Mustika Ratu targets more markets abroad
JAKARTA (JP): Publicly listed traditional cosmetics manufacturer PT Mustika Ratu plans to enter new overseas markets after penetrating the Netherlands and some Asian countries, one of the company's senior executives said.
Company director of finance, Putri Kuswisnuwardani, told The Jakarta Post here that her company would enter the United States, Australia and the Commonwealth of Independent States (CIS -- the former Soviet Union) later this year.
"As a big country, the U.S. has its own lifestyle which nonetheless is quite similar across the states. I think we have a fair chance of making inroads on their market within two or three years," she said, adding that Mustika Ratu would also enter Australia and Thailand.
But Europe seems too far away from Indonesia, she said.
Mustika Ratu has also signed an agreement with PT Comexindo, a trading firm controlled by Hasjim Djojohadikusumo, to distribute Mustika's products in some areas of the CIS, she said.
"Long before the general public talked about free markets or global competition, we thought seriously about overseas penetration."
Putri said that Mustika Ratu currently ran a number of subsidiaries or partnerships to market its products in Malaysia, Singapore, Brunei, the Philippines, Taiwan, South Korea, Japan, the Middle East and the Netherlands.
"As our own market is being invaded by foreign goods we should work harder to establish our products in international markets, " she said.
Mustika Ratu, which was incorporated in 1978 floated some 25 percent of its shares on the Jakarta Stock Exchange in July, 1995. The company raised nearly Rp 70 billion from the offering.
Mustika Ratu produces more than 500 cosmetic products, including face care, hair care and body care products. The firm also processes more than 60 kinds of traditional herbs into powders, pills, capsules, dried herbs and tea bags. Some of the company's product names are Moor's Collection, Royal Heritage, Mustika Ratu and Ananda.
The company won marketing awards from the Asian Institute of Management in 1993 and 1996. Awards in several categories are presented annually by the Manila-based institute.
Putri said Mustika Ratu had to be well prepared to enter international market.
"We have to improve product quality, understand what our products are and their market niche and how to handle marketing."
"For instance, our products are traditional products with heritage formulas. Though there have not been any clinical trials of traditional products, they have been well tested because they have been used for hundreds of years with no side effects."
Domestically, Mustika ratu competes with dozens of local producers. Its leading competitors are PT Martina Berto which produces Sari Ayu cosmetics and natural health care products, PT Ratu Ayu which makes Ratu Ayu cosmetics and PT Vitapharm, the producer of Viva cosmetics.
"Overseas brands, including those illegally brought to Indonesia, are also keen competitors," Putri said.
Putri said her company gained last year a 13.07 percent increase in sales to Rp 104.32 billion from Rp 92.26 billion in 1995. Its net profit increased 18.73 percent to Rp 19.01 billion from Rp 16.01 billion.
In 1995, the company's growth of sales and net profit reached 39.13 percent and 113.75 percent, respectively.
Putri said Mustika Ratu planned a new manufacturing plant in Cibitung, West Java, to double its capacity following increasing demand.
Putri said domestic spending on cosmetic and personal care products reached $1.5 billion in 1993 with an annual growth rate of between 5 percent and 6 percent.
She said the new plant on 10-hectares would need an investment of Rp 25 billion to Rp 35 billion. It is due to start production in 1998. (icn)