Retail in Asia

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Home improvement supplies stores rising in Indonesia

Rapid urbanization and a more stable economy have spurred the proliferation of home improvement supplies stores in Indonesia, GfK’s latest retail census showed.

Across the country’s eight key cities – Jakarta, Bandung, Semarang, Surabaya, Medan, Banjarmasin, Makassar, and Denpasar – GfK counted 5,000 stores supplying home improvement materials. The highest concentration of such stores (30 percent) are located in Jakarta.

The most widely available products, which are sold in 95 percent of stores, are paints. Pipes/plumbing and cement products are the next most common items, available in 91 and 83 percent of the stores, respectively.

Guntur Sanjoyo, Managing Director of GfK Indonesia, explained that households upgrading works in their homes on their own create an important market for these stores.

GfK findings also showed that more than 90 percent of the home improvement supplies stores tend to exhibit the one-stop-shop concept, which offers other raw materials such as woods, sands, and bricks, aside from the top three products. The scenario is rather different compared to other cities such as Medan, where woods, sands and bricks are only available in less than half of the stores.

“As more dwellings are being built to meet the needs of a growing population in and around the major cities of Indonesia, we can certainly anticipate surge in demand for home improvement supplies and a significant expansion in the market in the years to come,” said Sanjoyo.