Hypefast: 6 In 10 Indonesians Can't Differentiate Indonesian Or Chinese Products

Hypefast: 6 In 10 Indonesians Can't Differentiate Indonesian Or Chinese Products

Monday, 02 Dec 2024

Hypefast, Jacquelle Beauty, and Sarinah discussed key strategies to support local brands and small businesses as they face competition in 2025. During a discussion event titled “Key Growth Driver for Local Brands in 2025” in Jakarta, Hypefast, a leading tech-based house of brands in Indonesia, collaborated with industry players like Jacquelle Beauty and Sarinah to outline essential strategies for advancing local brands amid increasing competition.

Research from Hypefast in August 2024 revealed that 70% of active consumers seek local brands when shopping, and 90% of respondents have purchased local products in the last three months. Despite these opportunities, Hypefast's CEO, Achmad Alkatiri, pointed out that local brands are facing significant challenges, particularly from foreign competitors like Chinese brands. Achmad noted that 6 out of 10 consumers struggle to distinguish between local brands and imported products from China. This confusion poses a challenge for local brands as Chinese brands aggressively capture market share.

“Currently, 6 out of 10 Indonesians cannot even tell which brands are local and which are from China. This is a major challenge because this perception leads consumers to choose products that are not truly local,” Achmad stated. In response to these challenges, Achmad emphasized that the growth of local brands amidst the dominance of Chinese brands relies on the courage to innovate and understand market dynamics.

Hypefast encourages local brands to adopt a hyperlocal approach, moving beyond just mainstream channels. With hyperlocal strategies, product innovation, and data utilization, we believe local brands can dominate the domestic market and compete globally, he added. Additionally, Budi Thomas, CEO of Jacquelle Beauty, noted that local brands face challenges in competition due to limited supply and technology. He shared Jacquelle's experience in overcoming these challenges through successful collaborations. Jacquelle Beauty focuses on providing a unique consumer experience to attract attention when customers choose products.

"The key is to build a strong reputation by offering relevant products that meet consumer needs. Our success with Jacquelle Glitter Gloss Tint x Jazzy shows how innovation and collaboration can capture consumer interest, especially among Generation Z," he stated. During the same event, Diah Minarni, PLT Head of Retail at Kurator Sarinah, emphasized the importance of providing spaces for small businesses to sell, especially amid the dominance of foreign brands. Furthermore, data from Populix indicates that consumer preference for offline shopping has doubled since the pandemic, presenting a significant opportunity for local brands to expand their presence in the offline market.

She mentioned that the large number of small businesses is not matched by available selling spaces. Currently, Sarinah is collaborating with the government to increase locations for small business owners. "In Jakarta alone, there are 15-20 million small businesses. Collaborating with the government, effective communication strategies, and identifying target markets based on purchasing power are crucial. We want to ensure that local brands not only survive but also thrive through innovation and expansion," Diah explained. (deriz@insightinnews.com)

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