The Raise of Beauty Industry in Indonesia – Beauty care and industry has been improving rapidly around the world including Indonesia. The sales growth in 2014 showed that the market more reacted to the price rather than the volume because the price is getting higher. The higher price is caused by the growth of US currency and also the raw material of the beauty cosmetics. The distribution also takes part in determining the price.
To respond the phenomenon in 2014, manufacturers and distributors focus their target to teenagers cosmetics industry. It is because the demands in 2014 are mostly from young age users. The manufacturers tend to choose more natural colors and ingredients which are considered as safe for them. Besides, the distributors use some fun and creative advertising to promote the products. They also come with the innovative package and nice colors to attract the teenagers attention since they like to have stunning look cosmetic package.
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One of the giant multinational companies in Indonesia which concerns well to the beauty industry is PT. Unilever Indonesia. It becomes the leader of the industry in 2014. The second and third positions are PT. L’Oreal Indonesia and PT. Procter and Gamble Home Products Indonesia. They have famous brand images as well as the huge marketing budgets; therefore, they always sit on top of the overall beauty industries in Indonesia. It is good breakthrough because Indonesian customers mostly like to buy some foreign beauty products due to their more reliable quality than the local ones. So, the multinational companies have a move to prevent share loss by giving discount for the cheaper products or bundling the products with one free.
Another marketing strategy which boosts the sales growth is product segmentation. Manufacturers specify the products based on the customers which live in one house. One family will be supported by several products which are useful for each member. This type of product segmentation surely increases the value sales through the higher price margins.
Beauty care industry is expected to perform reliably in any weather, so there’s still a space for geographical influences for many products. It also makes the vast growth of wide customers in beauty and care industry. The distribution of the products is expected reaching the rural areas people to support and open the access for beauty care products, although we know the main rotation is still the city people. The rural area people actually catch up quickly because the retail networks expand beyond the city. Developing the logistics and infrastructure also help the manufacturers and distributors to enter the rural areas.
Now we know that beauty care and cosmetics industry is one of FMCGs (Fast Moving Consumer Good) which has promising market. It has the ability to attract customers to have daily luxuries by buying the beauty products; however, the manufacturers and distributors almost forget the male beauty. Since the rapid growth of population in Indonesia, the beauty care industry users also grows including male. In Indonesia, the business of male beauty care is about to start. For developing the male beauty industry, the manufacturers create new products based on the new trend of the surrounding nations such as Korea and Japan. They notice the trend from the TV show, magazines, advertisement and social media.
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