The country is being highlighted as one of a handful of highly promising emerging economies right now, and is included in the recently identified BIITS markets – Brazil, India, Indonesia, Turkey and South Africa, which have usurped the BRIC markets – Brazil, Russia, India and China – as the primary focus for growth.
The Beyond Beauty organisers note that, along with Thailand where the show will eventually take place in September, Indonesia is one of the powerhouses of the region.
The two countries “are the key markets for cosmetics in the region and account in total for more than half of the ASEAN market share,” they state.
Shiseido is one major brand displaying its confidence in the predicted rise of the Indonesian beauty market, having made strong strides towards expansion in the country.
Earlier this year, the company signed a joint venture agreement with local firm PT Sinar Mas Tunggal, which is part of the Indonesian conglomerate Sinar Mas Group.
Shiseido said the move would allow the company to develop its prestige product category and also strengthen its marketing efforts for the masstige segment, which it says is Indonesia’s largest cosmetics market zone.
The firm highlights that roughly 60% of Indonesia’s population, which at 224mn in 2012 is the world’s fourth largest, are under the age of 35: in particular, the younger population in urban areas is growing significantly, and expected to lead to further growth in income and consumption.
Indonesia has a key trading partner in fellow Asian economy, the Philippines, with the market between the two countries driving growth for both.
According to current statistics from the two countries, the Philippine’s annual trade with Indonesia was valued at $3.6bn, while Indonesia valued its annual trade with the Philippines at approximately $2.7bn.
Thanks to rapid economic growth in recent years, both the Philippines and Indonesia are amongst the fastest growing cosmetics markets in the Asian region, and with respect to Indonesia, worldwide.