Creating Great Local Product

Crea%ng a Great Skin Care Product in Indonesia Blending Global Best Prac%ce with Unique Local Wisdom

The Martha Tilaar Group Experience

Presented by

Samuel E. Pranata

Marke.ng Director, Martha Tilaar Group (MTG)

12th Asia Surfactants Personal & Home Care Markets

Hilton Shanghai, September 2012


Indonesia: The Great Skin Care Market

Indonesia is an archipelago with 30.000 plant species and 300 ethnici5es, as well as has more

than 17.000 islands and about 400 volcanoes

There are a lot of mountain water springs, hot springs and mineral water springs

BIODIVERSITY & CULTURAL RICHNESS

86 87 88 89 90 91 92 93 94 95 96 97 98 99 '01 '02 '03 '04 '05 '06 '07 '08 '09 10 11 12 13 14

$1000

$2000

$3000

$4500

Economic Crisis

GDP percapita, 1986-‐2014

Same paXern Accelerated growth aYer reaching the $3000 per capita GDP level

Exci5ng Performance...

The 7th Biggest Economy in 2050...

#22

#7

Exci5ng Performance... Middle class has become majority popula5on with 131 million,

growing 7 million per annum

Source: Nielsen

25% 1999

56.5%

2010

Source: WorldBank, BPS

Jakarta: The city with 68 (+14) malls The biggest number in the world

As the economy and middle class are growing, looking good is also a trend

YTD Growth*

14% Higher than food

*Nielsen, 2011

Beauty & Personal Care Industry

  Total market size U$ 3 billion

  Predicted cosme%c product in 2012 will grow 16.9%. Average growth of cosme%c in Indonesia around 13-‐ 15% a year

  Skin care category contributes 30% of the market

  Back to nature concept drives the product with natural ingredients

  The trend of metrosexuality starts to grow

Skin Care Market in Indonesia

  Total Market Size U$ 950 million

  Prominent skin care products are s%ll whitening and an% aging categories

  Big players are Unilever, P&G, L'Oreal, and local company such as Martha Tilaar Group


Martha Tilaar Group Unique Approach and Strategy

Martha Tilaar Group: At Glance

  Established in 1970

  The largest local beauty companies in Indonesia

  Integrated opera%ons from: organic planta%on, manufacturing, distribu%on, retail shop, salon & spa chain and beauty school

  Produce 10 brands consis%ng of skin care, color cosme%cs, hair care, body care and herbal products

1. Holis%c Eastern Beauty* 2. Sustainable Nature 3. Exo%c Innova%on 4. Women Inspira%on 5. Responsible Ci%zenship

Umbrella Brand Values

*Rupasampat wahyabiantara: inner & outer beauty

The concept of Rupasampat Wahyabiantara was

explored from the myths, ancient history, folklore and

understanding of the Wahyang philosophy.

Beauty is a reflec%on of the harmony of both inner and outer and also among mind,

body, and soul.

Palmyra Palm Flower

tasbih

lotus

zither

Rupasampat Wahyabiantara

The Total Beauty Concept

Product Development Principles

“Local Wisdom Go Global”

  Natural Ingredients   Indigenous Knowledge & Recipes   Based on the Cycle of Life   Holis5c (Inner & Outer) Approach for Op%mum Result

  Scien5fic Approach & Technology Implementa%on

  Efficacy Proven

  Environmental Friendly

Owne

rship of Local Advan

tages

High

Low

Capability to Catch-‐up Global Fron5er

Low

Local Challenger Na5onal Champion

Die-‐Hard Flanker Global Chaser

High

Strive to achieve global best prac%ces

Flank and create their own pond

Selec%vely aiack the giant’s weaknesses

Beat the giant through local differen5a5on

Four generic Strategies to Beat the Giant

(Financial, Technology, Management, etc.)


The Sariayu Pu.h Langsat Story Glocaliza.on MaTers

Sariayu Pu%h Langsat A Case Study

Indonesian Whitening ……………

Like Victoria ?

Like Jolie with Sexy Lips?

Flawless skin as Zi Yi?

Sariayu Pu%h Langsat Background

  Skin of eastern people (incl. Indonesia) is different from western people

  Need a whitening product that suitable for eastern people. Light and bright without changing skin character

  Come into Pu%h Langsat Concept; Pu5h means white, Langsat is fruit as an iden%ty or character of Indonesian skin

Sariayu Pu%h Langsat Background

  Pu%h langsat is the lightening concept that is developed met to Indonesian skin (eastern whitening concept)

  Establish new whitening concept to differen%ate from the exis%ng one by using natural ingredient “Langsat” (Lansium domes.cum)

  Using cultural approach that is approved by ethno pharmacology, in vitro and clinical study

  Ethnicity of Dayak, in province of Kalimantan (South & Middle), culturally and historically used “Bedak Dingin” (cooling powder)

  They used bedak dingin everyday to keep their skin health and beauty

  Their skin looked light and bright that was different from other ethnici%es

  Bedak dingin (cooling powder) contains Langsat fruit (Lansium domes.cum)

Etno pharmacology Study

  Langsat (Lansium) can inhibit melanin synthesis

  Langsat extract has an%oxidant ac%vity   Combina%on of langsat (lansium) and phylantus has higher an%xodant ac%vity compared to a single plant

Sample Concentra5on (%)

DPPH Scavenging Ac5vity (%)

Inhibi5on Rate against Tyrosinase

ac5vity (%)

Lansium 2 33.9 30.4

Phylanthus 2 78.6 34.1

Lansium + Phylanthus

2 92.4 30.8

In Vitro Study

* = sta%s%cally significant at p < 0.05

Improvem

ent toward ba

se line

(unit)

*

*

*

Clinical Test Result:

-‐ 79% subjects showed improvement in skin moisturizing ater 2 hours -‐ 75% subjects showed improvement in skin lightening ater 2 weeks -  83% subjects showed improvement in skin lightening ater 4 weeks

Clinical Study Sariayu Pu5h Langsat Moisturizer Skin Moisturizer & Lightening Clinical Study

Sariayu Pu%h Langsat Moisturizer Skin Moisturizing & Lightening

Clinical Study Sariayu Pu5h Langsat Moisturizer Skin Moisturizer & Lightening

Patent Gain Patent of new efficacy of Indonesian plants

Clinical Study Sariayu Pu5h Langsat Moisturizer Skin Moisturizer & Lightening

Publica%ons/Seminars The research has been presented

in many scien%fic seminars and conferences

Clinical Study Sariayu Pu5h Langsat Moisturizer Skin Moisturizer & Lightening Sales Performance

Launched in 2007, Sariayu Pu%h Langsat has experienced a robust growth

Natural concept Develop products Technology

Creating Great Local Product

Business

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