HAIR CARE IN INDONESIA Euromonitor International June 2012 HAIR CARE IN INDONESIA LIST OF CONTENTS AND TABLES Headlines ..................................................................................................................................... 1 Trends .......................................................................................................................................... 1 Competitive Landscape ................................................................................................................ 2 Prospects ..................................................................................................................................... 3 Category Data .............................................................................................................................. 4 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Sales of Hair Care by Category: Value 2006-2011 ...................................... 4 Sales of Hair Care by Category: % Value Growth 2006-2011 ...................... 4 Hair Care Premium Vs Mass % Analysis 2006-2011 ................................... 5 Sales of Styling Agents by Type: % Value Breakdown 2006-2011 .............. 5 Hair Care Company Shares 2007-2011 ....................................................... 5 Hair Care Brand Shares 2008-2011 ............................................................. 6 Styling Agents Brand Shares 2008-2011 ..................................................... 7 Colourants Brand Shares 2008-2011 ........................................................... 7 Salon Hair Care Company Shares 2007-2011 ............................................. 8 Salon Hair Care Brand Shares 2008-2011 ................................................... 8 Hair Care Premium Brand Shares 2008-2011.............................................. 8 Forecast Sales of Hair Care by Category: Value 2011-2016........................ 9 Forecast Sales of Hair Care by Category: % Value Growth 2011-2016 ....... 9 Forecast Hair Care Premium Vs Mass % Analysis 2011-2016 .................... 9 © Euromonitor International Passport I HAIR CARE IN INDONESIA HAIR CARE IN INDONESIA HEADLINES Hair care posts growth of 10% in 2011 to reach Rp5.8 trillion Manufacturers launch new products to address consumers’ specific needs Conditioners registers the fastest growth at 14% in current value terms in 2011 Companies apply higher price increases in 2011 compared to the previous year In 2011, multinationals continue to hold leading positions in hair care Hair care is expected to register a CAGR of 5% in constant value terms over the forecast period TRENDS Given that the hair care category, which is dominated by shampoos, is already considered saturated, manufacturers continued to introduce new products to address specific consumer needs in 2011, in order to gain market shares. For example, Unilever launched Clear shampoo with Nutrium 10 formula that treats all scalp problems, while Procter & Gamble introduced Pantene Nature Care to strengthen and protect hair. In September 2011, Orindo Alam Ayu with its Oriflame brand also introduced Hair X Frizz Free Shampoo and Hair X Frizz Free Conditioner, which are specially designed for curly hair. All of these launches helped sustain the positive volume growth of hair care in 2011. The majority of hair care products showed faster volume growth in 2011 than in the previous year, thanks to improved consumer purchasing power, which led to more frequent purchases on less essential hair care products, such as colourants, conditioners and styling agents. The heavy investments by manufacturers in new variant launches and promotions also helped to boost volume growth of hair care overall in 2011. The improved volume growth led to accelerating current value growth of hair care to reach 10% in 2011, up from less than 9% in the previous year. Conditioners posted the highest value growth of 14% in 2011, the highest in hair care. This was thanks to its small value base, so an increase in sales translated to a huge percentage of growth. Furthermore, manufacturers’ attempt to withdraw a number of 2-in-1 products and replace them with separate