- GDP Nominal: 888.5 billion USD
- Population: 255.4 million
- Unemployment rate: 6.2%
- Ease of doing business: 109th
After India and China, Indonesia is currently the 3rd fastest growing economy in the G20 and is classified as a newly industrialized country. It is the 16th largest economy in the world by nominal GDP and is the 8th largest in terms of GDP by purchasing power parity (PPP).
In 2012 Indonesia replaced India as the second-fastest-growing G20 economy, behind China. However, in 2014 India regained the second spot.
Direct Selling in Indonesia
- GDP Growth Constant USD 2014: 5%
- YoY Industry Growth Constant USD 2014: 8%
Indonesia has all the characteristics of a strategic market for the Direct Selling industry: with one of the largest populations within the Asia Pacific region (255 million) and a young population (median age of 29.6), the Direct Selling industry is a potential answer to millions of unemployed people.
Indonesia has recently joined the club of “Direct Selling Billion Dollar Markets” (1.07 billion USD in 2014). Even though E-commerce has been developing relatively fast, major international Direct Selling companies have been able to capture a wider consumer base by adopting omni-channel strategies (complementary combination of Retail/E-commerce/Direct Selling).
The importance of personal interactions and social aspects combined with unique geographical conditions (18,307 islands) makes Direct Selling in Indonesia a very competitive distribution channel compared to traditional retail.
The industry has grown at 11.3% CAGR and is expected to continue to grow at a rapid rate over the next few years. With 11 million Direct Sellers, Indonesia has more than twice the amount of distributors as India.
The Wellness category represents 45% of product sold, but the specificity of Indonesia is that the Household and Durables category represents 35% of products sold through the channel, which is by far the highest ratio within the APAC region.
The Cosmetics and Personal Care category represents only 11% of products but this category is expected to grow as major European and U.S. Direct Selling companies are entering the market.
Sources: ASENSHIA, World Bank, WFDSA, Euromonitor, Wikipedia
CAGR: Compound Annual Growth Rate expressed in Constant USD 2014, between 2011 and 2014