This is my presentation for the Perkosmi seminar on Building Your Local brands held in Jakarta on 24 July 2018. The presentation focuses on the motivations of local consumers in the context of beauty, the importance of implicit as well as explicit meanings and how successful local brands use implicit as well as explicit cues.

2. How to Grow a Brand in
Indonesia:
Understanding Consumer Motivations &
Habits

3. Understanding Indonesian Beauty
•Women are highly engaged in beauty
•Beauty is not just about confidence
•Halal is necessary but not sufficient

4. Indonesia is a large and diverse market for beauty

5. 0 0 0 0 0 00 0 0 0 0 04 1 4 1 0 3
3
2
2
0 0
0
9
7
7
4 3
9
7
7
8
6
6
7
16
8
17
11 12
9
21
23
22
21 20
24
16
16
15
16 17
13
25
38
24
41 42
34
0%
20%
40%
60%
80%
100%
Extremely
interested (10)
9
8
7
6
5
Australia Thailand UK Indonesia Muslim Other
Mean 7.80 8.34 7.79 8.56 8.68 8.16
41% of Indonesian women are extremely interested
in beauty
Source: TapestryWorks Beauty Culture survey, , August 2017, n=1,214, “On a scale of 1 to 10, how interested are you in beauty?”
Interestinbeauty

6. On average women use facial cleaner, body lotion & lipstick
most often, and between 6 and 7 products per day
0
5
10
15
20
25
30
35
Face
cleanser
Body lotion
Lip
stick
Facial m
oisturiser
Sunscreen
Toner
Body powder
Foundation
or BB
Eye
liner
M
ascara
Blush
Face
pack
Eye
shadow
Concealer
Nail polish
False
eye
lashes
Indonesia UK Australia Thailand
Source: TapestryWorks Beauty Culture survey, , August 2017, n=1,214, “How frequently do you use each of the following products?”
Cosmetic
products
used daily
Thailand 6.49
Indonesia 6.38
Australia 4.61
UK 4.57
Numberoftimespermonth

7. That’s why Indonesia will be one of
the top 5 markets in 10 to 15 years
7.548
20.494
33.779
3.172
5.275
6.164
18.474
32.598
44.509
2010 2015 2020 (EXP)
Skin care Colour cosmetics Others
IDRBillion
Source: Beauty & Personal Care in Indonesia (Euromonitor International, June 2016)
CAGR =~ 11%

8. What do
women want
from beauty
and is it all
about
confidence?

9. Based on most popular word choices, women from four
countries want to feel Confident, but what does that mean?
“What is the beauty that you desire for yourself?” (top 5 verbal stimuli)
Australia Indonesia Thailand UK
Confident 53% Confident
(percaya diri)
63% Confident
(มั#นใจ)
49% Confident 55%
Strong 30% Charismatic
(karismatik)
25% Strong
(แข็งแรง)
22% Strong 36%
In control 23% Loving
(mercintai)
23% Charismatic
(คนที*เป็นแบบอย่างที*ดี)
20% In control 22%
Loving 19% Unpretentious
(bersahaja)
20% Unconventional
(ห่วงใย ใส่ใจ)
20% Loving 18%
Charismatic 15% Original
(asli)
18% Creative
(ความคิดสร้างสรรค์)
19% Charismatic 17%
Source: TapestryWorks Beauty Culture survey, , August 2017, n=1,214
Is this skew due to translation, literal
thinking or multiple contextual meanings?

10. Top 5 images are consistent across countries, but priorities change and
Strong and Hopeful polarize Western and Asian cultures
“What is the beauty that you desire for yourself?” (top 5 Western images)
Australia Indonesia Thailand UK
Strong 42% Charismatic 41% Hopeful 31% Charismatic 38%
Charismatic 36% Hopeful 35% Charismatic 30% Strong 36%
Individual 31% Enjoyment 25% Enjoyment 26% Enjoyment 30%
Enjoyment 28% Individual 21% Individual 25% Individual 26%
Hopeful 25% Strong 18% Strong 21% Hopeful 20%
Source: TapestryWorks Beauty Culture survey, , August 2017, n=1,214

11. Percaya diri is very important for Indonesian beauty goals,
but does it mean confident, hopeful, self-belief or all?
Confident
percaya diri
Charismatic
karismatik
Source: TapestryWorks Beauty Culture survey, , August 2017, n=300, “What is the beauty that you desire for yourself?”
BAHASA LANGUAGE INDONESIAN IMAGESWESTERN IMAGES

12. For Indonesian women, daily beauty routines are associated with
natural looks and fewer products, while formal occasions require
more treatments, products & colour
Morning
Goals- preparing yourself for the
day, giving energy and impetus
Products used- skin care,
moisturizer, suncream, water
Day time
Goals -Touch up, reconnect
with self, break from routine
Products used- face powder,
cosmetics
Evening
Goals - Cleansing, intimacy
Products used- lotion,
moisturizer, night
cream, sometimes face mask
Special occasion
Goals - Transform,
empower, special
Products used- face
powder, cosmetic, spa
and salon treatments
Source: TapestryWorks online community of beauty routines (with ABN Impact), May 2017, “How do you feel before, during and after your beauty routine?”

