Health and Beauty Specialist Retailers in Indonesia

PROSPECTS

Arrival of international players fuels expansion and value sales

Beauty specialist retailers continue to perform strongly in Indonesia. Although this channel only accounted for a small share of overall sales, it saw one of the highest growth levels.

Retailers customise offer to different consumer niches

Within health and beauty specialist retailers in Indonesia, beauty specialist retailers has the most potential for growth, with cosmetics driving sales. Beauty products in Indonesia are quite diverse, ranging from traditional products to those targeted specifically at certain groups such as Muslim women.

Evolving consumer trends provide strong scope for further growth

Health and beauty specialist retailers will continue to record growth over the coming years. Actual value growth will be highest in chemists/pharmacies, which account for around two thirds of sales in the channel.

COMPETITIVE LANDSCAPE

Adoption of South Korean trends influencing beauty specialist demand

Since the easing of Negative Investment List (DNI) regulations in mid-2016, many foreign companies have started to penetrate the high potential Indonesian market. South Korean beauty products, especially in cosmetics and skin care, are particularly popular in the country.

Rising health awareness fuels demand for natural ingredients

Another area offering potential is natural products. There is the opportunity for the emergence of natural offerings, such as spa products from Bali.

Focus on local production to increase competitiveness

During the review period, Kimia Farma built the first plant in Indonesia to produce Medicinal Raw Materials (BBO) for some high-demand drugs. The plant was built through a joint venture with Sung Wun Pharmacopia from South Korea.

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