Professional Documents
Culture Documents
15 May 2013
Prepared for
Specially by
Classification of Cosmetic Product Category based on PERKOSMI (Association of Indonesian Cosmestics Company)
Group Category Product Category
Cream, emulsions, lotions, gels and oils for the skin (hands, feet & body) Sunbathing products (for body) Skin-whitening products (for body) Products for external intimate hygiene Toilet soaps and deodorant soaps
Bath and shower preparations (salts, foams, oils, gels, etc) Depilatories Products for care of the teeth and mouth After-bath powders, hygienic powders Shaving products Products for tanning without sun (for body) Cream, emulsions, lotions, gels and oils for the skin for face Sunbathing products (for face) Skin-whitening products (for face)
Face Care
Face masks (with the exception of peeling products) Anti-wrinkle products Face wash (gel, foam) Products for tanning without sun (for face)
Perfumes, toilet waters and eau de cologne Deodorants and anti-perspirants Shampoo and other hair care products Tinted bases (liquids, pastes, powders) Make up powders
Make Up
Products for making up and removing make up from face and eyes Products intended for application to the lips
3. Competitive Landscape
There are currently over 700 cosmetics company in Indonesia, and about 180 of them are SMEs. Local production dominates with 87% share of the market. Despite this, international brand has a strong hold of the market, with about 70% share. Local brands make up about 20% of the market while the rest belongs to illegal imports, which is mostly from China. American and European companies such as Unilever, Proctor & Gamble (P&G), Johnson & Johnson and Loreal dominate the international cosmestics brand in Indonesian market. Local cosmetics brands are mostly represented by three companies, Martha Tillar, Wings and Mustika Ratu. Japanese companies also managed to stay competitive in the Indonesian cosmestic market, with Kao being one of the top players in the face care and Mandom in the make up and fragrance. Unilever dominates in all cosmestic group category except make up. Make up category remains the most competitive segment in the market with 5 players holding a relatively balanced share while other segments are dominated by the top 3 players in the market with a combined share of over 50% in each. Figure 2 Leading Players in the Body Care Category 2012 Estimated Total Market Value: US$ 611 Million
Company Name
PT. Unilever Indonesia PT. P&G Indonesia PT. Wings Corp PT. Johnson & Johnson Indonesia PT. Sara Lee Indonesia
Known Brands
Citra, Lifebuoy, Lux, Pepsodent, Close Up, Vaseline Olay Emeron, Kodomo, Ciptadent, Fluordent, Smile Up, Giv, Priti, Nuvo, Sanex Listerine, Johnsons Purol
Figure 3 Leading Players in the Hair Care Category 2012 Estimated Total Market Value: US$ 327 Million
Company Name
PT. Unilever Indonesia PT. P&G Indonesia PT. Wings Corp PT. Sara Lee Indonesia PT. LOreal Indonesia
Known Brands
Clear, Sunsilk, Dove Gillette, Wella, Clariol, Rejoice, Pantene, Herbal Essences, Head & Shoulders Emeron, Botanical, Zinc Brylcreem Loreal, Garnier, Neril, Elseve, Studio Line, Professionel, Kerastase, Matrix
Figure 4 Leading Players in the Face Care Category 2012 Estimated Total Market Value: US$ 270 Million
Company Name
PT. Unilever Indonesia PT. P&G Indonesia PT. KAO Indonesia PT. Johnson & Johnson Indonesia PT. LOreal Indonesia PT. Martha Tilaar
Known Brands
Citra, Ponds Olay, SK-II Biore Clean & Clear LOreal, Garnier, Biotherm, Lancome, Shu Uemura, Kiehls Biokos, Cempaka, The Jamu Garden, Sari Ayu
Figure 5 Leading Players in the Fragrance Category 2012 Estimated Total Market Value: US$ 114 Million
Company Name
PT. Unilever Indonesia
Known Brands
Axe, Rexona
18%
She
12%
7%
Figure 6 Leading Players in the Make Up Category 2012 Estimated Total Market Value: US$ 99 Million
Company Name
PT. Martha Tilaar PT. Mandom Indonesia Tbk PT. Unilever Indonesia PT. LOreal Indonesia PT. P&G Indonesia
Known Brands
Caring Colours, Cempaka, Mirabella, PAC, Sari Ayu Pixy Citra, Ponds, Vaseline Maybelline, Biotherm, Lancome, Shu Uemura Olay, SK-II
3.1 PT. Unilever Indonesia Unilever is an Anglo-Dutch multinational company with a global revenue of 51 Billion Euro. PT Unilever Indonesia was established on 5th December 1933 and has grown to be one of the leading players in cosmestic industry, especially home and personal care products. The company currently has more than 6,000 employees. It has six factories located in Bekasi and two factories in Surabaya, East Java. Its portfolio of products consists of 43 brands, 1,000 SKUs which are sold through a network of 500 distributors nationwide. Unilever Indonesias cosmetic portfolio includes many of the worlds best known and well loved brands, such as Pepsodent, Ponds, Lux, Lifebuoy, Dove, Sunsilk, Clear, Rexona and Vaseline. Unilever Indonesia recently acquired PT. Sara Lee Indonesia in end of 2010. Sara Lee Indonesia continues to operate as independent company with its
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4. Future Development
Indonesian cosmetic industry is predicted to continue to have strong growth of 10-15% in the future. This is due to rising middle class, which leads to stronger buying power among the population. Meanwhile, cosmetic market is not dominated by female customers only, but there is also an increasing number of male purchasing cosmetic and skin care product. Population of men aged 15-64 in Indonesia totals to about 80 million, about the same
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5. Key Success Factor, Drivers and Inhibitor of the Industry 5.1 Key Success Factors
Aggressive marketing: High brand visibility is important in increasing sales of mass-market cosmetics.
