Indonesian D2C beauty brands build foundation for regional expansion

In 2020, Indonesian beauty marketplace Sociolla expanded to its first overseas market – Vietnam. Like in its home turf, Sociolla Vietnam offers products from global brands like Maybelline and Neutrogena as well as South Korea’s Laneige.

The marketplace also stocks cosmetics from Esqa, Avoskin, and Carasun – all Indonesian brands making their international foray.

Photo credit: Sociolla

Amid the direct-to-consumer (D2C) boom in Indonesia, some brands have begun eyeing growth opportunities abroad. Regional ecommerce players like Shopee and Lazada offer international seller programs that allow for cross-border transactions.

However, while the rewards are obvious, expansion can be a daunting task.

Entering a new market is “equivalent to building your brand locally from scratch,” says Willson Cuaca, co-founder and managing partner of East Ventures. The VC firm is an investor in both Sociolla and Esqa.

“Overall, we believe it is important to be the champion in your market and focus on your core strength and market first,” he adds.

Being on Sociolla gives Indonesian beauty brands a unique advantage since its services could reduce complexities that these companies would otherwise face in Vietnam. That said, having a beauty retail partner is not the only route for overseas expansion.

Industry bonus, niche play

Within two years after expanding in Southeast Asia, Sociolla has opened 13 physical stores – an important aspect of its omnichannel strategy – in four Vietnamese cities. In comparison, it has 49 stores in 29 cities in Indonesia, where it has been operating since 2015.

Just like many other D2C segments, the beauty industry has been quickly swarmed by players trying to get in on the action. But the consumable nature of cosmetics might have given the sector an extra edge when it comes to market expansion.

Along with D2C electronics and fashion items, beauty products are tertiary needs. However, they are not always boxed into categories that reflect consumers’ social status, says Christopher Madiam, co-founder and president of Sociolla.

“Most beauty consumers use both local and international products based on their age, skin, and demographics,” he tells Tech in Asia in an interview.

Sociolla co-founders (from left) John Rasjid, Chrisanti Indiana, and Christopher Madiam / Photo credit: Sociolla

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