Understanding the Indonesian market situation and consumer needs

Editor’s note: This article is from WeChat public account “7 points 5 degrees “(ID: Asia7_5) , author: Gigi.

Next you will read:

1. Macroscopic situation of the Indonesian beauty market

2. What do Indonesian consumers think when they buy beauty?

3. Combination of social e-commerce in the vertical beauty field

Total beauty market in Indonesia

Achmad Sigit Dwiwahjono, Minister of Chemicals, Pharmaceuticals and Textiles of Indonesia, publicly stated that he is confident that the Indonesian beauty care industry will achieve an annual growth rate of 9% in 2019, behind the rapid growth of the industry. There is policy support, as well as the comprehensive benefits of changes in consumer trends and platform convenience. GlobalData, the world’s leading data analytics company, estimates that the size of Indonesia’s beauty care market will reach 105.1 trillion rupiah ($7 billion) in 2023, and in 2018, the market size will be 70.3 trillion. Indonesian rupiah ($5 billion), the skin care products will continue to occupy the largest market share in the entire beauty care industry, and will continue to lead at a compound annual growth rate of 9.6%.

The growth of the beauty care market is inseparable from the steady growth of Indonesia’s overall economy. The World Bank estimates that the Indonesian economy will grow at a rate of more than 5% from 2019 to 2020. Indonesia’s economic development also follows its own long-term five-year plan (RPJMN, Rencana Pembangunan Jangka Menengah Nasional), which is from 2005 to 2025 and is now in the third five-year plan, focusing on the foundations of education and health care. Facility development and social assistance projects are committed to building a happy society. Therefore, the government also strongly supports domestic beauty and consumer goods, and takes advantage of Indonesia’s terrestrial and marine biodiversity to efficiently utilize local raw materials such as aloe vera and ocean. Collagen and essential oils, etc., to create pure natural products, exported to neighboring countries.

The population rejuvenation and per capita income growth are also two major growth factors that cannot be ignored. The median age of the Indonesian national population given by the World Bank is 28.3 years. The Indonesian Central Bank estimates that by 2024, Indonesia’s per capita income will increase from the current $3,500 to $4,800. Younger people with potential for consumptionThe mouth brings a diverse and fully competitive Indonesian beauty market. The international popular public and new niche brands, local natural products and Muslim-certified cosmetics can all find a place, and the high-speed development of the beauty e-commerce platform is even more It is constantly meeting the needs of consumers.

In-depth insight into consumers is the first strategy to grab market segments. Participants in the Indonesian beauty care market are not just women. The growth of male product lines, such as facial cleansers, moisturizers and anti-aging products, has caused major brands to pay more attention to the strategy of male product marketing and to dilute only women. In order to skin care this stereotype. The Indonesian men’s beauty market is not only limited to foreign products, medical beauty and instrument beauty products / offline stores, but also through the use of male beauty bloggers to promote the market.

More interestingly, sub-regional and phased consumption upgrades are taking place simultaneously in Indonesia, and mass brands such as Unilever are sinking into rural townships, where sales are growing rapidly; at the same time international high-end brands continue to For high-income urban residents, precision marketing is carried out to improve the quality of life. Everyone is upgrading their consumption, but the speed is different.

What do Indonesian consumers think when they buy beauty?

What kind of external image does the Indonesian want to present? The function development and promotion marketing strategy of the beauty and protection products are actually satisfying consumers’ imaginations.

1. Pursue flawless, photo-pixel refined.

To create a sense of innocence, you can start from two angles, one is the protection angle, and the other is the decorative angle of beauty enhancement.

The functional protection products, the promotional texts used to cover the product, to achieve a perfect perspective to describe the product’s lifting effect. Take sunscreen products as an example. Considering the high temperature, high humidity and urban pollution in Indonesia, in addition to the high protection value and waterproof function, you can even add beauty functions.

The beauty-enhanced product is the advantage of magnifying the consumer, so Baimei Han makeup and sexy atmosphere European and American makeup can locate their potential consumer groups in Indonesia.

Although Indonesia is in a strong sun-drenched area, consumers have not given up on the pursuit of whitening. Korean makeup is highly sought after for its whiteness and healthy luster. The three characteristics of phosphor, white complexion and deep eye sockets are deeply loved.

In addition to the popular Korean makeup, Asian and American makeup that highlights the individual’s eyebrow characteristics and facial lines is also highly sought after by Indonesian female consumers. The Kardashian family is an imitation style.

feminine sexy lipstick (nude or pink)), the durability and smoothness of cosmetics are the preferences of Indonesian female consumers who like European and American makeup when choosing products. The Fimela Women’s Lifestyle Content Platform found that Kylie Cosmetics’ lipstick set is priced at $29 or 370,000 rupees on the official website. However, this lip suit is sold at an online store in Indonesia at Rs. 600,000-900,000 per night. Instagram third-party merchants also say that Kylie’s lipstick kits are often sold out and consumers are willing to wait for a specific color 2- 3 months.

2. Products that cause traffic propagation

The beauty groups and local beauty brands with strong strength and a wide range of products are robbing the attention and social participation of young Indonesian consumers. Products that can be virally advertised or punched on social media understand why young consumers are willing to share on social media. Active sharing on social media can be followed by personal needs such as value recognition, group ownership, and self-expression.

