Demand for branded goods remains stable<\/p>\n
JAKARTA (JP): Indonesia's current monetary crisis has not
\naffected demand for brand-named consumer goods targeted for the
\nmiddle class, The Castle Group, a business consulting company,
\nstated yesterday.<\/p>\n
Castle's chairman, James W. Castle, said demand for brand-name
\nitems remained stable even though the country was mired in
\nfinancial crisis.<\/p>\n
"The demand for these middle-class consumer goods remains
\nconstant while the demand for luxury goods is declining due to
\nthe crisis," he said after launching a book on the Indonesian
\nconsumer market.<\/p>\n
He noted Unilever, one of Indonesia's biggest consumer good
\nproducers, had not faced a decline in the demand for its
\nproducts.<\/p>\n
He added that two Unilever products, Pepsodent toothpaste and
\nLux bath soap, still dominated the market and enjoyed a strong
\ndemand despite the crisis.<\/p>\n
"Most people will not change their favorite brands, especially
\nif the products are competitive with other brand prices," he
\nsaid.<\/p>\n
But he said that the demand for luxury items was falling
\nbecause people were shifting to more economical products.<\/p>\n
"The currency crisis will eventually have a major effect on
\nthe purchasing power of most Indonesian consumers, and will
\naffect manufacturers of all products, particularly those which
\nsell nonessential goods," he said.<\/p>\n
The Castle Group, in cooperation with AC Nielsen SRI (Survey
\nResearch Indonesia), launched The Indonesian Consumer 1998, a
\nbook which reviews Indonesia's consumer market.<\/p>\n
Meanwhile, AC Nielsen SRI president Farquhar Stirling said
\nmarket leaders would see the economic downturn as an opportunity
\nto consolidate and expand their businesses.<\/p>\n
"In the current economic crisis, local and small players find
\nit is more difficult to sell. They will reduce their spending,
\nespecially in advertising," he said adding that bigger players
\nwould not reduce their advertising spending.<\/p>\n
He said the cut in their advertisement budgets could shrink
\ntheir market.<\/p>\n
The condition was an opportunity for major players to increase
\ntheir market share, he said.<\/p>\n
"People will look to other brands because they have to adjust
\ntheir spending with their economic situation. It's a very good
\nopportunity to take consumers away from other brands by
\nintroducing your brands," he said.<\/p>\n
The Castle Group specializes in business information,
\nindustrial research and economic forecasting. It began with the
\nestablishment of PT Menata Prospecta Persada in 1980 and the Hong
\nKong-based Java Consult Limited in 1985.<\/p>\n
The group operated under the names of Business Advisory
\nIndonesia and Business Advisory Strategis until 1993 when it was
\nconsolidated under The Castle Group with the formation of PT
\nJasawenang Citrasempurna.<\/p>\n
AC Nielsen was established in 1973 as In Search Data. In 1976
\nthe company joined Survey Research Group and became Survey
\nResearch Indonesia in 1982.<\/p>\n
The company joined Nielsen International\/Dun & Bradstreet in
\n1994 and starting early this year it operated under the name of
\nAC Nielsen SRI.<\/p>\n
The Indonesian Consumer 1998, claimed to be the first
\ncomprehensive survey of the Indonesian consumer product market to
\nhave been released since the recent currency crisis, contains
\nreviews of key sectors including franchising, advertising,
\ndistribution and retail. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/demand-for-branded-goods-remains-stable-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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