Indonesia Aesthetic Market

*Data gathered from various resources including Top Brand 2018 & 2019
 GLOBAL OVERVIEW

Most categories see better performance in 2018

Performance by Category – 2017 vs 2018
120 10
9
100 8

Value Sales Growth rates (%)

7
80 6
US$ billion

5
60
4
3
40
2

20 1
0
0 -1

US$ billion Value growth 2017-2018 (%) Value growth 2017-2018 (%)
 GLOBAL OVERVIEW

Most categories see better performance in 2018

Performance by Category – 2017 vs 2018
120 10
9
100 8

Value Sales Growth rates (%)

7
80 6
US$ billion

5
60
4
3
40
2

20 1
0
0 -1

US$ billion Value growth 2017-2018 (%) Value growth 2017-2018 (%)
 GLOBAL OVERVIEW

Most categories see better performance in 2018

Performance by Category – 2017 vs 2018
120 10
9
100 8

Value Sales Growth rates (%)

7
80 6
US$ billion

5
60
4
3
40
2

20 1
0
0 -1

US$ billion Value growth 2017-2018 (%) Value growth 2017-2018 (%)
CHARACTERISTICS OF CONSUMERS

Market driven by brand loyalty vs experimentation

Brand Loyalty Experimentation

• Product effectiveness • Desire for more

effective products
• Brand image
• New claims and innovative
• Habit ingredients

• Unique product benefits

• In-store availability and

price
Key themes to define the industry in 2018

Multi-benefits
products

At-home beauty
experience and
pampering

Dominance of ‘Selfie’
trend

Fashion Beauty
Products with multiple claims feature strongly

Convenience Cost-saving Novelty

Anti- Sun
Moisture Fragrance
Ageing Protection

Gentle to
Colours Whitening Coverage
Skin
Haircare & colour cosmetics stand out

Caviar Anti-Aging Striplac Peel-off Lancôme Teint

Replenishing UV/LED Nail Polish Visionnaire
Moisture Conditioner
Two-in-one product used as a
Peel off technology for foundation with high
Maintains moisture, and
easy removal, protects coverage corrector, enriched
also protects hair from
and strengthens the with LR 2412, the active
daily stress, colour fade
natural nail. Finished in ingredient integrated in
and future damage
60 seconds under LED. Visionnaire skincare. Also
claims to reduce
imperfections.
Consumers increasingly going for self-pampering in the home

Time
constraints Growth of
to achieve “self-
Cost-saving
instant service”
results trend
Multiple sectors benefit from at-home beauty experiences
Consumer
Masks Hair Treatments
Appliances

The Face Shop 3D Shiseido Tsubaki Clarisonic Mia 2

Ampoule Mask Sheet Red
Ginseng and Ceramide
Two steps facial care using Integrated with Camelia Oil,
both ampoule and mask
sheet. Used to achieve
whitening, hydrating and
firming of skin.
Damage Care Hair Mask
Claims to offer a gentle
most suitable for dry,
and effective cleanse at
permed, sun-damaged,
home, than traditional
colour-treated and coarse
manual cleansing.
hair.
Strong appeal for “Selfie” Beauty

Colours to portray
individuality

Tailored innovations
with specific solution-
based products

Skin Perfections
Social media and “Selfies”, the connection with consumers

• Lancôme USA has launched a social

Lancôme’s media campaign #bareselfie
Dreamtone • Encouraged users to use the
product and take bare-look/ no
make up
• Launched “#NoFilterSephoraSg”.
Sephora • collaboration with CLEO
Singapore Magazine
• Offering tips on different types of
selfie
Sunsilk
• Launched a social media campaign,
Dream
#SunsilkDreamStarter, in Philippines
Starter

• Launched the #realsies campaign

• Fans can post selfies with lashes
Benefit applied with “They’re Real!” mascara
to win long supply
Fashion apparel brands make a stronger mark within beauty

expansion in
Fashion Brands fashion brands
beauty range

Brand Rising
Consumers consciousness Affluence
Growing appeal for “safe” cosmetics in Asia Pacific

Non-preservatives beauty Natural and organic

Derma-cosmetics
and personal care beauty and personal care

Himalaya Herbals First Aid Beauty Ultra Repair APIVITA Suncare

Purifying Neem Face Cream Intense Hydration
Wash for Dry Parched Skin
ASIA PACIFIC TRENDS

