Supplying ASEAN’s Appliance Market
Affluent Indonesian consumers are drawn to value-for-money electronics from Chinese exporters waking up to the potential of this huge market.
07 February 2018
With disposable-income levels rising steadily among Indonesia’s 260 million-strong population and a wider range of affordable products, impulse buying is rising in Indonesia, a development not lost on exhibitors at last August’s Indonesia International Electronic and Home Appliances Expo.
According to a recent report by the London-headquartered market-intelligence provider Euromonitor, Indonesian consumers are driven by two prime concerns when purchasing home appliances. While durability is high on their list, affordability is the top priority, with Chinese manufacturers, arguably able to deliver on both fronts.
One exhibitor confident in meeting both criteria was Zhongshan Jalja Electrical Appliances, a Guangdong-based supplier of small-home appliances, specialising in halogen ovens. "We offer a wide range of competitively priced, high-quality products, tailored to meet the specific requirements of our customers,” said Sales Manager Mandy Wu.
"Our halogen ovens, for instance, are ideal for working parents who struggle to find the time to cook family meals. As they were developed in-house, the models we offer are exclusive and guaranteed to produce delicious meals with little supervision and no overcooking."
Also hoping to make inroads into the home-cooking sector was Gemside Kitchen Appliance Technology, whose proprietary automatic multi-cooker range was a big hit at the fair.
"The big selling point is that once the user has placed all of the ingredients in the cooker, they can just relax and wait until the food is ready without having to continually monitor the cooking process,” said Sales Manager Nicole Wu.
"Despite our confidence in the product, we were still surprised at how quickly all of our stock went. In the end, we had to turn potential buyers away as we were only left with our demonstration model."
For Zhongshan Chongde Electric, a company with a 10-year heritage in the manufacture of water heaters, purifiers and fittings, Indonesia was familiar territory. It has already sold more than 1,000 heaters or purifiers in the country and plans to open a dedicated Indonesian office.
"The local consumers here are very conscious of both price and quality,” said Sales Representative Beauty Huang. “As we are the original manufacturer of all of our products, we can keep costs down while maintaining quality. We also score highly because all of our heaters are automatic, handy, healthy and low on energy consumption."
Exhibitors also showcased consumer electronics for entertainment, including Huizhou City Huan Dong Industrial, which featured its smartphone-friendly range of replica weapons. "Instead of having to tap your phone while playing a shooting game, you can actually aim our gun and squeeze the trigger as you shoot your opponents down,” said Sales Manager Shannon Shao.
"It's a healthy alternative to just sitting on the couch, as our app forces you to walk around as you root out your enemies. With many Indonesians increasingly committed to staying fit and healthy, we think this system fits with their lifestyles."
Java-based DQ Computer, the local distributor for MeeTion, a high-tech PC gaming accessories range manufactured in Shenzhen, featured a striking selection of mouse, keyboard and headphone units. "While there is a huge selection of PC gaming kits available in Indonesia, none of them can match us in terms of design quality,” said Sales Manager Deky Susanto.
Among the most memorable items the company displayed was the Transformers Gaming Mouse, which takes its look and style from the robotic heroes of the TV and movie franchise of the same name. The company pointed out that in addition to their attractive design, every MeeTion product fully complies with international safety standards.
Apart from the strong showing for consumer-focused products, the fair also hosted a number of B2B players. Thanks to several government measures to help bolster growth of the country's domestic electronics and home-appliance manufacturing sector, there has been a surge in demand for imported components and equipment, a development that Chinese companies have quickly tapped.
With a 19-year track record of supplying businesses in China, Shenzhen-based Hua Xing PCBA saw Indonesia as a prime market for its printed circuit boards (PCBs) and printed circuit board assembly systems, as well as its range of wire-harnessing and sensor equipment.
"Above all, we want to support the local manufacturing industry and provide them with high-quality, affordable PCBs. As we do not specify a minimum order quantity, we can support both big and small businesses,” said Sales Representative Jack Zhai.
"Essentially, we see ourselves as a one-stop electronics manufacturing services company. As well as supplying PCBs, we can also provide creative and bespoke solutions to any particular software or hardware challenges."
Also in the B2B sector, the sales team working on behalf of Boli Metalware Factory was keen to introduce the Guangdong-based company's range of domestic appliance components to Indonesia's expanding roster of manufacturers. Particularly under the spotlight was the company's selection of wall switches, long-row socket sets, copper and iron parts, stamping parts, lathing parts, and springs.
"Although many businesses are now targetting this market, our advantage is that we offer excellent quality, reasonable prices and a reliable after-sales service,” said Hans Su, Boli's Sales Manager. “We also have a variety of awards that testify to our commitment to quality and customer service."
For more market opportunities, please visit: http://research.hktdc.com/.
- Electronics & Electrical Appliances
- Hong Kong