Consumers turn to local cosmetics<\/p>\n
JAKARTA (JP): Whether there is an economic crisis or not,
\ncosmetics, in the words of a beauty expert, are \"a second skin to
\nurban women\".<\/p>\n
Claudia Angelique, a skincare and make-up facilitator at John
\nCasablanca's Modeling and Career Center, says this need for
\ncosmetics -- a basic commodity for the image conscious -- \"helps
\na great deal with one's personality and one's emotional status\".<\/p>\n
She reiterated that a bright face, good hair and fashionable
\nwear were all social needs for urban women, particularly those
\nserious about their careers, to be recognized and accepted in
\ntheir own social circles.<\/p>\n
Students coming to the modeling center include career women
\nwho want to learn social graces and ways of beautifying
\nthemselves \"in order to be socially acceptable\", she said.<\/p>\n
Noting the effect of the crisis on cosmetics prices, Claudia
\nsaid consumers here tend to look down on local products, even
\nthough local brands are well accepted abroad.<\/p>\n
\"If they (local brands) are popular with foreigners, why
\naren't they acceptable to our own people?\"<\/p>\n
One reason may be that the higher price of imports adds to the
\nprestige.<\/p>\n
But urban women, who have to think of their other needs --
\nparticularly if they have families to feed -- have finally looked
\nto local brands.<\/p>\n
The skyrocketing prices of imported cosmetics by an average of
\n200 percent to 300 percent for fragrances and 100 percent each
\nfor color cosmetics, haircare and bodycare has led consumers to
\nmake the switch from imported brands to quality local ones.<\/p>\n
Coordinator of the Local Cosmetic Producers Association Intony
\nYuswanto said that he had received several reports from both
\nlocal and imported cosmetic counters that people were opting for
\nlocal brands.<\/p>\n
The reason: an \"incessant need\" for cosmetics and the doubling
\nof prices for imported cosmetics, he said.<\/p>\n
Intony, a senior coordinator of local cosmetics at PT Martina
\nBerto -- a cosmetic firm that is the source of Biokos, Sari Ayu,
\nBelia, Mirabella, Cempaka, Madonna and Savitri brands -- said the
\nprices of PT Martina Berto cosmetics would jump 20 percent to 30
\npercent \"some time next month or in the next two months\".<\/p>\n
\"It is being done gradually as we cannot afford to shock local
\nmarkets during these times,\" Intony said.<\/p>\n
Prices of PT Martina Berto cosmetics increased 20 percent last
\nOctober and another 20 percent price hike came into effect on
\nFeb. 1.<\/p>\n
Intony said that the monthly turnover of PT Martina Berto
\ncosmetics -- which holds the largest market share (16 percent to
\n17 percent) of local cosmetics -- was \"a good Rp 15 billion to Rp
\n20 billion\" in February.<\/p>\n
Despite having enjoyed a growth rate of 20 percent for the
\npast few years, there was \"a big possibility\" that PT Martina
\nBerto might not even be able to break-even this year, Intony
\nsaid.<\/p>\n
\"Among other things, this will be due to the sharp increase in
\nthe prices of raw materials.\"<\/p>\n
He mentioned that with raw materials now more expensive, it
\nwould not take long for small producers of local cosmetics to
\nfade away.<\/p>\n
\"Everything has gone up by 100 percent. It is 100 percent more
\nfor packaging materials. Plastic has gone up 100 percent and
\nothers have at least gone up 50 percent.\"<\/p>\n
Intony said there were several cosmetic firms, like Mustika
\nRatu, for instance, which were prolonging their terms of payment.<\/p>\n
\"Some are going from the normal two weeks to a month or more.\"<\/p>\n
Project manager of the Indonesian branch of Loreal cosmetics
\nPhilip Giles said local cosmetics might be on a high at present
\nbut they have huge foreign debts to service in the long run.<\/p>\n
\"I am sure that the company structures of local cosmetics as a
\nwhole are doing good business now, but they are fast reducing
\ntheir investments in media,\" Giles said.<\/p>\n
\"They will not be able to afford to make credit payments when
\nthey come due as most of the raw materials used for local
\ncosmetics are imported as well.\"<\/p>\n
For the first time imported cosmetic and fragrance products
\nare receiving \"a different set of customers\", he said<\/p>\n
\"Opportunists from abroad, like entrepreneurs and mostly
\nwholesale traders... are buying cheap imported goods here for
\nreexport.<\/p>\n
\"I have heard of traders just going to Sogo and buying stocks
\nor those buying in bulk... prices are still much cheaper here
\nthan Singapore or Hong Kong.\" (02)<\/p>",
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