Forbes Indonesia - July 2019

(Steven Felgate) #1
40 | FORBES INDONESIA JULY 2019

Other challenges include educat-
ing the market and expanding the
brand’s penetration. Compared to
premium tea, traditional tea con-
sumption is still much greater, since
people look for cheaper, mass prod-
uct options. Although Lily says that
the production of premium tea na-
tionwide is increasing, at the same
time the consumption of premium
tea is also limited to specific places,
such as in big cities like Jakarta and
Bali where people prefer to seek
comfort in cafés and hotels. More-
over, the trend is also not growing as
fast and easily as it is that of coffee
nowadays, but Lily is still confident
that the prospects for the future are
getting brighter.
“Cafés nowadays also serve tea as
an alternative to coffee, and there is
a growing trend of café-hopping and
healthier lifestyles. Tea is also the
most consumed drink after mineral
water, so they all make for good pros-
pects for both Savis and Indonesian
premium tea in general,” she says.
This year Savis wants to achieve
a further 200% sales growth, and it
is diversifying its business, by work-
ing with partners in the wellness
and lifestyle sectors this year. For
example, in the wellness sector Sa-
vis pairs its tea with detoxification
and slimming products for spas and
yoga centers. For the lifestyle sector,
instead of opening its own tea house,
Savis prefers to work with the man-
agements, such as at Hotel Alila Solo,
where Savis prepares the entire con-
cept from menu to tea pairing.
“We customize each concept ac-
cording to the client, and this gives
additional value since our premium
feeling must offer a different experi-
ence from one to another. There have
been many offers to work with us in
Bali, but it all comes down to wheth-
er working with them will maintain
our vision: things like whether it
maintains our premium feeling or In-
donesian characteristics,” she says. F

T


he beauty and cosmetics sector is a
big market in Indonesia. Data analyt-
ics company GlobalData expects the
cosmetics and toiletries market in
Indonesia to reach Rp 105.1 trillion by
2023, registering a CAGR of 8.4% from
Rp 70.3 trillion in 2018. Meanwhile, skincare prod-
ucts, which contributed the largest share of 31.1% in
2018, are projected to record the fastest growth with
a CAGR of 9.6% in the period 2018-2023. And in re-
cent years, beauty trends spread not only through
television or magazines. Most people now look up to
beauty influencers for recommendations and inspira-
tion in regard to beauty products and looks. Beauty
influencers refer to people sharing their thoughts and
experiences on beauty products on the internet or
social media. How people purchase beauty products
has also changed, with as little as a few clicks through
online shopping, the products are delivered to their
door. Consulting firm Cekindo estimates that 7% of
total revenue in the Indonesian cosmetics industry
will come from online sales in 2021, and this figure is
expected to keep on growing.
Anugrah “Aan” Pakerti, 25, the cofounder and
CEO of Yogyakarta-based PT Avo Innovation & Tech-
nology, was aware of these trends when he started

Using the internet and social media,


PT Avo Innovation & Technology has


gained rapid traction in selling beauty


products.


BY ESTER CHRISTINE NATALIA

BEAUTY


DISRUPTOR


DIDIET SAPUTRO FOR FORBES INDONESIA
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