1. AN OVERVIEW OF INDONESIAN COSMETICs MARKET
Juanita Aditiawan
Head of External Affairs
Perkosmi

2. What are we here to talk about?
What’s Happening in Indonesia?
Key Beauty Trends
Opportunities in Remarkable Indonesian Market

3. Key Economic Indicators
Indonesia in on the path to become a high income country. Actual GDP has reached $4250 in It is expected to reach $18,000 by 2030.
Source: Ministry of Finance

4. Key Economic Indicators
Source: Ministry of Finance

5. Key Economic Indicators
PROJECTED TOP ECONOMIES BY GDP
2010
2020
2030
EUROPE
USA
CHINA
JAPAN
BRAZIL
13. INDONESIA US
9. INDONESIA
INDIA
INDONESIA
By 2030, Indonesia will surpass Brazil and Russia to become the #5 economy in the world
Source: Ministry of Finance

6. Bonus Demography 2014 2020 Population 252 mio 269 mio
Male Female Ratio
1:1
Dependency Ratio
48.7%
45%
Middle & Affluent Class
74 mio
141 mio
Source: Ministry of Finance

7. Urbanization Trends Rate of Urbanization is 4% p.a.
One of the most rapidly urbaning countries in the world
67.7% of the population live in urban area, 85% in 2050

8. The Cosmetic Industry in Indonesia
A Resilient Industry has survived many financial crisis in Indonesia, yet the industry still shows growth year on year

9. The Cosmetic Industry in Indonesia
Rural areas are catching up with the urban centers as quickly as retail networks expand beyond major cities and as new consumers enter the market Sales of cosmetics in urban areas increased by 9.4% year-on- year in the first half of 2013, while in rural regions, sales boomed by 27.5%.

10. Key Beauty Trends in Indonesia
The Korean Wave

11. Key Beauty Trends in Indonesia
Men’s grooming market has continuously increased in the past years

12. Key Beauty Trends in Indonesia
Halal Cosmetics

13. Key Beauty Trends in Indonesia
Mega Trends:
Convenience
Healthy
Feeling/Looking Good

14. Large Market of Middle Class demanding convenience
Convenience Modern Retailing
Product and Service that saves time
Educated working woman
Out home beauty make over

15. Frequent Shopping
Frequent/everyday shopper – means proximity. Traditional retail habits that saw local markets as the center of activity have been quickly replaced by that of malls and hypermarkets that offer convenience as well as entertainment

16. Love Premium but Affordable

17. Specialty Stores for Cosmetics

18. Opportunities in Remarkable Indonesian Market
Finished Cosmetic Products, especially in middle low market
Cosmetics products that are still imported to Indonesia
USD 2 trillion Halal Cosmetic Market
2 Korean brands already have halal certificates: Talent & Pulmuone

19. Opportunities in Remarkable Indonesian Market
Supplying Packing Materials, Ingredients, Accessories
Machinary & Equipments
Setting up factories in Indonesia, a market of 250 million people. Indonesia has a large labor market and wages is still low compared to other Asian countries.
Manufacturing in Indonesia – enjoy the benefit of ASEAN Economic Community.