Beauty and Personal Care - Indonesia

Beauty and Personal Care - Indonesia

Euromonitor International : Industry Overview

June 2011

Beauty and Personal Care Indonesia

Euromonitor International Page i

List of Contents and Tables

Executive Summary ................................................................................................................................................ 1

Marginally Slower Value Growth Due To Minimal Price Increases ........................................................................ 1

Economic Recovery Boosts Volume Growth of Most Products ................................................................................. 1

Unilever Retains Its Leadership Through Product Innovation and Promotion ......................................................... 1

Modern Retailers See Rising Shares Thanks To Rapid Outlet Expansion ................................................................. 1

Respectable Growth Ahead for Beauty and Personal Care in Indonesia .................................................................. 1

Key Trends and Developments .............................................................................................................................. 1

Manufacturers Encourage Consumers To Pamper Themselves at Home ................................................................. 2

Beauty and Personal Care Products See Modest Price Increases ............................................................................ 2

Illegal Products Flood the Domestic Market ............................................................................................................ 3

Expansion of the Consumer Base To Reach the Younger Population ....................................................................... 4

Companies Expand Through Acquisition and Public Offering ................................................................................. 5

Market Data ............................................................................................................................................................ 6

Table 1 Sales of Beauty and Personal Care by Category: Value 2005-2010 .................................. 6

Table 2 Sales of Beauty and Personal Care by Category: % Value Growth 2005-2010 ................. 6

Table 3 Sales of Premium Cosmetics by Category: Value 2005-2010 ........................................... 7

Table 4 Sales of Premium Cosmetics by Category: % Value Growth 2005-2010 .......................... 7

Table 5 Beauty and Personal Care Company Shares by NBO 2006-2010 ...................................... 8

Table 6 Beauty and Personal Care Company Shares by GBO 2006-2010 ...................................... 9

Table 7 Beauty and Personal Care Brand Shares by GBN 2007-2010 ........................................... 9

Table 8 Penetration of Private Label by Category 2005-2010 .......................................................10

Table 9 Sales of Beauty and Personal Care by Distribution Format: % Analysis 2005-2010 ..................................................................................................................................11

Table 10 Sales of Beauty and Personal Care by Category and by Distribution Format: % Analysis 2010 ...............................................................................................................11

Table 11 Forecast Sales of Beauty and Personal Care by Category: Value 2010-2015 ...................12

Table 12 Forecast Sales of Beauty and Personal Care by Category: % Value Growth 2010-2015 .........................................................................................................................13

Table 13 Forecast Sales of Premium Cosmetics by Category: Value 2010-2015 ............................13

Table 14 Forecast Sales of Premium Cosmetics by Category: % Value Growth 2010-2015 ..................................................................................................................................14

Definitions ...............................................................................................................................................................14

Summary 1 Research Sources ..............................................................................................................15


Euromonitor International Page 1

BEAUTY AND PERSONAL CARE IN INDONESIA

EXECUTIVE SUMMARY Marginally Slower Value Growth Due To Minimal Price Increases In 2010, beauty and personal care in Indonesia maintained its robust double-digit current value growth; albeit that this was marginally slower than in 2009. The slower value growth in 2010 was driven by less significant price increases applied to many products, given the lower inflation rate in 2010 than in 2009, thus reducing the need for manufacturers to increase the price of beauty and personal care products so steeply. The more intense competition amongst existing and emerging brands also prompted manufacturers to apply modest price increases in 2010. Economic Recovery Boosts Volume Growth of Most Products After suffering from slowing growth in volume terms in 2009 due to unfavourable economic conditions, which led to lower consumer purchasing power, 2010 was a brighter year for many beauty and personal care products. The majority of products in fact experienced faster volume growth in 2010 compared with 2009. Faster volume growth was also driven by manufacturers’ activities in terms of launching new products and variants, as well as their strong promotional efforts. Improved volume growth, however, did not lead to faster current value growth, as the impact of minimal price increases was stronger than the acceleration of volume growth. Unilever Retains Its Leadership Through Product Innovation and Promotion Unilever Indonesia remained the undisputed leader in beauty and personal care in 2010, mainly driven by its strong investment in new product developments and promotions. Throughout 2010 the company introduced new packaging and improved formulations for existing brands, including Pond’s and Dove. It also launched new variants for brands such as Sunsilk, Vaseline and Axe to cater to the needs of different consumers. In terms of promotion, the company frequently held below-the-line activities such as music concerts and beauty classes, all strongly supported by investment in mass media, especially television advertisements. Unilever’s various efforts to increase overall value growth paid off, as it maintained the clear leadership, although its share was static in 2010 due to the stronger growth of other prominent multinationals in the industry, especially Procter & Gamble Home Products Indonesia and L'Oréal Indonesia. Modern Retailers See Rising Shares Thanks To Rapid Outlet Expansion In 2010 several distribution channels, including supermarkets/hypermarkets, health and beauty retailers, chemists/pharmacies and convenience stores, witnessed increasing shares in beauty and personal care in value terms. This was mainly thanks to the rapid outlet expansion of modern retailers, in line with the establishment of shopping malls in many cities in the country. Besides offering price promotions on a regular basis, these modern outlets are in strategic locations and offer a wide product selection in convenient premises. Respectable Growth Ahead for Beauty and Personal Care in Indonesia Overall beauty and personal care is expected to continue performing well throughout the forecast period. Basic necessities including hair care, oral care, skin care and bath and shower products will still dominate up to 2015, with more efforts expected from manufacturers to encourage higher frequency of use of these essential products. Meanwhile, manufacturers of niche products such as deodorants, men’s grooming and fragrances are likely to focus their efforts on expanding the consumer base by launching new variants to meet the needs of specific consumers. Inevitable price increases due to higher production costs, and the expected shift of a number of consumers from mass to masstige brands, may further boost value growth in the forecast period.