Internet retailing shows fast growth

Asia Pacific Beauty Sales by Key
Distribution Channel 2015-2018
100%

80% Growing presence

60% of internet
40%
retailing
20%

2015 2016 2017 2018

0%
Internet Retailing Department Stores Direct
Selling
Modern Grocery Retailers
Health and Beauty Specialist Retailers
ASIA PACIFIC TRENDS

Bloggers are a big influence on young consumer trends

/
Hellua Puspoyo Andra Alodita
Top Blogger in Indonesia Top Blogger in Indonesia
WHAT’S NEXT

Global market: other facial make-up to be the driving force

Fastest Growing Beauty and Personal Care

Categories 2018-2022 Constant Value CAGR (%)

Other Facial
Make-Up Men’s Skin
Care Baby and
11% Child-Specific
8% Skin Care
Face Masks
Anti-Agers
6%

6% 5%
 WHAT’S NEXT

Asia Pacific: Other Facial Make-Up to have the strongest growth

Other Facial Make-Up constant value CAGR 2018-2022 by countries (%)

South Korea 18%

China

Philippines
13%
constant value CAGR
Indonesia
expected from 2018 to
Hong Kong, China 2022 in Asia Pacific
Malaysia

Singapore
South Korea
India
fastest constant value CAGR of
Thailand close to 18% expected from
2018 to 2022
Japan

Taiwan

0 5 10 15 20
Constant value CAGR 2018-2022 (%)
WHAT’S NEXT

Global market: “Selfie” creates opportunities

Look good factor
•Personality
•Individuality

Skin perfection
• Even tone
Consumers • Spot correction
• Smooth texture
Tailored innovation
• Solution-based
• Hyperpigmentation
• Scalp health

Retailers Manufacturers
MARKET OVERVIEW

INSIGHT:
• Indonesia is projected to be the world’s 7th largest economy by 2030
• Indonesia’s ‘consuming’ class number 45 million and is forecast to
increase to 135 million by 2030
• Imported cosmetic sales in 2015 reached US$441 million
• Indonesian consumers are becoming increasingly aware of their wellbeing
COSMETICS MARKET OVERVIEW
• The cosmetics sector has grown 10%-15% annually due to increases in
disposable income and aggressive marketing efforts by cosmetics companies

• People in urban areas of Indonesia are the biggest consumers of cosmetic

products, while the rural population is showing higher interest in personal care
products

• The Indonesian Government is prioritizing cosmetics as a focus of its National

Development Plan for Industry until 2019

• The large Muslim population in Indonesia is a huge potential market for halal
beauty products. The majority of Halal products are still offered by local
manufacturers

• Local partners (distributor/importer) are mandatory

TRENDS

• Growing popularity and awareness

of natural and organic products

• International Brands dominate

beauty and personal care

• Korean Beauty and personal care

products are booming in Indonesia

• With the world’s largest Muslim

population, there is increasing
interest in Halal products and local
brands such as Wardah have been
the quickest to leverage this trend
OPPORTUNITIES
• The demand for cosmetics and toiletries has increased
substantially over past years. Imported cosmetics with
International brands now hold a 70% market share
• Skin care products account for 76% of total imports
• Cosmeceutical product increases also include male
• products

• Increased demand from the service industry such as

beauty parlors and spas
• Natural, organic, certified organic products
• Specialty product such as professional hair care
• Aromatherapy supplies

• Indonesians are among the most active users of the

internet and this has proven to be a huge opportunity for
beauty and personal care via social media.

• E-commerce is an opportunity but it is still early and all

products sold online must be registered in-country first
and can’t be sent directly from overseas.
CHALLENGES AND ISSUES

• REGISTRATION PROCESS: With National Agency of Drug and Food Control

(BPOM) may take longer than expected. It range from around 6 months to 2
years.

• HALAL CERTIFICATION: By October 2019 Cosmetics and skin care products

need Halal Certification from government body in Indonesia. This regulation is
not confirm yet but is already approved by government.

