Ramadan 2023: Part 1 – Consumer spending trends across online & offline channels

Ramadan 2023: Part 1 – Consumer spending trends across online & offline channels

Samuel Tan - March 29th, 2023

Following Indonesia’s 9-year high GDP growth in 2022, our research in January found that three in five Indonesian consumers (61%) expect to see improvements in their household financial situation over the next 12 months.

At the same time, Indonesian households have not been spared from inflationary pressures plaguing markets worldwide. Government data showed that Indonesia’s headline annual inflation rate exceeded central bank targets for seven consecutive months last year, while January 2023 data from YouGov showed that more than three-quarters of Indonesian consumers (78%) say they notice grocery prices have increased in the past few months.

Given this mix of financial optimism and inflation woes, are Indonesia’s consumers planning to spend more or less this Ramadan compared to previous years? And with the removal of all remaining COVID-19 safety restrictions this year, what is the mix of online versus offline purchases that consumers are planning to make? Let’s unpack these questions in Part 1 of our three-part Ramadan 2023 in Indonesia article series.

Where are consumers most likely to spend more during Ramadan this year?

Latest research from YouGov Surveys show that, among consumers observing Ramadan, most expect to spend around the same amount on various categories of goods this year compared to previous years.

However, a sizeable two in five consumers (43%) expect to spend more on food and drinks this Ramadan. Around a quarter also expect to spend more on fashion wear and accessories (27%), medicine and vitamins (24%), while a fifth indicate the same for personal care and cosmetics (20%).

In contrast, consumers are relatively likely to spend more on household appliances (16%) and electronic products (13%) this Ramadan.

What proportion of consumers plan to shop online for various categories of goods this Ramadan?

The majority of consumers who observe Ramadan intend to purchase some fashion wear and accessories, personal care and cosmetics, food and drinks, and household appliances through online channels this year.

Three-quarters of consumers (76%) plan to buy at least some fashion wear (clothes, shoes and other accessories) online this Ramadan, while two-thirds of consumers (67%) plan to buy at least some personal care and cosmetics online.

Just over half (51%) also plan to buy at least some food and drinks and household appliances during Ramadan this year online.

Meanwhile, just under half of consumers (47%) plan to shop online for electronics products this Ramadan, while over two in five (42%) indicate the same for medicine and vitamins.

Which online shopping channels are most popular for buying food and supplements this Ramadan?

Three in four Ramadan-observing consumers who plan to make at least some online purchases of food and drinks this year (74%) shop on Blibli, making it the most popular online channel and e-commerce platform for this group.

The next most popular e-commerce platform is Bukalapak, where two in three (65%) shop, followed by Tokopedia (58%), Lazada (57%) and Shopee (54%).

70% of such consumers also shop directly from product brands’ websites, and 66% buy things off business messengers (e.g. WhatsApp Business) – overall the second and third most popular online shopping channel for this group – while 57% also make purchases via e-shops on social media platforms.

Blibli is also the most popular e-commerce platform among Ramadan-observing consumers planning to shop online for medicines and vitamins (61%), ahead of Bukalapak (59%), Lazada (49%), Tokopedia (48%) and Shopee (45%).

Overall, however, product brand websites (64%) are the most popular online channel for this group. 58% of such consumers also shop on business messengers, while 48% make purchases via social media stores.

Which online shopping channels are most popular for buying fashion and beauty products this Ramadan?

Six in seven Ramadan-observing consumers who plan to make at least some online purchases of fashion wear and accessories this year (85%) shop in social media stores, making it the most popular online channel for this group – ahead of product brand websites and business messengers (both 84%).

Blibli is the most popular e-commerce platform (83%), followed by Lazada (82%), Bukalapak (82%), Tokopedia (81%) and Shopee (80%).

Blibli is also the most popular e-commerce platform among Ramadan-observing consumers planning to shop online for personal care and cosmetics (80%), ahead of Tokopedia (73%), Shopee (72%), Lazada (72%) and Bukalapak (72%).

Overall, however, product brand websites (83%) are the most popular online channel. Three-quarters (75%) of such consumers also shop on social media stores and business messengers.

Which online shopping channels are most popular for buying devices and appliances this Ramadan?

Bukalapak is the most popular e-commerce platform among Ramadan-observing consumers planning to shop online for electronic products (63%), ahead of Blibli (62%), Tokopedia (55%), Lazada (52%) and Shopee (49%).

Overall, product brand websites (63%) are the second most popular online channel. 60% of such consumers also shop on business messengers, while 53% make purchases via social media stores.

Blibli is the most popular e-commerce platform among Ramadan-observing consumers planning to shop online for household appliances (66%), ahead of Bukalapak (64%), Lazada (57%), Tokopedia (56%) and Shopee (54%).

Overall, product brand websites (65%) are the second most popular online channel. 61% of such consumers also shop on business messengers, while 60% make purchases via social media stores.

This is part 1 of our three-part Ramadan 2023 in Indonesia series. Read the companion articles in the series via the links below.

Ramadan 2023: Part 2 – THR purchase categories & shopping trends

Ramadan 2023: Part 3 – Mudik insights on popular travel dates, transport modes, booking trends

YouGov

Get a summary of the key takeaways from our Ramadan series by downloading our infographic here.

Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on 2-6 March 2023, with a sample of 2,067 adults in Indonesia (aged 18+ years), using a questionnaire designed by YouGov. Data figures have been weighted by gender, age, socioeconomic class, city tier to be representative of the adult Indonesian online population (18 years or older) and reflect the latest Indonesian Bureau of Statistics (BPS) population estimates. Learn more about YouGov Surveys: Serviced.