Indonesia is Asia's largest online luxury market for sales growth

By

Benjamin Fitzgerald

Published
Sep 5, 2016

Luxury goods sales in Indonesia have grown by 84 percent, crowning the archipelago nation as the largest online luxury goods sales market in Asia for growth, according to the 2016 Asia Luxury Index.

The index is based on Reebonz's sales data and industry report for 2014-2015. According to the Singaporean online luxury store, social media and digital marketing and collaborations with influencers and young designers were among the main reasons behind the increase of sales.

“At first we focused in building the company itself, but since two years ago, we have been focusing on marketing our products,” Reebonz Indonesia executive manager Anggono Wijaya told The Jakarta Post.

Meanwhile, luxury consumers are evolving and expanding as luxury is no longer just for the select few, said Reebonz. With growing affluence and accessibility, more consumers can readily purchase luxury goods, and they are becoming younger with 21-year-olds starting to buy luxury goods, the group said.

"There's a shift in an economical class of buyers, as people from the B-level economy have started to buy luxury goods," Reebonz senior marketing manager Bernard Widjaja Ng, told The Jakarta Post.

Bags accounted for 62% of online transactions in Asia, with Balenciaga, Fendi and Longchamp topping the brand list in Indonesia.

The report also noted an 87% rise in shoe sales and a 39% increase in watch sales. It also notes a shift in buying trends, with a 30% increase in pre-owned luxury goods sales. Chanel, Hermes, Louis Vuitton and Prada topped the brand list in this category, particularly the sale of bags and shoes.