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