RAMADAN 2021: TIPS FOR BRANDS TO THRIVE

Understandshiftsinconsumerbehaviour

andhowtoadapt

RAMADAN2021:TIPSFORBRANDSTOTHRIVE

In2020,around230millionIndonesianMuslimsexperiencedtheirfirstRamadanduringtheCOVID-19pandemic.ItwasatoughsituationforacommunalsocietylikeIndonesia,whereRamadanandEidalwaysrevolvedaroundsocialandreligiousgatherings.

LastyearwasthefirstRamadanwhereIndonesianMuslimshadtomissgroupprayersinmosques,foodbazaars,andthemuch-lovedshoppingmallspree.ItwasthefirstEidwithoutmassEidprayersorhousevisits.Itwasthefirsttimethat'mudik'—thenation-widetraditionoftravellingbacktoone'shometownforEid—wasbanned.

Despitethe‘mudik’ban,12%ofIndonesianMuslimsdecidedtoreturntotheirhometownanyway,asnewsofmasslayoffs,salarycuts,anddismissalofyearlyEidbonuses(THR)madeitswayintothenews.

Formany,Ramadanin2020wasasadandunsettlingtime.ADA'ssociallisteningtoolscapturedpredominantlynegativesentimentsaroundtheword'mudik'and'Ramadan'lastyear.

ButwhataboutRamadanin2021?WebelieveconsumersaremorepreparedthisyeartoadapttothenewnormalofobservingRamadanandEid.So,yourbrandshouldtoo.

Thisreportprovidesouruniquedata-driveninsightsonhowbrandscanthriveinthe2021Ramadanseasonbyadaptingtoshiftingconsumerbehaviour.

AFTERACHALLENGING2020,WHATSHOULDWE

EXPECTIN2021?

O V E R V I E W

TH E S H I F T I NCON SUMERB EHAV IOUR

Accelerateddigitaladoption

Increasedspendingonhobbiesandpersonalgrowth

Hyper-growthinhomedeliveryandonlineentertainment

1.

2.

3.

Movementrestrictionsandphysicaldistancingregulationsduringthepandemichasaccelerateddigitaladoption.Consumers—includingdigitalnewbies—wereleftwithfewoptionsbuttointegratedigitaltoolsintotheirdailyactivities.

1.ACCELERATEDDIGITALADOPTION

73%InternetuserpenetrationrateinIndonesiain2020

9%growthfromthepreviousyear.Source:APJIIreport

91%UsergrowthofeCommerceplatformsinIndonesiain2020

UntilAugust2020,therewasa21%increaseineCommercetransactionsanda51%increaseinthenumberofconsumers.Source:Republika,Gizmologi

93%NewInternetusersplantostayonline

Therewerearound25.5millionnewinternetusersuntilthesecondquarterof2020,recordedprimarilyduringthefirstfewmonthsofthepandemic.Source:APJIIreport

40%IncreaseindatatrafficduringRamadanandEid2020

Source:Tagar

T H E S H I F T I N C O N S U M E R B E H A V I O U R

ManybusinesseshadthoughtconsumerspendingduringRamadanwouldchangebecauseofthepandemic.However,ourdatashowsotherwise.Infact,consumerspendingpatternswereconsistentwiththepre-pandemicRamadanin2019.Theyjustmovedonline.

70% 75%

SpikeineCommerceusage,1weekofRamadan2020

AccordingtoADARamadan2020report

SpikeineCommerceusage,3weekof2020Ramadan2020

AccordingtoADARamadan2020report

ACCELERATEDDIGITALADOPTION

IncreaseinZakat(charity)electronictransactionsviaFinTechappsinRamadan2020

Source:Kontan2x

45%OnlineconsumerswhospentbetweenIDR500.000toIDR1.999.999in2020Source:Teknoia,iPricereport

st rd

Increaseinsearchinterestfor"donation"asIndonesianslooktodonatedigitallyduringRamadan