KEY TRENDS AND DEVELOPMENTS



Manufacturers Encourage Consumers To Pamper Themselves at Home During the review period there were an increasing number of beauty salons and spas being opened in many regions in Indonesia, partly driven by franchising agreements. They included My Salon and Martha Tilaar Salon & Day Spa. In addition to these franchised brands, there were also abundant independent salon and spa brands being opened towards 2010, offering various beauty services. Given this trend, manufacturers of beauty and personal care products in the country introduced new products to encourage consumers to pamper themselves in the comfort of their homes, rather than visiting salons and spas to get beauty treatments. Current Impact In 2010 Monica Hijau Lestari introduced The Body Shop Spa Wisdom collection, which was introduced in three different variants: Spa Wisdom Polynesia, Spa Wisdom Japan and Spa Wisdom Morocco. With its extensive variety of products, from body wash/shower gel to general purpose body care products, consumers were able to pamper themselves from the comfort of their own homes. As well as saving consumers money, it also offered busy consumers much more convenience. Another company, Procter & Gamble Home Products Indonesia, introduced Rejoice shampoo, which contains cream bath essence, to attract consumers who want to have a cream bath hair treatment at home, instead of going to a salon. Outlook The expected increase in consumer awareness of beauty and appearance is likely to drive the establishment of beauty salons and spas in many regions in the country over the review period. Growth will be further fuelled by franchise agreements. Given this threat coming from salons and spas, manufacturers of beauty and personal care products are likely to continue to introduce spa-at-home products in the forecast period. If its newly-launched The Body Shop Spa Wisdom collection is successful, Monica Hijau Lestari may launch new additions to its range in the short-term. Meanwhile, Procter & Gamble is expected to continue promoting its Rejoice shampoo by emphasising its value-added benefit, the cream bath essence. Future Impact Consumers are expected to spend more on pampering themselves as economic conditions recover. Instead of going to salons and spas, busy consumers may carry out such tasks at home. With spa-at-home products promising similar-to-salon results at much lower prices, consumers will continue to carry out such tasks at home. In order to attract further consumers, retailers are expected to continue to introduce more spa brands. More shelf space will also be allocated to these products. Retailers such as The Body Shop are likely to introduce more extensive ranges of spa products to provide consumers with a greater home spa experience. Hair care manufacturers are also likely to introduce high-quality hair masks, whereby consumers can condition their hair in the comfort of their own homes. Local players may follow the strategy pioneered by multinationals, but targeting different consumer groups, those on middle to low incomes. Beauty and Personal Care Products See Modest Price Increases In 2010, manufacturers applied lower price increases to many beauty and personal care products compared with the previous year, for several reasons. Firstly, the intensified competition amongst existing and emerging brands prompted beauty and personal care manufacturers to apply only modest price increases in 2010. Indeed, a number of manufacturers still aimed to widen the consumer base for their products, thus they were more conservative with regard to price increases in 2010. Secondly, 2010 witnessed the Rupiah exchange rate against the US dollar appreciating from Rp10,400/USD in 2009 to Rp9,000/USD in 2010. The huge flow of foreign capital into Indonesia, coupled with the depreciation of the US dollar against other currencies indeed made the Rupiah appreciate to below Rp9,000 in the last quarter of 2010. Understandably, price increases of imported beauty and personal care products and products which are manufactured using imported raw materials were modest in 2010. Current Impact Given the intensified competition in the market, manufacturers launched affordable products. For example, L'Oréal Indonesia introduced L'Oréal Paris Smooth Intense hair mask, which is priced at only Rp3,900 for a



15ml sachet. The Oral-B toothbrush from Procter & Gamble Home Products Indonesia, which is known to be more expensive compared with the Formula brand, was offered at only Rp2,000 per unit in 2010. The lower price increases in beauty and personal care in 2010 than in 2009, however, were unable to significantly boost the volume growth of many products. Already established products such as bar soap, toothbrushes and toothpaste continued to witness decelerating volume growth in 2010 compared with the previous year. Driven by modest price increases, beauty and personal care experienced decelerating current value growth in 2010 compared with 2009. Outlook Further appreciation of the Rupiah exchange rate against the US dollar is unlikely to take place in the short-term. Based on calculations by the Bank of Indonesia, 2011 is expected to see higher inflation rates, which could lower the value of the Rupiah. The Bank of Indonesia predicts that the Rupiah exchange rate against the US dollar will stay above Rp9,300/USD in the short-term. Given that the strong appreciation of the Rupiah will discourage exports, thus raising concerns amongst Indonesian exporters, the Indonesian government is likely to carry out an intervention to offset the Rupiah, so that the exchange rate will not be too far from Rp9,000/USD. This situation, therefore, is expected to provide a reason for manufacturers to apply price increases to their beauty and personal care products in the forecast period. Furthermore, the Indonesian government plans to increase utility prices such as electricity and telephone rates in the short-term, which will in turn increase the production costs of beauty and personal care products. Manufacturers will therefore have to increase their product prices in order to compensate for rising production costs in order to maintain profits. Future Impact With continued price increases expected, at least in the short-term, various beauty and personal care products may be adversely affected. On the whole, slower volume growth is expected to be experienced, especially for relatively mature products such as standard shampoo, bar soap, toothbrushes and toothpaste, thus pulling down the overall performance of beauty and personal care in the forecast period. Volume demand, however, will still see positive growth in beauty and personal care, despite the price increases, but it is believed that the price increases are likely to lead to some consumers buying products less frequently. Nonetheless, manufacturers can minimise the negative impact of various price increases on their sales by introducing a wider variety of pack sizes, to allow consumers with lower disposable incomes to purchase smaller quantities. Manufacturers should also try to come up with more economical types of packaging, such as sachets for standard shampoo, to suppress the cost of production, to allow them to minimise price increases as much as possible. Illegal Products Flood the Domestic Market The Indonesian government has put up a fight against illegal and fake beauty and personal care products since 2009 through police raids and stricter regulation on the registration procedures for imported products. These efforts by the government, however, did not manage to curb the circulation of illegal imported beauty and personal care products during 2010. In fact, 2010 witnessed an influx of cheap imported products, especially from China, Taiwan, Thailand and South Korea. Many of these imported products are illegal products which have not followed the registration process regulated by BPOM (The National Agency of Food and Drugs Control). According to the Indonesian Finance Minister, many cheap imported goods from China – including beauty and personal care products – began to flood the country in the second quarter of 2010 as a result of the implementation of ACFTA (ASEAN – China Free Trade Agreement), which became fully effective from 1 January 2010. With the implementation of zero tariffs, imported products from China became even more affordable, even to middle- and low-income consumers. Current Impact



