Entering the Indonesian Clean Beauty Market: A Case Study of Grown Alchemist
DOI:
https://doi.org/10.54097/z58f8m84Keywords:
Clean beauty, market entry strategy, Indonesia skincare market, sustainable consumption, emerging marketsAbstract
The rapid expansion of the global clean beauty industry has created significant opportunities for international skincare brands seeking to enter emerging markets. Indonesia, with its large population and growing demand for sustainable and ethically produced personal care products, represents a particularly attractive destination for market entry. Despite the increasing importance of the Indonesian skincare market, limited academic research has examined how clean beauty brands can effectively position themselves within this rapidly developing environment. This research focuses on how sustainable skincare brands enter the market in Indonesia, specifically through an analysis of the Australian brand Grown Alchemist. The research, based on secondary market data from various industry sources like Euromonitor Statista Nielsen and other reports, uses a qualitative case study methodology to analyze consumer behavior, market trends and competition in the Indonesian skincare industry. The research suggests that Indonesian buyers, especially those young urban consumers of generation Z and millennials, are highly motivated for green beauty products. Nevertheless, buying behavior is still very much dominated by such things as price awareness, seeking of halal label, and advice through social networks. Results point to celebrity campaigns on social media, tie-ups with established local cosmetics stores, and appropriate product marketing as major factors paving the way for success in the market. This research adds to the body of work in international marketing and sustainable consumption by unveiling ways in which clean beauty brands may adjust their tactics when entering emerging markets. The results also provide actionable insights for worldwide skincare companies aiming at growing their footprint in Southeast Asia.
Downloads
References
[1] World Bank. Indonesia overview. World Bank, 2023.
[2] Euromonitor International. Beauty and Personal Care in Indonesia: Market Research Report. Euromonitor International, 2023.
[3] Statista. Indonesia – Beauty & Personal Care Market Outlook. Statista, 2024.
[4] Deloitte. Global Powers of Beauty and Personal Care. Deloitte Insights, 2022.
[5] Chin, J., Jiang, B. C., Mufidah, I., Persada, S. F., & Noer, B. A. The investigation of consumers’ behavior intention in using green skincare products: A pro-environmental behavior model approach. Sustainability, 2018. DOI: https://doi.org/10.3390/su10113922
[6] Herbes, C., Beuthner, C., & Ramme, I. Consumer responses to environmentally friendly packaging and eco-labelling in the cosmetics industry. Sustainability, 2020.
[7] Oluyemi, G. F., Afolabi, R. O., Zamora, S. C., Li, Y., & McElroy, D. Environmental impact assessment of a plant cell-based bio-manufacturing process for producing plant natural product ingredients. Sustainability, 2024. DOI: https://doi.org/10.3390/su16198515
[8] Paramita, S., Kusuma, I. W., Sulistioadi, Y. B., et al. Environmental and safety aspects of bio-based cosmetics in Indonesia. Springer, 2024. DOI: https://doi.org/10.1007/978-981-97-1908-2_22
[9] Song, C., Zhang, L., Lin, S., Yen, N., Xu, Z., & Atiquzzaman, M. Analysis of the realization of economic value by the KOL marketing model. Springer, 2021. DOI: https://doi.org/10.1007/978-981-33-4572-0_135
[10] Chrisniyanti, A., & Fah, C. T. The impact of social media marketing on purchase intention of skincare products among Indonesian young adults. Eurasian Journal of Social Sciences, 2022.
[11] Wang, L., & Lee, J. H. The impact of K-beauty social media influencers on consumer acceptance of new products. Journal of Marketing Science, 2021. DOI: https://doi.org/10.1186/s40691-020-00239-0
[12] Ida, R., Saud, M., & Mashud, M. Social media usage and youth participation. Quality & Quantity, 2020.
[13] Nielsen. Clean Beauty and Ethical Consumerism in Indonesia. Nielsen Report, 2022.
[14] Katz, E., & Lazarsfeld, P. F. Personal Influence: The Part Played by People in the Flow of Mass Communications. Free Press, 1955.
[15] Cateora, P. R., Gilly, M. C., & Graham, J. L. International Marketing (18th ed.). McGraw-Hill Education, 2020.
[16] Kotler, P., & Keller, K. L. Marketing Management (16th ed.). Pearson Education, 2021.
[17] Sanny, L., Julianto, T. D., Savionus, S., & Kelena, B. W. Y. Purchase intention in the fashion industry on local and international e-commerce in Indonesia. 2022. DOI: https://doi.org/10.4018/IJABIM.20220701.oa4
[18] Kim, H., Lee, J., & Jung, Y. Globalizing K-beauty: Expansion strategies in Southeast Asia. Journal of International Consumer Marketing, 2021.
[19] Yin, R. K. Case Study Research and Applications: Design and Methods (6th ed.). Sage Publications, 2018.
[20] McKinsey & Company. The Future of Beauty in Southeast Asia: Insights from Indonesia. 2022.
[21] Lee, J. E., Goh, M. L., & Noor, M. N. M. Understanding purchase intention of university students towards skin care products. PSU Research Review, 2019. DOI: https://doi.org/10.1108/PRR-11-2018-0031
[22] Mahri, A. J. W., Juliana, J., Monoarfa, H., Rohepi, A. P., & Karim, R. Integrating country of origin, brand image and halal product knowledge. Journal of Islamic Marketing, 2024. DOI: https://doi.org/10.1108/JIMA-12-2021-0390
[23] GlobalData. Indonesian Consumers Pivot Towards Halal Cosmetics. 2024.
[24] Komari, A. Product quality as a mediating variable in repurchase decisions. Innovative Marketing, 2023. DOI: https://doi.org/10.21511/im.19(3).2023.11
[25] Chung, S., & Karampela, M. Consumer preferences for packaging and product sizing in emerging markets. Journal of Global Consumer Marketing, 2021.
[26] Schmitt, B. Experiential Marketing. Free Press, 1999.
[27] Lindh, H., Olsson, A., & Williams, H. Sustainable packaging for sustainable development. Journal of Cleaner Production, 2016.
[28] Ministry of Environment and Forestry. Indonesia Sustainability Framework. Government Report, 2023.
[29] Barbierato, E., Berti, D., Ranfagni, S., et al. Wine label design proposals: An eye-tracking study. International Journal of Wine Business Research, 2023.
[30] Bjerke, M. B., & Renger, R. Being smart about writing SMART objectives. Evaluation and Program Planning, 2017. DOI: https://doi.org/10.1016/j.evalprogplan.2016.12.009
Downloads
Published
Issue
Section
License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.







