Not only women, men’s awareness to always maintain appearance was higher. The need to care for facial beauty and health makes the need for cosmetic products increasing. This certainly opens up profitable business.
Do you know, according to euromonitor.com, the market potential for beauty and personal care products in Indonesia could reach US$8,46 billion (around Rp120 trillion) by 2022. On average, Indonesians only pay US$24 (around Rp314,000) per year to buy beauty products. This figure is indeed lower than other Southeast Asian countries, such as Malaysia and the Philippines. However, due to the large population, the country’s beauty market potential is very attractive.
Quoted from statista.com, Beauty & Personal Care market revenue is estimated to reach Rp106 trillion in 2021. This market is also expected to grow 6,46% annually. Beauty industry players themselves have also used digital technology as a means to facilitate transaction needs. According to e-Conomy SEA 2020, during the pandemic, the percentage of purchases of beauty & personal care products online increased by 12%. The development of social commerce in the digital realm also creates a need for sellers and consumers to be able to transact safely. The role of a payment gateway startup that provides non-cash payment options is to support the development of social commerce.
Based on a survey conducted by Neurosensum Q1 2021, the adoption of e-wallets in the purchase of beauty services and products on e-commerce platforms, Shopee pay, is far superior to its competitors, such as Dana, OVO, Go Pay, and Link Aja. Not only that, until now the beauty market in Indonesia has also been widely used by online shop sellers through their social media. The rise of goods for beauty needs from local and international communities is being used by the online shop to continue to innovate.
Looking at the facts above, it is not an exaggeration to think that local startup innovations are greatly influenced by the high flow of social interaction in Indonesian society. The evolution and development affected by this is also unlikely to stop any time soon. Both in the daily life of individuals and for business activities, social interaction must be seen as one of the aspects that drives the advancement of the technology industry in Indonesia.