According to PERKOSMI (The Indonesian Cosmetics Association), the import value of hair care and oral care products increased by 25% and 32% respectively in 2010 compared with the previous year. Meanwhile, many illegal imported cosmetic products entering the country in 2010 were skin care products with whitening properties. They usually contain hydroquinone, a whitening agent which is not allowed by the BPOM. This trend had a negative impact on the performance of domestic companies – especially those smaller companies which offer affordable products targeting middle- to low-income consumers. A number of consumers prefer to purchase these illegal imported products, as some of them are priced even lower than local products. This trend, however, had almost no impact on the performance of bigger companies in beauty and personal care, such as Unilever, Procter & Gamble and L'Oréal, as they have their own loyal consumer base which usually comes from the middle- to high-income groups; these consumers are unlikely to take risks by switching to such imported products, despite their much lower prices. Outlook The regulations regarding import limitations on beauty and personal care products are expected to be even stricter in the forecast period. Given the low adherence to this law in the country, however, the government’s efforts are unlikely to significantly curb the circulation of illegal imported products in the country. Furthermore, the Indonesian Directorate General of Customs and Excise cited that following the ACFTA, Indonesia will comply with the ASEAN-Korea Free Trade Agreement in 2011, and with the Indonesia-Japan Economic Partnership Agreement in 2013. In the medium- to long-term, there will also be the Australia-ASEAN-New Zealand Free Trade Agreement and the ASEAN-India Free Trade Agreement. All of these are likely to further boost the value sales of imported beauty and personal care products in the country in the forecast period. Future Impact In order to protect domestic companies, as well as the domestic market from smuggled goods, the Indonesian government should closely supervise the issuance of import documents for all imported products. In addition, the government should also encourage domestic companies to export their products and to promote local products to other countries. Meanwhile, local companies should emphasise the safety of their beauty and personal care products compared with those of illegally imported products. The government believes that BPOM’s efforts to fight against illegal and fake beauty and personal care products through police raids and stricter registration processes will be able to reduce the circulation of illegal and fake products in the country, thus protecting the legitimate manufacturers of beauty and personal care products. With the expected influx of imported products from other countries during the forecast period, the government, through BPOM, should work harder to curb the circulation of illegal products, especially in the domestic beauty and personal care market. Expansion of the Consumer Base To Reach the Younger Population In 2010 Indonesia had a relatively young population, with 27% of the population under 15 years of age, according to GMID data from Euromonitor International. Urbanisation and globalisation have led these young consumers to be exposed to beauty routines at a younger age. Young girls see young actresses on television or in magazines with cosmetics, and they want to imitate them. According to trade sources, at the beginning of the review period consumers started to use cosmetics when they were over 20, or when they started their studies at university. Towards 2010, however, girls in the 13-17 age range, or those in junior high school, started to use various beauty and personal care products, such as lip gloss, mass fragrances, deodorants and various skin care products. Current Impact Growing use of social networks such as Facebook and Twitter by beauty and personal care players as part of their marketing tools helped to boost product exposure amongst teenagers. In addition, many companies catered to this expanding market by introducing more beauty and personal care products targeting young consumers, with marketing and advertising also using young girls during 2010. For example, Unilever Indonesia created a “Rexona Goes to School” campaign, with television commercials showing the Unilever team going to junior high schools to encourage students to apply deodorant. Meanwhile, another company, Pharma Health Care, also



launched the “Lactacyd Teen 2010 – Show Your Talent” event to show the importance of using feminine washes at a young age. In addition, the expansion of the consumer base was apparent in skin care, as Unilever encouraged women around 30 to start using anti-agers. These trends, which led to the expansion of the consumer base, helped to boost the volume growth of a number of beauty and personal care products, especially lip products, which witnessed volume growth of 12% in 2010; faster than the 8% growth in 2009. Indeed, lip products are the most used colour cosmetics across all age groups, with younger girls using lip gloss and teens and adults wearing lipstick. Driven by this trend, mass fragrances and deodorants also enjoyed accelerating volume growth in 2010 compared with the previous year, as more consumers were using these products at a younger age. Outlook By 2015, the young population is expected to comprise a bigger percentage of the Indonesian population. Urbanisation and globalisation are also likely to continue, thus exposing more young girls to beauty products at a younger and younger age. Going into the forecast period, more beauty and personal care companies are also expected to use social media, especially Facebook and Twitter, to appeal to young consumers. The number of active Facebook users, as well as other social media, such as Twitter, is predicted to continue rising in the forecast period, driven by improved internet penetration and changing lifestyles amongst the younger generation. All of these factors will help to increase product exposure amongst the younger generation. Future Impact Despite the fact that Indonesia is expected to see an ageing population over the forecast period, the young consumer group will become an important target group for beauty and personal care players. This is because young consumers often look to their peers for recommendations, which is likely to bring about a positive impact for manufacturers. As various beauty and personal care products are likely to be used by teens (especially teen girls) at a younger age in the forecast period, several products will show respectable performances to 2015. These include colour cosmetics (especially lip products), mass fragrances, deodorants and skin care. Global social networking sites such as Facebook, Twitter and MySpace will remain an important aspect of young people’s lives moving into the future, and this will be an ideal way for youth-oriented brand owners to target this generation through advertising, deals and promotions. Companies can use Twitter to send messages about sales and other promotions, and join Facebook to gather new fans or members. Companies with access to more technical expertise can also create home-made videos about their products to post on YouTube. Furthermore, companies may introduce more flavoured lip gloss and lipstick, and also cosmetics packaged in glittery and sparkly packaging to attract young girls. Beauty and personal care players may also involve young girls as part of their promotional tools. Companies Expand Through Acquisition and Public Offering Plans for or ongoing processes of acquisition and public offering featured in the Indonesian beauty and personal care market in 2010, with these processes expected to be completed in early 2011. The leading player in beauty and personal care, Unilever Indonesia, announced its plan to acquire Sara Lee Body Care Indonesia in 2010. The proposal was approved by the government body in charge of the competitive environment in Indonesia – Monitoring Committee of Competitive Environment (Komisi Pengawas Persaingan Usaha – KPPU) in October 2010, and the acquisition is expected to be completed by December 2010. Meanwhile, a prominent domestic company, Martha Tilaar Group, has submitted a proposal to go public in late 2010, and it aims to use the funds to build a new factory, thus expanding its presence, especially in the beauty and personal care market. Current Impact These acquisitions and public offerings had a limited impact on the performance of beauty and personal care in Indonesia as a whole during 2010. Instead, this trend slightly affected the performance of respectable companies. For example, the process of Sara Lee’s acquisition by Unilever was not considered to be communicated to the employees in a transparent manner; therefore dozens of Sara Lee workers held a strike in November 2010, demanding severance pay or compensation. The rallies prompted the company to stop production of its beauty and personal care products. Meanwhile, the trend brought positive consequences to Unilever and Martha Tilaar Group, as they gained prestige through acquisition and public offering. Consumers



