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TikTok Beauty

Brand Playbook
Unlock Indonesia beauty
opportunities for brands
Preface
Beauty & Personal Care has been one of the top
purchased categories on TikTok. Many local Indonesian
beauty brands have experienced massive success,
fueled by their agile marketing strategies as well as
TikTok solutions and community.

Learning from these inspiring success stories, TikTok


would like to empower brands in the beauty industry
through this playbook to accomplish further growth.
Navigate the Indonesian beauty landscape with a
deeper understanding and win with strategic guidance
and steps.

This playbook is developed to inspire more related


brands on how they can also achieve massive success
on TikTok. 2022 onwards is forecasted to be a period of
more optimistic growth for the Beauty & Personal Care
industry in Indonesia. This playbook is one to equip
brands to win that battle.

2
Contents

01 Basic Foundation
The Opportunity: Why tap on TikTok to launch
and grow your local beauty brands
• Indonesia beauty market landscape
• How TikTok audience and environment fit
• Growing Indonesia beauty brands on TikTok

02 Beauty Hacks
Step-by-step guide to launch and grow beauty
brands on TikTok

03 Seasonal Marketing Essentials


Driving performance during peak seasons

04 Beauty Brand Takeaways


The landscape of successful local beauty
brands in Indonesia

3
01
Basic
Foundation
The Opportunity: Why tap on TikTok
to launch and grow your local
beauty brands
• Indonesia beauty market landscape
• How TikTok audience and environment fit
• Growing Indonesia beauty brands on TikTok

4
1 Basic Foundation | Indonesia beauty market landscape

Rising Demand for Beauty


& Personal Care Products
in Indonesia

Indonesia is now home to an Indonesian consumers are


increasingly more sophisticated group
of consumers who are concerned
youthful and digitally savvy;
about their looks and well-being. they’re avid social media
Indonesia has a big population with dwellers.
its per capita GDP rising. Thus, there
is a rising number of mid-income
and affluent consumers, which leads
to more purchasing power and 3 Key Insights of Indonesia’s
willingness to spend in this category. Skincare Market3

As of 2021, Indonesian eCommerce Beauty is Investment


revenue amounts to US$ 43.4
billion1 and predicted to grow to
US$ 90.2 billion by 2025.2
Natural beauty comes from
For skincare market specifically, natural products
the forecast also outlines a healthy
growth rate for a market worth
nearly US$ 1.98 billion in 2018,
with more than 20% growth Halal goes beyond food
expected by 2023.2

Source:
1
ecommercedb.com
2
Statista.com
3
Euromonitor as quoted from janio.asia 5
1 Basic Foundation | Indonesia beauty market landscape

High brand loyalty to local


brands and products
Brand preference based on product categories

Household Appliance 52 48

Mobile Phones & Gadgets 29 71

Fashion & Apparel 96 4

Beauty & Personal Care 97 3

Local Foreign

Indonesians show a strong preference for local brands in Beauty


& Personal Care category.

Consumers tend to trust brands that they perceive as ”truly local”.


Multinational beauty brands can also successfully capture the market
through localization in language, values, and brand image.

Opportunities and Challenges


for global brands
In recent years, however, price sensitivity far outweighs any preference
for foreign or local products across all product categories.

Survey: which of these is the no.1 purchase driver Tip for Brands:
43%
Leverage promotions to
41%
38% attract price-sensitive
Price Indonesian consumers while
Country also considering loyalty
of Origin discount programs for existing
3% 4% 2% customers to foster longer-term
brand loyalty.
Basic Lifestyle Consumer
Necessities Products Electronics

Source:
Deloitte consumer insights 2019-2021 6
1 Basic Foundation | How TikTok audience and environment fit

On TikTok

Local beauty
brands can win
share of voice
and share
of wallet by
delivering joy
1 in 2 people agreed that they turn to
TikTok to be entertained

Source:
Nielsen Custom Authenticity Study Commissioned by TikTok, Indonesia results, April 2021 7
1 Basic Foundation | How TikTok audience and environment fit

Positive vibe
plays an
important role
It shapes their willingness to stay longer
and explore more on the platform

86%
of those that create on TikTok say they can
post about anything they’re interested in,
not just what other people think is cool1

75%
of those that create on the platform agree
that they can be just the way they are1

6 of 10
TikTok users reported feeling positive
and playful while on TikTok, and happier
after using it2

Source:
1
TikTok Marketing Science Global Community and Self-Expression Study 2021 conducted by Flamingo
2
Marketing Science TikTok Audience Understanding Research 2020 conducted by Clear Strategy 8
1 Basic Foundation | How TikTok audience and environment fit

TikTok users actively


take action & are more
involved with brands

2x
more likely to create a post and tag
a brand after buying a product

3.2x
more likely to DM (Direct Message)
a brand after buying a product

2.7x
more likely to make a tutorial about
a product after buying it

Source:
TikTok Marketing Science Global Retail Path to Purchase, Indonesia,
conducted by Material August 2021 (n=1,200) 9
1 Basic Foundation | How TikTok audience and environment fit

