Indonesia: clothing and footwear brand loyalty 2020

According to a consumer survey conducted in Indonesia in 2020, 36 percent of households surveyed would switch to another clothing and footwear brand that offered the same quality for a better price. Meanwhile, 17 percent of them would not switch brands unless their brand of choice disappointed them a couple of times or on rare occasions. Since pricing might not be a factor some brands are willing to adjust, those who want to keep their consumers should look to innovative programs such as customer loyalty programs that could benefit them in the long term.

The importance of a brand’s image

The brand may be the first thing consumers consider when buying products. A strong brand image may bring about consumer loyalty and allows consumers to differentiate a product from others. Some of the strongest brands in Indonesia are also Indonesia’s most valuable brands. This proves that a strong brand can increase trust and loyalty among consumers, which would be financially beneficial for businesses in the long run.

A possible option to mitigate decreasing consumer loyalty

With competition within the sector and price being an important deciding factor for a consumer to switch brands, it may be challenging for brands to keep their consumers loyal. Learning from how Indonesian consumers behaved during the COVDI-19 pandemic may help brands retain their customers. During this time, sectors such as FMCG saw a change in customer loyalty as large-scale social restrictions were enforced in Indonesia and people became curious about other brands due to spending more time at home. However, a recent survey found that discounts, bundlings, and cashback were some of the preferred product promotions during the pandemic. Offering such promotions may help increase consumer brand loyalty.