Consumer Goods play a key role in the Indonesian economy! Therefore, as a Headhunter Agency, it is not surprising that we often work on Consumer Goods Executive Search. “Consumer Goods” covers all physical products that are sold to individual end buyers. They fall into various categories; depending on the nature of the item and the length of its life-span.
In this article we provide an overview of the Indonesian Consumer Goods Sector and also our experience working as Headhunters for Consumer Goods businesses.
Consumer Goods can be described as:
Long-Lasting (3 years plus)
For instance – TVs, Electronics, Bicycles, Household Appliances, Home Furnishings, Cars, Toys, Tools, Sports Goods, Mobile Phones, Garden Equipment, Jewelry etc.
Or Get Replaced Quickly
For instance – Food, Beverages, Alcohol, Clothing, Shoes, Petrol, Candy, Tobacco, Medication, Paper, Office Supplies, Batteries etc.
In addition, Consumer Goods are defined as “Necessary Items” – such as Food and Clothing. Or “Luxury Items” – such as Cars, Laptops and Jewelry.
FMCG items are bought often and used quickly. For example, Food, Beverages, Shampoo, Chocolate, Soap and Toothpaste. FMCG products are usually sold at markets, supermarkets and convenience stores.
The Indonesian Consumer Goods Sector
First of all, Consumer Goods are critical to the local economy. FMCG sales alone make up about 18.5 % of national GDP (2016). This figure is expected to rise to about 30 % by 2030.
With over 270 million people, the archipelago has the worlds 4th largest population. In addition, with an average age of just 30, the country is considered “young” by global standards.
The Consumer Goods industry is seeing year on year sales growth. This is due to Indonesia’s expanding middle class population. Simply put, as more families enter the middle class they are buying more consumer products.
Without a doubt Indonesia presents a huge opportunity for consumer goods producers. However, at the same time, there are big challenges. Above all, the developing state of the country’s infrastructure and how to access the end buyer.
E-Commerce is helping to get consumer products onto the radar of more people. And E-Commerce is viewed as offering lower prices, a greater product range and an easy environment to search for products.
But relatively speaking, online shopping is still in its infancy here.
Most consumers still prefer to purchase in person – a trust issue. And until now E-Commerce has been focused on urban areas.
Another issue is the highly fragmented retail market. There are a whopping 4.1 million+ retail stores in Indonesia. The vast majority of these are independent “mom and pop” units.
Traditional or “General Trade” – such as markets and “mom and pop” stores – dominate the retail scene. But Modern Trade – such as hypermarts, supermarkets and conveniences stores – are quickly expanding throughout the nation and gaining market share.
Research by Accenture shows that 82% of FMCG sales take place in traditional markets or “mom and pop” shops.
On the other hand, only 18% of FMCG sales take place in Modern Trade outlets such as hypermarts, supermarkets and minimarts.
For instance, for grocery items, the five largest retailers combined only have a 3.8% market share.
So why does General Trade dominate? According to a Snapcart survey, 65.2% of respondents viewed “mom and pop” stores as cheaper. But above all, it is because the archipelago has 6,000+ inhabited islands. Until now rural areas have only been served by local stores. This is starting to change as Modern Trade chain stores, especially minimarts, start to pop-up in less populated regions.
Another interesting point is that McKinsey found Indonesian consumers to be risk averse and brand loyal. Based on their research, 63% of respondents only buy products that have familiar brand names. In other words, local consumers are seen as “late adopters”, often not willing to buy new products until suggested by friends or family.
In conclusion, the Consumer Goods sector benefits from the growing middle class population. And its desire to buy more and more consumer products. However, as an emerging market and an island nation, retailers must deal with large infrastructure and distribution issues. Yes E-Commerce is helping to get products onto the radar of more people but the challenge remains of transporting those items to the end buyer.
Executive Search for Consumer Goods & FMCG Producers
As a booming local market sector, Consumer Goods firms often request our Headhunter support on key hires. Over the years ProCapita has completed hundreds of Consumer Goods executive search assignments.
We have worked as a Headhunter across all major Consumer Goods product categories:
- FMCG – Personal Care / Hygiene / Sanitary / Beauty / Cosmetics / Food & Beverage / Tobacco / Batteries / Consumer Healthcare
- Automotive / Cars
- Household Appliances / Electronics / Phones / Laptops
- Home Furnishings
- Textiles / Clothing / Shoes
In our experience, Consumer Goods clients usually have very specific hiring need. For instance, they require someone with particular product knowledge or market experience.
Similarly, when recruiting for senior management or commercial roles, Consumer Goods clients typically need professionals with specific sales channel expertise:
- General Trade
- Modern Trade
- Digital / E-Commerce
- HORECA (Hotels, Restaurants, Cafes)
In addition, over the years we have completed Headhunter assignments for all key job functions:
- C-Level Leadership
- Sales, Marketing & Digital
- Operations, Quality Control, Production, Procurement, Supply Chain, Logistics, Product Development & R&D
- Corporate Administration; Finance, HR & Legal
Examples of Consumer Goods / FMCG Executive Searches that ProCapita has Completed:
- Country Head / President Director
- GM Operations
- Chief Financial Officer (CFO)
- VP Sales & Marketing
- National Sales Manager
- Director of Human Resources
- Chief Operations Officer (COO)
- Director of Plant / Production
- Head of Supply Chain
- Chief of Procurement
- VP Logistics & Distribution
- Sales Manager – Modern Trade / General Trade / HORECA
- Regional Head of Talent
- Senior Manager Marketing
- Chief Marketing Officer
- Head of Digital
- Senior Category Manager
ProCapita’s in-house Research Team is continually updating our Consumer Goods Executive Talent Database. This means that we are always aware of the status of all relevant professionals.
Above all, we provide Clients with market leading access to the specific type of Consumer Goods talent that they may require.
ProCapita starts to deliver qualified and interested Executive Candidates within 7 days of starting a Consumer Goods / FMCG Headhunter assignment.
What Makes Us Different:
- We are the only Boutique Executive Search firm in Indonesia, British owned and managed.
- As a proper Headhunter Agency we provide clients with Old-School Direct Approach Only Headhunter Services.
- The vast majority of local Recruiters operate as “Recruitment Agencies”. Therefore, they rely on Social Media Job Adverts to attract “active” candidates.
- However, as a true Executive Search Agency, ProCapita Never uses job board advertising. For senior level hires, online job adverts are far too public. They are also inappropriate for gaining senior candidate interest.
- Therefore, we always directly and proactively approach all relevant talent for a client position. After that, we professionally market the executive role and our client business.
99% of ProCapita’s hires involve “Passive Candidates”. Professionals that are currently employed and not job seeking when we approach them.
- For Consumer Goods clients that require confidentiality, we have a significant track record of completing “No Name Searches”. Under this approach, we only reveal a clients name once a candidate is selected for interview.
- As a boutique we focus on Quality vs Quantity. In addition, we provide a Premium 24/7 Client Service.
- Above all, we manage the entire recruitment process, making our clients life easy.
- Our Consultants are proactive and honest in client communication, providing market specific information and insights. This helps to ensure a successful placement.
- We only invoice once a hire is made, on employment start-date. In other words, we are happy to work on a Success Fee (Contingency) basis.
- In conclusion, our consultants are senior, long-established Headhunters with a combined 70+ years of executive search experience. We have faced most challenges many times over. Our experience helps to get a senior hire over the line.
For Consumer Goods Businesses that are looking to Hire Executive Talent in Indonesia, you can submit your Enquiry Here. Or reach us through our Contact Details Here. A Consultant will respond within a few hours.