Beauty and Personal Care in Indonesia

BEAUTY AND PERSONAL CARE IN INDONESIA Euromonitor International June 2013

BEAUTY AND PERSONAL CARE IN INDONESIA

LIST OF CONTENTS AND TABLES Executive Summary ................................................................................................................ ..... 1 Beauty and Personal Care Records Stronger Growth Thanks To Better Economic Outlook .... 1 Active Promotional Activities and Rising Beauty Concerns Expand Consumer Base............... 1 Leading Companies Post Stronger Growth in 2012 ............................................................. ..... 1 Modern Grocery Stores Play Improved Role in Beauty and Personal Care .............................. 1 Beauty and Personal Care Set To Perform Dynamically Over Forecast Period ....................... 2 Key Trends and Developments .................................................................................... ................ 2 Accelerating Growth Thanks To Positive Macroeconomic Conditions ...................................... 2 Increase in Products in Smaller Packaging Formats ................................................................ 3 Rising Demand for Halal Cosmetics .............................................................. ........................... 3 Celebrity Endorsers Play Major Role in Marketing Campaigns of Leading Companies ............ 4 Leading Players Increase Social Media Marketing Activities .................................................... 5 Market Data ............................................................ ................................................................. ..... 6 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14

Sales of Beauty and Personal Care by Category: Value 2007-2012 ............ 6 Sales of Beauty and Personal Care by Category: % Value Growth 2007-2012 ............................................................... ..................................... 6 Sales of Premium Cosmetics by Category: Value 2007-2012 ...................... 7 Sales of Premium Cosmetics by Category: % Value Growth 20072012 ............................................................. ................................................ 7 Beauty and Personal Care GBO Company Shares by Value 20082012 ............................................................. ................................................ 8 Beauty and Personal Care NBO Company Shares by Value 20082012 ............................................................. ................................................ 9 Beauty and Personal Care LBN Brand Shares by Value 2009-2012 ......... 10 Penetration of Private Label in Beauty and Personal Care by Category: % Value Analysis 2007-2012 ..................................................... 11 Sales of Beauty and Personal Care by Distribution Format: % Value Analysis 2007-2012........................................................... ......................... 11 Sales of Beauty and Personal Care by Category and by Distribution Format: % Value Analysis 2012 .............................................................. ... 12 Forecast Sales of Beauty and Personal Care by Category: Value 2012-2017 ............................................................... ................................... 14 Forecast Sales of Beauty and Personal Care by Category: % Value Growth 2012-2017 .................................................................................. ... 14 Forecast Sales of Premium Cosmetics by Category: Value 2012-2017 ..... 15 Forecast Sales of Premium Cosmetics by Category: % Value Growth 2012-2017 ............................................................... ................................... 15

Definitions............................................................... ................................................................. ... 16 Sources ....................................................... ................................................................. .............. 16 Summary 1

Research Sources ............................................................. ......................... 16

© Euromonitor International

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BEAUTY AND PERSONAL CARE IN INDONESIA EXECUTIVE SUMMARY

Beauty and Personal Care Records Stronger Growth Thanks To Better Economic Outlook The fact Indonesia continued to record improved economic growth in 201 2 helped to boost beauty and personal care sales. Most areas within beauty and p ersonal care recorded doubledigit growth, with rising disposable incomes encouraging consumers to increase their spending on beauty and personal care products – a development which led to a rise in both volume and value sales. High demand within the area is well-supported by the rapid expansion of modern retail outlets and heavy marketing efforts of players, including regular new product launches.

Active Promotional Activities and Rising Beauty Concerns Expand Consumer Base Indonesians, both male and female, are showing i ncreased concerns about their appearance and are trying to look younger and more beautiful as a result of peer pressure and high exposure to beauty advertising featuring celebrity endorsers. Marketing campaigns by leading companies generally include above-the-line methods, such as television commercials, which have a large coverage and help to widen the consumer base of beauty a nd personal care producers. The consumer base expansion is also supported by high product availability in various retail channels as well as the offering of affordable products for lower income groups.

Leading Companies Post Stronger Growth in 2012 Multinationals, namely Unilever, Procter & Gamble, Orindo Alam Ayu and L’Oréal, remained the leading companies within beauty and personal care i n 2012 with these players registering respectable double-digit growth rates. Having a long-established presence and strong brand image, the brands manufactured by these companies are generally more preferred by consumers due to their higher perceived quality compared to local brands. Moreover, these companies are widely renowned for their intensive marketing campaigns, both through the mass media and in-store promotions.

Modern Grocery Stores Play Improved Role in Beauty and Personal Care Hypermarkets and convenience stores continued to expand across the region in 2012, opening more outlets outside Java. Despite increasing their number of outlets i n Java, these modern grocery retailers are set to expand in areas i n eastern Indonesia such as Sulawesi and Papua. Following this expansion, the performance of modern grocery retailers is improving in beauty and personal care. Besides rapid outlet expansion, hypermarkets and convenience stores frequently offer various in-store promotions such as discounts, product bundling and buyone-get-one-free promotions.


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Beauty and Personal Care Set To Perform Dynamically Over Forecast Period Growth within beauty and personal care is l ikely to remain robust over the forecast period as there is still more room for improvement. Players are expected to strengthen their performance in regions outside Java, especially in untapped regions in eastern Indonesia. Urban citizens, nonetheless, are likely to remain the main contributor to sales in most areas. However, demand amongst rural citizens for more basic products such as hair care, bath and shower and oral care products will rise.