• INTELLECTUAL PROPERTY (IP): Occasionally brands are already registered by

others in Indonesia. Our recommendation is to register your IP as soon as
possible if you have an interest with the market.
PRODUCT REGISTRATION & LABELLING
HOW TO IMPORT COSMETICS AND SKIN CARE TO INDONESIA
•Establishing Connections with Local Agent or Representative
The Government of Indonesia implemented a new policy that the exporting company must have a local agent to
represent the company in Indonesia. This local agent will obtain an import license. This import license is a must in order
to bring the company’s products into the Indonesian market.
•Asking Your Local Agent to Get A Licensed Distributor Permit
The local agent should obtain a distributor permit which enables them to receive the products from the source
company. The agent will then be appointed the official distributor of your products. Under the new law, only registered
products imported by registered companies are able to enter Indonesian market.
•Registering Product to Indonesian Agency for Drugs and Food Control (BPOM)
Cosmetics and skin-care products must be registered with the National Agency of Drugs and Food Control (BPOM). Each
product must be registered separately and BPOM will issue a notification along with a code or number that must be
printed on each product’s packaging. The BPOM registration number is valid for 3 years and the company can extend the
permit afterwards.
•Labelling
Labels must be in Indonesian and include the following information: the name of the product, the list of ingredients, net
weight or volume, the name and address of the producer and the importer, the halal logo (If applicable), the BPOM
registration number, the production code and the 'best before’
•Paying the Import Duties
Generally, the import duties for cosmetic and skin-care products are 10 percent and will be paid by the importing
company.
FREE TRADE AGREEMENTS (FTA)
• The Indonesia-Australia Comprehensive Economic Partnership (IA-CEPA)
• This Agreement is not sign yet, hopefully it will be sign in near time.

• The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

• Extensive tariff reduction and elimination commitments.
• Regional rules of origin provide new opportunities for Australian exporters to tap into
international supply chains in the region.
• Promotes greater certainty for Australian service suppliers and investors, including through
• certain legal protections for investment in ASEAN territories.
• Provides a platform for ongoing economic engagement with ASEAN through a range of built-
in agendas, economic cooperation projects and business outreach activities.
Product HS Code 2017 2018 2019 2020
Essential Oils 3301 0% 0% 0% 0%
Perfumes and toilet waters 3303 0% 0% 0% 0%
Beauty or make-up preparations and 3304 0% 0% 0% 0%
preparations for the care of the skin
Preparations for use on the hair 3305 0% 0% 0% 0%
Preparations for oral or dental hygiene 3306 0% 0% 0% 0%
Soap; organic surface-active products 3401 0% 0% 0% 0%

Source: ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) – Indonesia: Schedule of Tariff Commitments
PITCHING YOUR BRAND TO POTENTIAL
CUSTOMERS
• Since Australian products are not well known in Indonesia, the principal needs
to help their local partner with promotion and marketing

• Use artists or actors as brand ambassador

• Use Social Media and social media influencers to promote your product
E-COMMERCE INDONESIA E-COMMERCE OVERVIEW

• Indonesia has the 5th biggest Internet Population in the world

• 90 million Indonesians have smart phone with 415 million mobile subscriptions
• 130 million active social media users
• Active social platforms in Indonesia:

HOW TO MARKET YOUR PRODUCT IN E-COMMERCE

Product with no relationship in Product with existing
Indonesia: relationship Indonesia:
•You need to find a local partner •Your local partner can list your
•Local Partner should register the product to e- commerce
product platform
•Local partner can list your product to e-
commerce platform
SOCIAL MEDIA

Social media play important role in promotion and marketing,

especially for skin care and cosmetics
Populasi Dokter Aesthetic
• Berdasarkan data Perhimpunan Dokter Anti Penuaan, Wellness,
Estetik & Regeneratif Indonesia (Perdaweri) per Januari 2019
berjumlah 1449 orang
ZAP(34.8% from 12000 respondents)
• Jakarta 15 branches
• Banten 3 branches
• Bandung 3 branches
• Surabaya 3 branches
• Makasar 2 branches
• Bekasi, Cibubur, Cibinong, Medan, Manado, Palembang, Lampung
and Batam branches
Services
• Hair removal
• Pigmentation
• PRP
• Body rejuvenation
• Laser
• Tatto removal
• Infus glowing
Products