Source:GoogleWinningRamadanwithDigitalPlaybook20212x

79%IncreaseinGooglesearch"howtoshoponline"duringRamadan2020

Source:GoogleWinningRamadanwithDigital2021

ACCELERATEDDIGITALADOPTION

45%

PremiumShoppersonTikTokliketobuyfestivebundlesorpackagingduringRamadan

PeoplebuymoreinthecategoryofFood&Beverages,Fashion&Accessories,HouseholdItems,andBeauty&PersonalCare.Source:TikTokforBusiness:Ramadan2021withTikTok

57%Twitterusersshoppedonlineforsomethingusuallyboughtfromphysicalstores

Source:#RamadanDiTwitterIndonesia2021

49%Ramadanobserversspentmoretimeshoppingonlineduringtheseason

Source:Facebook:RamadanMarketingInsightsandRecommendationGuide-Indonesia

70%Increaseindigitalbankingtransactionsin2020comparedto2019ThishappenedinQ1of2020,dominatedbytransfers,purchases,andbillings.Source:Tempo

97%Bankingconsumerswhomadeonlinetransactionsin2020Source:Kontan

FormanyIndonesians,workingfromhomemeantthattheyhadalotmoretimeontheirhands.Commutersinbigcitiesusuallyspendadailyaverageoffourhoursintraffic.Withlarge-scalesocialdistancingandmovementrestrictions,manysoughttousetheextratimetoadoptanewhobby,workonhomeimprovements,orinvestintheirpersonal,spiritual,orprofessionalgrowth.

2.INCREASEDSPENDINGONHOBBIES

ANDPERSONALGROWTH

3x Source:Kompas,LinkedIn

GrowthinLinkedInLearninginApril2020

T H E S H I F T I N C O N S U M E R B E H A V I O U R

INCREASEDSPENDINGONHOBBIES&PERSONALGROWTH

Userincreaseinvideoconferencingplatformsduringwork-from-homeperiod443% Source:CNNIndonesia

UsergrowthofeLearningplatformsduringthepandemic

Source:CNNIndonesia5.404%

GrowthinbuyinginterestforbicyclessinceMarch2020

1.036%Growthinbuyinginterestforvideogameconsolesin2020

156%Source:Detik.com

Salesgrowthofairandwaterpurifiersin2020900% Source:Kompas.com

2x 4xSalesgrowthineCommerceSport&Hobbies,Office&Stationeries,andHome&Livingcategoryin2020

SalesgrowthineCommerceGardeningcategoryin2020

INCREASEDSPENDINGONHOBBIES&PERSONALGROWTH

Source:Detik.com

Source:Kompas.com

Source:Kompas.com

83% 79% 65%

INCREASEDSPENDINGONHOBBIES&PERSONALGROWTH

EommerceTopCategoriesduringRamadan/Eidof2020

Beauty&Hygiene

Source:ADARamadan2020report

Home&Living

HomeElectronics

TopConsumerPersonasofRamadan2020

UsingourproprietaryDataManagementPlatform(DMP),XACT,weextractedavastpoolofanonymousmobile-firstdataaboutconsumer'sonline-shoppingbehaviourduringRamadan2020.'EstimatedReach'referstothenumberofconsumersthatcanbereachedinaparticularsegment.Source:ADARamadan2020report

HEALTH&BEAUTYLOVER

Frequentusersofbeauty-relatedeCommercesites,photoediting,andsocialmediaapps.Theyrelyonsocialmediatoconnectwithfriends,families,andacquaintances.

3 .34MEstimatedReach:

HOMEELECTRONICLOVER

Career-orientedprofessionalswhopurchaseelectronicappliancestoeasetheirdailychoresandimprovetheirwork-from-homeexperience.Theymostlyfrequentcareeranddocument-sharingapps.

1 .96MEstimatedReach:

DOMESTICTRAVELER

Longingtoreturntotheirhometownandreunitewiththeirfamilies.Regularlycheckflight-trackingappsforupdatesonflightschedules,delays,andcancellations.

662kEstimatedReach:

TheclosureofphysicaloutletsandlimitedoperationalhoursinstoresforcedbusinessesandSMEstogodigital.WetmarketsellerstooktoSMSorWhatsApptoreceiveordersandconducthomedelivery.Onlineentertainmentplatformssurged,especiallyintheSVOD(subscribedvideoondemand)category.