also viewed these companies in a positive way, which further resulted in the respectable performance of these companies in the domestic beauty and personal care market in 2010. Outlook Going into 2011, Unilever will officially become the major shareholder of Sara Lee in Indonesia, thus creating consolidation in the competitive environment of beauty and personal care products in the country. During the forecast years, other prominent multinationals in beauty and personal care, such as Procter & Gamble and L'Oréal, could acquire other smaller companies in order to strengthen their presence in the domestic market, in which potential for growth is still strong, given the huge population and the growing trend towards beauty. Meanwhile, Martha Tilaar Group will officially become a public company – the company name will change to Martina Berto Tbk PT – by 2011. Other private local companies, such as Kinocare Era Kosmetindo, may also plan to go public some time in the forecast period, to expand their beauty and personal care business in the domestic market. Future Impact According to trade sources, the acquisition of Sara Lee by Unilever is not likely to significantly affect the competitive environment, as the company’s name, as well as the marketing of Sara Lee in Indonesia, will remain unchanged on acquisition. Meanwhile, Martha Tilaar Group is going to use the funds it will get from the public offering to build a new factory in Cikarang, thus boosting its production capacity. The company is therefore expected to enjoy a rising value share in the beauty and personal care market in the country going into the forecast period. The competitive environment will be further spiced up by the entry of new players, such as Akasha Wira International, the owner of the Ades and Nestlé Pure Life brands of bottled water. In September 2010 the company acquired a small local company, Damai Sejahtera Garuda, which is involved in cosmetics.

MARKET DATA

Table 1 Sales of Beauty and Personal Care by Category: Value 2005-2010

Rp billion 2005 2006 2007 2008 2009 2010 Baby Care 375.3 419.8 459.6 521.2 586.0 666.6 Bath and Shower 2,308.9 2,557.9 2,802.6 3,104.2 3,410.2 3,632.0 Colour Cosmetics 1,297.8 1,442.2 1,598.0 1,808.0 1,973.1 2,168.9 Deodorants 165.8 186.2 203.5 224.5 243.3 268.3 Depilatories - - - - - - Fragrances 654.9 733.8 841.7 995.6 1,143.0 1,321.3 Hair Care 3,477.5 3,771.7 4,076.2 4,521.5 4,907.9 5,338.4 Men's Grooming 485.3 542.1 616.8 713.5 803.0 902.2 Oral Care 3,135.4 3,367.1 3,577.8 3,784.6 3,971.7 4,148.3 Oral Care excl Power 3,135.4 3,367.1 3,577.8 3,784.6 3,971.7 4,148.3 Toothbrushes Skin Care 1,906.8 2,842.6 3,548.0 5,114.1 6,212.3 7,488.8 Sun Care 11.1 10.0 10.5 11.1 10.7 12.4 Sets/Kits 63.0 73.1 81.8 96.5 106.2 115.2 Premium Cosmetics 538.5 647.1 702.6 784.9 878.9 1,003.7 Mass Cosmetics 9,722.6 11,390.2 12,919.5 15,612.0 17,713.6 20,008.2 Beauty and Personal Care 13,598.4 15,628.4 17,443.8 20,452.0 22,859.3 25,478.9 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store

checks, trade interviews, trade sources Note 1: Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics,

deodorants, fragrances, hair care, sets/kits, skin care and sun care. Note 2: Sum of categories is greater than 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 2 Sales of Beauty and Personal Care by Category: % Value Growth 2005-2010



% current value growth 2009/10 2005-10 CAGR 2005/10 TOTAL Baby Care 13.7 12.2 77.6 Bath and Shower 6.5 9.5 57.3 Colour Cosmetics 9.9 10.8 67.1 Deodorants 10.3 10.1 61.8 Depilatories - - - Fragrances 15.6 15.1 101.7 Hair Care 8.8 9.0 53.5 Men's Grooming 12.4 13.2 85.9 Oral Care 4.4 5.8 32.3 Oral Care excl Power Toothbrushes 4.4 5.8 32.3 Skin Care 20.5 31.5 292.7 Sun Care 16.5 2.2 11.5 Sets/Kits 8.5 12.8 83.0 Premium Cosmetics 14.2 13.3 86.4 Mass Cosmetics 13.0 15.5 105.8 Beauty and Personal Care 11.5 13.4 87.4 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store

checks, trade interviews, trade sources Note 1: Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics,

deodorants, fragrances, hair care, sets/kits, skin care and sun care. Note 2: Sum of categories is greater than market size because the four men’s toiletries categories are included in men’s


Table 3 Sales of Premium Cosmetics by Category: Value 2005-2010

Rp billion 2005 2006 2007 2008 2009 2010 Premium Baby Care 0.2 0.2 0.2 0.2 0.1 0.1 Premium Bath and Shower 1.8 2.5 1.9 2.1 2.6 3.8 Premium Colour Cosmetics 149.2 173.1 183.8 197.1 211.1 238.6 Premium Deodorants 1.5 1.7 1.7 1.8 2.1 2.5 Premium Fragrances 120.6 124.0 137.6 155.0 173.5 191.2 Premium Hair Care 26.2 35.3 41.6 48.2 52.3 59.4 Premium Skin Care 225.4 292.9 317.5 359.6 414.6 483.7 Premium Sun Care 1.3 1.7 1.9 2.2 2.5 3.1 Premium Sets/Kits 12.3 15.7 16.4 18.8 20.2 21.3 Premium Cosmetics 538.5 647.1 702.6 784.9 878.9 1,003.7 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store

checks, trade interviews, trade sources Note: Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics,

deodorants, fragrances, hair care, sets/kits, skin care and sun care.

