Air Conditioner Market In Indonesia

STUDY ABOUT AIR CONDITIONER MARKET IN INDONESIABY DI-MARKETING (www.di-onlinesurvey.com)

Mar, 2017

2

SURVEY DESIGN

This survey was conducted to study about Air Conditioner Market in Indonesia

Methodology: Online survey

Fieldwork time: 5 days (13/02/2017 – 17/02/2017)

Sample size: N = 410

Geography: Nationwide

3

RESPONDENTS SELECTION

Respondents of this survey had to be qualified below criteria

Age : Above 18

Gender : Male and Female

Monthly personal expense : From USD 200

Usage : Air Conditioner

4

KEY FINDINGS

1) Awareness and Usage• LG, Panasonic and Samsung are top 3 well-known Air-conditioner brands in Indonesia• TV ads, Friends/ relatives’ suggestion and Stores/ showroom are affective channels to

leverage brand awareness• LG is the leader of Air-Conditioner market in Indonesia (39% market share)

2) Usage Behaviors• 78% family own 1-2 Air conditioners in their house • 80% are using Window Air conditioner • Official store/ showroom and Electric center are the top channels for buying an Air conditioner

3) Actual Satisfaction• Saving energy, Cool up quickly and Durability are the top criteria for choosing an air

conditioner• 89% satisfied with their current air-conditioner brand• Panasonic gains the highest satisfaction and loyalty

4) Future Buying Intention• 70% intend to buy Air conditioner in the next 1 year and LG brand is the top choice• Saving energy Function is the top criteria for choosing an future Air conditioner

5

KEY FINDINGS VIETNAM INDONESIA

Most well-known brands Toshiba / Panasonic / Samsung LG / Panasonic/ Samsung

Market leaders • Panasonic (21%)

• Daikin (18%)

• Sharp (13%)

• LG (39%)

• Sharp (16%)

• Panasonic (15%)

Key brand awareness channels

• TVC (72%),

• Stores/ Showroom (66%)

• TVC (63%),

• Friends’ suggestion (53%),

• Stores/ showroom (51%)

Key purchase channels • Electronic center (83%) • Official store/ showroom (50%) Electric center (40%)

Top brand choice criteria

• Saving energy,

• Durability,

• Good price

• Saving energy,

• Cool up quickly,

• Durability

Average spending / purchase

$340 $260

VIETNAM AND INDONESIA AIR CONDITIONER CONSUMERS

6

N = 410

DEMOGRAPHIC INFORMATION

GenderAge

OccupationLiving Place

Over 35

31-35

26-30

18-25

7%

13%

32%

47%

Male

Female

47%

53%

Others

Medan

Yogyakarta

Surabaya

Bodetabek

Bandung

Jakarta

20%

5%

7%

10%

16%

17%

25%

Others

Job seeker/ Retired

Factory Worker

Engineer/ Doctor/ Techer

Student

Housewife

Self-employed

Officer

1%

2%

5%

5%

10%

14%

22%

41%

7

1) Awareness and Usage

2) Usage Behaviors

3) Actual Satisfaction

4) Future Purchase Intention

CONTENT

8

OVERALL, LG, PANASONIC AND SAMSUNG ARE TOP 3 WELL-KNOWN AIR- CONDITIONER BRANDS IN INDONESIA

Do you know any air-conditioner brands listed below?(Comparison by Age Group)

N = 410 N = 194 N = 132 N = 84

Others

Haier

Changhong

Midea

Electrolux

Daikin

Mitsubishi

Sanyo

Toshiba

Polytron

Sharp

Samsung

Panasonic

LG

0% 20% 40% 60% 80% 100%

0%

26%

30%

30%

37%

39%

40%

53%

68%

69%

75%

77%

82%

91%

Total

0% 20% 40% 60% 80% 100%

0%

16%

19%

20%

19%

24%

30%

42%

60%

70%

64%

69%

78%

88%

18-25

0% 20% 40% 60% 80% 100%

1%

30%

34%

33%

45%

43%

38%

59%

70%

65%

83%

80%

82%

95%

26-30

0% 20% 40% 60% 80% 100%

0%

44%

50%

49%

67%

64%

67%

67%

83%

75%

88%

89%

89%

93%

Over 30

9

Do you know any air-conditioner brands listed below?(Comparison by Gender Group)