KEY TRENDS AND DEVELOPMENTS

Accelerating Growth Thanks To Positive Macroeconomic Conditions Economic growth in Indonesia continued to improve in 2012, with GDP increasing at the fastest rate since 1996. After increasing by 6.46% in 2011, GDP in Indonesia increased by 6.54% in 2012. In addition, the unemployment rate also declined to 6.32% in the first quarter of 2012 compared to the same period i n 2011. Supported by such a confident economic outlook, in 2012 there was also a 28.1% rise in Foreign Direct Investment (FDI). Nonetheless, during the first semester of the year the Rupiah depreciated strongly against the US dollar, falling from an average of Rp8,776.90 per US dollar in 2011 to Rp9,174.15 per US dollar in 2012. Consequently, the rising exchange rate against the US dollar resulted in a rise in the price of imported raw materials as well as imported products. Current impact Improving macroeconomic conditions, reflected by an increase in GDP growth and lower unemployment rate in Indonesia, resulted in an i ncrease in consumer disposable incomes in 2012 and further encouraged more household spending across various product areas, including the purchasing of beauty and personal care products. Along with rising beauty awareness amongst both female and male consumers, Indonesians increased their spending on non -basic products such as fragrances, colour cosmetics and deodorants. Accelerated by optimistic economic performance, beauty and personal care registered faster current value growth of 15% in 2012. Outlook Indonesia has a favourable economic outlook for the forecast period, with GDP set to rise, mainly due to increasing domestic consumption and the expansion of the middle class. Unemployment is also expected to continue diminishing and will result in a better economic outlook for Indonesia. Following the relatively strong currency depreciation in 2012, the exchange rate of the Rupiah against the US dollar is not likely to keep declining over the forecast period. As a weak currency would hurt the industry, which relies on imported goods, including within beauty and personal care, the Indonesian government is likely to intervene in order to maintain a stable currency. In addition, production costs are likely to continue to increase due to rising electricity costs in 2013. As a result, beauty and personal care manufacturers are likely to increase the prices of their products over the forecast period. Future impact In-line with expected improving economic conditions over the forecast period, beauty and personal care is also likely to register an even better performance over the coming years. With rising disposable incomes, Indonesian consumers tend to increase their spending on products


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deemed less necessary. As a result, fragrances, colour cosmetics and deodorants are projected to register dynamic growth over the forecast period. Overall, beauty and personal care has a respectable projected forecast period constant value CAGR of 9%. Following inevitable rising costs, industry players will be forced to raise the p rice of beauty and personal care products. Nonetheless, manufacturers are likely to attempt to minimise price increases by introducing smaller pack sizes, refill packs and more economical packaging formats.

Increase in Products in Smaller Packaging Formats In a bid to expand their consumer bases, beauty and personal care players are introducing smaller packaging formats. With smaller packaging, products are more affordable and thus appeal more to lower income consumers. As the regular bottle size is considered expensive for some low-income consumers, manufacturers offer their products in small flexible packaging (sachet) formats which are priced as low as Rp500 per u nit. Towards the end of 2012, Unilever launched innovative double-sachet packaging for its shampoo brands, such as Clear and Sunsilk. In early 2012, another leading pl ayer in hair care, L’Oréal Indonesia, also provided sachet packaging for its hair mask. Current impact The introduction of more products in smaller packaging has affected average uni t prices within beauty and personal care. Since economical packing is priced much lower, rising sales of such packaging has dragged down average unit prices in some areas within beauty and personal care, especially hair care. The availability of leading brands in smaller packaging sizes has helped producers to reach lower income groups and thus expand their consumer bases. As a r esult, brands which used to only cover middle-high income groups now also appeal to middle-low income demographics. Outlook The trend towards smaller packing within beauty and personal care is expected to continue over the forecast period. Aiming for expanded market coverage, more beauty and personal care manufacturers are likely to introduce more economical packaging, including sachets, refill pouches and smaller bottle packaging. Despite the improving economy, lower i ncome consumers are likely to remain price-sensitive and demand for economical packs will thus remain high. Future impact As the price of one time purchases of beauty and personal care products in smaller packs is considered to be more affordable, beauty and personal care products are expected to record increasing volume growth. Moreover, with the attempts for market expansion of beauty and personal care players through the reduction of pack sizes, average unit prices of beauty and personal care products, especially hair care brands, are likely to increase. More purchases of cheaper and economical products will result in lower unit p rices over the forecast period.

Rising Demand for Halal Cosmetics It is important for Moslems to ensure that all of the food they eat and that all of the products they use are Halal. This means that the product is permissible by Islamic law with regard to production, origin of raw materials and use of permissible substances. The products must be manufactured, stored and packaged according to specific Halal requirements. Indonesia has the world’s largest Moslem population and is the country with the fourth largest population in the world. As a result of the large Moslem population, it is important for beauty and


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personal care manufacturers to ensure that their products are Halal-certified - a process which is regulated by Majelis Ulama (MUI), the Board of Moslem Leaders in Indonesia. Current impact Towards the end of the review period, there was an increase in t he popularity of Halal beauty and personal care products in Indonesia. These products greatly appeal to Moslem consumers who value integrity and legitimacy when it comes to beauty and personal care products. In a bid to attract consumers within this lucrative area, companies tried to obtain the Halal label for their products. Martina Berto, for example, attained Halal certification for its Sari Ayu and Caring Colour brands in March 2012. Another rising brand is Wardah by Paragon Industry & Innovation PT which claims to be the fi rst cosmetic brand to receive Halal certification. Wardah emphasises its pure and safe ingredients which are specifically designed for Moslem consumers. The brand was well-supported by the company’s heavy marketing campaign, which included television commercials, talk shows, beauty classes and product placements in popular movies. Outlook Halal beauty and personal care products, especially cosmetics, are predicted to continue increasing in popularity over the forecast period. With the majority of the population being Moslem, Halal cosmetics are a very lucrative prospect in Indonesia. Demand for Halal beauty and personal care products is likely to increase in -line with rising consumer knowledge of products’ ingredients, sourcing of raw materials and production. In response to this trend, more leading companies are likely to ensure that their products are Halal-certified. More research and development is likely to be conducted within this p articular area and will result in more new product launches and emerging brands. Future impact Halal certification will allow beauty and personal care manufacturers to reach out to consumers who demand Halal-labeled products. As a result, Halal-certified brands such as Wardah, Sari Ayu and Caring Colours are likely to register higher growth over the forecast period. Looking at the potential market, more brands are likely to attain Halal certification – a development which will help to boost g rowth. As organic products are sometimes regarded as having similar properties to Halal products, brands with no animal i ngredients and which are not tested on animals, such as The Body Shop, are also expected to perform well.