Table 4 Sales of Premium Cosmetics by Category: % Value Growth 2005-2010

% current value growth 2009/10 2005-10 CAGR 2005/10 TOTAL Premium Baby Care 5.9 -12.4 -48.5 Premium Bath and Shower 45.8 16.3 112.4 Premium Colour Cosmetics 13.0 9.8 59.9 Premium Deodorants 23.3 11.3 70.8 Premium Fragrances 10.2 9.7 58.6 Premium Hair Care 13.7 17.8 126.6 Premium Skin Care 16.7 16.5 114.6 Premium Sun Care 23.9 18.4 132.3 Premium Sets/Kits 5.6 11.7 73.6 Premium Cosmetics 14.2 13.3 86.4 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store

checks, trade interviews, trade sources



Note: Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.

Table 5 Beauty and Personal Care Company Shares by NBO 2006-2010

% retail value rsp Company 2006 2007 2008 2009 2010 Unilever Indonesia Tbk PT 33.9 34.8 35.9 36.1 36.1 Procter & Gamble Home 10.8 9.9 10.7 10.9 11.1 Products Indonesia PT L'Oréal Indonesia PT 3.3 3.4 3.3 3.5 3.7 Lion Wings PT 3.5 3.7 3.7 3.7 3.6 Orindo Alam Ayu PT 2.5 3.1 3.6 3.2 3.3 Mandom Indonesia Tbk PT 2.6 2.9 2.9 2.9 3.0 Sayap Mas Utama PT 3.0 2.9 2.8 2.9 2.9 Ultra Prima Abadi PT 3.6 3.5 3.2 3.0 2.8 Martha Tilaar Group 2.6 2.5 2.3 2.3 2.2 Johnson & Johnson 2.1 2.1 2.1 2.1 2.1 Indonesia PT Vitapharm PT 2.3 2.2 2.0 2.0 2.0 Mustika Ratu Tbk PT 2.1 2.0 1.9 1.8 1.8 Monica Hijau Lestari PT 1.4 1.5 1.5 1.6 1.7 PZ Cussons Indonesia PT 1.8 1.8 1.7 1.7 1.7 Kao Indonesia PT 1.7 1.7 1.6 1.6 1.7 Sara Lee Body Care 1.7 1.6 1.5 1.5 1.5 Indonesia Tbk PT Kinocare Era Kosmetindo 1.0 1.1 1.2 1.3 1.3 PT Tempo Scan Pacific Tbk PT 0.8 0.9 1.0 1.1 1.1 Revlon Inc 0.8 0.8 0.9 0.9 1.0 Beiersdorf Indonesia PT 0.7 0.8 0.8 0.8 0.9 Amindoway Jaya PT 1.0 0.9 0.8 0.8 0.8 Bina Karya Prima PT 0.5 0.6 0.6 0.6 0.6 Estée Lauder Cos Inc 0.7 0.7 0.6 0.6 0.6 Abbott Indonesia PT 0.4 0.4 0.5 0.5 0.5 Sterling Products 0.3 0.4 0.4 0.4 0.4 Indonesia PT Gloria Origita 0.4 0.4 0.4 0.4 0.4 Cosmetics PT Galenium Pharmasia 0.3 0.3 0.3 0.3 0.3 Laboratories PT Multi Indocitra Tbk PT 0.3 0.3 0.3 0.3 0.3 Nusa Selaras Indonesia PT 0.3 0.2 0.2 0.2 0.3 Unza Vitalis PT 0.2 0.3 0.2 0.3 0.3 Joenoes Ikamulya PT 0.4 0.3 0.3 0.3 0.3 Reckitt Benckiser 0.2 0.2 0.2 0.2 0.3 Indonesia PT Medikon Prima 0.2 0.2 0.2 0.2 0.2 Laboratories PT Shiseido Co Ltd 0.2 0.2 0.2 0.2 0.2 Gondo Wangi Tradisional 0.2 0.2 0.2 0.2 0.2 Kosmetika PT Megasurya Mass PT 0.2 0.2 0.2 0.2 0.2 Kanebo Cosmetics Inc 0.2 0.2 0.2 0.2 0.2 Kosmindo PT 0.3 0.3 0.2 0.2 0.2 Denta PT 0.2 0.2 0.2 0.2 0.2 Priskila Prima Makmur PT 0.1 0.1 0.1 0.1 0.1 Avon Indonesia PT 0.7 - - - - Others 10.3 10.1 9.1 8.7 8.2 Total 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store




