Indonesia’s beauty commerce scene has a full face on

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Hello reader,

There are so many beauty brands out there these days, and even more beauty products. When I was younger, I was pretty much only familiar with whatever the local drugstore stocked – names like SilkyGirl, Maybelline, and Revlon made up my early forays into makeup.

Now, with the internet at my fingertips, I can explore so many more brands and products. Whether it’s retinol from Canadian brand The Ordinary, eye cream from South Korea’s Some By Mi, or lipsticks and blushes from brands I’ve never heard of before hailing from Thailand or Indonesia, there’s so much more that’s accessible right from my smartphone screen.

Today’s premium story reflects this growth in the beauty commerce space, specifically in Indonesia. As the nation’s population becomes more affluent, its purchasing power has also increased. This creates an exciting opportunity for startups in the sector, whether they’re making the products themselves or crafting marketplaces where users can discover new and exciting brands.

Today we look at:

• Indonesia’s beauty commerce landscape
• An India-based AI cloud and platform-as-a-service startup that’s just raised seed money
• Other newsy highlights such as VinFast selling its e-bike in the US and Toyota Ventures’ newest funds

Premium summary

Eye of the beholder

Image credit: Timmy Loen

Beauty commerce is on the rise in Indonesia. The average Indonesian consumer is projected to spend US$27.2 on cosmetics and toiletries in 2024, up from US$20.2 in 2019. Moreover, the country’s beauty and personal care segment is expected to generate US$9 billion in revenue this year.

Let’s take a closer look.

• Taking the lead: In an Indonesia-focused survey conducted by research firm Jakpat, 81% of respondents said they shop for makeup products through ecommerce platforms, while 68% said they bought skincare products online. Shopee remains the favorite among consumers for such purchases, having a 63.5% ecommerce market share for the beauty and personal care segment as of February 2024.
• Naming names: With the country’s beauty commerce sector on the rise, there have been many new players, including the likes of Esqa, Rose All Day, Base, Somethinc, and Nama Beauty. Many of these startups have built their own direct-to-consumer brands combining sales channels through websites and ecommerce platforms.
• Funding matters: While most of these brands are not VC-backed, several have raised funding. However, investment in the sector has fallen significantly from US$100 million in 2022 to just US$5.4 million in 2023, likely due to investors being more cautious about backing startups.

Read more: The key players in Indonesia’s beauty commerce space (update)

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