The skincare and beauty industry in Indonesia continues to show significant growth, evident from the increasing number of cosmetic products approved by the Indonesian Agency of Drug and Food Control (BPOM). Additionally, in July 2022, the number of companies in the industry rose by 20.6% compared to the previous year, with a substantial 83% increase in micro, small, and medium enterprises (UMKM) in the sector. This data indicates that the skincare market in Indonesia is becoming more competitive, especially for local brands. However, Diana Fatimah Azzahro, an entrepreneur and owner of the brand Oh My Skin!, sees this phenomenon differently and believes it presents an excellent opportunity for local skincare brands to thrive.
Diana points out that in countries like Korea and Thailand, the skincare market has already developed significantly, with skincare product stores becoming must-visit destinations. She believes that such a scenario can only be achieved when multiple local brands thrive, indicating an increasing interest in skincare among Indonesian consumers. Many local skincare brands have already gained a national and even multinational presence, and Diana emphasizes the need for these authentic Indonesian brands to further strengthen themselves to compete with the influx of foreign skincare products in the domestic market.
Challenges lie ahead for skincare entrepreneurs in Indonesia, including the need to enhance branding and creativity while facing rising marketing costs. The data from BPOM reflects the growing interest in skincare, but the target market remains the same. Therefore, businesses need to step up their branding efforts and adapt creatively. Additionally, marketing costs have significantly increased with minimal impact, posing further obstacles for the sector.