shampoo and conditioner helped to boost growth of conditioners in 2011. The promising performance of conditioners was also driven by the rising popularity of hair mask products, which treat many hair problems. Driven by rising production costs due to the higher price of raw materials and packaging materials in 2011, manufacturers of hair care products decided to apply higher price increases in 2011 than in the previous year. The growing presence of products designed to address specific hair problems also helped to boost the unit price of hair care as a whole in 2011. Standard shampoo continued to be the largest contributor to value sales of hair care with a 74% share in 2011. As standard shampoos are already very much a basic necessity for most Indonesians, it proved very challenging for manufacturers to stimulate further usage. Therefore, volume growth of standard shampoos tended to slow annually, in line with population growth. Some years in the review period however were an exception, as a number of leading 2-in-1 products, such as Rejoice, Pantene and Head & Shoulders, were withdrawn and replaced with separate shampoo and conditioners. This led to accelerating volume growth of standard shampoos. On the other hand, upon registering robust growth in 2010 due © Euromonitor International Passport 1 HAIR CARE IN INDONESIA to the withdrawal of Pantene 2-in-1 anti-dandruff, standard shampoo posted slower volume growth of 5% in 2011, down from 11% in the previous year. Premium hair care products only accounted for 1% of value sales in 2011, with leading manufacturers in hair care continuing to focus on appealing to the mass market. Within premium hair care products, L’Oréal remained the leading player, with Makarizo in second place. In terms of strategy, Makarizo advanced quickly in 2011 due to its method of selling direct to salons, coupled with the rapid expansion of product distribution. Within styling agents, there was a sharp rise in the growth of styling gel and wax. After a series of launches of Clear styling gel by Unilever in mid 2006, the country witnessed an increasing number of men and women purchasing hair styling products, helping the product achieve sharp growth in sales. Unilever successfully leveraged its technological expertise into lucrative new areas, and now pose a threat to other leading styling agents brands, such as Gatsby and Brylcreem from Mandom and Sara Lee Body Care Indonesia , respectively. According to industry sources, anti-dandruff formulas are estimated to have accounted for around 40% of value sales of shampoos in 2011, with the most prominent brand being Clear from Unilever. Demand for anti-dandruff shampoos in Indonesia is considerable as dandruff is one of the most common problems for Indonesians. Aside from anti-dandruff shampoos, other common types of shampoo include products to treat various hair problems, such as hair loss and damaged hair resulting from hair colouring and straightening. Natural hair care products were on the rise during 2011. New product launches included Pantene Nature Care (standard shampoo and conditioners made with cassia seed extracts) and an imported brand Ichikami standard shampoo and conditioners made from rice bran and Sakura flower extract. During 2011, the number one direct seller Orindo Alam Ayu also heavily promoted its Oriflame Nature shampoo and conditioner, which is available in many variants, such as coconut and ricemilk, grapes and Echinacea, lime and ginger and kiwi and orange. In 2011, salon hair care continued to register a positive performance with current value growth of 7%. This was driven by the opening of more beauty salons to cater to growing demand in most major cities. Salon hair care, however, appeals only to a niche consumer base, particularly affluent consumers who have specific hair problems. Salon hair care products are considered expensive, and many consumers visiting salons still prefer to buy hair care products in retail outlets, as they can find a wider range of variants and brands at more competitive prices. Medicated shampoos posted a respectable value growth of 11% in 2011. Growth continued to be robust for medicated shampoos due