Celebrity Endorsers Play Major Role in Marketing Campaigns of Leading Companies Tight competition between beauty and personal care manufacturers is resulting in th e conducting of heavy marketing campaigns in order to establish brand awareness and attract new customers. Asides from in-store promotions such as discounts and product bundling, another common promotional activity is television commercials. For such above -the-line methods, the use of celebrity endorsers is considered to be an effective way to catch consumer attention. Consumers are encouraged to believe that they can be as beautiful, youthful and good looking as the celebrities seen in the adverts. Current impact Leading beauty and personal care manufacturers continuously use famous actors/actresses, singers or other celebrities to promote their products. In selecting the brand ambassador, manufacturers align themselves with the brand image they want to establish for a specific market. For example, young rising star Gita Gutawa was recently chosen to be the br and ambassador of Procter & Gamble’s new Pantene Nature Care Smoothness & Life as the brand


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primarily targets young, active and dynamic female consumers. Other renowned brands which frequently use celebrity endorsers include Lux (bath and shower), L’Oreal (hair care) and many others. As a result, these brands recorded dynamic growth over the review period. Outlook Celebrity endorsement is expected to retain its essential role over the forecast period as it can help producers to build the desired brand image. The use of brand ambassadors enables companies to effectively convey the message to targeted consumers. Nonetheless, celebrity endorsement is still limited to leading companies, which generally have a long-standing presence and strong financial resources. Future impact With regard to its i mportance, leading beauty and personal care manufacturers are expected to continue to heavily invest in celebrity endorsements as part of their marketing campaigns. Lux, a leading brand in bath and shower, has been able to manage its outstanding performance through consistent brand image conveyed via its brand ambassadors. This brand always ensures that its icons are attractive and inspirational females. The continuous growth of this brand reflects the effectiveness of endorsement and more and more companies are thus set to do likewise.

Leading Players Increase Social Media Marketing Activities Improved internet access in Indonesia is resulting in a growing number of internet users, especially regarding social media. Social networking websites, especially Facebook and Twitter, enjoy exceptional popularity in Indonesia. These virtual platforms allow people to meet new as well as existing contacts and share their thoughts. Having the second largest number of Facebook subscribers in the world and being home to the fifth most Twitter users, Indonesians are greatly involved with social networks. This encourages companies, including beauty and personal care players, to exploit the trend for promotional means. Current impact Through social media platforms, especially Facebook and Twitter, beauty and personal care players are able to establish two-way communication with consumers. This social network connection gives them numerous advantages, such as p romoting their new product launches, increasing brand awareness, obtaining consumer feedback and much more. The free registration provides players with large potential consumers of millions of Facebook subscribers. Leading companies, including Unilever, Mandom, Oriflame and many others regard official Facebook accounts as an important part of their promotional campaigns to promote their brands. The Caring Colours colour cosmetics brand by Martha Tilaar even received a Social Media Award in 2012 for its active promotion through Facebook and Twitter. This type of marketing activity receives a positive reaction from the market by responding and replying to the company’s posts. Consumers also frequently post questions about particular products and receive prompt responses from t he company’s Facebook administrator. Outlook As the number of Facebook and Twitter users is expected to continue increasing during the forecast period, beauty and personal care manufacturers are predicted to intensify their promotions through social networking. With improved internet access and increasing use of computers, smartphones and tablets, social networking websites are becoming an essential means of promotion, with urban consumers, especially younger generations, being the main target. Besides introducing the new products, companies can also advertise their upcoming


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events through social media and attempt to gain more participants and raise brand awareness. Due to these benefits, more and more beauty and personal care companies are likely to use social media for free online advertising, particularly those players targeting young u rban consumers. Future impact Using social media enables beauty and personal care companies to create a consumer base community which may lead to word-of-mouth promotion in the long-run. Young Indonesian consumers tend to be influenced by their friends’ o pinions. As a result, Facebook, which allows information sharing among users, serves as a perfect platform. Nonetheless, this trend is only strong among younger generations, with older consumers rarely engaging in social media. As a result, companies which target senior citizens and older generations, such as those selling joint and heart supplements, are expected to continue using traditional marketing tools such as TV advertisements, magazines and in-store promotions.

