Indonesia's Cosmetics Industry Attractiveness, Competitiveness and Critical Success Factor Analysis
Downloads
Objective: This research aims to assess attractiveness, identify national competitiveness drivers, and critical success factors of Indonesia's cosmetics industry as Indonesia has an enormous growing market for cosmetics, but the revenue growth has been declining.
Design/Methods/Approach: This research uses quantitative and qualitative data to conduct a descriptive case study. The first step of the analysis is a pre-test using quantitative data gathered through a survey questionnaire to 30 cosmetics industry practitioners to ensure the validity and reliability of the statement used in this research. The second step is an in-depth interview with ten managers in top cosmetics industry firms in Indonesia.
Findings: It is shown that the cosmetics industry attractiveness in Indonesia is medium. Demand and factor conditions are the main driver of industry competitiveness. Strategy, structure, rivalry, and related and supporting industries are the supporting driver of cosmetics industry competitiveness in Indonesia. Finally, product, marketing, and speed are critical success factors in the cosmetics industry in Indonesia.
Originality: A current study of Indonesia's cosmetics industry mostly explained cosmetics market size, share, growth, segments, trend, industry forecast, leading players in the industry and customer behaviour. However, the study of Indonesia's cosmetics competitiveness landscape and industry critical success factor is still limited.
Aithal, P. (2017). Industry Analysis-The First Step in Business Management Scholarly Research. International Journal of Case Studies in Business, IT and Education (IJCSBE), 2, 1–13. https://doi.org/10.5281/zenodo.810347
Alias, Z., Zawawi, E. M. A., Yusof, K., & Aris, N. M. (2014). Determining Critical Success Factors of Project Management Practice: A Conceptual Framework. Procedia - Social and Behavioral Sciences, 153, 61–69. https://doi.org/10.1016/j.sbspro.2014.10.041
Allied Market Research. (2020). Indonesia Skin Care Products Market. Market Research. https://www.marketresearch.com/Allied-Market-Research-v4029/Indonesia-Skin-Care-Products-Product-13689558/
Amberg, N., & Fogarassy, C. (2019). Green Consumer Behavior in the Cosmetics Market. Resources, 8(3), 137. https://doi.org/10.3390/resources8030137
Australian Trade and Investment Comission. (2018). Beauty Product Opportunities in Indonesia, Malaysia and Vietnam. https://www.austrade.gov.au/ArticleDocuments/1418/2018_webinar_presentation_Beauty_Product_Opportunities_Indonesia_Malaysia_Vietnam.pdf.aspx
Bakan, Ä°., & Doğan, Ä°. (2012). Competitiveness of the Industries Based on the Porter's Diamand Model: An Empirical Study. International Journal of Research and Reviews in Applied Sciences, 11.
Barghouthi, O. A. (2017). Analysis of Competitive Advantage of the Basic Industries in Palestine Based on the Porter's Diamond Model. International Journal of Marketing Research Innovation, 1(1), 25–39. https://doi.org/10.46281/ijmri.v1i1.100
Barutçu, S., & Tunca, M. Z. (2012). The Impacts of E-SCM on the E-Tailing Industry: An Analysis from Porter's Five Force Perspectives. Procedia - Social and Behavioral Sciences, 58, 1047–1056. https://doi.org/10.1016/j.sbspro.2012.09.1085
Brink, H. I. L. (1993). Validity and reliability in qualitative research. Curationis, 16(2). https://doi.org/10.4102/curationis.v16i2.1396
í‡aldağ, M. T., & Gökalp, E. (2020). Exploring Critical Success Factors for Blockchain-based Intelligent Transportation Systems. Emerging Science Journal, 4, 27–44. https://doi.org/10.28991/esj-2020-SP1-03
Chileshe, N., & John Kikwasi, G. (2014). Critical success factors for implementation of risk assessment and management practices within the Tanzanian construction industry. Engineering, Construction and Architectural Management, 21(3), 291–319. https://doi.org/10.1108/ECAM-01-2013-0001
Dalken, F. (2014). Are Porter's Five Competitive Forces still Applicable? A Critical Examination concerning the Relevance for Today's Business. http://essay.utwente.nl/65339/
David Dranove, David Besanko, Mark Shanley, & Scott Schaefer. (2017). Economics of Strategy (8th ed., Vol. 8).
