Yogyakarta consumers shift to cheaper products amid spending downgrade

Consumer behavior in shopping malls across the Special Region of Yogyakarta (DIY) is shifting due to a phenomenon known as “downgrade,” where shoppers increasingly opt for more affordable products and limit non-essential spending.

Surya Ananta, Chairman of the Indonesian Shopping Center Management Association (APPBI) for DIY, noted that while footfall remains relatively stable, the total amount spent per person has decreased. Consumers, particularly young families, workers, and students, are becoming more selective, prioritizing price and quality. This trend is most visible in secondary and tertiary goods, such as fashion and electronics, as shoppers redirect funds toward snacks, economical food, and discounted items.

Despite the decrease in per-capita spending, mall attendance has seen periodic increases during holidays, school breaks, and events like the Indonesia Shopping Festival. Local and national brands are increasingly serving as alternatives to high-end labels for budget-conscious consumers.