MARKET DATA Table 1

Sales of Beauty and Personal Care by Category: Value 2007-2012

Rp billion

Baby and Child-specific Products Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care Excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Mass Cosmetics Beauty and Personal Care Source: Notes:

Table 2

2007

2008

2009

2010

2011

2012

471.0

534.2

600.9

684.1

784.3

906.4

2,802.6 1,600.1 203.5 841.7 4,076.2 616.8 3,577.8 3,577.8

3,104.2 1,810.7 224.5 995.6 4,521.5 713.5 3,784.6 3,784.6

3,410.2 1,976.1 243.3 1,143.0 4,907.9 803.0 3,971.7 3,971.7

3,632.0 2,223.0 268.3 1,321.3 5,338.4 902.2 4,148.3 4,148.3

3,909.5 2,558.0 304.8 1,567.3 5,855.9 1,030.9 4,374.7 4,374.7

4,232.8 2,941.1 350.1 1,820.2 6,579.0 1,187.8 4,635.2 4,635.2

3,551.5 11.3 81.8 703.7 12,935.9 17,461.5

5,118.5 11.9 96.5 786.4 15,631.4 20,472.9

6,217.1 11.6 106.2 880.7 17,735.5 22,882.9

7,494.4 13.5 115.2 1,011.5 20,078.8 25,557.3

9,167.1 16.7 127.9 1,149.5 23,141.9 29,018.1

11,326.9 20.2 144.5 1,323.0 26,998.3 33,348.7

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Premium/mass cosmetic sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care. Sum of categories is greater t han market size because the four men’s toiletries categories are included in men’s grooming as well as in bath and shower, deodorants, hair care and skin care.

Sales of Beauty and Personal Care by Category: % Value Growth 2007-2012

% current value growth

Baby and Child-specific Products Bath and Shower


2011/12

2007-12 CAGR

2007/12 Total

15.6 8.3

14.0 8.6

92.4 51.0

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Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care Excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Mass Cosmetics Beauty and Personal Care Source: Notes:

15.0 14.9 16.1 12.3 15.2 6.0 6.0 23.6 20.7 13.0 15.1 16.7 14.9

12.9 11.5 16.7 10.0 14.0 5.3 5.3 26.1 12.3 12.1 13.5 15.9 13.8

83.8 72.1 116.2 61.4 92.6 29.6 29.6 218.9 79.0 76.6 88.0 108.7 91.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Premium/mass cosmetic sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care. Sum of categories is greater t han market size because the four men’s toiletries categories are included in men’s grooming as well as in bath and shower, deodorants, hair care and skin care.

Table 3

Sales of Premium Cosmetics by Category: Value 2007-2012

Rp billion

Premium Baby and Childspecific Products Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Cosmetics Source: Note:

Table 4

2007

2008

2009

2010

2011

2012

0.2

0.2

0.1

0.1

0.1

0.1

2.0 184.0 1.7 137.6 42.8 317.5 1.6 16.4 703.7

2.2 197.4 1.8 155.0 49.7 359.6 1.8 18.8 786.4

2.7 211.4 2.1 173.5 54.0 414.6 2.2 20.2 880.7

4.0 244.5 2.5 191.2 61.4 483.7 2.8 21.3 1,011.5

5.1 258.4 3.0 213.2 70.1 572.8 3.8 23.0 1,149.5

6.3 279.4 3.9 239.8 81.3 682.3 4.6 25.3 1,323.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Premium/mass cosmetic sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.

Sales of Premium Cosmetics by Category: % Value Growth 2007-2012

% current value growth

Premium Baby and Child-specific Products Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Cosmetics


2011/12

2007-12 CAGR

2007/12 Total

6.7 24.9 8.1 26.4 12.5 15.9 19.1 20.7 9.9 15.1

-9.0 26.5 8.7 17.4 11.7 13.7 16.5 22.8 9.1 13.5

-37.6 223.6 51.8 122.7 74.2 90.1 114.9 179.4 54.6 88.0

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Source: Note:

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Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Premium/mass cosmetic sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.

Table 5

Beauty and Personal Care GBO Company Shares by Value 2008-2012

% retail value rsp Company Unilever Group Procter & Gamble Co, The L'Oréal Groupe Oriflame Cosmetics SA Lion Corp Mandom Corp Wings Corp Orang Tua Group Martha Tilaar Group Johnson & Johnson Inc Vitapharm PT Kao Corp Mustika Ratu Tbk PT PZ Cussons Plc Kino Sentra Industrindo PT Revlon Inc Beiersdorf AG Tempo Scan Pacific Tbk PT Amway Corp Estée Lauder Cos Inc Bina Karya Prima PT GlaxoSmithKline Plc Rohto Pharmaceutical Co Ltd Gloria Origita Cosmetics PT Nu Skin Enterprises Inc Galenium Pharmasia Laboratories PT Pigeon Corp Unza Nusantara Sdn Bhd Joenoes Ikamulya PT Medikon Prima Laboratories PT Reckitt Benckiser Plc LG Household & Health Care Ltd Shiseido Co Ltd Priskila Prima Makmur PT LVMH Moët Hennessy Louis Vuitton SA Gondo Wangi Tradisional Kosmetika PT Megasurya Mass PT Surya Dermato Medica Laboratories PT Denta PT Sanofi Others