N = 219N = 191N = 410

Others

Haier

Changhong

Midea

Electrolux

Daikin

Mitsubishi

Sanyo

Toshiba

Polytron

Sharp

Samsung

Panasonic

LG

0%10%

20%30%

40%50%

60%70%

80%90%

100%

0%

26%

30%

30%

37%

39%

40%

53%

68%

69%

75%

77%

82%

91%

Total

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

0%

24%

25%

21%

27%

34%

31%

41%

57%

67%

63%

65%

79%

92%

Male

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

0%

29%

34%

37%

46%

42%

48%

63%

78%

71%

85%

86%

84%

91%

Female

OVERALL, LG, PANASONIC AND SAMSUNG ARE TOP 3 WELL-KNOWN AIR CONDITIONER BRANDS IN INDONESIA

10

TV ADS, FRIENDS/ RELATIVES’ SUGGESTION AND STORES/ SHOWROOM ARE AFFECTIVE CHANNELS TO LEVERAGE BRAND AWARENESS

How do you know these air-conditioner brands?(Comparison by Age Group)

N = 410 N = 194 N = 132 N = 84

Others

I know through sms advertising messages/ email

Facebook ads

In/ Out of home ads

Web, forum ads

I read news/ magazines mentioning about these brands

See others use these fridge brands

Through stores/ showroom

Friends/relatives' suggestion

TV ads

0%20%

40%60%

80%100%

0%

10%

20%

22%

25%

26%

46%

51%

53%

63%

Total

0% 20% 40% 60% 80% 100%

0%

8%

22%

22%

24%

24%

51%

48%

56%

65%

18-25

0% 20% 40% 60% 80% 100%

0%

11%

20%

20%

26%

25%

44%

52%

49%

62%

26-30

0% 20% 40% 60% 80% 100%

0%

13%

18%

27%

25%

33%

39%

58%

54%

58%

Over 30

11

How do you know these air-conditioner brands?(Comparison by Gender Group)

N = 219N = 191N = 410

Others

I know through sms advertising messages/ email

Facebook ads

In/ Out of home ads

Web, forum ads

I read news/ magazines mentioning about these brands

See others use these fridge brands

Through stores/ showroom

Friends/relatives' suggestion

TV ads

0% 20% 40% 60% 80% 100%

0%

10%

20%

22%

25%

26%

46%

51%

53%

63%

Total

0% 20% 40% 60% 80% 100%

0%

8%

17%

16%

22%

26%

47%

45%

55%

63%

Male

0% 20% 40% 60% 80% 100%

0%

11%

24%

27%

27%

26%

45%

57%

51%

63%

Female

TV ADS, FRIENDS/ RELATIVES’ SUGGESTION AND STORES/ SHOWROOM ARE AFFECTIVE CHANNELS TO LEVERAGE BRAND AWARENESS

12

LG, SHARP AND PANASONIC ARE TOP MOST USED AIR-CONDITIONER BRANDS IN INDONESIA

Which air-conditioner brand do you own currently?(Comparison by Age Group)

