Ramadan is a month of fasting and spiritual reflection for Muslims around the world, a time for family gatherings, community events, and religious observance. It is also a time of increased retail spending, as families stock up on food, gifts, and clothing in preparation for the Eid al-Fitr holiday that marks the end of the month of Ramadan. There is also the additional Ramadan bonus! Which makes the season the busiest & most profitable season for retailers.
So how will Indonesians spend this Ramadan & how can brands win – we explore in this article.
01. With the largest population of Muslims in the world, Indonesia is the largest market for Ramadan shopping; ~70 Bn+ in retail sales expected
Fun fact – Indonesia is the largest retail market when it comes to Ramadan! With 235Mn + Indonesians celebrating Ramadan, they are expected to spend USD 70Bn + this year.
For ~80% of the consumers, it’s the biggest shopping event of the season – greater than any double-day sales. And compared to this year – the level & intensity of excitement from consumers seem to be higher.
02. Fashion & Grocery to dominate sales – travel to see increased demand compared to last year
The shopping theme of Ramadan has always been to Eat Together, Look better & be charitable. Therefore, most consumers would be looking to purchase grocery & fashion items. However, compared to last year – Travel is expected to be big this year with ~15% more consumers looking to take a trip. Home Furnishing, Grocery, BPC & Jewellery to also see increased interest from consumers. Fashion & Electronics, however, are expected to have a lower interest as compared to the previous year – though increased spending is still observed for consumers who are going to buy.
03. Winning plays during Ramadan would need platforms to focus on the right consumer cohorts for the right segments – Fashion, Electronics & BPC to be cash cows while Travel could be a surprise winner
Across categories, consumers are open to shopping online, driven by convenience, assortment, and promotions. Horizontal e-commerce players stand out as the most preferred channel and have a clear dominance in categories such as fashion, electronics, and beauty & personal care. However, driven by higher discounting and product discovery / gifting ideas TikTok is increasingly becoming a sought-after channel. For Home décor, consumers are willing to purchase smaller items online. Grocery, while being one of the biggest markets, remains a tricky segment for online channels to completely crack as offline channels combined have dominance. Owing to the increased desire to travel this season & heavy online reliance – this could be a surprise winner for online platforms this season.
04. Advertising at the right place & at the right time will be key to winning this Ramadan – Advertise 5-10 days before the purchase period
Consumers have made it clear how much they like a good deal and they are willing to work for it. An average consumer now starts exploring the internet for deals and shopping inspiration 5-10 days before they make the transaction. Interestingly, this search & discovery has moved away from traditional search engines to e-commerce websites by ~65%. Social media is next and can help you enter the consideration funnel as ~80% of consumers will be checking out Instagram & TikTok for shopping inspiration. New-age brands could find themselves getting new customers as willingness to try is high – however, consumers are primarily looking for good deals from the brand. Content around potential gifting ideas and spreading awareness promotions to be at the center of the content strategy.