2008

2009

2010

2011

2012

36.3 10.8 4.9 3.6 3.7 2.9 2.7 3.2 2.4 2.1 2.0 1.9 1.9 1.7 1.2

36.7 10.9 5.2 3.2 3.7 2.9 2.9 3.0 2.3 2.1 2.0 1.9 1.8 1.7 1.2

38.0 11.1 5.5 3.5 3.6 2.9 2.9 2.8 2.2 2.1 2.0 2.0 1.8 1.7 1.3

38.0 11.3 5.8 3.8 3.4 2.9 2.8 2.6 2.2 2.1 2.0 1.9 1.7 1.6 1.3

38.5 11.8 6.1 3.7 3.1 2.9 2.6 2.5 2.1 2.1 2.0 1.9 1.7 1.6 1.3

0.9 0.8 0.9 0.8 0.6 0.6 0.3 0.5

1.0 0.8 1.0 0.8 0.6 0.6 0.3 0.5

1.1 0.9 1.0 0.8 0.6 0.6 0.4 0.5

1.2 0.9 1.0 0.8 0.6 0.6 0.5 0.5

1.2 1.0 1.0 0.8 0.6 0.6 0.5 0.5

0.4

0.4

0.4

0.4

0.4

0.2 0.3

0.2 0.3

0.3 0.3

0.3 0.3

0.4 0.3

0.3 0.2 0.3 0.2

0.3 0.2 0.3 0.2

0.3 0.2 0.3 0.2

0.3 0.3 0.3 0.2

0.3 0.3 0.3 0.2

0.2 -

0.2 0.1

0.3 0.2

0.3 0.2

0.2 0.2

0.2 0.1 0.0

0.2 0.1 0.0

0.2 0.1 0.0

0.2 0.1 0.2

0.2 0.2 0.2

0.2

0.2

0.2

0.2

0.2

0.2 0.1

0.2 0.1

0.2 0.1

0.1 0.1

0.1 0.1

0.2 0.1 9.9

0.2 0.1 9.2

0.2 0.1 7.2

0.1 0.1 6.7

0.1 0.1 6.2

8


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100.0

100.0

100.0

100.0

100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 6

Beauty and Personal Care NBO Company Shares by Value 2008-2012

% retail value rsp Company Unilever Indonesia Tbk PT Procter & Gamble Home Products Indonesia PT L'Oréal Indonesia PT Orindo Alam Ayu PT Lion Wings PT Mandom Indonesia Tbk PT Sayap Mas Utama PT Ultra Prima Abadi PT Martha Tilaar Group Vitapharm PT Johnson & Johnson Indonesia PT Monica Hijau Lestari PT Mustika Ratu Tbk PT Kao Indonesia PT PZ Cussons Indonesia PT Sara Lee Body Care Indonesia Tbk PT Kinocare Era Kosmetindo PT Tempo Scan Pacific Tbk PT Revlon Inc Beiersdorf Indonesia PT Amindoway Jaya PT Estée Lauder Cos Inc Bina Karya Prima PT Sterling Products Indonesia PT Abbott Indonesia PT Gloria Origita Cosmetics PT Nusa Selaras Indonesia PT Galenium Pharmasia Laboratories PT Unza Vitalis PT Multi Indocitra Tbk PT Joenoes Ikamulya PT Medikon Prima Laboratories PT Reckitt Benckiser Indonesia PT LG Household & Health Care Ltd Shiseido Co Ltd Priskila Prima Makmur PT Kanebo Cosmetics Inc Gondo Wangi Tradisional Kosmetika PT Megasurya Mass PT


2008

2009

2010

2011

2012

36.3 10.6

36.7 10.7

36.5 10.9

36.5 11.1

37.1 11.6

3.3 3.6 3.7 2.9 2.7 3.2 2.3 2.0 2.1

3.5 3.2 3.7 2.9 2.9 3.0 2.3 2.0 2.1

3.7 3.5 3.6 2.9 2.9 2.8 2.2 2.0 2.1

3.9 3.8 3.4 2.9 2.8 2.6 2.2 2.0 2.1

4.1 3.7 3.1 2.9 2.6 2.5 2.2 2.0 2.0

1.5 1.9 1.6 1.7 1.5

1.6 1.8 1.6 1.7 1.5

1.7 1.8 1.7 1.7 1.5

1.8 1.7 1.6 1.6 1.5

1.9 1.7 1.6 1.6 1.5

1.2

1.2

1.3

1.3

1.3

1.0 0.9 0.8 0.8 0.6 0.6 0.3

1.1 0.9 0.8 0.8 0.6 0.6 0.3

1.1 1.0 0.9 0.8 0.6 0.6 0.4

1.1 1.1 0.9 0.8 0.6 0.6 0.5

1.1 1.1 1.0 0.8 0.6 0.6 0.5

0.5 0.4

0.5 0.4

0.5 0.4

0.5 0.4

0.5 0.4

0.2 0.3

0.2 0.3

0.3 0.3

0.3 0.3

0.4 0.3

0.2 0.3 0.3 0.2

0.3 0.3 0.3 0.2

0.3 0.3 0.3 0.2

0.3 0.3 0.3 0.2

0.3 0.3 0.3 0.2

0.2

0.2

0.3

0.3

0.2

-

0.1

0.2

0.2

0.2

0.2 0.1 0.2 0.2

0.2 0.1 0.2 0.2

0.2 0.1 0.2 0.2

0.2 0.1 0.2 0.2

0.2 0.2 0.2 0.2

0.2

0.2

0.2

0.1

0.1

9


Surya Dermato Medica Laboratories PT Cedefindo PT Faceshop Co Ltd, The Others Total Source:

Passport

0.1

0.1

0.1

0.1

0.1

0.1 0.1 9.0 100.0

0.1 8.5 100.0

0.1 7.9 100.0

7.5 100.0

6.9 100.0


Table 7

Beauty and Personal Care LBN Brand Shares by Value 2009-2012

% retail value rsp Brand Pond's Pepsodent Lifebuoy Pantene Sunsilk Clear Olay Total Effects Formula Lux Viva Bioré Citra Hazeline Rejoice Gatsby Sari Ayu The Body Shop Ciptadent Cussons Baby Johnson's Baby Giv Close-Up Nuvo Gillette Zwitsal Maybelline Citra Pixy Mustika Ratu Puteri Olay Oriflame Colour Zinc Oriflame Vaseline Braun Oral-B Shinzu'i L'Oréal Dermo-


