Smartphone sales in Indonesia have increased dramatically in recent years, eclipsing feature phone sales for the first time in 2014. Smartphones now make up 46% of device sales, up from 32% in 2013. Android devices dominate the market, accounting for 88% of smartphone sales. Indonesians primarily use smartphones for social networking and browsing the internet. Smartphone ownership has increased connectivity and changed consumer behavior, with mobile expected to become a major channel for business growth. Companies must understand how consumers are using mobile devices and rethink their marketing strategies to engage customers across digital purchase journeys.

1. Iyan Muhsinin
Managing Director, GfK Indonesia
Connected Evolution &
The New Indonesian
Consumer

2. The World in Your Pocket

3. 7 18 37 62 80 104118 128 136 130 116 109155 185 206 195 177 16917
61 130 228
326
139
267
441
685
1,010
1,264
2009 2010 2011 2012 2013 2014 FC
TV Desc PC/All in one Notebooks/Netbook Tablets Smart phones
In 2014 close to 2 billion "core Internet devices" will be sold,
out of these 1.2 billion will be smart phones
Global sales [million units]
Source: GfK Retail Panel , core devices which can connect to the internet
1,972
419
615
881
1,611
1,202

4. … going beyond a simple
communication device
Smartphones: Disrupting existing markets
Browser
Audio PlayerGPS
Video Player
Camera
Microphone
Loudspeakers
Smartphones are becoming a one-stop portal for all our consumer
device needs
Health

5. Massive growth in adoption of connected devices
APAC excl. CN&JP, 2011 to 2014, Sales Value
+US$16 Bn
Source: GfK; Retail Data: Connected Devices, APAC excl. CN&JP, 2010 to 2014, Sales Value
-
5
10
15
20
25
30
35
40
45
1H 2011 1H 2012 1H 2013 1H 2014
USDBillions
NON-CONNECTED
CONNECTED
-US$7 Bn

6. There is a shift from Connected to Connected Anywhere…
Driving the demand for personal mobile devices
Source: GfK; Retail Data: Digital Devices, APAC excl. CN & JP, 2010 to 2014, Sales Units
3,490
1,978
5,200
3,831
1,425 1,327
465
4,407
16,793
49,892
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Sales Units in Thousands
DESKTOP PC Laptops > 8" TABLET
≤ 8" TABLET SMARTPHONE
≡

7. Globally the majority of people use more than one device to
connect to the Internet
Source: GfK Roper Reports Worldwide, 2013; consumer behavior and attitudes in 31 markets

8. Let’s take a closer at what the Indonesian
consumer is doing

9. In Indonesia, Smartphone sales increased 7 fold in the past 5 years,
eclipsing feature phones for the first time in 2014
 Indonesia following
global trend - Tablets and
SP growing at a
phenomenal pace
 SP will make up 46% of
all devices sales up from
32% in 2013
 Tablets growth eating
into Laptop and PCs
sales
Source: GfK; Retail Data: Sales Units in ‘ 000 , Indonesia 37 Cities
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2010 2011 2012 2013 2014 Fcst
Unit Sales
Desktop PC Laptop Tablet PC Smartphones Feature Phone
46%
32%
20%

10. Indonesia one of the fastest growing smartphone markets in the
world – 2015 expected to connect 40 mn more people
Over 50mn Smartphones sold in last 2 years (2013/14)
Source: Source: GfK; Retail Data: Sales Units in ‘ 000 , Indonesia 37 Cities,, *the bubble figure refers to unit growth yoy
Smart+Feature
Phone
9% 2%
4%
3%
2011
51,929K
Smartphones
2012
56,577K
2013
57,385K
2014
59,812K
2015 Forecast
61,732K
20% 44%
51%
27%
2011
12,083K
2012
14,513K
2013
20,897K
2014
31,473K 2015 Forecast
39,848K

11. In the space of 5 years, Indonesia has transformed from Nokia-land, to
BlackBerry-land, and now Android-land; while iOS struggling to gain traction
Source: GfK; Retail Data: Sales Units in ‘ 000 , Indonesia 37 Cities
45%
18%
4% 0% 0%
2010 2011 2012 2013 2014 (F)
45%
53% 50%
20%
6%
2010 2011 2012 2013 2014 (F)
1% 1% 2% 3% 2%
2010 2011 2012 2013 2014 (F)
3%
23%
39%
65%
88%
2010 2011 2012 2013 2014 (F)

12. Growing trend of larger screens and Dual-Sim phones, Android dominant OS
Average Selling
Price
52%of devices sold in YTD 2014 were
Smartphones
88%of Smartphone are Android.
31%
among Smartphone market
are devices with price <
IDR 1 Mio
4%of Smartphone market in YTD 14
are equipped with LTE ready.
26%of Smartphones sold have
4” screen size
65%
of Smartphone devices
sold are Dual-SIM card
+56%

+293%

+264%


Growth YTD 14 vs YTD 13 (unit) , All data based on YTD Sep 2014 Data – Smartphone / Feature phone , Indonesia 37 Cities . Volume in Sales Units
Smartphones,
Mobile phones
or Phablet
OS
Screen Size
Digital
Standard
Number of
SIM Cards

