HOW DO PEOPLE SHOP FROM LOCAL BRANDS ONLINE

Over the past 5 years, local brands in Indonesia have gained a lot of popularity. Within those years, local brands in Indonesia have branched out to creating not only fashion brands but also beauty and skincare. In addition, with the world we live in today, there is a significant growth of social media applications alongside e-commerce applications. Therefore, if we put two and two together, the growth of social media apps in Indonesia have made it easier for local brands in Indonesia to develop their platform and recognition.

Our group decided to conduct an Instagram poll with the topic of ‘Shopping for Local Brands’. The poll was done through Instagram story in a public account in order to reach a wider audience. There were 5 multiple choice questions, among them, there are 4 questions that have 4 answer choices and 1 question which only has 2 answer choices. Therefore, this evaluation will look at how many people support local brands and whether online shopping is common.

After evaluating the poll, there were 50 total respondents. 64% (30 votes) of the respondents answered that they ‘often’ shop for local brands. In this case, ‘often’ means that they shop occasionally but not all the time. When shopping for local brands, 34% (16 votes) of the respondents answered that they buy skincare and make-up brands. Making this category with the highest number of percentage as compared to everything else. While, shopping for clothing brands and ‘all categories’ (clothing, skincare & make-up, accessories) has the same percentage of 28% (13 votes each). Furthermore, majority of the people who replied to our poll, are willing to spend at least Rp. 100.000 – Rp. 300.000 for local products (19 votes). However, there is a very slim difference with 37% of the respondents who are willing to spend Rp. 300.000 – Rp. 500.000 for a local product (17 votes). Moreover, there is a very big gap between people who choose to shop online and in-store. According to our poll, as much as 83% of the respondents, or 40 people choose to shop online. In contrast, there were only 8 people who prefers to shop in-store. This is actually a very wide gap, and it shows how the growth of social media or e-commerce apps contributes to the increasing numbers of online shopping.

The picture below shows the first question of the poll that was posted. The first question was, “How often do you shop from local brands?”. As mentioned there were only 4 options that a respondent can choose from.

1. Very Rare (Shops only once or twice every month)
2. Often (Shops more than twice a month)
3. Very Often (Shops more than 5 times a month)
4. Super Often (Local brands is their go-to)

This picture shows the second poll that was posted, with the question “What type of local brands do you usually support?”. From the responses, we can see that the highest number of votes with 34% goes to ‘Skincare & Make-Up brands’. In Indonesia, there has been a rise in skincare and make-up brands and it has been of high demand among locals as well. Thus, this factor explains as to why the number is huge. However, the first and last option has the same number of percentage, 28%, which means that with the same number of respondents, some choose to buy clothing brands, and some spends their money separately by buying from all of the categories mentioned.

The third question is, “How much do you usually spend for local brands”. For this question, we decided to include the typical price ranges local brands have. Usually for clothing brands it can go anywhere from the cheapest until the highest option. Therefore, we wanted to see how much a person is willing to spend for one local product.

100. Rp. 100.000 – Rp. 300.000
101. Rp. 300.000 – Rp. 500.000
102. Rp. 500.000 – Rp. 1.000.000
103. Rp. 1.000.000

Majority of the respondents are willing to spend Rp. 100.000 – Rp. 300.000 for one local product. In addition, only 4% of the respondents or 2 people are willing to spend Rp. 1.000.000 for one local product.

For the fourth question, we only had two questions because we wanted to further evaluate whether people prefer to shop online or in-store. Once all of the answers were collected, we saw a huge gap between the two options. It shows that 83% of the respondents usually shop online, and only 17% shop in-store. Hence, this shows how the majority of people prefer to do online shopping (through Shopee, Tokopedia, Instagram, TikTok Shop) rather than shopping in-store.

The last question was “Why do you choose to support local brands?”. 72% of the respondents or the majority answered ‘Good quality products’, and some of them chose ‘Because it is made in Indonesia’. From these answers we can see that Indonesian local brands provide good quality products, which is why a lot of people choose to buy them. However, some people also choose to buy local brands to support the fact that it is made in Indonesia. In contrast to what we think would have the highest number of votes, ‘Following the current trend’ only has 7% of votes, and the option ‘Others’ with 9%.

To sum, a lot of people support local brands in Indonesia and the majority of them shop for it often through online shopping. The growth of social media and e-commerce applications in Indonesia have made it easier for local businesses to start their brand. Therefore, also making it easier to reach potential customers and having them purchase the products. From  s results shown above, there is a lot of people who choose to shop online, whether that be from social media or e-commerce apps. In addition, a lot of these people choose to shop from local brands because they have good quality products. Thus, we can conclude that the majority of the respondents shop for local brands through online shopping and local brands in Indonesia will continue to grow in the foreseeable future along with the use of social media and e-commerce applications.

Authors: Aisya Kahlila Ajikarisma

Nadia Zhafira Putri

Valendra Widarto Pradhana

Editor: Annapurna Sinha