Table 6 Beauty and Personal Care Company Shares by GBO 2006-2010

% retail value rsp Company 2006 2007 2008 2009 2010 Unilever Group 33.9 34.8 35.9 36.1 36.2 Procter & Gamble Co, The 11.1 10.2 11.0 11.1 11.3 L'Oréal Groupe 4.9 5.0 4.9 5.2 5.5 Lion Corp 3.5 3.7 3.7 3.7 3.6 Oriflame Cosmetics SA 2.5 3.1 3.6 3.2 3.3 Mandom Corp 2.6 2.9 2.9 2.9 3.0 Wings Corp 3.0 2.9 2.8 2.9 2.9 Orang Tua Group 3.6 3.5 3.2 3.0 2.8 Martha Tilaar Group 2.7 2.6 2.4 2.3 2.2 Johnson & Johnson Inc 2.2 2.1 2.1 2.1 2.1 Vitapharm PT 2.3 2.2 2.0 2.0 2.0 Kao Corp 2.1 2.0 1.9 1.9 2.0 Mustika Ratu Tbk PT 2.1 2.0 1.9 1.8 1.8 PZ Cussons Plc 1.8 1.8 1.7 1.7 1.7 Sara Lee Corp 1.7 1.6 1.5 1.5 1.4 Kino Sentra Industrindo 1.0 1.1 1.2 1.3 1.3 PT Revlon Inc 0.9 0.9 0.9 1.0 1.1 Tempo Scan Pacific Tbk PT 0.8 0.8 0.9 1.0 1.0 Beiersdorf AG 0.7 0.8 0.8 0.8 0.9 Amway Corp 1.0 0.9 0.8 0.8 0.8 Bina Karya Prima PT 0.5 0.6 0.6 0.6 0.6 Estée Lauder Cos Inc 0.7 0.7 0.6 0.6 0.6 Rohto Pharmaceutical Co 0.4 0.4 0.5 0.5 0.5 Ltd GlaxoSmithKline Plc 0.3 0.4 0.4 0.4 0.4 Gloria Origita 0.4 0.4 0.4 0.4 0.4 Cosmetics PT Galenium Pharmasia 0.3 0.3 0.3 0.3 0.3 Laboratories PT Pigeon Corp 0.3 0.3 0.3 0.3 0.3 Nu Skin Enterprises Inc 0.3 0.2 0.2 0.2 0.3 Joenoes Ikamulya PT 0.4 0.3 0.3 0.3 0.3 Reckitt Benckiser Plc 0.2 0.2 0.2 0.2 0.3 Medikon Prima 0.2 0.2 0.2 0.2 0.2 Laboratories PT Unza Nusantara Sdn Bhd 0.2 0.2 0.2 0.2 0.2 Shiseido Co Ltd 0.2 0.2 0.2 0.2 0.2 Gondo Wangi Tradisional 0.2 0.2 0.2 0.2 0.2 Kosmetika PT Megasurya Mass PT 0.2 0.2 0.2 0.2 0.2 Denta PT 0.2 0.2 0.2 0.2 0.2 Priskila Prima Makmur PT 0.1 0.1 0.1 0.1 0.1 Tje Fuk Manufacturing PT 0.1 0.1 0.1 0.1 0.1 Surya Dermato Medica 0.1 0.1 0.1 0.1 0.1 Laboratories PT Bvlgari SpA 0.1 0.1 0.1 0.1 0.1 Others 10.3 9.4 8.4 8.0 7.5 Total 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store


Table 7 Beauty and Personal Care Brand Shares by GBN 2007-2010

% retail value rsp Brand Company 2007 2008 2009 2010



Pond's Unilever Indonesia Tbk PT 4.6 7.9 9.3 10.6 Pepsodent Unilever Indonesia Tbk PT 9.2 8.3 7.6 7.0 Lifebuoy Unilever Indonesia Tbk PT 5.4 5.0 4.8 4.6 Sunsilk Unilever Indonesia Tbk PT 4.8 4.2 4.0 3.9 Pantene Pro-V Procter & Gamble Home 4.2 3.8 3.8 3.7 Products Indonesia PT Clear Unilever Indonesia Tbk PT 3.6 3.2 3.1 3.0 Formula Ultra Prima Abadi PT 3.4 3.1 3.0 2.8 Lux Unilever Indonesia Tbk PT 2.4 2.3 2.3 2.4 Olay Total Effects Procter & Gamble Home 1.3 2.1 2.2 2.4 Products Indonesia PT Viva Vitapharm PT 2.2 1.9 2.0 2.0 Bioré Kao Indonesia PT 1.6 1.5 1.5 1.6 Ciptadent Lion Wings PT 1.8 1.6 1.6 1.5 Sari Ayu Martha Tilaar Group 1.6 1.5 1.4 1.4 Rejoice Procter & Gamble Home 0.9 1.4 1.4 1.4 Products Indonesia PT Gatsby Mandom Indonesia Tbk PT 1.3 1.3 1.3 1.4 Citra Hazeline Unilever Indonesia Tbk PT 0.4 1.0 1.2 1.3 The Body Shop Monica Hijau Lestari PT 1.1 1.1 1.2 1.3 Giv Sayap Mas Utama PT 1.1 1.0 1.1 1.2 Nuvo Sayap Mas Utama PT 1.3 1.3 1.2 1.2 Cussons Baby PZ Cussons Indonesia PT 1.3 1.2 1.2 1.2 Close-Up Unilever Indonesia Tbk PT 1.6 1.4 1.2 1.2 Johnson's Baby Johnson & Johnson 1.1 1.1 1.1 1.1 Indonesia PT Gillette Procter & Gamble Home 1.2 1.1 1.1 1.1 Products Indonesia PT Zwitsal Sara Lee Body Care 1.0 0.9 0.9 0.9 Indonesia Tbk PT Braun Oral-B Procter & Gamble Home 0.9 0.9 0.9 0.9 Products Indonesia PT Pixy Mandom Indonesia Tbk PT 0.8 0.8 0.8 0.9 Citra Unilever Indonesia Tbk PT 0.8 0.8 0.8 0.8 Maybelline L'Oréal Indonesia PT 0.7 0.7 0.7 0.8 Mustika Ratu Mustika Ratu Tbk PT 0.9 0.8 0.8 0.8 Puteri Mustika Ratu Tbk PT 0.8 0.8 0.8 0.8 Zinc Lion Wings PT 0.5 0.7 0.7 0.7 Shinzu'i Bina Karya Prima PT 0.6 0.6 0.6 0.6 Emeron Lion Wings PT 0.7 0.7 0.7 0.6 Oriflame Orindo Alam Ayu PT 0.5 0.6 0.5 0.6 Oriflame Colour Orindo Alam Ayu PT 0.6 0.7 0.6 0.5 Artistry Amindoway Jaya PT 0.6 0.6 0.6 0.5 Olay Procter & Gamble Home 0.3 0.3 0.4 0.5 Products Indonesia PT Marina Tempo Scan Pacific Tbk PT 0.4 0.4 0.5 0.5 Vaseline Unilever Indonesia Tbk PT 0.3 0.4 0.4 0.5 Selsun Abbott Indonesia PT 0.4 0.5 0.5 0.5 Others 31.9 30.6 30.2 29.4 Total 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store


Table 8 Penetration of Private Label by Category 2005-2010

% retail value rsp 2005 2006 2007 2008 2009 2010 Bath and Shower 0.1 0.1 0.1 0.1 0.1 0.1 Hair Care 0.1 0.0 0.0 0.0 0.0 - Mass Cosmetics 0.0 0.0 0.0 0.0 0.0 0.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store




Table 9 Sales of Beauty and Personal Care by Distribution Format: % Analysis 2005-2010