• Facial wash
• Brightening cream
• Lip blush
• Toner
• Cleansing milk
• Loose powder
• Face Toning Rp 250k
• Face Rejuve Rp 250k
• Oxy Infusion Rp 250k
• Active Acne Laser Rp 250k
• Body Rejuvenation Rp 250k
• Photo Facial Rp 500k*
• Lifting Rp 500k-1000k
• PRP Rp 2000k
Natasha (30.5% from 12000 respondents)
• https://natasha-skin.com/location/
• Services: Acne, anti aging, pigmentation & hair
• Products: https://natasha-skin.com/shop/
• Price:
• Facial wash Rp 65k
• Skin toner Rp 35k
• Calming cream Rp 60k
• Morning cream Rp 65k
• Night cream Rp 115k
• Eye cream Rp 135k
Erha (28.1% from 12000 respondents)
• Banten
• EDC Bumi Serpong Damai
• Daerah Istimewa Yogyakarta
• EDC Yogyakarta
• DKI Jakarta
• EDC Kemanggisan
• EDC Kelapa Gading
• EDC Pondok Indah
• Jawa Barat
• EDC Bandung
• Jawa Timur
• EDC Surabaya
• Sumatera Utara
• EDC Medan
• Bali
• EC Denpasar
• Banten
• EC Bintaro
• DKI Jakarta
• EC Kemang
• EC Cipinang
• EC Pantai Indah Kapuk
• EC Mangga Besar
• EC Tebet
• Jawa Barat
• EC Setrasari Bandung
• EC Depok
• EC Bogor
• Jawa Tengah
• EC Semarang
• Jawa Timur
• EC Jemursari Surabaya
• EC Malang
• Kalimantan Barat
• EC Pontianak
• Kepulauan Riau
• EC Batam
• Riau
• EC Pekanbaru
• Sulawesi Selatan
• EC Makassar
• Sulawesi Utara
• EC Manado
• Sumatera Selatan
• EC Palembang
• Banten
• EA Bintaro Plaza
• EA Cilegon Center Mall
• EA Supermal Karawaci
• EA Summarecon Mal Serpong
• DKI Jakarta
• EA AEON Mall Jakarta Garden City
• EA Pondok Indah Mall2
• EA Emporium Pluit Mall
• EA Gandaria City
• EA Senayan City
• EA Pacific Place
• EA Central Park
• EA Grand Indonesia
• EA Mall Kelapa Gading
• EA Lippo Mall Puri - St. Moritz
• EA Kota Kasablanka
• Jawa Barat
• EA Paskal 23 Bandung
• EA Summarecon Mal Bekasi
• EA Metropolitan Mal Bekasi
• EA Istana Plaza Bandung
• EA Grand Galaxy Park Bekasi
• Jawa Tengah
• EA Solo Paragon
• Daerah Istimewa Yogyakarta
• EA Hartono Mall
• Jawa Timur
• EA Ciputra World Surabaya
• EA Pakuwon Mall
• EA Tunjungan Plaza 6 Surabaya
• EA Galaxy Mall Surabaya
• Kalimantan Selatan
• EA Duta Mall Banjarmasin
• Kalimantan Timur
• EA Big Mall Samarinda
• EA Pentacity Balikpapan
• Kepulauan Riau
• EA Living World Pekanbaru
• Nusa Tenggara Barat
• EA Epicentrum Mall Lombok
• Sulawesi Selatan
• EA Trans Studio Mall Makassar
• EA Mal Ratu Indah Makassar
• EA Nipah Mall Makassar
• Sumatera Selatan
• EA Palembang Icon Mall
services
• personal rejuvenation program
• personal acne cure program
• personal hair growth & scalp program
• personal body program
• children dermatology program
• senior dermatology program
• general dermatology program
• Laser Photorejuvenation
• Laser Pigmentasi
• Laser Vascular
• Skin Tightening Therapy
• Fractional Laser Resurfacing for Rejuvenation
• Blue Light Therapy
• Collagen Rejuvenation Therapy (CRT)
• Fractional Laser Resurfacing for Acne Scar
• Red Light Therapy Face
• Hair Removal Therapy
• Focal Fat Deposit Therapy
• Advance Anti Aging Treatment
• Acne Peeling
• Injeksi Kil
• Bright And Glow Therapy
• Injeksi Filler
• Deep Pore Cleansing Therapy
• Micropeel
• Erha Light Peeling
• Office Peeling
• Red Light Therapy Hair
• Hair Follicle Activation Therapy
• Hair Removal Therapy
• Skin Resurfacing
• Bedah Electrocauter
products
• https://erha.co.id/over
