Tempted to buy lipstick for beauty influencer uploads on Instagram? Or interested in hair coloring for watching a video tutorial beauty vlogger? It is commonplace in the present, because social media plays a major role in influencing consumers in the world of beauty.
Unique consumer behavior in Indonesia is strongly influenced by various factors such as culture, weather, food consumption as well as the younger population also make the beauty industry increasingly stretched.
Data from the Central Bureau of Statistics (BPS) in 2015 shows that the number of millennial generation aged 18-30 years in Indonesia reaches 24 percent of the total population. Millennials daily communicate through social media and have created new trends through digitization.
The phenomenon of the emergence of new celebrities in the field of influential beauty in social media or more often referred to as beauty influencers has also helped promote the beauty industry.
No wonder in the last 10 years the beauty and personal care industry in Indonesia has grown by an average of 12 percent with market value reaching Rp 33 trillion in 2016. Even in 2020, the beauty industry in Indonesia is predicted to experience the greatest growth compared to other countries in Southeast Asia.
After more than 38 years of developing the beauty industry in Indonesia, L’Oréal reiterated its commitment to continue to support the growth of the beauty industry with the support of top brands especially in the category of skin care, hair care and cosmetology.
“The high index of consumer confidence to make purchases and supported by increased awareness of beauty trends and self-care via the internet and other media has made beauty treatments an important part of daily routine of both women and men,” said Umesh Phadke, President Director of L’Oréal Indonesia recently in Jakarta.
Consumer growth of an average of 3 million people each year makes the industry very promising now and beyond. For that L’Oréal put Indonesia a priority share in Asia with China and India.
The growth of the beauty industry is triggered among others by the contribution of three major categories, namely make up about 10 percent, hair care around 37 percent, and skin care about 32 percent. Of all distribution channels on the market, 87 percent are still driven by mass-scale retail channels, such as minimarkets, supermarkets, hypermarkets, specialty grocery stores, and modern retailers.