Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Baby care; Bath and shower products; Colour cosmetics; Deodorants;
Depilatories; Fragrances; Hair care; Men' s grooming products; Oral hygiene;
Premium cosmetics; Skin care; Sun care
Executive summary
Accelerating growth underpinned by improved purchasing powerM
The cosmetics and toiletries market in Indonesia maintained its performance in
2007 as compared to a year earlier. The value growth in 2007 was underpinned
by improved purchasing power of consumers, a flurry of new product launches,
manufacturers' advertising and promotional campaigns, and increased product
awareness. As economic conditions in the country saw stronger, consumers
demonstrated growing interest in products previously perceived as less
essential, such as fragrances, men' s grooming products.
Mature cosmetics and toiletries witness series of product innovation
Essential toiletries products, namely hair care, bath and shower products and
oral hygiene, accounted for the bulk to cosmetics and toiletries value sales
in Indonesia over the review period. Indonesian consumers generally regard
these products as basic necessities, and thus the consumer base, and the
frequency of consumption, are huge in comparison with less essential products.
As demand for these products was already considered saturated, manufacturers
came up with product innovations such as new formulations with value-added
benefits, and novel packaging designs and formats to spice up growth and win
share.
Multinationals dominate despite intensified competition from locals
In 2007 multinationals such as Unilever Indonesia Tbk PT and Procter & Gamble
Home Products Indonesia PT continued to lead the way due to strong brand
images and huge marketing budgets. In addition, many Indonesian consumers tend
to prefer foreign brands, as these are generally considered to be of higher
quality, and also more reliable than offerings from domestic players. In light
of the growing popularity of cheaper local brands towards 2007, there was a
move by multinationals to prevent share loss by offering cheaper products
through price discounts and value-for-money offerings by bundling products
with free gifts and offering buy-one-get-one-free deal. Several multinationals
also widened their distribution coverage to reach traditional independent
grocers.
Skin care sees most dynamic performance
Increasing consumer interest in more modern cosmetics and toiletries with
advanced formulations designed to treat particular problems, or meet the
requirements of specific consumer groups, particularly benefited skin care
products at the end of the review period. Anti-ageing, male-specific and
whitening products continued to be the main drivers of skin care performance,
with this category registering the most dynamic value growth in the cosmetics
and toiletries market in 2007. Its promising performance was also thanks to
new launches of global brands such as Pond' s Oil Solution, Garnier and Nivea
for Men, which had a significant impact in improved volume demand for skin
care.
High potential awaits over forecast period due to better economic condition
The economic rebound following expected interest rate cuts and lower inflation
will refresh the cosmetics and toiletries market in the country. As the
spending power of consumers is expected to fully recover over the forecast
period, consumers may spend more on less essential products and more advanced
variants of more mature offerings. Manufacturers may play a key role in
fulfilling the upward growth curve of cosmetics and toiletries over the
forecast years, through a series of new launches and heavy promotional
efforts. There is still huge potential for men' s grooming products, skin care,
and fragrances to exploit, with double-digit constant value growth expected to
be realised by these products.
| 
View Cart