Company Unilever Indonesia Tbk PT Unilever Indonesia Tbk PT Unilever Indonesia Tbk PT Procter & Gamble Home Products Indonesia PT Unilever Indonesia Tbk PT Unilever Indonesia Tbk PT Procter & Gamble Home Products Indonesia PT Ultra Prima Abadi PT Unilever Indonesia Tbk PT Vitapharm PT Kao Indonesia PT Unilever Indonesia Tbk PT Procter & Gamble Home Products Indonesia PT Mandom Indonesia Tbk PT Martha Tilaar Group Monica Hijau Lestari PT Lion Wings PT PZ Cussons Indonesia PT Johnson & Johnson Indonesia PT Sayap Mas Utama PT Unilever Indonesia Tbk PT Sayap Mas Utama PT Procter & Gamble Home Products Indonesia PT Sara Lee Body Care Indonesia Tbk PT L'Oréal Indonesia PT Unilever Indonesia Tbk PT Mandom Indonesia Tbk PT Mustika Ratu Tbk PT Mustika Ratu Tbk PT Procter & Gamble Home Products Indonesia PT Orindo Alam Ayu PT Lion Wings PT Orindo Alam Ayu PT Unilever Indonesia Tbk PT Procter & Gamble Home Products Indonesia PT Bina Karya Prima PT L'Oréal Indonesia PT

2009

2010

2011

2012

9.3 8.2 4.7 3.8

10.6 7.5 4.6 3.7

11.8 6.8 4.2 3.6

13.1 6.2 3.8 3.6

4.0 3.1 2.2

3.9 2.9 2.4

3.7 3.0 2.6

3.6 3.1 2.9

3.0 2.3 2.0 1.5 1.2 1.4

2.8 2.4 2.0 1.6 1.3 1.4

2.6 2.3 2.0 1.5 1.3 1.4

2.4 2.2 2.0 1.5 1.4 1.4

1.3 1.4 1.2 1.6 1.2 1.1

1.4 1.4 1.2 1.5 1.2 1.1

1.4 1.4 1.3 1.4 1.2 1.1

1.4 1.4 1.3 1.3 1.2 1.1

1.1 1.2 1.2 1.1

1.2 1.2 1.2 1.1

1.2 1.1 1.1 1.1

1.1 1.1 1.0 1.0

0.9

0.9

1.0

1.0

0.7 0.8 0.8 0.8 0.8 0.4

0.8 0.8 0.9 0.8 0.8 0.5

0.8 0.8 0.9 0.8 0.7 0.6

0.9 0.9 0.9 0.8 0.7 0.7

0.6 0.7 0.5 0.4 0.7

0.6 0.7 0.6 0.5 0.7

0.7 0.7 0.7 0.5 0.7

0.6 0.6 0.6 0.6 0.6

0.6 0.3

0.6 0.4

0.6 0.5

0.6 0.6

10


Expertise Nivea Body Oriflame Giordani Marina Others Total Source:

Passport

Beiersdorf Indonesia PT Orindo Alam Ayu PT Tempo Scan Pacific Tbk PT

0.4 0.5 0.5 30.3 100.0

0.4 0.5 0.5 29.5 100.0

0.5 0.5 0.5 29.5 100.0

0.6 0.5 0.5 29.2 100.0


Table 8

Penetration of Private Label in Beauty and Personal Care by Category: % Value Analysis 2007-2012

% retail value rsp

Bath and Shower Hair Care Source:

2007

2008

2009

2010

2011

2012

0.1 0.0

0.1 0.0

0.1 0.0

0.1 -

0.1 -

0.1 -


Table 9

Sales of Beauty and Personal Care by Distribution Format: % Value Analysis 2007-2012

% retail value rsp

Store-Based Retailing - Grocery Retailers -- Modern Grocery Retailers --- Convenience Stores --- Discounters --- Forecourt Retailers --- Hypermarkets --- Supermarkets -- Traditional Grocery Retailers --- Food/drink/tobacco specialists --- Independent Small Grocers --- Other Grocery Retailers - Non-Grocery Retailers -- Apparel specialist retailers -- Electronics and Appliance Specialist Retailers -- Health and Beauty Retailers --- Beauty Specialist Retailers --- Chemists/Pharmacies --- Parapharmacies/ Drugstores --- Other Health and


2007

2008

2009

2010

2011

2012

94.7 70.4 33.7

94.1 68.4 33.8

94.3 67.7 34.5

93.9 66.7 34.9

93.4 65.3 35.1

92.8 64.1 35.4

5.6 10.9 17.2 36.7

6.0 12.7 15.1 34.6

6.4 13.1 14.9 33.3

6.9 13.9 14.2 31.8

7.3 14.1 13.7 30.2

7.7 14.4 13.4 28.6

-

-

-

-

-

-

25.2

24.1

23.6

22.8

22.0

21.2

11.5

10.5

9.7

9.0

8.2

7.5

24.4 -

25.6 -

26.5 -

27.2 -

28.1 -

28.8 -

-

-

-

-

-

-

12.7

13.7

14.9

15.9

17.3

18.4

9.0

9.6

10.1

10.5

11.1

11.5

2.4 1.3

2.7 1.3

3.4 1.5

3.7 1.7

4.3 1.9

4.7 2.1

0.0

0.0

0.0

0.0

0.0

0.0

11


Beauty Retailers -- Home and Garden Specialist Retailers --- Furniture and Homewares Stores -- Mixed Retailers --- Department Stores --- Mass Merchandisers --- Variety Stores --- Warehouse Clubs -- Other Non-Grocery Retailers -- Outdoor Markets --- Other Other NonGrocery Retailers Non-Store Retailing - Direct Selling - Homeshopping - Internet Retailing - Vending Non-retail channels - Hair Salons Total Source:

Passport

-

-

-

-

-

-

-

-

-

-

-

-

8.4 8.4 3.3

8.9 8.9 3.0

8.7 8.7 2.9

8.6 8.6 2.7

8.4 8.4 2.5

8.1 8.1 2.3

3.2 0.1

2.9 0.1

2.8 0.1

2.6 0.1

2.4 0.1

2.2 0.1

5.1 5.1 0.0 0.1 0.1 100.0

5.8 5.8 0.0 0.1 0.1 100.0

5.6 5.6 0.0 0.1 0.1 100.0

6.0 5.9 0.0 0.1 0.1 100.0

6.5 6.5 0.0 0.1 0.1 100.0

7.1 7.1 0.0 0.1 0.1 100.0


Table 10

Sales of Beauty and Personal Care by Category and by Distribution Format: % Value Analysis 2012

