In: Economics
channels of distribution in indonesia. Describe in 250 words. Write references in APA.
Retail sales in Indonesia's packaged food market were valued at US$ 24.5 billion in 2016 making it the largest in Southeast Asia. That reflects a growth rate that has reached almost 57 per cent since 2012, or US$ 8.9 billion. By 2021, retail sales in Indonesia's packaged food market are projected to hit US$ 40.1bn, a growth rate of 48.2.
Convenience stores are rapidly expanding in Indonesia and are different from Indonesian minimarkets, selling less SKUs than minimarkets and selling ready-to - eat foods and a dining room. Minimarkets, focused on size, cleanliness, food safety and convenience, are in direct competition with conventional independent small grocers (warungs).
Hypermarkets and supermarkets sell a wide range of food and beverage items, and are typically situated in shopping centers as anchor stores. Middle- and upper-income consumers in Indonesia are shopping increasingly at these shops. Hypermarkets and supermarket stores generally include in-store bakeries, cafes and restaurants, and prepared meals, typically contributing about 65 percent of overall sales.
Minimarkets, grocery shops, and other retailers carry a wide variety of fast food items such as ready-made meals, bakery goods, frozen foods, ice cream, and drinks. Often, they bring a small fresh fruit selection and are open 24 hours a day. These stores are found in major urban centers in Indonesia, as well as being co-located with gas stations such as Light, Circle K, Bonjour, Indomaret and Alfamart; and railway stations. The number of minimarkets and other smaller boutiques will continue to increase.
Reference- New York Times