Heaptalk, Jakarta — Reasense, a research division of public relations agency Seqara Communications, revealed that most Indonesian consumers are worried about the current increase in smartphone prices due to the weakening rupiah exchange rate.
Based on a survey conducted by Reasense on consumer behavior in Indonesia, 78.6% of respondents admitted to being worried about the current rise in smartphone prices. Further, when asked about considering replacing their smartphone devices, 44% of respondents stated that they were planning to buy a new device, 30% would still use the current one, and the other 26% had no plan to buy a new one.
The results of this Reasense survey can be a consideration for smartphone vendors to further strengthen their brand image through public relations and marketing divisions or agencies. The 44% of respondents who intend to buy a new smartphone could be a stepping stone for a smartphone vendor to continue engaging with loyal consumers and attract potential new consumers. Strengthening brand image is necessary by engaging the press as a source of information that increases credibility and public trust, not only key opinion leaders (KOL) or influencers, which most smartphone brands in Indonesia have intensively done.
Opportunity to boost the market share
Aryo Meidianto, Smartphone Market Analyst & Senior Consultant at Seqara Communications, explained that the weakening of the rupiah could impact the price of smartphones, especially for some components that still use import schemes. With rising import component and logistics costs, Aryo estimated that smartphone prices would likely rise in the next few months.
“To anticipate this situation, the strategy of smartphone vendors is not expected to raise the prices of existing smartphones immediately, but this can be seen through some devices that will be launched later. Possibly, some new devices will look slightly higher priced than the specifications offered,” he explained.
However, Aryo also saw an opportunity for several smartphone vendors to take advantage of this situation. He added, “Smartphone vendors still have the opportunity to increase their market share by offering products that are more competitive in price and features, considering consumers will currently be more careful in spending money to buy a new smartphone.”
Suppressing consumer purchasing power
The weakening of the rupiah exchange rate against the US dollar in recent months, reaching a 20-year low, has raised concerns in various sectors, including the smartphone industry. This weakening could suppress consumer purchasing power and drive up the price of smartphone devices.
On the other hand, the condition could further open up competition among smartphone vendors to offer various products consumers are interested in. According to data from Bank Indonesia as of June 21, 2024, the percentage of the weakening of the rupiah exchange rate against the US dollar compared to the beginning of 2024 is relatively high, around 5.67%.
“In conclusion, in dealing with this situation, smartphone vendors need to be more creative in marketing their products. They should not only stop at launching products that seem excessive but must have a continuous program to offer promotions and discounts that attract consumer interest. Besides, smartphone vendors must target wider market segments by utilizing various communication channels, including the media,” Aryo concluded.
