BW Confidential - Issue #12 - November/December 2012 - 94

Market watch: South East Asia

credit: istock

Indonesia

Riding the growth wave
Indonesia’s beauty market continues to put in a strong performance, with both foreign and local brands doing well by Mayu Saini
he beauty and personal care market in Indonesia continues to ride a wave of growth. In 2011, sales were up by 13.5% to Rp 29,001.8bn ($3.06bn), according to Euromonitor, which came on top of a 12% increase in 2010. Indonesia is the biggest economy in South East Asia with a population of 230 million and a GDP growth of 6% in 2011; the economy is also fairly stable. The middle class, estimated to be 134 million in 2011, has been growing fast, with a per-capita income of $3,550 in 2011, according to The Central Bureau of Statistics. This has led to the emergence of a consumer who is ready to spend and is willing to experiment more with beauty. Indeed, over the past two years, consumers have been adding to their basic beauty needs, testing new products, adding more whitening and skin smoothing products to their shopping baskets and experimenting with make-up. They are also feeling their way through the premium market, based on the assumption that prestige brands sell products they can trust. The premium beauty market saw growth of 15.9% in 2011 to Rp1,171.2bn ($123m). Premium skincare led the way with sales of
94

T

Rp572.8 bn ($59.83m), growing at 18.4%, followed by color which was worth Rp280.6bn ($29.35m) and rose by 15.1%. Fragrance

“

With more brands coming into the market, retailers have rearranged the category, making the fragrance area smaller compared to cosmetics, where loyalty is deemed to be higher

Luxasia managing director Patrick Chong

registered sales of Rp213.2bn ($22.30m) and was up 11.5% last year. “The premium segment has seen dynamic double-digit growth, albeit a bit slower compared to other segments,” says Patrick Chong managing director Luxasia, which

”

distributes several brands in the country. In color cosmetics and skincare, multi-tasking products have gained in popularity. For example, foundations that incorporate an SPF or skincare such as local brand Martha Tilaar’s Caring Colours BB Cream, which promises brightening, moisturizing, anti-aging and sunprotection properties. One segment that is seeing strong growth is men’s grooming. According to a report from Nielsen Indonesia, which was published in May 2011, spend on men’s grooming grew at three times the rate of women’s spend, with an estimated Rp1.2trillion ($140.4m) in sales, up 29.3% from the previous year. Fragrances, especially those with more natural scents are in strong demand among male consumers. Men bought cologne most (68%), while 16.6% bought cleanser and 7.3% purchased shampoo. Men shopped most in Jakarta, but also in other cities, such as Bandung, Semarang, Surabaya and Meda. Global vs local Beauty production in Indonesia is rising. Fragrance house Firmenich is investing $25m in building a perfume factory in Karawang,

November-December 2012 - N°12 - BW Confidential



BW Confidential - Issue #12 - November/December 2012

Table of Contents for the Digital Edition of BW Confidential - Issue #12 - November/December 2012

Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview L'Oréal Luxe president Nicolas Hieronimus
Insight: Fragrance
- Category overview
- Regional breakdown
- Retail strategies
- Sampling
- Launch roundup
Wellness
- Clarins' spa strategy
- Spa case studies
Retail
- Chinese shoppers abroad
- Direct sales
- Store concepts
Digital
- QR codes
- Selling beauty online
- Marketing strategies
Market watch: South East Asia
- Regional overview
- Thailand
- Indonesia
- Vietnam
Travel retail
- Industry analysis
- Retailer viewpoint
- New niches
- Retailer factfile
Emerging markets Company profile: Dabur
Radar Up-and-coming beauty brands
Packaging
- Sustainable packaging in the BRICs
- Packs for Chinese consumers
- Luxe Pack preview
Last word Uber founder Sarah Cross
BW Confidential - Issue #12 - November/December 2012 - Cover
BW Confidential - Issue #12 - November/December 2012 - 2
BW Confidential - Issue #12 - November/December 2012 - 3
BW Confidential - Issue #12 - November/December 2012 - 4
BW Confidential - Issue #12 - November/December 2012 - 5
BW Confidential - Issue #12 - November/December 2012 - 6
BW Confidential - Issue #12 - November/December 2012 - Comment
BW Confidential - Issue #12 - November/December 2012 - 8
BW Confidential - Issue #12 - November/December 2012 - Contents
BW Confidential - Issue #12 - November/December 2012 - 10
BW Confidential - Issue #12 - November/December 2012 - 11
BW Confidential - Issue #12 - November/December 2012 - - Brand & retail news recap
BW Confidential - Issue #12 - November/December 2012 - 13
BW Confidential - Issue #12 - November/December 2012 - 14
BW Confidential - Issue #12 - November/December 2012 - 15
BW Confidential - Issue #12 - November/December 2012 - 16
BW Confidential - Issue #12 - November/December 2012 - 17
BW Confidential - Issue #12 - November/December 2012 - - Companies on the move
BW Confidential - Issue #12 - November/December 2012 - 19
BW Confidential - Issue #12 - November/December 2012 - 20
BW Confidential - Issue #12 - November/December 2012 - 21
BW Confidential - Issue #12 - November/December 2012 - 22
BW Confidential - Issue #12 - November/December 2012 - 23
BW Confidential - Issue #12 - November/December 2012 - 24
BW Confidential - Issue #12 - November/December 2012 - 25
BW Confidential - Issue #12 - November/December 2012 - Take note Market facts, figures & trends
BW Confidential - Issue #12 - November/December 2012 - 27
BW Confidential - Issue #12 - November/December 2012 - Best of BW Highlights from our e-publication
BW Confidential - Issue #12 - November/December 2012 - 29
BW Confidential - Issue #12 - November/December 2012 - 30
BW Confidential - Issue #12 - November/December 2012 - 31
BW Confidential - Issue #12 - November/December 2012 - Launches The latest in fragrance, skincare & make-up
BW Confidential - Issue #12 - November/December 2012 - 33
BW Confidential - Issue #12 - November/December 2012 - 34
BW Confidential - Issue #12 - November/December 2012 - 35
BW Confidential - Issue #12 - November/December 2012 - Interview L'Oréal Luxe president Nicolas Hieronimus
BW Confidential - Issue #12 - November/December 2012 - 37
BW Confidential - Issue #12 - November/December 2012 - 38
BW Confidential - Issue #12 - November/December 2012 - 39
BW Confidential - Issue #12 - November/December 2012 - - Category overview
BW Confidential - Issue #12 - November/December 2012 - 41
BW Confidential - Issue #12 - November/December 2012 - 42
BW Confidential - Issue #12 - November/December 2012 - EC1
BW Confidential - Issue #12 - November/December 2012 - EC2
BW Confidential - Issue #12 - November/December 2012 - 43
BW Confidential - Issue #12 - November/December 2012 - 44
BW Confidential - Issue #12 - November/December 2012 - - Regional breakdown
BW Confidential - Issue #12 - November/December 2012 - 46
BW Confidential - Issue #12 - November/December 2012 - 47
BW Confidential - Issue #12 - November/December 2012 - - Retail strategies
BW Confidential - Issue #12 - November/December 2012 - 49
BW Confidential - Issue #12 - November/December 2012 - 50
BW Confidential - Issue #12 - November/December 2012 - 51
BW Confidential - Issue #12 - November/December 2012 - 52
BW Confidential - Issue #12 - November/December 2012 - - Sampling
BW Confidential - Issue #12 - November/December 2012 - 54
BW Confidential - Issue #12 - November/December 2012 - 55
BW Confidential - Issue #12 - November/December 2012 - - Launch roundup
BW Confidential - Issue #12 - November/December 2012 - 57
BW Confidential - Issue #12 - November/December 2012 - 58
