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

In Part 1 of our three-part Ramadan 2023 in Indonesia article series, we explored the broad categories of goods that Muslim consumers are planning to spend more on this year, what proportion of consumers plan to buy them online versus offline, and the most popular online shopping channels for each category.

But how much are consumers planning to spend on Ramadan shopping this year – how are different generations planning to apportion their Tunjangan Hari Raya (THR) statutory allowances for: shopping, saving, donations, investments, mudik and other travels?

And – drilling down inside Ramadan shopping categories – what specific products are consumers planning to buy with their THR allowances this year? Let’s unpack these questions in Part 2 of our three-part Ramadan 2023 in Indonesia article series.

How are consumers planning to use their THR allowances this Ramadan?

Latest research from YouGov Surveys show that, around half of consumers who observe Ramadan expect to receive their THR allowance this year (51%), a third are unsure whether or not they will receive it (34%), while about a seventh are not expecting any (15%).

Most consumers plan to shop, save and donate with their 2023 THR allowance. Nearly three in five (58%) plan to use some of their THR to make purchases and top up their savings. More than half (54%) plan to use some of their THR for donations / zakat fitrah, and close to half (47%) plan to gift some of their THR to their family, friends or co-workers.

This year’s THR allowance will also provide financial relief and financial growth opportunities for around two in seven consumers: 29% plan to use it to pay debts, and 27% to make financial investments.

Meanwhile, a quarter of consumers plan to use their 2023 THR to finance their travels: 25% for performing mudik and 24% for going on vacation.

Gen Z are significantly more likely than older consumers to say they plan to top up their savings (68%) and make financial investments (30%) with their THR this year.

But they are relatively less likely to use their THR for shopping (51%), zakat donations (41%) and gifts (34%), debt payments (22%) and mudik travel (18%).

Millennials are more likely than other generations to say they plan on gifting some of their THR to their family, friends or co-workers (57%) and financing their mudik travel (31%).

Gen X are more likely than younger consumers to say they plan to use their THR to make zakat donations (72%), shop (65%) and pay debts (36%) – but are relatively least likely to top up their savings (47%).

What products are consumers planning to shop for with their THR this Ramadan?

Among consumers who are planning to use some of their THR on shopping this Ramadan, the majority plan to buy fabrics and foodstuff. Over eight in ten plan to buy clothing (82%), while three-quarters plan to spend on food and beverages (75%) and over half on Eid cookies and hampers (53%).

Additionally, over two in five plan to use their 2023 THR allowance to buy skincare and beauty products (46%) and shoes (41%).

About a quarter of consumers plan to purchase bags (25%), household electronics (24%) and personal devices – such as smartphones, laptops and earphones (24%).

Gen Z are significantly more likely than older consumers to shop for skincare and beauty products (59%), bags (33%) and personal devices (31%) with their THR. But they are relatively less likely to shop for food and beverages (64%) and Eid cookies and hampers (32%).

Conversely, Gen X are relatively more likely than younger consumers to use their THR to shop for food and beverages (86%) and Eid cookies and hampers (72%) – and relatively least likely to shop for skincare and beauty products (36%), bags (17%) and personal devices (17%).

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.