3 Leading FMCG Companies and Their Pandemic Strategies in Indonesia

What’s something that’s always within your grasp during the pandemic? Most probably common goods, such as instant food, soap, detergent, and of course the high-demand hand sanitizer. These products are produced by many FMCG companies in Indonesia, making the industry one of the most attractive ones in the country. 

FMCG in Indonesia during the Pandemic

When other companies are negatively impacted, the FMCG companies in Indonesia managed to increase its market value by 8.8% during the pandemic. Drop in sales here and there are common, but with 74% of Indonesian people having modified their buying habits, FMCG companies have managed to stay afloat by sticking to one key to success: increasing their brand’s CRP (Consumer Reach Point) to Indonesian consumers. 

Based on Brand Footprint Indonesia 2022 report, Indonesian people now use online shopping and delivery services much more often, which can be seen from the -5% and -2% decrease in the frequency of shopping at Minimarket and Total Trade Channel respectively. FMCG companies now need to craft new strategies to not only reach their shoppers during social distancing, but to also stand out amongst thousands of sellers on various e-commerce. 

Let’s take a look at the three top FMCG companies in Indonesia, and the strategy behind their stability during the COVID-19 pandemic:

Unilever Indonesia 

As one of the leading FMCG companies in the Indonesian market, PT Unilever Indonesia Tbk has been operating since 1933. With more than 40 brands, the company is divided into 2 business segments: home & personal care, and nutrition & ice cream. During the COVID-19 pandemic, Unilever Indonesia has taken several steps to anticipate changes in Indonesian consumers’ shopping patterns by making innovations in the digital sector. For instance, launching Unilever Home Delivery and strengthening its official store’s presence on various e-commerce platforms in Indonesia.

The company also issued a series of special products, called Unilever Professional, to cater to businesses in Indonesia with bigger packaging and yet much more affordable prices to help maintain cleanliness in accordance with pandemic health protocols. Another strategy was to focus on core products and prioritize health-related Stock Keeping Units (SKU), which was why Unilever Indonesia doubled the production of their Lifebuoy brand hand sanitizers by 100 times in just a few weeks. The company also launched a new brand, called Sahaja, which was to respond to the needs of Indonesian Muslims when it comes to maintaining their religious cleanliness during the pandemic. 

Garudafood

Pioneered in 1979, Garudafood is one of the biggest local food and beverage companies. With factories all over the country, such as Pati, Cikarang, and Sumedang, the company manufactures and markets seven leading brands, including Garuda, Gery, Chocolatos, Prochiz, and Clevo. During the COVID-19 pandemic, the company has managed to increase its net profit by 87.6% in 2021 compared to the previous year. Its snack products have contributed more than 20% to this amazing growth.

One of the leading factors comes from the company’s new products, Garuda Potato and Garuda O’Corn, which were launched at the end of 2020. Positive sales performances were also made possible due to the company’s cooperation with various e-commerce platforms in Indonesia, such as Tokopedia, Shopee, Blibli.com, and Lazada, especially for their Ramadan promotional programs. To increase the traffic rate for their online products, Garudafood worked with several Key Opinion Leaders (KOLs) on the famous social media application, TikTok, where each collaboration always includes a link that will redirect potential buyers to various marketplaces. On top of that, Garudafood also took advantage of e-commerce streaming platforms, such as Tokopedia and Shopee Live Shopping. 

Wings Group Indonesia 

For more than 70 years, Wings products have become the go-to household products for many Indonesian households. The company has joint ventures with Lion Japan, Glico Japan, and Calbee Japan to not only expand its product portfolio but to also ensure its products meet the highest industry standards. With more than 30 brands under its belt, Wings produces various products, ranging from food & beverage to home and personal care.

To complement the company’s already impressive product portfolio, Wings adapted to the pandemic by producing the WingsCare Protector medical mask and the Wiz24 disinfectant. The company also rebranded its “Segar Dingin” brand into an SDC-1000 food supplement to cater to more relevant conditions and needs of Indonesian society amidst the pandemic. When it comes to the digital sector, the company launched the Wings E-Catalog with the campaign #WingsFromHome. The brand's e-catalog can be easily accessed by Indonesian consumers from the six available popular e-commerce platforms, such as Tokopedia, JD.ID, Alfacart, Shopee, and even Klik Indomaret. By also participating in the excitement of Shopee 11.11 Big Sale and inviting users to check various Wings products with added attractive offers, such as discounts of up to 90%, through its official shop at Shopee to further boost sales. 



Conclusion

FMCG companies in Indonesia have proven to be capable of staying afloat by considering and adapting to local consumers’ choices, preferences, and purchasing behavior. By facing the pandemic challenge head-on with agility and precision, these companies in Indonesia still continue to grow and expand their brand’s outreach to Indonesian consumers even further. What’s next for the FMCG companies? 

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