to the small consumer base; value sales in 2011 amounted to only 3% of total hair care sales. Industry sources are confident that the potential for medicated shampoos is far from realised, and manufacturers have stepped up their efforts to educate consumers about the efficacy of the products. By 2011, it was already quite common to come across advertisements for Selsun and Nizoral SS in magazines, although TV advertising was still deemed too expensive for medicated shampoos due to the small consumer base. In 2011, however, the volume growth of medicated shampoos continued to decelerate, as the product continued to receive competition from anti-dandruff standard shampoo, such as Clear and Head & Shoulders which claims to contain strong ingredients to solve dandruff problems. COMPETITIVE LANDSCAPE The hair care environment became increasingly consolidated in 2011, dominated by two prominent multinationals, namely Unilever and Procter & Gamble. Their shares accounted for © Euromonitor International Passport 2 HAIR CARE IN INDONESIA a combined value of 69% in 2011. The two companies have wide brand portfolios targeting different consumer groups and they also invested heavily in new product launches as well as aggressive promotional efforts during the review period. Orindo Alam Ayu with its Oriflame brand is considered a small player in hair care with a 1% value share in 2011. In 2011, however, the company achieved the largest increase in value sales with 23% value growth. This was thanks to its small value base and the company’s strategies to boost sales including aggressive member recruitments, price promotions and online ordering implementation. Oriflame has a wide range of hair care products. Its shampoo and conditioner products consist of two main brands: Oriflame Nature (made of natural ingredients) and Oriflame Hair X to treat specific hair problems, such as mature, fine, flat, normal and curly hair. Multinationals have a strong presence in hair care through the top three players Unilever, Procter & Gamble, Mandom and L’Oréal. In addition to wide brand portfolios targeting different consumer segments and needs, they also have large budgets for promotions as well as extensive research and development capabilities to drive product innovation. While Unilever and Procter & Gamble are prominent players only in retail hair care, L’Oréal is the leading player in salon hair care and has a respectable share in retail hair care. Meanwhile, Mandom is the leading player in men’s styling agents. The new product launches during 2011 including Clear shampoo with Nutrium 10 formula, Pantene Nature Care, Oriflame Hair X Frizz Free Shampoo and Oriflame Hair X Frizz Free Conditioner helped to boost value sales growth of respective companies. The launches, however, had limited impact on the hair care category, as they merely prompted consumers to switch brands. Responding to consumers’ rising concerns regarding the health and beauty of their hair, manufacturers were very aggressive in launching innovative products targeting specific age, gender, and consumer needs. Given that brand switching is very common in hair care, especially in terms of shampoos, manufacturers invested heavily in promotional efforts, especially advertising, as well as other promotional activities, such as bundling free gifts with products and “buy-one-get-one-free” promotions in modern retail outlets particularly hypermarkets and chained chemists/pharmacies. PROSPECTS With the already large hair care category, manufacturers will have to work harder to come up with innovations in order to boost volume growth over the forecast period. Product innovation is expected to come in the form of new formulations to address specific hair problems, such as anti-ageing shampoos, new packaging designs, and targeting new specific consumer segments. This is therefore predicted to revitalise the already mature hair care industry in the country over the forecast period. In terms of volume growth, hair care is forecast to maintain stability in the coming years, given the already huge volume sales and deep penetration, especially for standard shampoos, which is the main driver of the overall