Beauty is continuing to see strong growth in Indonesia, the biggest economy in South East Asia with a population of 250 million and GDP growth of 5 percent in 2014. While overall economic growth slowed in 2014, especially in the second half due to higher fuel prices and the currency devaluation against the dollar, this does not seem to have impacted beauty sales, which are expected to continue growing by at least 10 percent per year. “Living conditions for Indonesian people are improving greatly,” says Ioma CEO Jean-Michel Karam, who launched the Unilever-owned brand in Indonesia last year. “When you look at the country’s growth rates compared with its neighbors, it is the Asian champion of recent years.”

Skin care still represents the lion’s share of the market, and continues to grow strongly as consumers seek out new anti-aging and whitening products. Unilever dominates the skin care market overall with a share of around 35 percent, far ahead of its nearest competitors. Both L’Oréal and Beiersdorf for example, have a 10 percent share of the category, while P&G’s share is 9 percent, according to industry sources. In prestige, however, P&G-owned SK-II is the market leader, while Clarins, Lancôme, Biotherm, Shu Uemura and Shiseido are popular. South Korean brands are also finding favor with consumers, and Amore Pacific’s Sulwhasoo is a recent entrant.

Make-up and fragrance are both growing, but at slower rates. Make-up is still seen as less of a necessity to Indonesian consumers than skin care. M.A.C is the prestige make-up market leader in department stores, according to industry sources, while LVMH-owned Make Up For Ever, which has several standalone stores, is also performing well.


To read BW Confidential’s full report on the beauty market in Indonesia,
click here.