Others

Midea

Haier

Sanyo

Electrolux

Mitsubishi

Changhong

Polytron

Daikin

Toshiba

Samsung

Panasonic

Sharp

LG

0% 10% 20% 30% 40% 50%

0%

1%

1%

1%

1%

2%

2%

4%

4%

5%

10%

15%

16%

39%

Total

0% 10% 20% 30% 40% 50%

0%

2%

1%

1%

1%

1%

2%

5%

2%

5%

9%

13%

13%

47%

18-25

0% 10% 20% 30% 40% 50%

0%

0%

2%

2%

1%

1%

2%

3%

5%

5%

14%

17%

17%

33%

26-30

0% 10% 20% 30% 40% 50%

1%

0%

1%

2%

5%

5%

1%

1%

7%

4%

6%

15%

19%

32%

Over 30

N = 410 N = 194 N = 132 N = 84

13

Which air-conditioner brand do you own currently?(Comparison by Gender Group)

N = 219N = 191N = 410

Others

Midea

Haier

Sanyo

Electrolux

Mitsubishi

Changhong

Polytron

Daikin

Toshiba

Samsung

Panasonic

Sharp

LG

0% 20% 40% 60%

0%

1%

1%

1%

1%

2%

2%

4%

4%

5%

10%

15%

16%

39%

Total

0% 20% 40% 60%

0%

0%

2%

2%

1%

1%

1%

4%

4%

6%

8%

11%

10%

50%

Male

0% 20% 40% 60%

0%

1%

0%

1%

2%

2%

2%

4%

4%

4%

11%

18%

21%

30%

Female

LG, SHARP AND PANASONIC ARE TOP MOST USED AIR-CONDITIONER BRANDS IN INDONESIA

14

LG IS THE TOP LEADER IN INDONESIA MARKET WHEN GAINING THE HIGHEST BRAND AWARENESS AND USAGE

Do you know any air-conditioner brands listed below?

Which air-conditioner brand do you own currently?

N = 410

LGSha

rp

Panas

onic

Samsu

ng

Toshib

aDaik

in

Polytro

n

Chang

hong

Mitsub

ishi

Electro

luxSan

yoHaie

r

Midea

Others

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%91%

75%

82%77%

68%

39%

69%

30%

40%37%

53%

26%30%

0%

39%

16% 15%10%

5% 4% 4% 2% 2% 1% 1% 1% 1% 0%

Awareness

Usage

15


2) Usage Behaviors



CONTENT

16

How many air-conditioner are there in your house?

ON AVERAGE, EVERY FAMILY OWNS APPROXIMATELY 2 AIR CONDITIONERS IN THEIR HOUSE

N = 410 N = 40 N = 87 N = 168

Total Under $200 $201 - $450 $451 - $700 $701 - $1000 Over $10000%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

3% 4%

3%15%

3%

24%16%

15%

25%

20%

30%

18% 32%

36%

54%

75%64%

52%45%

36%

3%3%6%

1 2 3

4 5 Over 5

N = 82 N = 33

The higher income, The more Air Conditioner they own

WeightedAverageQuantity

1.451.78 1.43 1.89 1.93 2.18

17

BOTH ONE-WAY AND TWO-WAY AC ARE POPULAR IN INDONESIA

Is your air-conditioner one-way or two way?

Total LG Sharp Panasonic0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

47%53%

39% 38%

53%47%

61% 62%

One- way Two- way

N = 410 N = 161 N = 64 N = 60

18

92% ARE USING INVERTER AIR CONDITIONER

Is your home air- conditioner an Inverter one (electricity- saving) ?

No

Yes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

8%

92%

N = 410

19

80% ARE USING WINDOW AIR CONDITIONER

Which type of air- conditioner are you using?


10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5% 4% 6% 3%

15%12% 13% 15%

80% 83% 81% 82%

Window air-conditioner

Portable air-conditioner

Inbuilt air-conditioner

N = 410 N = 161 N = 64 N = 60

20

32% ARE USING 1HP AIR CONDITIONER

How much power (HP) does your air-conditioner has?