hair care performance. Instead of prompting faster volume growth, the expected emergence of innovative products will merely result in consumers switching brands. Standard shampoos is predicted to post a volume CAGR of 4% over the forecast period, down from 9% in the review period. Although standard shampoos is expected to register a weaker performance in the forecast period than in the review period due to product maturity, overall hair care will post a constant value CAGR of 5% in the forecast period, up from 3% in the review period. As consumers are expected to shift to brands offering value-added benefits, value growth of hair care products © Euromonitor International Passport 3 HAIR CARE IN INDONESIA Passport as a whole is expected to continue accelerating over the forecast period, as these products are typically more expensive than their standard counterparts. Value sales are likely to be further fuelled by higher-priced versions with new and innovative variants, such as hair mask treatments that continue to address specific hair needs. This may give manufacturers a reason to push up the unit price bar. The trend of urban dwellers colouring, straightening and perming their hair as part of their modern lifestyles is unlikely to slow down over the forecast period. This is expected to benefit hair conditioners, as applying chemicals to the hair during the process of colouring, straightening and perming can often result in dry hair. Supported by expected improvement in consumer purchasing power, conditioners has the potential to show the highest growth among hair care with a CAGR of 11% in constant value terms over the forecast period. Colourants is set to register a significant improvement in constant value growth in the forecast period at a CAGR of 7%, up from a CAGR of 2% in the review period. Colouring hair will continue to be a growing trend, especially among urban dwellers. More consumers will colour their hair in order to boost confidence, or merely to follow fashion trends. As consumers are expected to prefer more natural hair colours compared with brighter colours, manufacturers will meet demand by introducing such products. Unilever and Procter & Gamble are expected to continue leading hair care in the forecast period. Supported by huge budget for research and development and promotions, both companies may come up with innovative product variants in the forecast period. They are also likely to step up their promotional efforts to boost volume sales. CATEGORY DATA Table 1 Sales of Hair Care by Category: Value 2006-2011 Rp billion 2-in-1 Products Colourants Conditioners Hair Loss Treatments Perms and Relaxants Salon Hair Care Shampoos - Medicated Shampoos - Standard Shampoos Styling Agents Hair Care Source: 2006 2007 2008 2009 2010 2011 619.3 66.1 257.2 20.3 2,463.7 89.9 2,373.8 345.2 3,771.7 309.7 67.7 293.2 22.3 2,984.6 112.3 2,872.3 398.6 4,076.2 294.2 74.5 332.8 24.2 3,337.4 134.8 3,202.6 458.4 4,521.5 275.1 80.8 372.7 25.9 3,644.5 153.7 3,490.9 508.9 4,907.9 110.0 88.1 419.3 27.5 4,131.2 169.0 3,962.1 562.3 5,338.4 94.1 97.8 475.9 29.4 4,526.2 187.6 4,338.5 632.6 5,855.9 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 2 Sales of Hair Care by Category: % Value Growth 2006-2011 % current value growth 2-in-1 Products Colourants Conditioners © Euromonitor International 2010/11 2006-11 CAGR 2006/11 Total -14.5 11.0 13.5 -31.4 8.2 13.1 -84.8 48.0 85.0 4 HAIR CARE IN INDONESIA Passport Hair Loss Treatments Perms and Relaxants Salon Hair Care Shampoos - Medicated Shampoos - Standard Shampoos Styling Agents Hair Care Source: 7.0 9.6 11.0 9.5 12.5 9.7 7.7 12.9 15.9 12.8 12.9 9.2 44.8 83.7 108.8 82.8 83.3 55.3 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 3 Hair Care Premium Vs Mass % Analysis 2006-2011 % retail value rsp Premium Mass Total 2006 2007 2008 2009 2010 2011 1.0 99.0 100.0 1.0 99.0 100.0 1.1 98.9 100.0 1.1 98.9 100.0 1.1 98.8 100.0 1.2 98.8 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 4 Sales of Styling Agents by Type: % Value Breakdown 2006-2011 % retail value rsp Cream Gel Hairspray/Lacquers Mousse Wax Total Source: 2006 2007 2008 2009 2010 2011 43.5 27.0 10.0 9.0 10.5 100.0 41.0 27.5 9.5 