Indonesian beauty brand expanding its portfolio to compete with L'Oréal

By Lucy Whitehouse contact

- Last updated on GMT

Indonesian beauty brand expanding its portfolio to compete with L'Oréal
Leading cosmetics player in Indonesia, Martina Berto, has announced it is acquiring Rudy Hadisuwarno Cosmetics, a brand which specialises in the hair care sector and cosmetics more generally, in order to drive up its market share.

The company has previously announced that it is looking to expand and strengthen its brand and product offering in the country, aiming to compete more aggressively with its two key competitors, multinational L’Oréal, and domestic herbal cosmetics brand, Mustika Ratu. 

The acquisition of Rudy Hadisuwarno is a move towards this goal, with the company’s secretary, Desril Muchtar, telling the Jakarta Post​ that it intends to invest in the newly-acquired brand “wholeheartedly​”. 

Now, with this acquisition, our costs turn into investment​,” he reportedly confirmed.

A mixed domestic showing

Martina Berto currently enjoys a strong presence within the herbal cosmetics and health care categories, and is particularly known for its popular brand, Sariayu-Martha Tilaar.

According to the Jakarta Globe, the beauty company saw sales rise by 10.27% to Rp 483.3 bn in the period of January to September last year. However, with operational costs and currency losses taken into account, its net profit for the year actually decreased by about 10%.

The sales growth it did see, though, was reportedly driven by the company’s cosmetics offering, which perhaps explains its renewed interest in expanding its beauty and personal care presence in the country.

Growth opportunities

The company recently confirmed it is looking to increase sales by 10-15% this year, and the Rudy Hadisuwarno acquisition is tipped to help it get there.

Previously, the brand was part of Martina Berto’s offering, but the parent company acted only as a third-party distributor and retailer of Rudy Hadisuwarno products. Following the acquisition, the larger company now owns the brand in full.

Now, we don’t need to pay the royalty anymore […] and can develop the brand as our own asset​,” Muchtar reportedly explained, confirming that, despite the necessary investment into marketing the parent company will now have to make, its acquisition will streamline and increase the profits of its Rudy Hadisuwarno sales.

Related news

Related products

show more

Sensiva™ go natural,a protector without compromise

Sensiva™ go natural,a protector without compromise

Ashland Global Holdings Inc | 24-Jun-2022 | Technical / White Paper

Consumers are increasingly buying natural, organic beauty and wellbeing products as noted from the increasing number of product launches with natural claim...

Formulating for Clean Beauty

Formulating for Clean Beauty

Elementis | 26-May-2022 | Product Brochure

Water scarcity and water pollution continues to be a concern for the environment. Every year, about 130 tons of microplastic particles from personal care...

Caressense™ biofunctional, powering ageless beauty

Caressense™ biofunctional, powering ageless beauty

Ashland Global Holdings Inc | 01-May-2022 | Data Sheet

For the first time, Ashland researchers reveal a natural bioactive that can activate skin’s sensors of touch, the piezos, to release “feel-good” and anti-aging...

Related suppliers

Follow us

Products

View more

Webinars

Indie Pioneers Podcast

Indie Pioneers Podcast