% retail value rsp

Store-Based Retailing Grocery Retailers Modern Grocery Retailers Convenience Stores Discounters Forecourt Retailers Hypermarkets Supermarkets Traditional Grocery Retailers Food/drink/tobacco specialists Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Apparel specialist retailers Electronics and Appliance Specialist Retailers Health and Beauty Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Health and Beauty


BC

BS

CC

D

DP

F

99.6 65.7 48.0 10.0 0.0 0.0 19.5 18.5 17.7

98.6 80.2 40.2 8.5 0.0 0.0 16.8 14.9 40.0

78.0 33.5 20.0 5.3 0.0 0.0 8.0 6.8 13.5

79.0 62.2 51.5 6.0 0.0 0.0 23.4 22.2 10.6

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

77.0 22.0 21.4 6.5 0.0 0.0 8.4 6.5 0.7

0.0

0.0

0.0

0.0

0.0

0.0

14.5 3.2 33.9 0.0

33.5 6.5 18.4 0.0

11.0 2.5 44.5 0.0

1.6 9.0 16.9 0.0

0.0 0.0 0.0 0.0

0.3 0.3 55.0 0.0

-

-

-

-

-

-

15.1

12.8

22.2

10.8

0.0

39.5

2.3

10.0

18.0

9.0

0.0

38.0

9.6 3.2 0.0

2.6 0.2 0.0

2.4 1.8 0.0

1.4 0.4 0.0

0.0 0.0 0.0

0.9 0.6 0.0

12


Retailers Home and Garden Specialist Retailers Furniture and Homewares Stores Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Other Non-Grocery Retailers Outdoor Markets Other Other Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Non-retail channels Hair Salons Total

Store-Based Retailing Grocery Retailers Modern Grocery Retailers Convenience Stores Discounters Forecourt Retailers Hypermarkets Supermarkets Traditional Grocery Retailers Food/drink/tobacco specialists Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Apparel specialist retailers Electronics and Appliance Specialist Retailers Health and Beauty Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Health and Beauty Retailers Home and Garden Specialist Retailers Furniture and Homewares Stores Mixed Retailers Department Stores Mass Merchandisers


Passport

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

15.0 15.0 0.0 0.0 0.0 3.7

3.0 3.0 0.0 0.0 0.0 2.6

16.5 16.5 0.0 0.0 0.0 5.8

6.0 6.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 0.0

15.5 15.5 0.0 0.0 0.0 0.0

0.0 3.7

2.6 0.0

5.8 0.0

0.1 0.0

0.0 0.0

0.0 0.0

0.4 0.4 0.0 0.0 0.0 100.0

1.4 1.4 0.0 0.0 0.0 100.0

22.0 22.0 0.0 0.0 0.0 100.0

21.0 21.0 0.0 0.0 0.0 100.0

0.0 0.0 0.0 0.0 0.0 0.0

23.0 23.0 0.0 0.0 0.0 100.0

HC

MG

OC

SC

SU

SK

98.8 83.5 42.7 8.5 0.0 0.0 18.1 16.2 40.8

96.7 76.9 41.2 7.9 0.0 0.0 17.6 15.7 35.7

99.2 90.4 51.2 10.5 0.0 0.0 21.6 19.0 39.2

91.1 50.6 27.8 6.5 0.0 0.0 10.3 11.0 22.8

64.0 23.3 23.1 1.0 0.0 0.0 11.6 10.5 0.2

63.0 33.5 21.5 7.0 0.0 0.0 8.5 6.0 12.0

0.0

0.0

0.0

0.0

0.0

0.0

25.9 14.9 15.3 0.0

25.0 10.7 19.8 0.0

27.0 12.2 8.9 0.0

18.4 4.4 40.5 0.0

0.1 0.1 40.7 0.0

12.0 0.0 29.5 0.0

-

-

0.0

-

-

-

8.0

8.9

6.2

28.0

24.0

23.0

3.0

4.0

2.0

16.0

6.0

21.0

2.7 2.3 0.1

3.4 1.6 0.0

4.0 0.2 0.0

8.0 4.0 0.0

17.0 1.0 0.0

2.0 0.0 0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

2.3 2.3 0.0

6.3 6.3 0.0

1.9 1.9 0.0

12.0 12.0 0.0

16.6 16.6 0.0

5.5 5.5 0.0

13


Variety Stores Warehouse Clubs Other Non-Grocery Retailers Outdoor Markets Other Other Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Non-retail channels Hair Salons Total Source: Key:

Passport

0.0 0.0 5.0

0.0 0.0 4.6

0.0 0.0 0.8

0.0 0.0 0.5

0.0 0.0 0.1

0.0 0.0 1.0

5.0 0.0

4.6 0.0

0.8 0.0

0.4 0.0

0.1 0.0

0.0 1.0

0.7 0.7 0.0 0.0 0.0 0.5 0.5 100.0

3.3 3.3 0.0 0.0 0.0 100.0

0.8 0.8 0.0 0.0 0.0 100.0

8.9 8.9 0.0 0.0 0.0 100.0

36.0 36.0 0.0 0.0 0.0 100.0

37.0 37.0 0.0 0.0 0.0 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources BC = baby and child-specific products; BS = bath and shower; CC = colour cosmetics; D = deodorants; DP = depilatories; F = fragrances; HC = hair care; MG = men’s grooming; OC = oral care; SC = ski n care; SU = sun care; SK = sets/kits

