From January to September 2017, the growth of consumer goods or Fast Moving Consumer Goods (FMCG) only reached 2.7 percent compared to the same period the previous year. This figure is significantly below the annual average growth of approximately 11 percent.
Low-income earners, who constitute the largest segment of the population, experienced a decrease in income due to rising prices of necessities such as rent and reduced overtime pay resulting from company efficiency measures. This forced them to curb and reduce consumption of non-essential goods. Therefore, the weakening of consumer purchasing power is not due to the rise of online shopping, but rather because of these factors. The market share of digital commerce (e-commerce) only accounts for one percent of total offline retail trade.
Meanwhile, the upper class is currently adopting a wait-and-see attitude. However, there are indications of an increase in lifestyle spending, such as on culinary experiences.
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