Multinational companies dominated cosmetics market in Indonesia

Jakarta (ANTARA News) - Cosmetics market in Indonesia is dominated by multinational companies with a market share of 70 percent.

Chief Executive Officer of PT Paragon Technology and Innovation (PTI) Nurhayati Subakat said in Japan and South Korea, national producers dominate the market by as much as 60 percent with multinational companies having only a market share of 40 percent.

"We want national producers to have at least a 50 percent share of the cosmetic market in the country," the owner of the cosmetic producer with the brand of Wardah said.

Nurhayati said the national cosmetic producers are not expected to be able to grab a significant share in global market if they could not lead on the home ground.

Nurhayati, however, said domestic producers could dominate the domestic market as they have a number of comparative advantages such as cheap labor cost.

She said the main problem faced by the local producers is high dependence on imports for basic materials.

She said the cosmetics industry also suffered a slowdown in growth in the past two years growing by less than 50 percent but still higher than 30 percent.

She said sales of Wardah cosmetics grew only 45 percent in 2014 slowing from a growth of 100 percent in 2013.

"Our sales of Wardah cosmetics were three times larger than sales of similar products of other companies," she said.(*)