3.HYPER-GROWTHINHOMEDELIVERY

ANDONLINEENTERTAINMENT

T H E S H I F T I N C O N S U M E R B E H A V I O U R

97%DigitalspendingduringthepandemicwenttoonlinefoodordersSource:Katadata,TheDemographicInstitute,FacultyofEconomicsandBusiness,UniversityofIndonesia

0% 25% 50% 75% 100%

Foodorders

Deliveryservices

Transport

Dailygroceries

Donations

Contentsubscriptions(GoPlay/Netflix/Disney+)

Medicine

50%Growthoffooddeliveryapps'businesspartnersin2020

Duringthe2020pandemic,manynewcomersintheculinarybusinessandSMEsswitchedtosellingfoodonline.Source:Bisnis.com

SUPER-GROWTHINHOMEDELIVERY&ONLINEENTERTAINMENT

Growthinsubscribersofvideoondemand(SVOD)inearly2021

From3.4Msubscribersin2020to7Minearly2021.Source:Suara,MediaPartnersAsia106%

40%IncreaseinnewsubscribersofinteractiveTVinMarch2020

Source:CNNIndonesia

IncreaseinicecreamsalesfromhomedeliveryordersSource:Infobrand5x

IndonesianadultswerespendingtimewatchingYouTubeeverymonthduringlockdownandRamadan

Souce:ThinkwithGoogle93million

41% Increasedusageofmediastreamingplatformsin2020

Source:GoogleWinningRamadanwithDigital2021

Increaseof"Entertainment"searchesduringRamadanSource:GoogleWinningRamadanwithDigital20212x

SUPER-GROWTHINHOMEDELIVERY&ONLINEENTERTAINMENT

96%TikTokuserswhoobserveRamadanarelikelytouploadcontentononlinesharingplatformsduringthefestiveseason

Source:TikTokforBusiness:Ramadan2021withTikTok

83%RamadanobserversfollowpublicfiguresonFacebook

And35%agreedthatpublicfiguresandcelebritiescaninfluencetheirpurchasingdecisions.Source:Facebook:RamadanMarketingInsightsandRecommendationGuide-Indonesia

88%RamadanobserversonTwittersaytheywillusesocialmediaappsmorethanusualduringRamadan2021

Source:#RamadanDiTwitterIndonesia2021

57%RamadanobserversarelookingforwardtoseeingentertainmentcontentonTwitterinRamadan2020

ThenextcategoryisFood&Cooking(56%),Comedy(51%)andReligion(46%).Source:#RamadanDiTwitterIndonesia2021

TikTokuserspreferreligiouscontentinRamadan2021

78% Followedbyfoodcontent(71%),entertainmentcontent(69%),updatesfromfamilyandfriends(64%),dailyupdates(60%),andbeauty&fashion(43%).Source:TikTokforBusiness:Ramadan2021withTikTok

BRAND O P POR TUN I T I E SFOR R AMADAN 2 0 2 1

Optimisechannelsforaseamlessdigitalexperience

Increasevolumeofmediainventorytodriveperformance

Re-createfeelofEidcelebrationsonline

1.

2.

3.

Changesinconsumerbehaviourduringthepandemicmayleavealastingimpact.

ThepandemichasacceleratedIndonesians'digitaladoptionacrossagegroupsandsocioeconomicbackgrounds.Asconsumershadfewoptionsbuttomovetheirdailyactivitiesonline,thisalsoboostedtheirtrustandcomfortin,aswellasrelianceon,digitaltools.

Work-from-homemaycontinueforsomecompaniesevenafterthepandemicends,andabout77%ofemployeeswouldprefertocontinueworkingfromhome.

Withtheconvenienceofhomedeliveryandtheriseofonlineentertainment,consumershavestartedtoeaseintotheroutineofthenewnormal.

ThisRamadan,IndonesianMuslimsalreadyknowwhattoexpect.TheyaremorereadytomakeplansforRamadan2021despitetheongoingpandemic.

Whataboutbrands?ArebrandsreadytomakethemostofthisRamadanseason?

ADAhasidentifiedthreemajoropportunitiesforbrandstomeetconsumerneedsthisseason.

DATA-DRIVENACTIONTOMEETSHIFTINGCONSUMERNEEDS.