Table 11

Forecast Sales of Beauty and Personal Care by Category: Value 2012-2017

Rp billion


Table 12

2012

2013

2014

2015

2016

2017

906.4

1,010.4

1,106.1

1,200.4

1,296.8

1,397.9

4,232.8 2,941.1 350.1 1,820.2 6,579.0 1,187.8 4,635.2 4,635.2

4,416.8 3,280.0 392.0 2,041.6 7,072.0 1,315.1 4,769.7 4,769.7

4,571.9 3,602.0 428.9 2,256.8 7,530.2 1,453.5 4,881.5 4,881.5

4,713.1 3,927.2 464.9 2,475.6 7,981.2 1,606.8 4,984.6 4,984.6

4,848.1 4,265.3 501.9 2,703.7 8,438.0 1,777.1 5,079.9 5,079.9

4,967.5 4,624.8 540.3 2,945.1 8,916.2 1,965.9 5,172.0 5,172.0

11,326.9 20.2 144.5 1,323.0 26,998.3 33,348.7

13,375.7 23.6 153.5 1,615.5 30,150.0 36,956.6

15,436.2 26.9 162.4 1,824.5 33,296.9 40,449.5

17,665.5 30.1 171.8 2,050.8 36,579.0 44,085.0

20,117.4 33.3 181.3 2,302.5 40,083.4 47,959.8

22,920.7 36.8 191.0 2,585.4 43,954.8 52,229.7

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium/mass cosmetic sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care. Sum of categories is greater t han market size because the four men’s toiletries categories are included in men’s grooming as well as in bath and shower, deodorants, hair care and skin care.

Forecast Sales of Beauty and Personal Care by Category: % Value Growth 2012-2017

% constant value growth 2012-17 CAGR


2012/17 TOTAL

14


Passport


9.1 3.3 9.5 9.1 10.1 6.3 10.6 2.2 2.2 15.1 12.8 5.7 14.3 10.2 9.4

54.2 17.4 57.2 54.3 61.8 35.5 65.5 11.6 11.6 102.4 82.4 32.2 95.4 62.8 56.6

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium/mass cosmetic sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care. Sum of categories is greater t han market size because the four men’s toiletries categories are included in men’s grooming as well as in bath and shower, deodorants, hair care and skin care.

Table 13

Forecast Sales of Premium Cosmetics by Category: Value 2012-2017

Rp billion

Premium Baby and Childspecific Products Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Cosmetics Source: Note:

Table 14

2012

2013

2014

2015

2016

2017

0.1

0.1

0.1

0.1

0.1

0.1

6.3 279.4 3.9 239.8 81.3 682.3 4.6 25.3 1,323.0

7.5 426.4 4.4 261.3 90.1 793.9 5.8 26.1 1,615.5

9.1 486.3 4.8 283.5 99.6 907.1 7.0 26.9 1,824.5

10.4 549.8 5.3 306.9 109.8 1,032.9 8.0 27.5 2,050.8

12.1 618.5 6.0 331.9 120.4 1,176.3 9.1 28.1 2,302.5

13.9 693.7 6.5 358.4 135.6 1,338.2 10.2 28.7 2,585.4

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium/mass cosmetic sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.

Forecast Sales of Premium Cosmetics by Category: % Value Growth 20122017

% constant value growth

Premium Baby and Child-specific Products Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care


2012-17 CAGR

2012/17 TOTAL

5.1 17.0 19.9 11.2 8.4 10.8 14.4 17.4

28.5 119.1 148.3 69.7 49.5 66.8 96.1 122.6

15


Passport

Premium Sets/Kits Premium Cosmetics Source: Note:

2.5 14.3

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium/mass cosmetic sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.

DEFINITIONS Explanations of words and/or terminology used in this report are as follows: BPOM – Badan Pengawas Obatdan Makanan or NA-DFC (National Agency of Drug and Food Control). Known as Ditjen POM prior to 2001, the new agency not only has four divisions to govern Indonesia’s food and drugs operations but also has a global network to monitor new discoveries in the field of medicine. 









Jamu: Indonesian herbal medicine made from natural ingredients which can function a s health and beauty products. What makes jamu unique compared with other types of OTC herbal/traditional products is the combination of multiple natural i ngredients locally formulated for either treating sickness or as health supplements. Jamu’s active ingredients can also be used in cosmetic products. For example, akarmanis is used as a whitening ingredient in moisturisers and cleansers. Due to the difficulties in clinical testing o f the multiple active ingredients present in these products, jamu is still not recognised in the standard field of Western OTC products in Indonesia. Mini-mart: introduced in 1998, mini-marts are the modern concept of traditional provisions shops. Air-conditioned and with a standard shop size of a minimum of 60 sq m, mini-marts such as Indomaret provide 2,000 to 3,500 basic products and usually have extended opening hours. Tokokelontongan: an independent traditional neighbourhood store which carries food and non-food items and is usually family-operated. Commonly found across Indonesia and normally located in the owner’s home. Warung: a small owner-operated neighbourhood off-trade outlet akin to a kiosk which carries a limited range of products, usually toiletries, food and drink.

SOURCES Sources used during research included the following: Summary 1

Research Sources

Trade Associations

Cosmetics Association of Indonesia (PERKOSMI) Direct Selling Association of Indonesia (APLI)

Trade Press

bisnis.com female.kompas.com Indonesia Finance Today Indonesian Business Magazine Kompas Newspaper Marketing Biweekly Magazine MIX Magazine


13.3 95.4

16


Passport

Reuters Soap Perfumery & Cosmetics SWA Magazine Source:

Euromonitor International


17

Beauty and Personal Care in Indonesia

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