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Shoppers Are Getting Smarter About Beauty Products, Pushing The Beauty Industry To Innovate

Social Bella, a leading beauty-tech company, has just launched a new business line called Insight Factory by SOCO. This initiative aims to provide insights and up-to-date reports in the beauty industry to help industry players make strategic decisions. To kick off this launch, Insight Factory by SOCO has released a comprehensive report on consumer behavior and beauty industry trends in Indonesia, titled the Beauty Consumer Behavior and Trend Report.

Christopher Madiam, Co-Founder & CEO of Social Bella, shared, “Insight Factory by SOCO gives industry players access to the data intelligence that has been our secret sauce at Sociolla for delivering the best and most relevant beauty experiences for enthusiasts. Our research team has analyzed big data from over 6 million SOCO members to create a report that truly reflects the resilient growth of Indonesia's beauty industry. We hope this report serves as a key reference for industry players in making strategic decisions and accelerating progress in the beauty sector together.”

The Beauty Consumer Behavior and Trend Report highlights a significant increase in Indonesian consumers' literacy when it comes to purchasing beauty products. A whopping 77% of beauty consumers read reviews before making a purchase. Consumers are becoming smarter and more selective about their choices, with a growing understanding of product ingredients and effectiveness. Gen Z, in particular, is more knowledgeable and specific about the ingredients and active components they seek. This trend is evident in the most searched ingredients of 2023, which include centella, rice, salicylic acid, snail mucin, and niacinamide.

Amanda Melissa, VP of Data Management & Business Intelligence at Social Bella, shared that beauty literacy in Indonesia is skyrocketing thanks to the easy access to information in the digital world, especially through social media. This surge has pushed brands and industry players to get more creative, innovative, and in tune with the savvy preferences of beauty enthusiasts. The beauty trend is leaning towards higher innovation, with things like hybrid makeup that also cares for the skin, pre-juvenation skincare for early aging, and products specifically designed for sensitive skin. Meanwhile, the concept of skinification, which involves comprehensive care routines for the face, body, and hair, is gaining traction in Indonesia, leading to advancements in body and hair care products. As interest grows, there’s a noticeable increase in the launch of body care products with active ingredients and scalp care items in the market. Additionally, the Beauty Consumer Behavior and Trend Report highlights the spending habits of Millennials versus Gen Z when it comes to beauty products. Nearly half of Gen Z respondents (48%) spend less than Rp150,000 per transaction, while only about a third of Millennials (34%) do the same. On the flip side, 28% of Millennials spend over Rp300,000 per transaction, compared to 17% of Gen Z. Amanda pointed out that Millennials are willing to spend more on products that offer added value, whether it’s quality or a brand’s specific principles. In contrast, Gen Z is more informed and exploratory about the latest trends and innovations, which explains their rapid growth across all beauty product categories, including skincare, makeup, fragrance, body care, and hair care.

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Tag: Amanda Melissa Christopher Madiam Social Bella SOCO