Iyan Muhsinin

Managing Director, GfK Indonesia

Connected Evolution &

The New Indonesian

Consumer

The World in Your Pocket

7 18 37 62 80 104 118 128 136 130 116 109 155 185 206 195 177 169 17 61 130 228

326

139

267

441

685

1,010

1,264

2009 2010 2011 2012 2013 2014 FC

TV Desc PC/All in one Notebooks/Netbook Tablets Smart phones

In 2014 close to 2 billion "core Internet devices" will be sold,

out of these 1.2 billion will be smart phones

Global sales [million units]

Source: GfK Retail Panel , core devices which can connect to the internet

1,972

419

615

881

1,611

1,202

… going beyond a simple

communication device

Smartphones: Disrupting existing markets

Browser

Audio Player GPS

Video Player

Camera

Microphone

Loudspeakers

Smartphones are becoming a one-stop portal for all our consumer

device needs

Health

Massive growth in adoption of connected devices APAC excl. CN&JP, 2011 to 2014, Sales Value

+US$16 Bn

Source: GfK; Retail Data: Connected Devices, APAC excl. CN&JP, 2010 to 2014, Sales Value

-

5

10

15

20

25

30

35

40

45

1H 2011 1H 2012 1H 2013 1H 2014

US

D B

illi

on

s

NON-CONNECTED

CONNECTED

-US$7 Bn

There is a shift from Connected to Connected Anywhere…

Driving the demand for personal mobile devices

Source: GfK; Retail Data: Digital Devices, APAC excl. CN & JP, 2010 to 2014, Sales Units

3,490

1,978

5,200

3,831

1,425 1,327

465

4,407

16,793

49,892

Q31

1

Q41

1

Q11

2

Q21

2

Q31

2

Q41

2

Q11

3

Q21

3

Q31

3

Q41

3

Q11

4

Q21

4

Sales Units in Thousands

DESKTOP PC Laptops > 8" TABLET

≤ 8" TABLET SMARTPHONE

≡

Globally the majority of people use more than one device to

connect to the Internet

Source: GfK Roper Reports Worldwide, 2013; consumer behavior and attitudes in 31 markets

Let’s take a closer at what the Indonesian

consumer is doing

In Indonesia, Smartphone sales increased 7 fold in the past 5 years,

eclipsing feature phones for the first time in 2014

Indonesia following

global trend - Tablets and

SP growing at a

phenomenal pace

SP will make up 46% of

all devices sales up from

32% in 2013

Tablets growth eating

into Laptop and PCs

sales

Source: GfK; Retail Data: Sales Units in ‘ 000 , Indonesia 37 Cities

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2010 2011 2012 2013 2014 Fcst

Unit Sales

Desktop PC Laptop Tablet PC Smartphones Feature Phone

46%

32%

20%

Indonesia one of the fastest growing smartphone markets in the

world – 2015 expected to connect 40 mn more people

Over 50mn Smartphones sold in last 2 years (2013/14)

Source: Source: GfK; Retail Data: Sales Units in ‘ 000 , Indonesia 37 Cities,, *the bubble figure refers to unit growth yoy

Smart+Feature Phone

9% 2% 4%

3%

2011

51,929K

Smartphones

2012

56,577K

2013

57,385K

2014

59,812K

2015 Forecast

61,732K

20% 44% 51%

27%

2011

12,083K

2012

14,513K

2013

20,897K

2014

31,473K 2015 Forecast

39,848K

In the space of 5 years, Indonesia has transformed from Nokia-land, to

BlackBerry-land, and now Android-land; while iOS struggling to gain traction

Source: GfK; Retail Data: Sales Units in ‘ 000 , Indonesia 37 Cities

45%

18% 4% 0% 0%

2010 2011 2012 2013 2014 (F)

45% 53% 50%

20% 6%

2010 2011 2012 2013 2014 (F)

1% 1% 2% 3% 2%

2010 2011 2012 2013 2014 (F)

3%

23% 39%

65%

88%

2010 2011 2012 2013 2014 (F)

Growing trend of larger screens and Dual-Sim phones, Android dominant OS

Average Selling

Price

52% of devices sold in YTD 2014 were

Smartphones

88% of Smartphone are Android.

31% among Smartphone market

are devices with price <

IDR 1 Mio

4% of Smartphone market in YTD 14

are equipped with LTE ready.

26% of Smartphones sold have

4” screen size

65% of Smartphone devices

sold are Dual-SIM card

+56%

+293%

+264%

Growth YTD 14 vs YTD 13 (unit) , All data based on YTD Sep 2014 Data – Smartphone / Feature phone , Indonesia 37 Cities . Volume in Sales Units

Smartphones,

Mobile phones

or Phablet

OS

Screen Size

Digital

Standard

Number of

SIM Cards

Indonesians are ready for digital platforms just getting started

on online retail

Source: McKinsey & Company 2014 Report and GfK data

about 56% internet

penetration in Indonesia, less

than 10% are shopping

online

of population within 138 million

members living in urban area

are the middle class segment

(urban consuming class)

Smartphone devices sold

through online channel

entering the urban

consuming class each year =

a population the size of

Singapore

Less than 55 million

2% 10%

Less than

5

million

• A consumer survey, 2,400 face-to-face interviews about media usage in

Indonesia as well as device ownership and usage

• In addition, installation of approximately 600 Passive meters among respondents

in 5 Java cities – running through to March 2015.