10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

17% 15%25%

17%

9% 10%

8%

8%

10% 11%

11%

10%

32%40%

17% 32%

11%

9%

8%

15%

20%16%

31%

18%0.5 HP

0.75 HP

1 HP

1.5 HP

2 HP

I don't know/ don't remember

N = 410 N = 161 N = 64 N = 60

21

67% SPEND APPROXIMATELY 260USD TO OWN AN AIR CONDITIONER

How much do you spend on your air conditioner?

The higher income, The more spending on Air Conditioner

N = 410 N = 40 N = 87 N = 168 N = 82 N = 33

Total Under $200 $201 - $450 $451 - $700 $701 - $1000

Over $10000%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6%7%

9%

18%

16%

5% 7%

11%

29%

39%

46%

30%38%

62%

39%

18%

21%

25%

41%

17% 15%

3%7%

35%

11%2% 4%

9%

12%

Under $100

$100 - $200

$200 - $300

$300 - $400

$400 - $500

$500 - $600

Over $600

Monthly Expense

AC Price

WeightedAverage

Expenditure$224$260 $192 $250 $390 $500

22

OFFICIAL STORE/ SHOWROOM AND ELECTRIC CENTER ARE THE TOP CHANNELS FOR BUYING AN AIR CONDITIONER

Where did you buy your air-conditioner?(Comparison by Age Group)

Others

Repair shop

Buy online on E-Commerce sites

Electric center (Best Denki, Electronic City, etc)

Official store/Showroom

1%

3%

6%

40%

50%

Total

0% 20% 40% 60%

1%

4%

5%

36%

55%

18-25

0% 20% 40% 60%

2%

2%

8%

44%

44%

26-30

0% 20% 40% 60%

0%

2%

5%

44%

49%

Over 30

N = 410 N = 132 N = 84N = 194

23

Where did you buy your air-conditioner? (Comparison by Gender Group)

Others

Repair shop

Buy online on E-Commerce sites

Electric center (Best Denki, Electronic City, etc)

Official store/Showroom

0%20%

40%60%

80%100%

1%

3%

6%

40%

50%

Total

0% 20% 40% 60% 80% 100%

0%

2%

6%

38%

54%

Male

0% 20% 40% 60% 80% 100%

2%

4%

6%

42%

47%

Female

OFFICIAL STORE/ SHOWROOM AND ELECTRIC CENTER ARE THE TOP CHANNELS FOR BUYING AN AIR CONDITIONER

N = 219N = 191N = 410

24


2) Usage Behaviors



CONTENT

25

SAVING ANERGY, COOL UP QUICKLY AND DURABILITY ARE THE TOP CRITERIA FOR CHOOSING AN AIR CONDITIONER IN INDONESIA

Why do you choose this brand of air conditioner?(Comparison by Age Group)

N = 410 N = 132 N = 84N = 194

Others

Skin care and moiturizing

To dismiss mosqito

Frequent promotions

Auto restart after power cut

Be Janpaneses brand

Good customer service

Sales person suggested me

Suitable fan speed

Can adjust time

Beautiful design

Good warranty

My friends/ relative suggested

Good price

Durability

Cool up quickly

Saving energy

0% 20% 40% 60% 80% 100%

1%

12%

16%

20%

20%

20%

21%

22%

26%

27%

30%

40%

42%

43%

48%

52%

61%

Total

0% 20% 40% 60% 80% 100%

2%

12%

14%

18%

18%

14%

18%

19%

28%

26%

27%

36%

50%

36%

39%

59%

64%

18-25

0% 20% 40% 60% 80% 100%

0%

10%

14%

16%

20%

17%

23%

24%

25%

26%

31%

41%

34%

45%

56%

43%

55%

26-30

0% 20% 40% 60% 80% 100%

0%

15%

23%

29%

24%

38%

25%

25%

23%

31%

37%

51%

35%

56%

58%

51%

67%

Over 30

26

Why do you choose this brand of air conditioner?(Comparison by Gender Group)

