Due to high growth of constructions, growth of income and huge middle upper class compare to the total population in Indonesia, makes us believe that the market opportunity for building luxury house is wide open.

The material needed for luxury houses will not possible without using marble or granite as part of the materials, because marble and granite has beautiful texture, vein, strength, and have high status symbol.

The demand for marble and granite in Indonesia, mostly divided by two categories. The first is for high rise building, which need special requirements, quality and a lot of quantity marbles and granites. The supply side for this category is fulfilled directly by stone processing industry in Indonesia. Although the demand for categorization is very high, the profit margin for this category is small. The second category of demand for marble and granite is for luxury houses. Up to this time, the supply side fulfilled by distributors or shops, which they get from the same stone processing industry. Only very few imported directly by selected shops, in the form of slab. Problems facing by shop usually is not in margin side, they get high margin already. Problems mostly arise

because consumers quite often unsatisfied, because of discrepancies between sample and delivered goods.

Looking into those two market categories, we found that in order to get higher margin, we choose as our consumer the upper middle class. They demand higher quality, and better services. They are not sensitive to price.

Since most of upper middle class in Indonesia mostly living in Jakarta and its surroundings, we will concentrate the target market for those market segments in Jakarta and West Java.



Accepted on December 1996



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