psychographic

Valueconsumer

Price-mindedconsumer

Segmentation Beyond 3000

Brand-minded Consumer

“Reasonable” – Value Consumer “J-Co Lover”

Price-minded consumer

Value consumer

“Hottest segments”“Critical” – Value Consumer

“Functional” - Value Consumer “Nexian Hunter”

Segmentation Beyond 3000 – several examples

“Reasobale” value brands

“Critical” value brands

“Functional” value brands

What to target?

“Reasonalbe” – Value Consumer 1 2

Brand-minded Consumer 4

“Functional” - Value

Consumer

1 2

“Critical” – Value Consumer 3

Price-minded

Consumer

5

1

2

Priority #1

Priority #2 ... etc.

Know Your Strategy

Generic Strategy Generic Tactic

“Reasonalbe” Value

Consumer

RATIONALIZE YOUR BRAND

(Benefit is The King)

• Global Image, Local Price

• Unique Differentiation with

Reasonable Price

“Critical” Value ConsumerINNOVATE YOUR VALUE

(Value is The King)

• Be Creative, Deliver More

• “Higher benefits, lower cost”

Mindset

“Functional” Value

Consumer

MAKE YOUR PRODUCT

AFFORDABLE

(Price is The King)

• Be a Smart Imitator;

Be a Smart Follower

• More Function, Less Brand

“Reasonable” Value Consumer• Global Image, Local Price

“Reasonable” Value Consumer• Unique Differentiation with Reasonable Price

“Critical” Value Consumer• Be Creative, Deliver More

“Critical” – Value Consumer• “Higher benefit, lower cost” Mindset

“Functional” Value Consumer• Be a Smart Imitator; Be a Smart Follower

“Functional” Value Consumer• More Function, Less Brand

5 BIG SHIFTS

IN SOCIAL MEDIA IN SOCIAL MEDIA

LANDSCAPEIN 2011 AND BEYOND

Social Media becomes a basic need

Who does not have a social media account?

1

Social Media becomes a basic need

Fenomena social media di Indonesia, dengan jumlah

26.000.000 lebih, Indonesia menempati peringkat ketiga negara

dengan jumlah pengguna Facebook terbanyak di dunia, di

bawah Amerika Serikat dan Inggris. Indonesia juga menempati

1

bawah Amerika Serikat dan Inggris. Indonesia juga menempati

jumlah pengguna terbesar Twitter di Asia. Jakarta ibukota

negara Indonesia bahkan telah diklaim sebagai ibukota Tweet

di Asia, bukan karena jumlah pengguna tetapi juga kontribusi

Trending Topic di Twitter dari Indonesia.

Source: retrieve from http://www.financeindonesia.org/content.php?279-Social-Media-World-Forum-Asia-2010

Online and Offline Interaction

Online interaction increase “kopi darat” for “kongkow – kongkow”

1

E-commerce Will Thrive: TokoBagus.com

Transaction through e-commerce is increasing

2

E-commerce Will Thrive: Bhinneka.com

Transaction through e-commerce is increasing

2

iPad Virtuous Circle

RISING

DEMAND

ECONO-

MIES

3

MIES

OF

SCALEREDUCE

PRICE

KENAPA PONSEL BISA MURAH?

iPad Virtuous Circle

RISING

DEMAND

ECONO-

MIES

3

MIES

OF

SCALEREDUCE

PRICECompetition

from iPad-like

“Nexian”

brands

iPad Killers 3

Android-based Low Price Tablet

Android Market Boom

TABLET

REVO-

APPS

REVO-

3

REVO-

LUTION

REVO-

LUTION

Big Shift: From Broadcasting to Connecting 3Companies start using social media tools to engage and connect

with their customers instead of to broadcast messages

Corporate Website

Community Blog

Corporate Website

Community Website

Corporate Blog

Community Blog

Community Blog

Every Company Is Media Company

The Birth of Content Management Agencies 4

Companies start to build their community blogs.

It will trigger to the rising demand of content management services

Welcome to the Era of Billions

Social Media Entrepreneurs5

It’s the smart way to be an entrepreneur: low capital (aka “modal

dengkul”); high opportunities; high return

YOUR BRAIN IS YOUR FACTORY

Thank YouThank YouBlog: www.yuswohady.com

Twitter: @yuswohady