N = 410 N = 191 N = 219

Others


To dismiss mosqito

Frequent promotions


Be Janpaneses brand



Suitable fan speed

Can adjust time

Beautiful design

Good warranty


Good price

Durability

Cool up quickly

Saving energy

0%10%

20%30%

40%50%

60%70%

80%90%

100%

1%

12%

16%

20%

20%

20%

21%

22%

26%

27%

30%

40%

42%

43%

48%

52%

61%

Total

0%10%

20%30%

40%50%

60%70%

80%90%

100%

0%

12%

14%

18%

18%

19%

20%

22%

23%

24%

27%

37%

42%

37%

45%

58%

63%

Male

0%10%

20%30%

40%50%

60%70%

80%90%

100%

1%

12%

17%

21%

22%

21%

21%

22%

29%

29%

33%

43%

41%

48%

52%

47%

60%

Female


27

Why do you choose this brand of air conditioner?(Comparison by Brand Group)

N = 410

Others


To dismiss mosqito

Frequent promotions


Be Janpaneses brand



Suitable fan speed

Can adjust time

Beautiful design

Good warranty


Good price

Durability

Cool up quickly

Saving energy

0% 20% 40% 60% 80% 100%

1%

12%

16%

20%

20%

20%

21%

22%

26%

27%

30%

40%

42%

43%

48%

52%

61%

Total

0% 20% 40% 60% 80% 100%

1%

11%

14%

14%

15%

10%

20%

19%

23%

27%

24%

34%

50%

37%

42%

57%

72%

LG

0% 20% 40% 60% 80% 100%

0%

3%

16%

17%

23%

23%

11%

11%

22%

27%

34%

50%

25%

47%

56%

56%

64%

Sharp

0% 20% 40% 60% 80% 100%

2%

13%

12%

22%

30%

30%

23%

25%

30%

25%

32%

52%

45%

47%

62%

52%

57%

Panasonic

N = 161 N = 64 N = 60


28

89% SATISFIED WITH THEIR CURRENT AIR-CONDITIONER BRAND

Are you satisfied with your current brand of air-conditioner ?

N = 410


10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

10% 12% 8%7%

49% 44%

63%

57%

40% 44%

28%37% Totally satisfied

Satisfied

Normal

Unsatisfied

N = 161 N = 64 N = 60

WeightedAverageScore *

2.832.72 2.68 2.70

* 5 = Totally satisfied, 4 = Satisfied, 3 = Normal, 2 = Unsatisfied, 1 = Totally unsatisfied

29

Is there anything make you feel unhappy about this brand?

N = 410 N = 161 N = 64 N = 60

Nothing

Others

Poor quality

Poor warranty service

No air purifier function

Slow cooling

Drying the skin

No timer function

Products are NOT diverse/ fashionable

Don't save energy

Be more expensive compared to real value

Make noise

Water leak

No mosquito repellent function

0% 10% 20% 30%

43%

0%

3%

7%

7%

7%

10%

10%

10%

11%

11%

12%

16%

22%

Total

0% 10% 20% 30%

40%

0%

4%

12%

11%

4%

11%

14%

16%

6%

15%

17%

19%

20%

LG

0% 10% 20% 30%

47%

2%

2%

2%

3%

5%

19%

6%

5%

9%

6%

5%

11%

27%

Sharp

0% 10% 20% 30%

38%

0%

2%

3%

5%

15%

5%

10%

7%

15%

8%

17%

22%

25%

Panasonic

IMPROVING MOSQUITO REPELLENT AND NO WATER LEAK FUNCTIONS CAN MAKE USERS HAPPIER

LG/ Panasonic = No mosquito repellent + Water leakSHARP = No mosquito repellent + Dry skin

30

What is your intention toward your current air-conditioner?