Deloitte. (2020, January). Deloitte Consumer Insights Dawn of the digital age in Indonesia. Deloitte Consumer Insights Dawn of the Digital Age in Indonesia. https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/consumer-business/sea-cb-indonesia-consumer-insights-2020.pdf
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32–45. https://doi.org/10.1108/CR-06-2013-0059
Endang Pudjiwati. (2018). Regulasi Kosmetika dan Kosmetika Obat. Regulasi Kosmetika Dan Kosmetika Obat.
Goyal, A. (2020). A Critical Analysis of Porter's 5 Forces Model of Competitive Advantage. 7, 149–152. https://doi.org/10.1729/Journal.25126
Herdyanti, L. Q., & Mansoor, A. Z. (2020). Analysing Opportunity for New Established Acne Focused Skincare Brand in Indonesian Beauty Industry. European Journal of Business and Management Research, 5(2). https://doi.org/10.24018/ejbmr.2020.5.2.272
Hosseini, A., Soltani, S., & Mehdizadeh, M. (2018). Competitive Advantage and Its Impact on New Product Development Strategy (Case Study: Toos Nirro Technical Firm). Journal of Open Innovation: Technology, Market, and Complexity, 4(2), 17. https://doi.org/10.3390/joitmc4020017
Indonesian French Chamber of Commerce and Industry. (2019). Cosmetics. https://indonesien.um.dk/~/media/indonesien/tc/sector%20reports%20eu-indo/design/2019%20eibn%20new%20report%20sector%20cosmetics.pdf?la=en
Isabelle, D., Horak, K., McKinnon, S., & Palumbo, C. (2020). Is Porter's Five Forces Framework Still Relevant? A study of the capital/labour intensity continuum via mining and IT industries. Technology Innovation Management Review, 10(6), 28–41. https://doi.org/10.22215/timreview/1366
Istrata. (n.d.). Beauty and Cosmetics Industry Intelligence Report- APAC. https://istrata.co/beauty-cosmetics-intelligence/
Italian Trade Agency. (2018). Brief On Indonesian Cosmetics Industry, Imports Regulations, Procedures, Registration, Import Duties. https://www.ice.it/it/sites/default/files/inline-files/NOTA%20DI%20MERCATO%20COSMETICA%20INDONESIA.pdf
Jens Graff. (2015). Is there a World Market for Uighur Medical Tourism? ATINER'S Conference Paper Series CBC2014-1375.
Jinachai, N., Anantachoti, P., & Winit"‘watjana, W. (2016). Exploring competitiveness of Thailand's cosmetic industry using porter's diamond model. Thai Journal of Pharmaceutical Sciences, 40, 172–178.
Jo H. M. Wijnands, Siemen van Berkum, & David Verhoog. (2015). Measuring Competitiveness of Agro-Food Industries: The Swiss Case. OECD Publishing. http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=TAD/CA/APM/WP(2015)9/FINAL&docLanguage=En
Kharub, M., & Sharma, R. (2017). Comparative analyses of competitive advantage using Porter diamond model (the case of MSMEs in Himachal Pradesh). Competitiveness Review: An International Business Journal, 27(2), 132–160. https://doi.org/10.1108/CR-02-2016-0007
KuÄerová, R. (2014). Factors of the attractiveness of Slovak wine market and their influence on the Czech wine export to Slovakia. Agricultural Economics (ZemÄ›dÄ›lská Ekonomika), 60(No. 9), 430–439. https://doi.org/10.17221/130/2013-AGRICECON
Ministry of Industry of The Republic of Indonesia. (2015). Rencana Induk Pembangunan Industri Nasional. https://kemenperin.go.id/ripin.pdf
Ministry of Industry of the Republic of Indonesia. (2020). Perubahan Gaya Hidup Dorong Industri Kosmetik. Https://Kemenperin.Go.Id/Artikel/21460/Perubahan-Gaya-Hidup-Dorong-Industri-Kosmetik.
