Question

In: Economics

channels of distribution in indonesia. Describe in 250 words. Write references in APA.

channels of distribution in indonesia. Describe in 250 words. Write references in APA.

Solutions

Expert Solution

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


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