Feeling Beautiful at Home: The Adaptability of Indonesia’s Beauty Industry Amidst Pandemic
May 27, 2020
Based on our findings, in March, the demand for beauty products in e-commerce was 80% higher than it was in February. As we move on with an undefined end date of the lockdown, it’s a possibility that e-shoppers would precede with a similar consumption pattern and continue indulging in the beauty category. One of Indonesia’s marketplace platforms, Blibli.com, recently mentioned that Health and Beauty was among the top 3 categories that experienced the most transactions in March through April. When compared to their last year’s transactions, Health and Beauty products on Blibli.com grew threefold this year.1 SIRCLO’s findings show that the increment prediction from February till the end of April 2020 reached 101%.
Aside from donating to medical frontliners, these beauty brands have also taken the liberty to care for their internal teams. NIVEA Indonesia donated a total of 40,000 hand sanitizers to their stakeholders and employees2 while L'Oréal Indonesia donated a total of 140,000 hand sanitizers for the #LOREALPARISFAMILY which includes employees, salon partners, and healthcare workers. In ensuring an equal distribution for the healthcare workers, L'Oréal Indonesia collaborated with @doctorshare in the process.3 Mustika Ratu has also taken the liberty to donate their production to Brimob Batalyon D PELOPOR as well as Junior Doctors Net. Indonesia. Aside from supply aid, these brands have also engaged in financial aid initiatives. L'Oréal Indonesia have given financial aid to Eijkman Molecular Biology Institution to fund the necessary research surrounding COVID-19,4 while 2,5% of Mustika Ratu’s sales are donated to the medical frontliners, orphanages, the underprivileged, online ojek drivers, and those in need.
What NIVEA Indonesia, L'Oréal Indonesia, and Mustika Ratu have done are great case studies that show the importance of agility and adaptability towards unpredictable circumstances that will eventually contribute to one’s overall brand strength. This has become an essential business aspect for surviving in the present day. April had experienced a rather stagnant increment compared to before, but it doesn’t have to stay that way. By utilizing technology to its best potential, beauty brands have so many digital approaches to explore in navigating their business around the pandemic.
SIRCLO neither provides regulated advice nor guarantee results. The materials we convey reflect general insight and best practice based on information currently available, and do not contain all of the information needed to determine a future course of action. Such information has not been generated or independently verified by SIRCLO and is inherently uncertain and subject to change. SIRCLO has no obligation to update these materials and makes no representation or warranty and expressly disclaims any liability with respect thereto.