Ministry of Trade of The Republic of Indonesia. (n.d.-a). Peraturan Menteri Perdagangan tentang Ketentuan Impor Barang Komplementer, Barang Untuk Keperluan Tes Pasar, Dan Pelayanan Purna Jual. In https://peraturan.bpk.go.id/Home/Details/129028/permendag-no-118m-dagper122015-tahun-2015. Ministry of Trade of The Republic of Indonesia.
Ministry of Trade of The Republic of Indonesia. (n.d.-b). Produk Unggulan Indonesia. Ministry of Trade of The Republic of Indonesia. Produk Unggulan Indonesia. Ministry of Trade of The Republic of Indonesia. http://ppei.kemendag.go.id/produk-unggulan-indonesia/
Miza Alvina. (2020, October 30). Potensi Pasar Kosmetik Indonesia. Https://Technobusiness.Id/Insight/Spire-Insights/2020/10/30/Spire-Insight-Potensi-Pasar-Kosmetik-Indonesia/.
Natnaporn Aeknarajindawat, Yothin Sawangdee, & Yannakorn Toprayoon. (2019). International Conference Business Education Social Sciences Tourism and Technology in Switzerland. International Conference Business Education Social Sciences Tourism and Technology in Switzerland, 332–335.
Paroma Mitra Mukherjee, & Dilip Roy. (2016). Industry attractiveness : a case on Indian steel industry. GITAM Journal of Management : A Quarterly Publication of GITAM Institute of Management, 14(1), 54–64.
Robert M. Grant. (2016). Contemporary Strategy Analysis: Text and Cases (9th ed.). John Wiley and Sons.
Shvindina, H., & Shkurko, I. (2015). DEVELOPMENT OF THE QUANTITATIVE FIVE FORCES ANALYSIS AS A STRATEGIC MANAGEMENT TOOL. Visnyk of Sumy State University, 1, 75–82.
Siudek, T., & Zawojska, A. (2014). Competitiveness in the Economic Concepts, Theories and Empirical Research. Acta Scientiarum Polonorum - Oeconomia, 13, 91–108.
Sudibyo Supardi Raharni, Max J Herman, Rini Sasanti, & Andy Leny Susyanti. (2014). Kajian Kebijakan Periklanan Kosmetika Di Indonesia: "Kewenangan Pemerintah Pusat dan Daerah.” Bul. Penelit. Kesehat, 42(2), 131–138.
Tanakorn Rachapila, & Sittha Jansirisak. (2013). Using Porter's Five Forces Model for Analysing the Competitive Environment of Thailand's Sweet Corn Industry. Nternational Journal of Business and Social Research, 174–184.
Tyagi, S., & Nauriyal, D. K. (2017). Firm level profitability determinants in Indian drugs and pharmaceutical industry. International Journal of Pharmaceutical and Healthcare Marketing, 11(3), 271–290. https://doi.org/10.1108/IJPHM-03-2016-0016
World Bank. (n.d.). Population, total - Indonesia. World Bank. Population, Total - Indonesia. World Bank. https://data.worldbank.org/indicator/SP.POP.TOTL?locations=ID
World Population Review. (2021). South-Eastern Asia Population 2021. Https://Www.Worldometers.Info/World-Population/South-Eastern-Asia-Population/.
Worldometer. (n.d.). Indonesia Population. Https://Www.Worldometers.Info/World-Population/Indonesia-Population/
Copyright (c) 2022 Michelle Ferdinand, Wakhid Slamet Ciptono
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. The author(s) hold the copyright of the article without restrictions.
2. The author(s) retain publishing rights without restrictions
3. The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution (CC BY).