13. Indonesians are ready for digital platforms just getting started
on online retail
Source: McKinsey & Company 2014 Report and GfK data
about 56% internet
penetration in Indonesia, less
than 10% are shopping
online
of population within 138 million
members living in urban area
are the middle class segment
(urban consuming class)
Smartphone devices sold
through online channel
entering the urban
consuming class each year =
a population the size of
Singapore
Less than
55
million
2%
10%
Less than
5
million

14. • A consumer survey, 2,400 face-to-face interviews about media usage in
Indonesia as well as device ownership and usage
• In addition, installation of approximately 600 Passive meters among respondents
in 5 Java cities – running through to March 2015.
• Study to provide Cross device linkages and real-time big data on what are
people doing on their devices
Introducing the Google Digital Metering Project
Next few slides give you a very first glimpse of what we are
finding from the media usage part of the study .
Please be mindful these are preliminary un-weighted and part sample data from 1450 consumers only

15. COMPUTER (PC)
29%
TABLET (TB)
8%
Multi-screen usage is just starting to happen , Smartphone main gateway to
the world
FEATURE PHONE (FP)
44%
 25% have both PC and Smartphone , whereas 6% have Smartphones and Tablets
Source: GfK Google survey among urban middle class (ABC1) aged 18-55 across 5 big cities in Indonesia, October 2014 , N= 1450
SMARTPHONE (SP)
73%
Base: All Respondents
PC + SP 25%
TB + SP 6%
Excl. SP 33%

16. 81%Social networking
(Facebook, Twitter, etc.)
59%Chatting (YM, Skype,
Gtalk, etc.)
37%Watching video via
YouTube, Vimeo
78%Call/SMS
79%Browsing
Only in Indonesia, people use mobile phones for ‘social networking’
more often than making calls!
Source: Media Behaviour and Consumption, Indonesia 2014, among smartphone users, urban middle class
32%Emailing
Base: Smartphone Users

17. 58%
Social networking
(Facebook, Twitter, etc.)
29%Chatting (YM, Skype,
Gtalk, etc.)
38%Watching video via
YouTube, Vimeo
65%Do assignment / work
73%Browsing
What do people in Indonesia use PC for?
Source: Media Behaviour and Consumption, Indonesia 2014
50%Emailing
Base: PC Users

18. Smartphones are the primary gateway to Internet
7% Use a tablet
4%
Use a desktop
computer
16%
87%
Use a laptop
Use a
smartphone
29%
of people online use
more than one device
to connect
Source: Media Behaviour and Consumption, Indonesia 2014
Base: Internet Users

19. 0
10
20
30
40
50
60
70
6-9
9-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
21-22
22-23
23-24
00-01
01-06
PC Smartphone
Tablet Feature Phone
TV Radio
Print Media (Magazine, Newspaper, Tabloid)
Smartphones are always on during waking hours, parallel usage during evenings
starting to show
Source: GfK Google survey among urban middle class (ABC1) aged 18-55 across 5 big cities in Indonesia, October 2014 , N=
am
Base: All Respondents

20. Implications

21. Today’s consumers are mobile,
connected, in control…and expect
the best in technology and a
great user experience
The evolution of technology is both shaped by and drives
consumer behaviour

22. Sources: (1) GfK, Global Sales Value % 2013/2014 estimated. Global consumer tech devices retail sales revenue in USD - top tier products,
December 2013. (2) Gartner, (3) Gartner
The explosion of digital devices and internet accessibility have
changed the way consumers…
Global mobile
transactions are
predicted to reach
$617bn
in 2016 (2)
And global mobile ad
revenue to reach:
$24.5bn
in 2016 (3)
Mobile will soon be the important channel to
drive business growth
SearchShop Communicate
Engage
with brands
Gather
information

23. Harvard Business Review, 2012, Roland T. Rust, Christine Moorman and Gaurav Bhallla: Rethinking Marketing
Earlier Now
Product
Customer
Customer
Product
We need to move from being product to customer centric

24. Understand how consumers are using their mobile devices
Define your
mobile strategy,
understanding
mobile
audience
Improve your
mobile
properties
performance
Optimize
content by OS
and device
Make mobile an
effective
channel for
search
Improve mobile
ad
effectiveness
Intercept
consumers in
their purchase
journey
Mobile
Audience
Measurement
Mobile
Web
Benchmark
Cross
Device
Insight
Mobile
Ad
Analysis
Mobile
User
Journey
Mobile
Search
Measurement

25. … and relook at consumer purchase journeys

26. • Get ready for the constantly connected consumer – talk to them at a personal
level
• Don’t just extend advertising strategies to include mobile but instead center them
around it
• How consumers will find and buy you will also change soon enough , engage
them across the journeys they make
Final thoughts

27. Who we are

28. GfK. Growth from Knowledge
Helping you make better decisions
We are the trusted source of relevant market and consumer information.
• 13,000 experts in 100 countries
• 5m consumer and electronics products
sales tracked globally for brands and
manufacturing companies
• Supplying television audience
measurement in 8 media markets, as well
as digital and radio tracking in more
countries
• Providing insight through social media data
• Part of Europanel partnership, capturing
scan-based purchasing

29. We drive insights by bringing together unique data assets ,
innovation platforms & industry expertise
Innovative technology
platforms
Big-data, behavioral
digital analytics
Business opportunities
Winning strategies
Our data assets
Your data assets
Other data assets
Industry expertise Proven market
research and product expertise

30. Providing guidance to identify key new opportunities…

31. Thank you for your attention!
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