% retail value rsp 2005 2006 2007 2008 2009 2010 Store-Based Retailing 92.9 94.3 94.6 93.8 94.2 94.0 Grocery Retailers 71.7 70.9 70.4 68.4 67.8 66.9 Discounters 0.0 0.1 0.0 0.0 0.0 0.0 Small Grocery Retailers 30.0 30.5 30.8 30.2 30.1 29.7 Convenience Stores 5.2 5.1 5.6 6.0 6.4 6.9 Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0 Independent Small Grocers 24.8 25.4 25.2 24.2 23.6 22.9 Supermarkets/Hypermarkets 27.6 27.8 28.1 27.8 28.1 28.2 Other Grocery Retailers 14.1 12.4 11.5 10.5 9.7 8.9 Non-Grocery Retailers 21.1 23.5 24.2 25.3 26.4 27.1 Health and Beauty 10.8 11.8 12.6 13.4 14.8 15.9 Retailers Beauty Specialist 7.4 8.3 8.7 9.2 9.8 10.4 Retailers Chemists/Pharmacies 2.0 2.1 2.4 2.7 3.4 3.7 Parapharmacies/Drugstores 1.3 1.3 1.3 1.3 1.5 1.6 Other Health and Beauty 0.1 0.1 0.1 0.1 0.1 0.1 Retailers Mixed Retailers 6.9 8.2 8.4 8.9 8.7 8.6 Department Stores 6.9 8.2 8.4 8.9 8.7 8.6 Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0 Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0 Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0 Outdoor Markets 3.3 3.4 3.2 3.0 2.8 2.6 Other Non-Grocery 0.1 0.1 0.1 0.1 0.1 0.1 Retailers Non-Store Retailing 7.1 5.7 5.4 6.2 5.8 6.0 Direct Selling 7.1 5.7 5.4 6.2 5.8 6.0 Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0 Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0 Vending 0.0 0.0 0.0 0.0 0.0 0.0 Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store


Table 10 Sales of Beauty and Personal Care by Category and by Distribution Format: % Analysis 2010

% retail value rsp BC BS CC D DP F Store-Based Retailing 99.5 98.8 81.2 79.0 0.0 82.8 Grocery Retailers 64.3 80.8 37.7 63.5 0.0 22.0 Discounters 0.0 0.0 0.0 0.0 0.0 0.0 Small Grocery Retailers 24.0 42.0 17.0 7.0 0.0 6.3 Convenience Stores 8.5 7.5 4.5 5.0 0.0 5.5 Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0 Independent Small Grocers 15.5 34.5 12.5 2.0 0.0 0.8 Supermarkets/Hypermarkets 37.0 30.5 14.0 45.5 0.0 15.0 Other Grocery Retailers 3.3 8.3 6.7 11.0 0.0 0.6 Non-Grocery Retailers 35.3 18.0 43.5 15.5 0.0 60.8 Health and Beauty 15.5 11.5 20.5 9.9 0.0 44.3 Retailers Beauty Specialist 2.3 9.0 17.0 8.5 0.0 43.0 Retailers Chemists/Pharmacies 9.5 2.2 2.0 1.0 0.0 0.8 Parapharmacies/Drugstores 3.8 0.3 1.5 0.4 0.0 0.6



Other Health and Beauty 0.0 0.0 0.0 0.0 0.0 0.0 Retailers Mixed Retailers 17.0 3.5 17.5 5.5 0.0 16.5 Department Stores 17.0 3.5 17.5 5.5 0.0 16.5 Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0 Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0 Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0 Outdoor Markets 0.0 3.0 5.5 0.1 0.0 0.0 Other Non-Grocery 2.7 0.0 0.0 0.0 0.0 0.0 Retailers Non-Store Retailing 0.5 1.2 18.8 21.0 0.0 17.2 Direct Selling 0.5 1.2 18.8 21.0 0.0 17.2 Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0 Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0 Vending 0.0 0.0 0.0 0.0 0.0 0.0 Total 100.0 100.0 100.0 100.0 0.0 100.0 HC MG OC SC SU SK Store-Based Retailing 99.4 97.0 99.3 90.9 74.0 64.0 Grocery Retailers 83.4 77.0 90.9 51.9 25.1 34.0 Discounters 0.0 0.0 0.0 0.0 0.0 0.0 Small Grocery Retailers 34.5 33.3 37.5 25.0 0.5 19.0 Convenience Stores 7.5 7.0 9.5 5.5 0.4 6.0 Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0 Independent Small Grocers 27.0 26.3 28.0 19.5 0.1 13.0 Supermarkets/Hypermarkets 33.5 32.7 40.0 22.0 24.5 15.0 Other Grocery Retailers 15.4 11.1 13.4 4.9 0.2 0.0 Non-Grocery Retailers 16.0 20.0 8.3 39.0 48.9 30.0 Health and Beauty 7.3 7.5 5.3 24.5 26.3 21.5 Retailers Beauty Specialist 2.5 3.3 1.8 15.0 7.0 20.0 Retailers Chemists/Pharmacies 2.2 2.7 3.2 6.5 18.5 1.5 Parapharmacies/Drugstores 2.0 1.3 0.3 3.0 0.8 0.0 Other Health and Beauty 0.6 0.3 0.0 0.0 0.0 0.0 Retailers Mixed Retailers 2.7 6.9 2.1 14.0 22.5 6.5 Department Stores 2.7 6.9 2.1 14.0 22.5 6.5 Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0 Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0 Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0 Outdoor Markets 6.0 5.5 1.0 0.6 0.1 0.0 Other Non-Grocery 0.0 0.0 0.0 0.0 0.0 2.0 Retailers Non-Store Retailing 0.6 3.0 0.7 9.1 26.0 36.0 Direct Selling 0.6 3.0 0.7 9.0 26.0 36.0 Homeshopping 0.0 0.0 0.0 0.1 0.0 0.0 Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0 Vending 0.0 0.0 0.0 0.0 0.0 0.0 Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store

checks, trade interviews, trade sources Key: BC = baby care; BS = bath and shower; CC = colour cosmetics; D = deodorants; DP = depilatories; F =

fragrances; HC = hair care; MG = men’s grooming; OC = oral care; SC = skin care; SU = sun care; SK = sets/kits

