service with character to creat customer value in indonesia pharmaceutical industry part 2

SERVICE WITH CHARACTER TO CREAT CUSTOMER VALUE IN INDONESIA PHARMACEUTICAL INDUSTRY PART 2

Moch Kurniawan

INDONESIA SURVEY SUMMARY AND KEY ECONOMIC STATISTICS

Asia Pacific/Indonesia Equity Research Consumer Discretionary / Consumer Staples

INDONESIA CONSUMER SURVEY

Asia Pacific/Indonesia Equity Research Consumer Discretionary / Consumer Staples

KEY THEMES FROM INDONESIA CONSUMER• Indonesians are the second most confident people after Brazilians,

with 64% of respondents expecting a better income outlook over the next 12 months and 40% expecting a better personal finace outlook over the next six months

Confidence and optimism continue to

remain robust

• This year, more respondents said that their income has increased in the past 12 months. Despite that, they expect to get a higher income in the next 12 months. We view this in line with the increase in minimum wages in 2014

Higher income growth and expecting further

hike

• This year spending on discretionary items increased more than that on essentials

Shift towards higher discretionary spending

continues

• We found that indonesians prefer local brands for essential items. However, appetite for foreign brands is higher for discretionary items such as fashion apparel and cosmetics, especially among high income earners

Consumer preferences lean towards local

brands for essentials

Asia Pacific/Indonesia Equity Research Consumer Discretionary / Consumer Staples

The evolving Indonesian consumer | Mc Kinsey November 2013

INDONESIA’S PROPOSED ROAD MAP TO UNIVERSAL HEALTH COVERAGE

• The Indonesian government is committed to introducing universal health coverage (UHC) by 2019 to cover a projected population of 257.5 million

• Currently, around 63 per cent of the population, or 151.5 million people, are covered by some form of health insurance.

• Universal health coverage (UHC)

AusAID KNOWLEDGE HUBS FOR HEALTH, Number 33 July 2013

INCREASING TREND OF HEALTH EXPENDITURE AS A PERCENTAGE OF GDP

Asia Pacific/Indonesia Equity Research Consumer Discretionary / Consumer Staples

ACCESS TO STATE HEALTHCARE DECLINING

Asia Pacific/Indonesia Equity Research Consumer Discretionary / Consumer Staples

HEALTH INSURANCE COVERAGE IN INDONESIA, BY PROGRAMME, 2011

SOUTHEAST ASIAN ECONOMIC OUTLOOK 2013: WITH PERSPECTIVES ON CHINA AND INDIA © OECD 2013

HEALTHCARE SECTOR

Asia Pacific/Indonesia Equity Research Consumer Discretionary / Consumer Staples

HOW MUCH EXTRA WOULD YOU BE WILLING TO PAY FOR AN INTERNATIONAL MEDICINE BRAND, RATHER

THAN A LOCALLYPRODUCED PRODUCT?

Asia Pacific/Indonesia Equity Research Consumer Discretionary / Consumer Staples

HEALTH INSURANCE PROGRAMMES IN INDONESIA

Source: OECD Development Centre’s compilation based on ILO Social Security Department, www.ilo.org/dyn/ ilossi/ssimain.schemes?p_lang=en&p_geoaid=360; Widjaja and Simanjuntak (2010); OECD, 2010a.

HEALTH INSURANCE COVERAGE IN INDONESIA, 2012

Source: Republic of Indonesia 2012. Road Map toward National Health Insurance, 2012-2019

* These recipients are expected to increase from 76.4 million to 86.4 million in 2013 as part of the transition to universal coverage (Faizal 2013)

ELEMENTS OF INDONESIA’S NATIONAL HEALTH INSURANCE SYSTEM

Source: Republic of Indonesia 2012. Road Map toward National Health Insurance, 2012-2019

INDONESIA’S HEALTHCARE SECTOR

http://www.gbgindonesia.com/en/services/article/2013/indonesia_s_healthcare_sector.php

Expansion of health insurancePublic healthcare brings opportunities for private providersHospitals and equipmentGeneric drugs in high demand

Staffing challenge in itself an opportunity

THE EVOLVING INDONESIAN CONSUMER

The consuming class—55 million urban and 15 million rural Indonesians—are

the most commercially

attractive segment

Indonesian cites are at different levels of consumerism driven

by the ability and propensity to

consumer

While traditional retail channels

dominate, modern retail continues to

gain ground

Indonesians strongly prefer and trust local

brands, and the Consuming class is driving growth in

new emerging categories

http://csi.mckinsey.com/Home/Knowledge_by_region/Asia/Rest_of_Asia/Indonesian_consumer_2013.aspx

CUSTOMER BEHAVIOR IN INDONESIA – 9 TRENDS

Marketeers Dinner Seminar|Customer Insight Tools | Feb 27-29 2012