Super Premium Beauty and Personal Care in Indonesia

PROSPECTS

Working women with more money in the pockets driving growth

With incomes rising and more women joining the workforce the demand for super premium colour cosmetics and skin care is rising rapidly, with this set to continue over the forecast period. With more money in their pockets women are seeking out new and trendy brands such as Make Up For Ever, MAC, LaMer, Benefit and Bobby Brown, while existing players such as SK-II continue to record healthy growth.

Micro loans help fund purchases

Personal micro loans gained in prominence at the end of the review period with this credit facility proving particularly popular among women. These micro loans are popular among those consumers who are unable or unwilling to have a credit card but who wish to make high value purchases, One of the key products purchased with these micro loans is super premium beauty and personal care and this was a key growth driver for the category in 2019, with it helping to expand the consumer base for these products.

‘Share in jar’ trend proving popular

With super premium beauty and personal care products carrying a high price tag some consumers prefer to try products before committing to the purchase of a large quantity of a product and this has given rise to the ‘share in jar’ trend in Indonesia. Under this trend consumers are able to purchase small sample-sized packs of a product which they can use to match their skin tone or to gauge whether it will irritate their skin.

COMPETITIVE LANDSCAPE

Western brands dominate thanks to strong marketing and fashionable image

Super premium colour cosmetics and fragrances are dominated by Western brands. In terms of super premium colour cosmetics brands such as Make Up For Ever from LVMH and Estée Lauder’s MAC Cosmetics benefit from being on trend with fashionable ranges of products that appeal to a wide consumer base of mid- and high-income women.

Japanese and Korean brands make headway in super premium skin care

While super premium colour cosmetics and fragrances are led by Western brands, when it comes to super premium skin care this area is dominated by Korean and Japanese brands. For example, Japanese brand SK-II is popular both online and offline with it carrying a reputation for improving the vitality of the user’s skin with a range of popular products including serums, face masks and creams.

Celebrities and influencers key to raising a brand’s profile

While super premium fragrances benefit from global marketing campaigns when it comes to super premium colour cosmetics and skin care there is a growing reliance on public figures and influencers to drive sales. Being a relatively fragmented area of the market most brands are unable to commit huge resources to marketing campaigns and therefore this offers a more affordable route to driving sales.

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