24% ARE LOYAL WITH THEIR CURRENT AIR-CONDITIONER BRAND

Panasonic owns the highest top box of loyalty ratio (28%)


10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2% 2% 3%

9% 11% 9%

5%

22% 19%

31%

28%

42%49%

39%

38%

24%19% 17%

28% It is the only brand I would use

It is a prior brand

I will try other brand

I will use this brand in parallel with others

I will switch to other brand

N = 410 N = 161 N = 64 N = 60

31

73 % WILL RECOMMEND THEIR CURRENT BRAND TO OTHERS

Will you recommend this air-conditioner brand to others?


10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

25%21%

28% 27%

32%31%

36% 38%

41%47%

34% 33%I will recommend definitely

I will recommend

I may recommend

I will not recommend

I will not recommend definitely

LG owns the highest top box of recommendation level (47%)

N = 410 N = 161 N = 64 N = 60

32


2) Usage Behaviors



CONTENT

33

70% INTEND TO BUY AIR CONDITIONER IN THE NEXT 1 YEAR

Do you intend to buy air- conditioner in the next 1 year?

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

70%

30%

N = 410

34

TOP 3 CUSTOMERS TEND TO BE VERY LOYAL TO THEIR BRANDS

If yes, Which brand will you choose?Do you intend to buy air- conditioner in the next 1 year?

N = 286*

Total LG Users Sharp Users Panasonic Users0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

8% 5% 5% 5%

5%4%

5%9%

5%

6%

4%

12%

14%

10%

42%

10%

14%

7%

5%

43%18%

17%

19%

10%31%

52%

19%14% LG

Samsung

Panasonic

Sharp

Daikin

Toshiba

Polytron

Others

N = 126 N = 43 N = 42 (Other Brand Users) N = 75

Most of users intend to buy their current brand in the next year

* Who chose “Yes” in previous question: “Do you intend to buy air- conditioner in the next 1 year?”

35

SAVING ENERGY IS STILL THE TOP REASON FOR CHOOSING AN AIR CONDITIONER

N = 286*

If Yes, Which functions do you concern the most when buying air- conditioner?Do you intend to buy air- conditioner in the next 1 year?

Others

Can adjust time


Work smoothly

Suitable fan speed


Can dismiss mosqito

Air purifier function

Cool up quickly

Saving energy

0% 10% 20% 30% 40% 50% 60%

0%

1%

1%

2%

3%

3%

3%

10%

25%

50%

* Who chose “Yes” in previous question: “Do you intend to buy air- conditioner in the next 1 year?”

36

FEEL FREE TO DROP US ANY QUESTION

• Japan & Taiwano Address: 3 Chome-2-6 Kasumigaseki, Chiyoda, Tokyo 100-0013, Japano Contact person: Mr. Hideyuki Kato (CEO)o Email: [email protected] o Contact number: +81 3-5532-3200

• Vietnam o Address: 9-15, Vincom center, 45A Ly Tu Trong, Ben Nghe ward, District 1, Ho Chi Minh City, Vietnamo Contact person: Mr. Ho Hai Dang (Country Manager)o Email: [email protected] Contact number: +84 902-73-9944

• Thailand o Address: 246 Time Square Bld., 10th Fl., Room 10/04, Sukhumvit 12-14 Rd. Klongtoey,

Bangkok 10110, Thailando Contact person: Ms. Sariya Achawananthakul (Marketing & Operation Manager)o Email: [email protected] Contact number: +66 876 724 832

mailto:[email protected]

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• Indonesia

o Address: Jalan Prof Dr Satrio Kav 18, 45th floor AXA Tower, Jakarta 12940, Indonesiao Contact person: Mr. Hendry Pratama (Country Manager)o Email: [email protected] Contact number: +65 822 1345 2555 | +62 21 3005 3541

• Indiao Address: 10 Anson Road, #14-06, International Plaza, Singapore 079903o Contact person: Mr. Sujit Kunte (Regional representative)o Email: [email protected] Contact number: +65 9127 7654

FEEL FREE TO DROP US ANY QUESTION

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Retail

Air Conditioner Market In Indonesia