Navigating Strategies in Indonesia’s Beauty Industry 2024

Beauty Industry Growth Trends in Indonesia  

The beauty industry continues to experience significant growth, driven by increasing innovation and demand. Data from Statista in 2023 shows a potential growth projection for Indonesia’s beauty industry at 4.6% over the next five years, with skincare contributing approximately 30% to the market.

 

New Competitive Landscape  

With rapid growth, the competitive landscape in the beauty industry has undergone substantial changes. Skincare is now often regarded as a primary necessity, with purchasing patterns similar to those for bottled water, shifting towards commoditization. This rapid growth in the skincare industry is largely influenced by the rise of local brands, supported by lower barriers to entry through OEM production, high-quality yet affordable products, and the growing influence of beauty influencers, who amplify the overall hype surrounding the skincare and beauty industry.

New Customer Behavior  

Consumer behavior has also shifted significantly. Today’s customers are more critical, with easy access to information via the internet, particularly social media. They are no longer just looking for product recommendations but also researching ingredients suitable for their specific skin concerns, seeking references they find most relatable. Data from the 2023 ZAP Beauty Index highlights that local influencers and beauty forums are the primary sources of information for skincare and beauty clinic users.

 

What Should Brands Do?  

To remain competitive in this increasingly challenging market, brands need to adopt several key strategies focused on customer management, product management, and brand management.  

• Building Customer Relationships: Pay attention to nurturing relationships with customers, especially younger target markets like Gen Z and Gen Alpha.  
• Product Development: Creating entry-level products and identifying “hero products” is crucial.  
• Brand Storytelling: Craft narratives that align with customer aspirations, particularly those emphasizing healthy skin and environmentally friendly ingredients.  

By understanding and navigating these trends, brands in the beauty industry can continue to thrive and adapt to the dynamic and complex challenges they face. Adaptation to change and continuous innovation are key to staying relevant and appealing to consumers.

For more comprehensive insights to benefit your brand, MarkPlus has delved deeper into this topic in our report: *Beauty and Skincare Industry Outlook: Next-Gen Beauty: Strategies for a Changing Industry*. You can access the premium version of the full report by contacting our team: Ata (+62 812 2371 6111) or [uswata.hukama@markplusinc.com](mailto:uswata.hukama@markplusinc.com).