Table 11 Forecast Sales of Beauty and Personal Care by Category: Value 2010-2015

Rp billion 2010 2011 2012 2013 2014 2015 Baby Care 666.6 724.2 783.6 844.1 905.6 967.2 Bath and Shower 3,632.0 3,676.6 3,746.8 3,832.1 3,931.6 4,048.4



Colour Cosmetics 2,168.9 2,264.6 2,377.7 2,511.4 2,665.3 2,844.7 Deodorants 268.3 279.8 296.1 316.3 340.4 369.9 Depilatories - - - - - - Fragrances 1,321.3 1,456.4 1,604.0 1,765.1 1,939.3 2,126.6 Hair Care 5,338.4 5,474.0 5,666.5 5,923.4 6,252.9 6,662.2 Men's Grooming 902.2 965.5 1,041.9 1,133.0 1,241.9 1,371.8 Oral Care 4,148.3 4,096.2 4,100.2 4,136.2 4,193.0 4,263.2 Oral Care excl Power 4,148.3 4,096.2 4,100.2 4,136.2 4,193.0 4,263.2 Toothbrushes Skin Care 7,488.8 8,522.6 9,658.9 10,905.4 12,291.9 13,827.1 Sun Care 12.4 13.7 15.1 16.5 18.0 19.5 Sets/Kits 115.2 118.7 123.4 130.2 138.0 147.0 Premium Cosmetics 1,003.7 1,083.3 1,179.2 1,295.8 1,435.8 1,602.9 Mass Cosmetics 20,008.2 21,447.4 23,093.0 24,948.8 27,047.2 29,409.8 Beauty and Personal Care 25,478.9 26,955.2 28,712.2 30,734.2 33,045.2 35,663.3 Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade

sources Note 1: Premium cosmetic sales are additionally included within baby care, bath and shower, deodorants, colour

cosmetics, hair care, fragrances, skin care and sun care Note 2: Sum of categories is greater than market size because the four men’s toiletries categories are included in men’s


Table 12 Forecast Sales of Beauty and Personal Care by Category: % Value Growth 2010-2015

% constant value growth 2010-15 CAGR 2010/15 TOTAL Baby Care 7.7 45.1 Bath and Shower 2.2 11.5 Colour Cosmetics 5.6 31.2 Deodorants 6.6 37.9 Depilatories - - Fragrances 10.0 61.0 Hair Care 4.5 24.8 Men's Grooming 8.7 52.1 Oral Care 0.5 2.8 Oral Care excl Power Toothbrushes 0.5 2.8 Skin Care 13.0 84.6 Sun Care 9.5 57.4 Sets/Kits 5.0 27.6 Premium Cosmetics 9.8 59.7 Mass Cosmetics 8.0 47.0 Beauty and Personal Care 7.0 40.0 Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade

sources Note 1: Premium cosmetic sales are additionally included within baby care, bath and shower, deodorants, colour

cosmetics, hair care, fragrances, skin care and sun care Note 2: Sum of categories is greater than market size because the four men’s toiletries categories are included in men’s


Table 13 Forecast Sales of Premium Cosmetics by Category: Value 2010-2015

Rp billion 2010 2011 2012 2013 2014 2015 Premium Baby Care 0.1 0.1 0.1 0.1 0.1 0.1 Premium Bath and Shower 3.8 4.2 4.6 5.1 5.6 6.1 Premium Colour Cosmetics 238.6 260.4 285.3 313.9 346.5 384.0 Premium Deodorants 2.5 2.8 3.1 3.5 3.7 4.3 Premium Fragrances 191.2 198.6 208.3 221.7 238.1 258.2 Premium Hair Care 59.4 63.5 68.4 74.3 81.5 90.0 Premium Skin Care 483.7 528.7 583.6 650.5 732.1 830.7 Premium Sun Care 3.1 3.6 4.1 4.7 5.4 6.0



Premium Sets/Kits 21.3 21.4 21.6 22.1 22.8 23.5 Premium Cosmetics 1,003.7 1,083.3 1,179.2 1,295.8 1,435.8 1,602.9 Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade

sources Note: Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics,


Table 14 Forecast Sales of Premium Cosmetics by Category: % Value Growth 2010-2015

% constant value growth 2010-15 CAGR 2010/15 TOTAL Premium Baby Care 0.4 1.9 Premium Bath and Shower 9.7 58.8 Premium Colour Cosmetics 10.0 61.0 Premium Deodorants 10.8 66.9 Premium Fragrances 6.2 35.1 Premium Hair Care 8.7 51.4 Premium Skin Care 11.4 71.8 Premium Sun Care 13.9 92.0 Premium Sets/Kits 2.0 10.3 Premium Cosmetics 9.8 59.7 Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade

sources Note: Premium cosmetic sales are additionally included within baby care, bath and shower, colour cosmetics,


DEFINITIONS This report analyses the market for beauty and personal care in Indonesia. For the purposes of the study, the market has been defined as follows:

• Baby care

• Bath and shower

• Colour cosmetics

• Deodorants

• Depilatories

• Fragrances

• Hair care

• Men’s grooming

• Oral hygiene

• Skin care

• Sun care

• Sets/kits Explanations of words and/or terminology used in this report are as follows:

• BPOM – Badan Pengawas Obat dan Makanan or NA-DFC (National Agency of Drug & Food Control). Known as Ditjen POM prior to 2001, the new agency not only has four divisions to govern Indonesia’s Food and Drugs, 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 as health and beauty products. What makes jamu unique compared with other types of OTC herbal/traditional products is the



combination of multiple natural ingredients locally formulated for either treating sickness, or as health supplements. Jamu’s active ingredients can also be used in cosmetic products. For example, akar manis is used as a whitening ingredient in moisturiser and cleanser. Due to the difficulties in clinical testing of 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.

• Toko kelontongan: 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 a shop house, a shop within the owners’ homes.

• 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 used during research include the following:

Summary 1 Research Sources

Trade Associations Cosmetics Association of Indonesia (PERKOSMI)

Direct Selling Association of Indonesia (APLI)

Trade Press Indonesian Business Magazine

Kompas Newspaper

Marketing Biweekly Magazine

MIX Magazine

Reuters

Soap Perfumery & Cosmetics

SWA Magazine

Source: Euromonitor International

Beauty and Personal Care - Indonesia

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