• Study to provide Cross device linkages and real-time big data on what are

people doing on their devices

Introducing the Google Digital Metering Project

Next few slides give you a very first glimpse of what we are

finding from the media usage part of the study .

Please be mindful these are preliminary un-weighted and part sample data from 1450 consumers only

COMPUTER (PC)

29%

TABLET (TB)

8%

Multi-screen usage is just starting to happen , Smartphone main gateway to

the world

FEATURE PHONE (FP)

44%

25% have both PC and Smartphone , whereas 6% have Smartphones and Tablets

Source: GfK Google survey among urban middle class (ABC1) aged 18-55 across 5 big cities in Indonesia, October 2014 , N= 1450

SMARTPHONE (SP)

73%

Base: All Respondents

PC + SP 25%

TB + SP 6%

Excl. SP 33%

81% Social networking

(Facebook, Twitter, etc.)

59% Chatting (YM, Skype,

Gtalk, etc.)

37% Watching video via

YouTube, Vimeo

78% Call/SMS

79% Browsing

Only in Indonesia, people use mobile phones for ‘social networking’

more often than making calls!

Source: Media Behaviour and Consumption, Indonesia 2014, among smartphone users, urban middle class

32% Emailing

Base: Smartphone Users

58% Social networking

(Facebook, Twitter, etc.)

29% Chatting (YM, Skype,

Gtalk, etc.)

38% Watching video via

YouTube, Vimeo

65% Do assignment / work

73% Browsing

What do people in Indonesia use PC for?

Source: Media Behaviour and Consumption, Indonesia 2014

50% Emailing

Base: PC Users

Smartphones are the primary gateway to Internet

7% Use a tablet

4% Use a desktop

computer

16%

87%

Use a laptop

Use a

smartphone

29% of people online use

more than one device

to connect

Source: Media Behaviour and Consumption, Indonesia 2014

Base: Internet Users

0

10

20

30

40

50

60

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10

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01

01 -

06

PC Smartphone

Tablet Feature Phone

TV Radio

Print Media (Magazine, Newspaper, Tabloid)

Smartphones are always on during waking hours, parallel usage during evenings

starting to show

Source: GfK Google survey among urban middle class (ABC1) aged 18-55 across 5 big cities in Indonesia, October 2014 , N=

am

Base: All Respondents

Implications

Today’s consumers are mobile,

connected, in control…and expect

the best in technology and a

great user experience

The evolution of technology is both shaped by and drives

consumer behaviour

Sources: (1) GfK, Global Sales Value % 2013/2014 estimated. Global consumer tech devices retail sales revenue in USD - top tier products, December 2013. (2) Gartner, (3) Gartner

The explosion of digital devices and internet accessibility have

changed the way consumers…

Global mobile transactions are

predicted to reach

$617bn

in 2016 (2)

And global mobile ad revenue to reach:

$24.5bn

in 2016 (3)

Mobile will soon be the important channel to

drive business growth Search Shop Communicate

Engage

with brands

Gather

information

Harvard Business Review, 2012, Roland T. Rust, Christine Moorman and Gaurav Bhallla: Rethinking Marketing

Earlier Now

Product

Customer

Customer

Product

We need to move from being product to customer centric

Understand how consumers are using their mobile devices

Define your mobile strategy, understanding mobile audience

Improve your mobile properties performance

Optimize content by OS and device

Make mobile an effective channel for search

Improve mobile ad effectiveness

Intercept consumers in their purchase journey

Mobile

Audience

Measurement

Mobile

Web

Benchmark

Cross

Device

Insight

Mobile

Ad

Analysis

Mobile

User

Journey Mobile

Search

Measurement

… and relook at consumer purchase journeys

• Get ready for the constantly connected consumer – talk to them at a personal

level

• Don’t just extend advertising strategies to include mobile but instead center them

around it

• How consumers will find and buy you will also change soon enough , engage

them across the journeys they make

Final thoughts

Who we are

GfK. Growth from Knowledge

Helping you make better decisions

We are the trusted source of relevant market and consumer information.

• 13,000 experts in 100 countries

• 5m consumer and electronics products

sales tracked globally for brands and

manufacturing companies

• Supplying television audience

measurement in 8 media markets, as well

as digital and radio tracking in more

countries

• Providing insight through social media data

• Part of Europanel partnership, capturing

scan-based purchasing

We drive insights by bringing together unique data assets ,

innovation platforms & industry expertise

Innovative technology

platforms

Big-data, behavioral

digital analytics

Business opportunities

Winning strategies

Our data assets

Your data assets

Other data assets

Industry expertise Proven market

research and product expertise

Providing guidance to identify key new opportunities…

Thank you for your attention!

www.gfk.com