8.5 13.5 100.0 36.5 28.0 9.0 8.0 18.5 100.0 35.0 28.5 8.5 7.5 20.5 100.0 33.5 29.5 8.0 7.0 22.0 100.0 32.0 30.5 7.5 6.5 23.5 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 5 Hair Care Company Shares 2007-2011 % retail value rsp Company Unilever Indonesia Tbk PT Procter & Gamble Home Products Indonesia PT Mandom Indonesia Tbk PT L'Oréal Indonesia PT Lion Wings PT Abbott Indonesia PT Johnson & Johnson Indonesia PT Gondo Wangi Tradisional Kosmetika PT Kosmindo PT Sara Lee Body Care Indonesia Tbk PT © Euromonitor International 2007 2008 2009 2010 2011 45.4 24.9 42.6 26.4 42.5 26.7 42.3 26.8 42.4 27.0 6.2 7.1 5.0 1.9 0.7 6.8 7.0 6.2 2.1 0.8 6.9 7.0 6.4 2.2 0.8 7.1 7.0 6.5 2.3 0.9 7.4 7.1 6.1 2.3 0.9 0.9 0.8 0.8 0.8 0.8 1.1 0.5 0.9 0.6 0.8 0.6 0.7 0.6 0.7 0.6 5 HAIR CARE IN INDONESIA Passport Kinocare Era Kosmetindo PT Orindo Alam Ayu PT Hoyu Indonesia PT Amindoway Jaya PT Monica Hijau Lestari PT Universe Lion PT Martha Tilaar Group Estrella Laboratories PT Lionindo Jaya PT Revlon Inc Private Label Others Total Source: 0.5 0.5 0.5 0.5 0.5 0.3 0.2 0.2 0.1 0.2 0.1 0.1 0.0 4.6 100.0 0.3 0.2 0.2 0.1 0.1 0.1 0.0 0.0 4.1 100.0 0.2 0.2 0.2 0.1 0.1 0.1 0.0 3.8 100.0 0.4 0.2 0.2 0.2 0.1 0.1 3.4 100.0 0.4 0.3 0.2 0.2 0.1 0.1 3.1 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 6 Hair Care Brand Shares 2008-2011 % retail value rsp Brand Sunsilk Pantene Clear Lifebuoy Rejoice Gatsby Zinc Emeron Selsun Elsève Head & Shoulders L'Oréal Studio Line Garnier Neril Johnny Andrean Nizoral Natur Clear by Brisk Dove Brylcreem L'Oréal Excellence Ellips Wella Koleston Clairol Herbal Essences Oriflame Wella Garnier Nutrisse Natea L'Oréal Professionnel Satinique Mandom © Euromonitor International Company 2008 2009 2010 2011 Unilever Indonesia Tbk PT Procter & Gamble Home Products Indonesia PT Unilever Indonesia Tbk PT Unilever Indonesia Tbk PT Procter & Gamble Home Products Indonesia PT Mandom Indonesia Tbk PT Lion Wings PT Lion Wings PT Abbott Indonesia PT L'Oréal Indonesia PT Procter & Gamble Home Products Indonesia PT L'Oréal Indonesia PT L'Oréal Indonesia PT Mandom Indonesia Tbk PT Johnson & Johnson Indonesia PT Gondo Wangi Tradisional Kosmetika PT Unilever Indonesia Tbk PT Unilever Indonesia Tbk PT Sara Lee Body Care Indonesia Tbk PT L'Oréal Indonesia PT Kinocare Era Kosmetindo PT Kosmindo PT Procter & Gamble Home Products Indonesia PT Orindo Alam Ayu PT Kosmindo PT L'Oréal Indonesia PT 19.0 17.4 18.8 17.7 18.7 17.8 18.4 18.0 14.3 8.1 6.3 14.2 8.2 6.3 14.1 8.2 6.5 14.8 7.8 6.5 5.4 3.2 3.1 2.1 2.0 2.4 5.7 3.3 3.1 2.2 2.0 2.3 6.0 3.6 3.0 2.3 2.2 2.2 6.3 3.3 2.8 2.3 2.3 2.2 2.2 2.0 1.1 0.8 2.2 1.8 1.0 0.8 2.2 1.8 0.9 0.9 2.2 1.7 0.9 0.9 0.8 0.8 0.8 0.8 0.5 0.6 0.6 0.6 0.6 0.6 0.7 0.6 0.6 0.7 0.7 0.6 0.4 0.5 0.4 0.4 0.4 0.5 0.4 0.4 0.5 0.4 0.4 0.3 0.5 0.4 0.4 0.3 0.2 0.4 0.2 0.2 0.3 0.2 0.3 0.2 0.2 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 L'Oréal Indonesia PT Amindoway Jaya PT Mandom Indonesia Tbk PT 6 HAIR CARE IN INDONESIA The Body Shop Bigen Oriflame Nature Hoyu Currensia Wella System Professional Barbara Walden Rudy Hadisuwarno Schwarzkopf Poly Color Emeron Ascend Brisk Private label Others Total Source: Monica Hijau Lestari PT Hoyu Indonesia PT Orindo Alam Ayu PT Hoyu Indonesia PT Kosmindo PT 0.1 0.2 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1 Universe Lion PT Martha Tilaar Group Estrella Laboratories PT 0.1 0.1 0.0 0.1 0.1 - 0.1 0.1 - 0.1 0.1 - - - - - 0.0 4.4 100.0 0.0 4.0 100.0 3.6 100.0 3.3 100.0 Lionindo Jaya PT Procter & Gamble Home Products Indonesia PT Unilever Indonesia Tbk PT Private Label Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 7 Styling Agents Brand Shares 2008-2011 % retail value rsp Brand Gatsby L'Oréal Studio Line Clear by Brisk Brylcreem Mandom Barbara Walden Oriflame Johnny Andrean The Body Shop Amway Satinique Rudy Hadisuwarno New 8 Spalding Brisk Private label Others Total Source: Passport Company 2008 2009 2010 2011 Mandom Indonesia Tbk PT L'Oréal Indonesia PT Unilever Indonesia Tbk PT Sara Lee Body Care Indonesia Tbk PT Mandom Indonesia Tbk PT Universe Lion PT Orindo Alam Ayu PT Mandom Indonesia Tbk PT Monica Hijau Lestari PT Amindoway Jaya PT Martha Tilaar Group Mandom Indonesia Tbk