GfK commenced tracking of paint products in Jakarta at the end of last year, covering independent channels such as DIY Stores (or home improvement stores) and paint specialists.
Comprising emulsion, wood and metal paints, the survey outcome indicated that emulsion is the dominant segment contributing to 88 percent of the total paint market spending. The remaining wood and metal paint make up the remaining nine and three percent respectively.
“The biggest and most lucrative emulsion category naturally attracts the greatest competition—both local and international,” said Guntur Sanjoyo, Managing Director for GfK in Indonesia. “In Jakarta alone, we track the existence of 24 brands with over 80 different types of offerings vying for the consumer dollar.”
GfK reports registered more than two-thirds (68%) of total emulsion paint sales coming from foreign brands—indicating that consumers in the country still prefer internationally recognized manufacturers.
Another interesting highlight is the fact that nearly half, or 21 of the 45 emulsion paint variants cost over IDR 25.000 per litre—classifying them under the premium segment. This segment accounted for the biggest value share of 63 percent.
“The premium segment of paint market is where brands tend to promote the various unique value-added attributes that differentiate their products from the competition,” said Sanjoyo. “Features such as non-toxic, low odor, easy wash and clean, color protection, etc are positioned as advantages that command a higher pricing.”
Meanwhile, the medium range (IDR 15.000 - 25.000/ltr) was occupied by 17 models while the rest fell under the low segment (<IDR 15.000/ltr). They each made up 32 and 6 percent respectively of the total paint market worth in Jakarta.
“Similar to categories such as electronic gadgets and cars, paint is a high-involvement purchase where consumers normally will research and gather relevant information from various touch points to help them evaluate the product before making the actual purchase,” said Sanjoyo. “However, at the end of the day, the eventual touch point which has the greatest influence is the retailer, since they have the power to give the extra push, or even get the consumers to switch brands right before the final sales are being made,” he concluded.
GfK’s retail audit of paints in Indonesia currently covers Jakarta, and will be expanding to track more cities in the country.