Cosmetics Design Asia reports that female consumers in Indonesia are more likely to recognize a self-confident and self-conscious attitude and approach, with 82% of Indonesian women recognizing the phrase “I am very happy to take care of myself” and recognized by women around the world. The degree is 67%. Let’s take a look at the international brand L’Oreal’s marketing campaign in Indonesia, #beautyforall (everyone is beautiful). Through this label, L’Oreal combines the three concepts of brand image with diversity, empowerment and beauty.

What is the strategy of local brands? BLP, a beauty brand founded by a local Indonesian star makeup artist, defines itself as a brand that every Indonesian girl can use. By adopting affordable prices and explosive items, everyone can create their own brand as a “national girl”. By setting up this sense of everyday life, consumers can open their shopping websites and place orders at any time without any pressure. BLP is still enriching its product line. Fans who have been transformed through the explosion of products in the early stage are also helping to get new social media exposure. Natural traffic can bring word of mouth and sales conversion. The brand’s strategy is how this product can lead to social advocacy and recognition.

3. A unique lifestyle behind religious beliefs

For Muslim consumers with religious beliefs, the range of products that can be selected is mainly in Muslim-certified cosmetics. The Muslim legal provisions stipulate the chemical components that can be used. These ingredients do not contain fat and alcohol. Wardah is the first Muslim-certified cosmetics company in Indonesia. Although it is just a product, Wardah has never given up on rejuvenating, socializing and time-consuming.Shanghua’s brand image, while establishing links with consumers at designated religious and cultural festivals. Establish a closer relationship with consumers by choosing sponsoring fashion shows, social media campaigns for Mother’s Day, and providing skincare advice during fasting during Muslim-specific religious festivals such as Eid al-Fitr. In the field of Muslim-certified cosmetics, international brands have obtained licenses and can also produce related products. This market is not only open to local brands. How to better serve Muslim consumers and let them feel the difference in identity and lifestyle that religious beliefs can bring is the competitiveness of brands.

Combination Boxing of Social E-Commerce in Vertical Beauty Fields

The beauty platform Social Bella has the advantage of giving consumers access to enough brand information, followed by the ability to buy diversified products, and then providing a diverse service system that allows consumers to experience different purchases. the way. The advantage of the platform is to expand the types and service systems that can be selected.

Social Bella offers two types of platforms for consumers to choose from. The first category is the official brand-certified purchase platform (Sociolla), and now there are 197 brands in Sociolla, and some brands are exclusive. For example, the local lipstick brand BLP Beauty is exclusively sold on Sociolla, and with a series of marketing campaigns on Instagram, it has set a sales record of successfully selling more than 4,000 lipsticks in two hours. Sociolla’s strength lies in the introduction of distinctive international brands and the establishment of exclusive partnerships with local brands to satisfy consumers’ novel shopping desires and trigger the spread of social media.

The second category is the certification platform (Beautylink) for third-party merchants to sell products. This third-party saleable product is often that Sociolla does not have a sales license for the brand, or the number of SKUs of the brand does not reach the minimum of Sociolla. Claim. Sociolla is responsible for inspecting the products of all third-party merchants during the initial agreement phase, monitoring consumer feedback, and regularly sampling the seller’s inventory to ensure consumer rights. Beautylink not only serves third-party merchants, but also gives brands the right to operate independently. Brands that want to manage their online presence can also register on BeautyLink. There are already 480 brands on the Beautylink platform, including big names such as Body Shop, Jo Malone and Clinique. The existence of Beautylink is mainly to enrich SKU, because the Indonesian government stipulates the import of beauty products, and requires a local agent to represent the company to obtain import licenses, dealer licenses, and thenFor the official distributor.

How do you attract consumers after you have a product? Sociolla started by introducing a blog to the e-commerce platform. The latest release of SO.CO is a collection platform for content and e-commerce. Let consumers play multiple roles in one platform, content producers can share their product feelings; fans, pay attention to the sharing of various beauty bloggers; consumers can enter the shopping interface at any time. On such a collection platform, the user’s content browsing, comment output, and e-commerce historical shopping records, the so-called personalized file creation, can be seen that SO.CO’s ambition is to increase the understanding of the user from the algorithm. User similarity, find the potential relationship between users and items, improve the accuracy of content recommendation, the later commercial realization path will be smoother, and the content promotion amount can be smoothly realized, and the effect of brand advertisements is favored by advertisers.

Sociolla’s customer strategy, both online and offline. In May 2019, Sociolla opened its first physical store in the south of Jakarta and opened a flagship store in the west of Jakarta. The new store is equipped with a full range of concepts and interactive displays that connect to the user’s social platform. In addition to diverting electricity to e-commerce and allowing consumers to buy their own products, Sociolla is improving the subscription model Sociolla Box. Currently, about 370 people have registered for the service, and they will receive 4-5 cosmetic products selected by Sociolla every month. Beauty package.

Social, content, e-commerce, O2O, subscription model, Sociolla have not missed, in the growing Indonesian beauty care market, Sociolla encompasses consumers in all aspects, by increasing the supply of products And the type to establish the adhesion between the platform and the user; the construction of community e-commerce, allowing consumers to actively share the communication and contribute their own preference data, the data and algorithms behind it are the core boost of commercial realization, more understanding of consumers, line Up and down the diversion. However, Sociolla will temporarily launch its own market. After all, some webpages have no English, and they silently spit.

Looking at today’s sharing, if you want to choose to introduce a Chinese brand into the Indonesian market, which brand do you choose? How do you build a brand in Sociolla’s product matrix?