Competition between local cosmetic brands in Indonesia
Every woman wants her appearance to look more beautiful and charming. Moreover, beauty becomes the main capital for women in doing many things.
Therefore, in order to support the appearance, they usually compete to do various treatments, as well as buy beauty products that can make the face look more attractive and also continue to innovate.
Beauty products and skin care local brands are increasingly targeted by consumers because the quality can be paired with a number of major foreign brands that were first known.
According to data from the Central Bureau of Statistics (BPS), in the first quarter of 2020, the performance of the chemical, pharmaceutical and traditional medicine industries covering the cosmetic sector grew by 5.59 percent.
Based on data from the Ministry of Industry, the cosmetic sector grew significantly in 2020, as seen from the growth performance of the chemical, pharmaceutical and traditional medicine industries, where cosmetics are included, grew 9.39 percent.
To remain in the cosmetic and personal caremarket, businesses are increasingly actively attracting customers. With the market opportunities still large in the country, the industry continues to grow.
Like PT Paragon Technology and Innovation (PTI), wardah brand cosmetics manufacturers see the biggest challenges one of them from the entry of multinational brands into the local market.
So they as industry players must continue to innovate and present these innovative products faster than ever before in order to meet the needs of consumers.
While the opportunity according to Shabrina, (Brand Manager Wardah Cosmetics) with the number of beauty influencers who introduce the latest cosmetic product trends then the public interest in beauty products will be increasing consumption of such products.
Moreover, the number of beauty influncer,community and beauty events in Indonesia is growing.
Paragon’s business development so far is considered still good and has been in line with the target.
Indeed, competition is getting tighter with the number of emerging new brands both from within the country and also foreign brands so that the efforts we do must be higher in order to keep leading the market, be it in product innovation, marketingstrategy, and distribution.
Until 2020 the company will still launch about 230 new stock keeping units (SKU). Currently PTI has brands such as Wardah, Emina and Make Over with a total of 400 active SKU products and pegged double digit business growth this year.
After three money, PT Mandom International Tbk (TCID) also assessed that innovation and the presence of influencers help marketing cosmetic products. Alia Dewi, Corporate Secretary of TCID said influencer factors are big enough to attract users to want to switch to a particular product.
Moreover, some categories of cosmetics and personal care found that consumer habits now tend to be less loyal. Such decorative cosmetics such as lipstick and other consumers like to try so it can be easy to switch.
This condition causes the competition map of cosmetic and personal care products tends to be tight. Moreover, said Alia, with a large young population makes Indonesia the best market for these products.
Quality, safety and affordable prices. Consumer confidence in our products is also supported by the registration of our products in BPOM and MUI with halal logo
Therefore, in the second semester, TCID will be more jor-joran to penetrate the market with its new SKU. Every year at least the company releases hundreds of new SKU with the number of activeKU in the market today reaches 1,000 kinds.
Just for information, local sales still dominate TCID’s revenue of Rp 516.87 billion or about 71% of revenue in the first quarter of 2019. While the rest is the export market segment of Rp 210.41 billion.
In terms of products, the skin care and cosmetics category contributed 41% to the company’s revenue in the first quarter of this year. Sales growth in this category reached 21.5% yoy to Rp 295.76 billion in the first quarter of 2019.
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