In price-sensitive markets like Indonesia, product innovation must prioritise affordability and versatility to meet consumer expectations and drive sales. Despite growing trends in health, wellness, and better-for-you products across the region, industry experts stress the importance of balancing value with quality to succeed in economically dynamic markets.
Prioritising Cost Efficiency and Accessibility
With its large and value-conscious population, Indonesia is a highly competitive market. According to Will Kelly, General Manager of Kerry Southeast Asia, innovation must focus on cost efficiency and value enhancement.
“During periods of economic instability, affordability becomes essential. Products must be accessible to consumers; otherwise, no matter the quality or benefits, they won’t sell,” Kelly noted at the Fi Asia Indonesia event in Jakarta.
To achieve this, companies are leveraging food technologies like enhancers and fibres to create formulations that deliver better taste at a lower cost, ensuring quality and food safety remain uncompromised.
Catering to Regional Authenticity
Indonesia’s rich culinary diversity, spanning over 17,000 islands, demands that brands develop products with authentic regional flavours to resonate with local consumers.
“Consumers often seek the taste of their favourite foods, even in more accessible formats,” said Jane Haryono, General Manager of Kerry Indonesia.
For instance, products like sate klopo-flavoured chips offer a nostalgic yet convenient way for consumers to enjoy traditional dishes, especially when authentic versions are unavailable in their current location.
Versatility: Adding Value Through Multiple Applications
Versatility is another crucial factor influencing consumer perception of value-for-money. Products that serve multiple purposes increase convenience and justify their cost, particularly in home-cooking and foodservice settings.
“There’s growing demand for products that are versatile in application,” Kelly explained. “For example, our DaVinci caramel syrup is not just for making caramel lattes but can also be used in desserts, bakery items, and even ice cream toppings. This flexibility significantly enhances perceived value.”
Strategic Takeaways
To thrive in price-sensitive markets like Indonesia, companies should:
Focus on Affordability: Leverage cost-efficient formulations without compromising quality or taste.
Deliver Authenticity: Tailor products to reflect regional flavours and preferences to attract local consumers.
Maximise Versatility: Develop products with broad applications, enhancing convenience and perceived value.
By aligning innovation strategies with these principles, brands can meet the dual challenge of economic constraints and evolving consumer expectations, ensuring long-term growth in competitive markets.
Kommentarer