BW Confidential - Issue #12 - November/December 2012 - 59
BW Confidential - Issue #12 - November/December 2012 - 60
BW Confidential - Issue #12 - November/December 2012 - 61
BW Confidential - Issue #12 - November/December 2012 - 62
BW Confidential - Issue #12 - November/December 2012 - 63
BW Confidential - Issue #12 - November/December 2012 - - Clarins' spa strategy
BW Confidential - Issue #12 - November/December 2012 - 65
BW Confidential - Issue #12 - November/December 2012 - - Spa case studies
BW Confidential - Issue #12 - November/December 2012 - 67
BW Confidential - Issue #12 - November/December 2012 - 68
BW Confidential - Issue #12 - November/December 2012 - 69
BW Confidential - Issue #12 - November/December 2012 - - Chinese shoppers abroad
BW Confidential - Issue #12 - November/December 2012 - 71
BW Confidential - Issue #12 - November/December 2012 - - Direct sales
BW Confidential - Issue #12 - November/December 2012 - 73
BW Confidential - Issue #12 - November/December 2012 - 74
BW Confidential - Issue #12 - November/December 2012 - 75
BW Confidential - Issue #12 - November/December 2012 - 76
BW Confidential - Issue #12 - November/December 2012 - 77
BW Confidential - Issue #12 - November/December 2012 - - Store concepts
BW Confidential - Issue #12 - November/December 2012 - 79
BW Confidential - Issue #12 - November/December 2012 - 80
BW Confidential - Issue #12 - November/December 2012 - - QR codes
BW Confidential - Issue #12 - November/December 2012 - 82
BW Confidential - Issue #12 - November/December 2012 - 83
BW Confidential - Issue #12 - November/December 2012 - 84
BW Confidential - Issue #12 - November/December 2012 - - Selling beauty online
BW Confidential - Issue #12 - November/December 2012 - 86
BW Confidential - Issue #12 - November/December 2012 - 87
BW Confidential - Issue #12 - November/December 2012 - - Marketing strategies
BW Confidential - Issue #12 - November/December 2012 - 89
BW Confidential - Issue #12 - November/December 2012 - 90
BW Confidential - Issue #12 - November/December 2012 - - Regional overview
BW Confidential - Issue #12 - November/December 2012 - - Thailand
BW Confidential - Issue #12 - November/December 2012 - 93
BW Confidential - Issue #12 - November/December 2012 - - Indonesia
BW Confidential - Issue #12 - November/December 2012 - 95
BW Confidential - Issue #12 - November/December 2012 - - Vietnam
BW Confidential - Issue #12 - November/December 2012 - 97
BW Confidential - Issue #12 - November/December 2012 - - Industry analysis
BW Confidential - Issue #12 - November/December 2012 - 99
BW Confidential - Issue #12 - November/December 2012 - 100
BW Confidential - Issue #12 - November/December 2012 - 101
BW Confidential - Issue #12 - November/December 2012 - - Retailer viewpoint
BW Confidential - Issue #12 - November/December 2012 - 103
BW Confidential - Issue #12 - November/December 2012 - - New niches
BW Confidential - Issue #12 - November/December 2012 - 105
BW Confidential - Issue #12 - November/December 2012 - - Retailer factfile
BW Confidential - Issue #12 - November/December 2012 - 107
BW Confidential - Issue #12 - November/December 2012 - 108
BW Confidential - Issue #12 - November/December 2012 - 109
BW Confidential - Issue #12 - November/December 2012 - Emerging markets Company profile: Dabur
BW Confidential - Issue #12 - November/December 2012 - 111
BW Confidential - Issue #12 - November/December 2012 - Radar Up-and-coming beauty brands
BW Confidential - Issue #12 - November/December 2012 - 113
BW Confidential - Issue #12 - November/December 2012 - 114
BW Confidential - Issue #12 - November/December 2012 - 115
BW Confidential - Issue #12 - November/December 2012 - 116
BW Confidential - Issue #12 - November/December 2012 - - Sustainable packaging in the BRICs
BW Confidential - Issue #12 - November/December 2012 - 118
BW Confidential - Issue #12 - November/December 2012 - 119
BW Confidential - Issue #12 - November/December 2012 - 120
BW Confidential - Issue #12 - November/December 2012 - - Packs for Chinese consumers
BW Confidential - Issue #12 - November/December 2012 - 122
BW Confidential - Issue #12 - November/December 2012 - 123
BW Confidential - Issue #12 - November/December 2012 - - Luxe Pack preview
BW Confidential - Issue #12 - November/December 2012 - 125
BW Confidential - Issue #12 - November/December 2012 - Last word Uber founder Sarah Cross
BW Confidential - Issue #12 - November/December 2012 - 127
BW Confidential - Issue #12 - November/December 2012 - 128
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