17 June 2019

By PhilExport News and Features

Published also in Business Mirror

BEAUTY and personal care in Indonesia is expected to have a positive outlook albeit slower growth, with halal and natural mainly driving local purchases.

The Euromonitor Digest, the online publication of the Export Management Bureau of the Department of Trade and Industry (DTI), said many brands continue to issue halal certification.

“Reflecting on this, consumers are becoming increasingly aware of the halal-brand presence in Indonesia and are choosing to purchase these products. As a result, international brands that had not acquired halal certification at the end of the review period will begin to do so,” it said.

The report noted that consumers are expected to continue to purchase beauty and personal care, though increasingly looking for discounted products, indicating that many brands will be offering bundled packages.

“Retailers are also expected to boost their sales by adding a greater number of discounted products in their stores, as consumers’ buying habits are shifting, as evident in many drugstores such as Watsons or Guardian,” it added.

Within beauty and personal care, the Euromonitor Digest further said international brands compete directly with domestic brands. The report further underscored the increasingly important role of Internet retailing in the distribution of beauty and personal care. Many companies and brands increase their presence in the channel to boost sales, it said.

“Looking at this trend, Indonesian banks are also participating in the competition by offering discounts when consumers purchase using their credit/debit cards. Companies are expected to continue their promotional activities through establishing distribution in their online official stores on the e-commerce platform and on their own web sites,” it added.

The report said new product development in Indonesia revolves around new packaging.

“The new packaging in Indonesia is deemed necessary due to low purchasing power in 2017. Manufacturers tend to offer consumers a new image for their products to encourage sales during a low economic period,” it said.