PT Mandom Indonesia Tbk PT Unilever Indonesia Tbk PT Private Label 53.4 21.5 5.3 6.0 54.6 21.5 6.1 5.7 56.5 20.5 6.6 5.5 57.9 20.0 6.7 5.6 1.9 1.4 0.5 1.0 0.5 0.4 0.4 7.6 100.0 1.7 1.3 0.4 0.7 0.5 0.4 0.3 6.8 100.0 1.6 1.1 0.6 0.6 0.5 0.4 0.2 5.9 100.0 1.5 1.0 0.6 0.5 0.5 0.4 0.2 5.2 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 8 Colourants Brand Shares 2008-2011 % retail value rsp Brand L'Oréal Excellence Crème Wella Koleston Garnier Nutrisse Natéa Bigen Prominous © Euromonitor International Company 2008 2009 2010 2011 L'Oréal Indonesia PT 26.5 27.0 27.5 28.0 Kosmindo PT L'Oréal Indonesia PT 25.5 9.5 24.5 10.0 23.5 10.5 23.0 11.0 9.5 9.5 9.0 8.5 Hoyu Indonesia PT 7 HAIR CARE IN INDONESIA Hoyu Currensia Rudy Hadisuwarno Sasha Miratone Wella Soft Color Schwarzkopf Poly Color Garnier Natéa L'Oréal Casting Récital Others Total Source: Passport Hoyu Indonesia PT Martha Tilaar Group Kinocare Era Kosmetindo PT Mandom Indonesia Tbk PT Kosmindo PT Estrella Laboratories PT L'Oréal Indonesia PT L'Oréal Indonesia PT L'Oréal Indonesia PT 5.0 4.7 1.5 3.8 1.2 1.0 5.5 4.4 2.5 3.6 1.0 - 6.0 4.2 3.0 3.4 0.8 - 6.5 4.0 3.5 3.2 0.6 - 11.8 100.0 12.0 100.0 12.1 100.0 11.7 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 9 Salon Hair Care Company Shares 2007-2011 % retail value rsp Company 2007 2008 2009 2010 2011 L'Oréal Indonesia PT Kosmindo PT Makarizo Indonesia PT Henkel AG & Co KGaA Others Total 48.0 23.0 16.5 9.0 3.5 100.0 49.0 22.5 17.0 8.0 3.5 100.0 50.0 22.0 17.5 7.0 3.5 100.0 50.0 21.5 18.5 6.5 3.5 100.0 50.0 21.5 19.0 6.0 3.5 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 10 Salon Hair Care Brand Shares 2008-2011 % retail value rsp Brand L'Oréal Professionnel Wella System Professional Makarizo Kérastase Schwarzkopf Others Total Source: Company 2008 2009 2010 2011 L'Oréal Indonesia PT Kosmindo PT 33.5 22.5 34.0 22.0 34.0 21.5 34.5 21.5 17.0 15.5 8.0 3.5 100.0 17.5 16.0 7.0 3.5 100.0 18.5 16.0 6.5 3.5 100.0 19.0 15.5 6.0 3.5 100.0 Makarizo Indonesia PT L'Oréal Indonesia PT Henkel AG & Co KGaA Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 11 Hair Care Premium Brand Shares 2008-2011 % retail value rsp Brand L'Oréal Professionnel Wella System Professional Makarizo Kérastase © Euromonitor International Company 2008 2009 2010 2011 L'Oréal Indonesia PT Kosmindo PT 16.3 11.0 16.3 10.6 15.2 9.6 14.5 9.0 8.3 7.6 8.4 7.7 8.3 7.2 8.0 6.5 Makarizo Indonesia PT L'Oréal Indonesia PT 8 HAIR CARE IN INDONESIA Nu Skin Schwarzkopf Herbalife Others Total Source: Passport Nusa Selaras Indonesia PT Henkel AG & Co KGaA Herbalife Indonesia PT 1.9 3.9 0.3 50.7 100.0 2.6 3.4 0.5 50.6 100.0 3.9 2.9 0.3 52.6 100.0 3.7 2.5 0.3 55.5 100.0 Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 12 Forecast Sales of Hair Care by Category: Value 2011-2016 Rp billion 2-in-1 Products Colourants Conditioners Hair Loss Treatments Perms and Relaxants Salon Hair Care Shampoos - Medicated Shampoos - Standard Shampoos Styling Agents Hair Care Source: 2011 2012 2013 2014 2015 2016 94.1 97.8 475.9 29.4 4,526.2 187.6 4,338.5 632.6 5,855.9 95.7 102.7 523.5 30.0 4,704.2 200.7 4,503.4 664.2 6,120.3 97.1 108.8 578.5 30.8 4,897.3 213.8 4,683.5 704.1 6,416.6 98.4 116.4 642.2 31.6 5,106.9 226.6 4,880.3 753.4 6,748.8 99.3 125.8 716.0 32.6 5,339.0 239.1 5,099.9 817.4 7,130.0 100.1 137.7 801.9 33.6 5,590.6 251.0 5,339.6 891.0 7,554.9 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 13 Forecast Sales of Hair Care by Category: % Value Growth 2011-2016 % constant value growth 2011-16 CAGR 2011/16 TOTAL 1.3 7.1 11.0 2.7 4.3 6.0 4.2 7.1 5.2 6.5 40.8 68.5 14.4 23.5 33.8 23.1 40.8 29.0 2-in-1 Products Colourants Conditioners Hair Loss Treatments Perms and Relaxants Salon Hair Care Shampoos - Medicated Shampoos - Standard Shampoos Styling Agents Hair Care Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 14 Forecast Hair Care Premium Vs Mass % Analysis 2011-2016 % retail value rsp Premium Mass Total © Euromonitor International 2011 2012 2013 2014 2015 2016 1.2 98.8 100.0 1.2 98.8 100.0 1.3 98.7 100.0 1.3 98.7 100.0 1.4 98.6 100.0 1.4 98.6 100.0 9 HAIR CARE IN INDONESIA Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources © Euromonitor International Passport 10