• Acne peeling Rp 395k-998k
• Laser photorejuvenation Rp 4280k-4750k
• Filler Rp 5300k-9900k
• Hair removal Rp 1000k-5000k
• Botox Rp 1100k-1760k
• CO2 laser Rp 500k-3000k
• ND Yag Laser Rp 440k
• Liposuction Rp 10000k
• Micropeel Rp 250k
• Collagen rejuvenation Rp 5625k-16380k
• Light therapy Rp 1200k-2860k
• Skin tightening Rp 1300k-8750k
Miracle
• Jakarta 4 branches
• Surabaya 4 branches
• Bali 2 branches
• Medan, Batam, Balikpapan, Semarang, Jogja, Makasar, Malang,
Manado & Lombok branches
• Services: Acne, Pigmentation, Rejuvenation & Face Shaping
• http://www.miracle-clinic.com/services/index
• Renew white facial package Rp 675k
• Diamond peel plus package Rp 800k
• Bubble C facial package Rp 800k
• Skin rejuvenation package Rp 1800k
Dermaster
• Jakarta 7 branches
• Makassar, Manado, Surabaya, dan Jayapura.
• Coming soon: Banjarmasin.
• http://www.dermaster-indonesia.com/products/index/en/
• Services: Tarik benang Aptos, Botox, Filler, laser, Peeling, Slimming,
Pigmentation, Acne-Scar & Attiva lift
• Melasma treatment package Rp 1620k
• Acne product treatment Rp 1230k
• Breast treatment Rp 1035k
• Slimming treatment Rp 1900k
• Scar treatment Rp 2000k
• Comprehensive acne treatment Rp 8665k
Consumers survey on aesthetic products
1. Hair Vitamin (Ellips 65.7%)
2. Anti aging (Ponds 44.7%)
3. Toner (Ponds 37.5)
4. Whitening cream (Ponds 37%)
5. Stretch mark serum (GlyDerm 32.4%)
6. Hand Body lotion (Citra 28.3%)
7. Facial serum (Wardah Lightening Serum 28%)
8. Lulur kecantikan (Purbasari 26.3%)
9. Moisturizer (Ponds 26.3%)
10. Hair tonic (Natur 25.5%)
11. Masker wajah (Mustika Ratu 25.5%)
12. Slimming product (Laxing 25.1%)
13. Eye cream (Olay 21.4%)
14. Acne cream (Acnes 21.3%)
15. Sunblock cream (Garnier 18.3%)
Market concern
PERUBAHAN PERILAKU KONSUMEN INDONESIA
DALAM PRODUK/JASA KECANTIKAN DAN
PERAWATAN PRIBADI
• Daya beli konsumen Indonesia pada 2017-2018 mengalami
perubahan, yang secara langsung dipengaruhi oleh perlambatan
ekonomi, namun faktor utama yang memengaruhi ini adalah perilaku
konsumen.
Indonesian consumers tend to invest more in the buying experience,
rather than actual products.
PERSAINGAN KETAT DENGAN E-COMMERCE

• E-commerce memainkan peran yang semakin penting dalam

distribusi kecantikan dan perawatan pribadi.
• Banyak perusahaan dan brand bersaing ketat untuk
membawakan produk mereka ke e-commerce.
PERSAINGAN MEREK INTERNASIONAL DENGAN
PRODUK DOMESTIK
Dalam industri kecantikan dan perawatan pribadi, merk
internasional bersaing secara langsung dengan merek domestik
Unilever masih memimpin pasar industry kecantikan dan
perawatan pribadi secara keseluruhan di Indonesia pada 2017-
2018.
NEW PRODUCT DEVELOPMENT REVOLVES
AROUND NEW PACKAGING

Pengembangan produk baru di Indonesia berkisar pada

kemasan baru.
Rejoice sampo misalnya, mengubah kemasannya dari warna
hijau yang kuat menjadi hijau muda dengan bunga-bunga
tambahan untuk menarik lebih banyak konsumen wanita.
POSITIVE OUTLOOK FOR BEAUTY AND PERSONAL
CARE ALBEIT SLOWER GROWTH
Indonesian beauty and personal care is expected to a have positive
outlook over the forecast period.
Consumers are expected to continue to purchase beauty and personal
care, albeit increasingly looking for discounted products.
Terima Kasih.