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5.2 Drivers
Capital and Labor Intensity: Capital and labor cost in Indonesia is still fairly low compared to most Asian countries, and there are few regulations restricting capital investment in cosmestic industry in the country, making it a very lucrative prospect for both new and existing players. Technology: In general, production in this industry involves the blending of readily available ingredients in batch operations. Technological advances in the production machinery will boost production capacity and efficiency, which helps to support sales growth. Globalization: Average imports as a share of domestic demand in this industry accounted for approximately 23% over the past 5 years. Import trend is projected to be increasing. In recent years, the level of globalization within the overall cosmetics and personal care industries has tended to increase. Key Attitudinal changes: Health Consciousness. Changing attitudes in skin care by both males and females is vital to increase demand for related products such as moisturizers and sunscreens. Real Household Disposable Income: In general, the higher level of disposable income leads to larger amount spent on cosmetics. In addition, as income rises, sales of higher price, higher value added cosmetics also tend to increase.
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Vice Minister of Trade and Commerce is pushing Indonesian industry players to develop business of raw materials for cosmetics production. He stated that one of the major challenges in Indonesian cosmestic industry is the local supply of raw materials for production. One of the industrys prominent players, PT Loreal Indonesia, currently imported about 50% of its raw materials for its production. Until September 2012, import of consumption goods only grows at 0.6%, significantly lower compared to 2011 where growth was at 20%. This gives indication that there is increasing trend of subtituting imported consumption goods with local
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Mandom Indonesia is planning to relocate its main office and cosmetic factory which is currently located in Sunter, North Jakarta to MM2100 Industrial Estate in Cibitung. The relocation plan is to support its sales growth and increase production efficiency. Mandom Indonesia also has entered into joint venture agreement with PT Kajima Indonesia to build a factory in Cibitung. The agreement contract is worth IDR 390 Billion (US$ 43 Million). With this agreement, all Mandom Indonesias manufacturing facility will be located in Cibitung. The new manufacturing facility is expected to increase its production capacity from 970 million pieces to 1.55 billion pieces of cosmetic products per year. This relocation plan is part of Mandoms goal of achieving IDR 3 Trillion (US$ 330 Million) by 2016. Mandom is targeting sales revenue of IDR 2 Trillion (US$ 220 Million) by end of this year. 7.1.3 Business Competition Supervisory Commission (KPPU) Officially Agrees on Unilevers Acquisition of Sara Lee
http://webcache.googleusercontent.com/search?q=cache:ivjSPdOmbEJ:www.indonesiafinancetoday.com/read/2109/KPPU-Setuju-Unilever-Akuisisi-SaraLee&client=firefox-a&hl=en&strip=1
Business Competition Supervisory Commission (KPPU) gives an official pass to Unilever Indonesias acquisition of Sara Lee Indonesia. KPPU declared that this acqusition act does not violate the rule of monopoly in the country. Unilever acquired Sara Lee on 10 December 2010. The whole acquisition was worth US$ 1.87 Billion and involves multiple countries representative of Sara Lee, which includes Indonesia. Through the acquisition, Unilever now holds 89.34% share of Sara Lee and their whole combined asset value reached US$ 856 Million. Unilever also holds the rights to Sara Lees line of products, including Sanex and Radox.
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The Face Shop was established in 2003. Its brand essence high quality cosmestics made with ingredients from nature. It is the first Koreas cosmestics company that is committed to nature. The Face Shop shows rapid growth in a few years and in 2005, it opened its first store in Indonesia, under the management of PT Perdana Duta Persada. Products offered by The Face Shop ranges from skin care, body care, face care, fragrance, make up and even mens line of cosm etic products. The Face Shop now has 43 store outlets located in Indonesia. 7.2.2 Skin Food
Skin Food concept is analyzing benefits of food ingredients and using them to develop into cosmetic products to nurture healthy skin. The company was established in 1957 and is currently the fastest growing business in skin care in Korea. Skin Food now has a total of over 900 store outlets in Asia and United Arab Emirates, of which 12 of them are located in Indonesia. Its products include body care, hair care, face care, make up and mens series of cosmetics products.
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Etude House was founded by Amorepacific Corporation in 1995 and opened its first store a decade later. Unlike Face Shop and Skin Food that emphasizes on healthy ingredients and simple designs, Etude Houses style is cute and feminine. Its store designs has the distinctive faux pink roof and its products are more lavishly packaged. Etude House currently has 8 store outlets in Indonesia. Amorepacific Corporation is a chemical and cosmestics company based in Seoul, South Korea. The company is the largest cosmetics company in Korea and is among the top 20 global beauty companies. Its revenue reaches US$ 3.02 Billion in 2012. Besides Etude House, the company is known for many other cosmetic brands, most notably Amorepacific and Laneige.
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