With its massive population and impressive year-on-year growth in consumer spending, when brands look to Asia the first place they look is China. While China will continue to be a key consumer market, other nations are starting to show strong growth in their consumer markets. India, with a population the size of China’s, has been getting a lot of attention from big international players including H&M, Zara and Amazon. There’s also growing retail investment going into Vietnam on the back of its fast growing economy. Fewer brands are talking about Indonesia. However according to recent data they could be overlooking an important opportunity. According to a new survey from Knight Frank, Asia tops its five-year Ultra High Net Worth Individual (UHNWI) growth forecast at 39%, led by Indonesia with 67% growth forecast. Indonesia leads not only in Asia, but worldwide. It is followed by India, with growth forecast at 63% for the five-year period. While other nations in Asia are showing larger GDP growth forecasts (Vietnam, +8.5%, Philippines, +8.3%), Indonesia is expected to have a greater number of wealthy consumers, an important consideration for brands and retailers. From emerging tech giants, such as Gojek, to traditional industries such as textiles and energy, Indonesia is a nation to watch, and to bet on, for the near to mid term future of retail. <img src="https://insidefashionlive.net/wp-content/uploads/2021/03/Indonesia-Marketstats-2021-1024x687.jpg" alt="" loading="lazy" srcset="https://insidefashionlive.net/wp-content/uploads/2021/03/Indonesia-Marketstats-2021-1024x687.jpg 1024w, https://insidefashionlive.net/wp-content/uploads/2021/03/Indonesia-Marketstats-2021-300x201.jpg 300w, https://insidefashionlive.net/wp-content/uploads/2021/03/Indonesia-Marketstats-2021-768x515.jpg 768w, https://insidefashionlive.net/wp-content/uploads/2021/03/Indonesia-Marketstats-2021-750x503.jpg 750w, https://insidefashionlive.net/wp-content/uploads/2021/03/Indonesia-Marketstats-2021.jpg 1140w" sizes="(max-width: 1024px) 100vw, 1024px" width="1024" height="687"> <h3><b>Retail Sales Rebound</b></h3> Retail sales in Indonesia dropped 16.4% year-on-year in January, slower than the 19.2% fall a month earlier, as sales of apparel, food and beverages, and tobacco improved, according to a central bank survey, released this month. The Real Sales Index (RSI) in February 2021 forecast to improve to -0.7% month-on-month from -4.3% in January. Since January, traffic has started to pick up at malls across Jakarta, though it has not returned to the pre-pandemic level yet, according to Cushman & Wakefield. Jakarta alone could see 4.7 million sq. ft of new retail space in 2021, if projects that were postponed in 2020 open this year, said Cushman & Wakefield, with vacancy rates (currently at 22%) across all retail expected to decrease this year. Further, the market is seeing more omnichannel retailers - both domestic and international - expanding their retail footprint and opening flagships. In January the country began a massive vaccination campaign that aims to inoculate 181 million people, or 70% of its total population, by March 2022. Retail spending and industrial production are expected to remain stable in Indonesia. The latest Consumer Survey conducted by Bank Indonesia showed how consumer confidence in economic conditions grew in February 2021, with the Consumer Confidence Index (CCI) rising to 85.8 from a level of 84.9 in January 2021. Retail sales of apparel are expected to grow this year, but still remain at recessionary levels. <h3><b>Pushing Past the Pandemic to Economic Growth</b></h3> Real GDP is projected to expand by 4.8 percent in 2021 and 6 percent in 2022, led by strong policy support measures, including increased public investment and COVID‑19 vaccine distribution plans, as well as improved global economic and financial conditions, according to the most recent International Monetary Fund (IMF) outlook. The National Economic Recovery Program, supported by the central bank, aimed at strengthening health care capacity and providing financial support to vulnerable households and businesses, has played a key role in boosting the forecast for GDP growth, according to an IMF report released earlier this month. It noted that economic recovery began last July as containment measures were gradually eased and supported by government aid. Indonesia’s economy outperformed many of its neighbors in 2020, thanks to less stringent containment measures and lower dependence on highly impacted sectors like tourism, said the IMF.