13. Morning routines energise women’s individual identity, day-time
routines are a fun break, evening is about reconnecting, and
formal occasions require more charisma
NATURAL
DAILY
FORMAL
PARTY
Morning
Goals- preparing yourself for the
day, giving energy and impetus
Products used- skin care,
moisturizer, suncream, water
Day time
Goals -Touch up, reconnect
with self, break from routine
Products used- face powder,
cosmetics
Evening
Goals - Cleansing, intimacy
Products used- lotion,
moisturizer, night
cream, sometimes face mask
Special occasion
Goals - Transform,
empower, special
Products used- face
powder, cosmetic, spa
and salon treatments
Source: TapestryWorks online community of beauty routines, May 2017

14. In summary, day-to-day beauty is natural and optimistic, while
formal occasions are about confidence and glamour.
Which emotions do local & international brands focus on?
NATURAL
DAILY
FORMAL
PARTY
Morning
Goals- preparing yourself for the
day, giving energy and impetus
Products used- skin care,
moisturizer, suncream, water
Day time
Goals -Touch up, reconnect
with self, break from routine
Products used- face powder,
cosmetics
Evening
Goals - Cleansing, intimacy
Products used- lotion,
moisturizer, night
cream, sometimes face mask
Special occasion
Goals - Transform,
empower, special
Products used- face
powder, cosmetic, spa
and salon treatments
Source: TapestryWorks online community of beauty routines, May 2017, “How do you feel before, during and after your beauty routine?”

15. In summary, day-to-day beauty is natural and optimistic, while
formal occasions are about confidence and glamour.
Which emotions do local & international brands focus on?
NATURAL
DAILY
FORMAL
PARTY
Morning
Goals- preparing yourself for the
day, giving energy and impetus
Products used- skin care,
moisturizer, suncream, water
Day time
Goals -Touch up, reconnect
with self, break from routine
Products used- face powder,
cosmetics
Evening
Goals - Cleansing, intimacy
Products used- lotion,
moisturizer, night
cream, sometimes face mask
Special occasion
Goals - Transform,
empower, special
Products used- face
powder, cosmetic, spa
and salon treatments
Source: TapestryWorks online community of beauty routines, May 2017, “How do you feel before, during and after your beauty routine?”

16. 5 1 1
8
6
2 0
4
10
1
1
12
9
3
3
11
13
6 9
12
15
10 12
16
17
18
23
18
14
24
25
11
5
14
10
5
7
21
17
3
0%
20%
40%
60%
80%
100%Very happy 10
9
8
7
6
5
4
3
2
Very unhappy 1
Australia Indonesia Thailand UK
T3B 26 % 59% 51% 19%
B3B 30% 4% 2% 24%
Mean 5.81 7.64 7.43 5.39
Indonesian women are very positive and believe in themselves
Source: TapestryWorks Beauty Culture survey, , August 2017, n=300, “On a scale of 1 to 10, how do you feel about your body image?”

17. Ways to enhance your beauty
Indonesia Thailand UK Australia
Personal effort and persistence 4th 5th 5th 5th
Good diet 6th 1st 1st 1st
Regular exercise 3rd 2nd 2nd 2nd
Use the right make-up 5th 6th 6th 6th
Find supportive friends 7th 7th 7th 7th
Show your inner beauty 2nd 3rd 4th 3rd
Smiling 1st 4th 3rd 4th
Cosmetic surgery and treatments 8th 8th 8th 8th
Indonesian women believe that Smiling and Inner
beauty enhance beauty
Source: TapestryWorks Beauty Culture survey, , August 2017, n=1,214, “What are the most important ways in which your beauty can be enhanced? Please rank each option.”

18. What is the importance of halal certification?

19. 50
23
21 21
17
12
32
6 5
3 4 4
0
10
20
30
40
50
60
Wardah Sari Ayu Maybelline NY Mustika Ratu Pixy L'Oreal
P3M BUMO
Which make-up brands are halal?
%usinginpast3months&brandmostoftenused
Source: TapestryWorks Beauty Culture survey, August 2017, n=300, “Which make up brands have you used most frequently in the past 3 months, and which do you use most often?”
Top 5 make-up brands plus L’Oréal (#10)
Note that Wardãh is used most often by 2 in 3 of its users

20. 50
23
21 21
17
12
32
6 5
3 4 4
0
10
20
30
40
50
60
Wardah Sari Ayu Maybelline NY Mustika Ratu Pixy L'Oreal
P3M BUMO
3 of the top 5 brands are halal
%usinginpast3months&brandmostoftenused
Source: TapestryWorks Beauty Culture survey, August 2017, n=300, “Which make up brands have you used most frequently in the past 3 months, and which do you use most often?”
Top 5 make-up brands plus L’Oréal (#10)

21. 56
26
19
23
19
13
28
13
27
12 12
10
0
10
20
30
40
50
60
Wardah Sari Ayu Maybelline NY Mustika Ratu Pixy L'Oreal
Muslim Others
Source: TapestryWorks Beauty Culture survey, August 2017, n=300, “Which make up brands have you used most frequently in the past 3 months?”
Wardãh is the most popular make-up brand for all women
(past 3 months use)
%usinginpast3months

22. Halal is the explicit sign of
Indonesian Muslim beliefs, but
the word tulus (sincere, truthful)
reflects the implicit values

23. Nature comes first

24. Purity is an
everyday ritual

25. Modesty is a
virtue

26. Halal is not enough
1. Halal, with an explicit focus on natural
and recommended ingredients
2. A proposition and look based on
implicit values including modesty

27. How does
this look in
a beauty
brand?

28. Wardãh
looks and
feels very
natural

29. “soft,
pure,
elegant
and
modest”
Source: Generation M: Young Muslims changing the world by Shelina Janmohamed (2016)

30. Understand your customers
•Be positive and engaged
•Focus on natural, daily beauty needs
•Be implicitly (as well as explicitly) Indonesian