K E Y I N S I G H T

Apop-upaskingconsumersaboutsize,shape,colour,orfitautomaticallydisplaysmatchingoutfitsforonlinefashion.Areminderforrecurringpurchases/top-ups.Limited-timeofferssenttoconsumerswhoabandonedtheirshoppingcarts.

Toconvertofflinesalesintodigitalforthelong-term,brandsneedtoensuretheircustomers'digitalexperiencematches,ifnotexceeds,theconventionalone.

Nowwell-accustomedtonavigatingvariousdigitaltoolsfortheirdailyactivities,theconsumerisexpectingmore.

Therewillbelesstoleranceforaconfusinginterface,unintuitivenavigation,orchoppymulti-platformexperience—andrisingdemandforafaster,morereliable,andmorepersonalisedexperience.

MarketingTechnology(MarTech)playsakeyroleinmappingthecustomerjourneyondigitalplatforms.MarTechcanhelpmarketerssimplifyprocesses,measuresuccess,andevenimproveefficiencyinspending.

Thinkofwaystoimproveondigitalconsumeracquisition:

1.OPTIMISECHANNELSFORASEAMLESSDIGITALEXPERIENCE

B R A N D O P P O R T U N I T Y

Wanttolearnhowyourindustrycanoptimisethesalesandmarketingfunnel

thisRamadan?

PICKOURBRAINS

AnintegratedSMS-marketingcampaignforolderdemographics.AI-basedcampaignoptimisationtotargetMuslimyouths.Data-drivenadandcontentplacementonthemosteffectivechannelsduringRamadan.

DuringspecialoccasionslikeRamadanandEid,consumerstypicallyspendmore.Brandsshoulddothesame.

AsconsumerspendingspikesduringthefirstandlastweekofRamadan,brandsneedtoensurethattheyhaveenoughmediainventorytocapturetheiraudienceattherighttime,andontherightplatform.

Thinkofwaystoexpandyourreachandtargetyourcustomerpersona:Ourintegratedmobile

marketingsolutionscanachieveupto98%SMSopenrateandupto45%response

rate.

LEARNMORE

2.INCREASINGTHEVOLUMEOFMEDIAINVENTORYTODRIVEBUSINESSPERFORMANCE

B R A N D O P P O R T U N I T Y

AnEidInstagramstoryfilterorZoombackground.Eid-themedGIFimagesforWhatsApp.ECommerceenablementtofacilitatethebuyingandsendingofEidgifts,hampers,bundles,orvouchers.

ThisRamadan,brandsshouldlookintohowtheycanfacilitatethecustomer'sexperienceofcelebratingEidthroughdigitalplatforms.

DespitestricterregulationsandmovementrestrictionstocurbthespreadofCOVID-19,TikTokfoundthat71%ofMuslimuserswillcontinuetocelebrateRamadanintheirownway.

EidcelebrationsforIndonesianMuslimshavealwaysrevolvedaroundobservingEidprayerswithfamilies,visitingfamily'sgravesites,askingforforgiveness,sharinghome-cookedmeals,visitingneighbours,families,andrelatives,aswellasgift-giving.

WhatarethecustomertouchpointsthatcanenhancethefeelingofcelebratingEidinIndonesia?

Thinkofoptimisingyourcreativeadaptation.

3.RE-CREATEFEELOFEIDCELEBRATIONSONLINE

Wanttoknowhowyourindustrycanoptimise

creativeadaptationto'own'theRamadanmoment?

WE'LLTELLYOU

B R A N D O P P O R T U N I T Y

Followingtheriseofsocialmediaplatformsandconvertingtoonlinesales.Optimisingdigitalchannelsandowning"themoment"throughfastandwittycreativeadaptation.UnlockingeCommerceenablementduringRamadan.

Ramadan2021willstillbeachallengingoneforconsumers,businesses,andSMEsalike.However,brandscantacklethechallengesbyfocusingtheireffortson:

Withasoliddata-drivenstrategy,brandsandSMEsalikecanthrivebymeetingtheircustomers'changingneedsandexpectations.

Thatwillbeawin-winRamadanforall.

2021:AWIN-WINRAMADAN

C O N C L U S I O N