AN OVERVIEW OF INDONESIAN COSMETICs MARKET Juanita Aditiawan Head of External Affairs Perkosmi

What are we here to talk about? What’s Happening in Indonesia? Key Beauty Trends Opportunities in Remarkable Indonesian Market

Key Economic Indicators Indonesia in on the path to become a high income country. Actual GDP has reached $4250 in 2014. It is expected to reach $18,000 by 2030. Source: Ministry of Finance

Key Economic Indicators Source: Ministry of Finance

Key Economic Indicators PROJECTED TOP ECONOMIES BY GDP 2010 2020 2030 EUROPE USA CHINA JAPAN BRAZIL 13. INDONESIA US 9. INDONESIA INDIA INDONESIA By 2030, Indonesia will surpass Brazil and Russia to become the #5 economy in the world Source: Ministry of Finance

Bonus Demography 2014 2020 Population 252 mio 269 mio Male Female Ratio 1:1 Dependency Ratio 48.7% 45% Middle & Affluent Class 74 mio 141 mio Source: Ministry of Finance

Urbanization Trends Rate of Urbanization is 4% p.a. One of the most rapidly urbaning countries in the world 67.7% of the population live in urban area, 85% in 2050

The Cosmetic Industry in Indonesia A Resilient Industry has survived many financial crisis in Indonesia, yet the industry still shows growth year on year

The Cosmetic Industry in Indonesia Rural areas are catching up with the urban centers as quickly as retail networks expand beyond major cities and as new consumers enter the market Sales of cosmetics in urban areas increased by 9.4% year-on- year in the first half of 2013, while in rural regions, sales boomed by 27.5%.

Key Beauty Trends in Indonesia The Korean Wave

Key Beauty Trends in Indonesia Men’s grooming market has continuously increased in the past years

Key Beauty Trends in Indonesia Halal Cosmetics

Key Beauty Trends in Indonesia Mega Trends: Convenience Healthy Feeling/Looking Good

Large Market of Middle Class demanding convenience Convenience Modern Retailing Product and Service that saves time Educated working woman Out home beauty make over

Frequent Shopping Frequent/everyday shopper – means proximity. Traditional retail habits that saw local markets as the center of activity have been quickly replaced by that of malls and hypermarkets that offer convenience as well as entertainment

Love Premium but Affordable

Specialty Stores for Cosmetics

Opportunities in Remarkable Indonesian Market Finished Cosmetic Products, especially in middle low market Cosmetics products that are still imported to Indonesia USD 2 trillion Halal Cosmetic Market 2 Korean brands already have halal certificates: Talent & Pulmuone

Opportunities in Remarkable Indonesian Market Supplying Packing Materials, Ingredients, Accessories Machinary & Equipments Setting up factories in Indonesia, a market of 250 million people. Indonesia has a large labor market and wages is still low compared to other Asian countries. Manufacturing in Indonesia – enjoy the benefit of ASEAN Economic Community.