Both Millennials and


Gen Zs on TikTok are
not only actively buying
but also advocating

Millennials Gen Zs

51% of them convince 49% of them convince


a friend/family/colleague a friend/family/colleague
to buy a product that they to buy a product that they
saw on the platform saw on the platform

62% of them leverage 65% of them leverage


the platform to research the platform to research
& learn more about new & learn more about new
products or brands products or brands

45% of them 53% of them have


immediately buy bought a product because
something they discovered they saw it on TikTok in
on the platform the past year

Source:
TikTok Marketing Science Global Retail Path to Purchase, Indonesia,
conducted by Material August 2021 (n=1,200) 10
1 Basic Foundation | Growing Indonesia beauty brands on TikTok

Beauty trends
start on TikTok #RacunSkincare

and they continue


Before After
Look / Glow Up

Makeup
Transformation Makeup Tutorial with
Male Voiceover

TikTok Filter
Lookalike

11
1 Basic Foundation | Growing Indonesia beauty brands on TikTok

Local beauty brands


are lively on TikTok

68%
of TikTok users buy more local
Scarlett

brands especially during the Hanasui


sale season1

65%
of TikTok users buy beauty &
personal care products as their
most purchased item during the Wardah
sale season1

61%
of TikTok users would prefer
Azarine

buying products from local


/ independent retailers than
buying from the big one2

Source:
1
TikTok commissioned study on n=362 TikTok users and non-users
consumption and behaviours in Indonesia, Feb 2022
2
GlobalWebIndex, Indonesia TikTok Users, Q1 2021 - Q1 2022 12
1 Basic Foundation | Growing Indonesia beauty brands on TikTok

Makeup

43%
Popular Content:
• Trying out & joining in the
makeup trend
• Makeup haul ASMR
Indonesian TikTok users are interested • Makeup Review & Step-by-step
in all about beauty/cosmetics*

Skincare

48%
Popular Content:
• Holy grail serum review
• Skincare haul
• Sharing from acne warriors
Indonesian TikTok users agree
that taking care of appearance is
important for them*

Hair

84%
Popular Content:
• Hair mask at home
• Sharing from hair loss warriors
• Hair care routine
Indonesian TikTok users bought
shampoo/conditioner as their top
purchase in the household

Male Grooming

45%
Popular Content:
• Men skin & body care review
• Haircut and styling tutorials
• Skincare routine
Indonesian TikTok male users agree
that taking care of appearance is
important for them 13
1 Basic Foundation | Growing Indonesia beauty brands on TikTok

It’s time to
activate your
brand on TikTok
TikTok is THE place to reach and
relate to audiences with the power
of discovery

31%
People on TikTok are more
likely to engage with brands
than users on other platforms1

Source:
1
Kantar ’The Power of TikTok’, 2020 https://www.kantar.com/uki/
inspiration/advertising-media/the-power-of-tiktok 14
1 Basic Foundation | Growing Indonesia beauty brands on TikTok

They take action


after watching
a TikTok

1.3X
Indonesian TikTok users’
purchase decisions
are more likely to be
influenced by entertaining
content compared to on
other platforms1

Source:
1
Future of Commerce research by Boston Consulting Group, commissioned by TikTok,
Conducted in Indonesia, Thailand, Vietnam, Japan, Korea, Australia, April 2022 15
02
Beauty
Hacks
Step-by-step guide to
launch and grow beauty
brands on TikTok

16
2 Beauty Hacks | Step-by-step guide to launch and grow beauty brands on TikTok

What does this mean for


Indonesian beauty brands?
Three strategies for every business goal

AUDIENCE There’s value in Users love to TikTok influences


INSIGHT your brand co-create sales

OPPORTUNITY Tap on your brand Always-engaged: Always-on:


values to drive Engage the Optimize lower
discoverability audience and turn funnel goals and
fans into customer grow sales

MARKETING REACH new ACQUIRE Always-on:


OBJECTIVES audiences & customers & Optimize lower
RE-ENGAGE RETARGETING funnel goals and
existing audiences grow sales

Brand Awareness Traffic Conversion

Interest Consideration Retention

Traffic

*The occasions are for illustration purposes only 17


2 Beauty Hacks | Step-by-step guide to launch and grow beauty brands on TikTok

REACH NEW AUDIENCES & RE-ENGAGE EXISTING AUDIENCES

Implora Branded Hashtag Challenge


drove 2.1 Millions Video Creations and
2.79 Billions Video Views

The Story
Objective Implora Cosmetics ran a Hashtag Challenge to promote its
Awareness, User skincare serum that promotes healthy and glowing skin.
Engagement and
Participation This awareness movement ran with the Hashtag Challenge
(HTC) name #GlowToBeDifferent. ​The goal of this HTC was
Solutions to encourage audiences to stand out by having healthy and
Hashtag Challenge, glowing skin, which Implora’s Hydrating Serum can help to
Branded Effect, achieve. Combined with an interesting challenge, creator
Standard Ads collaboration, and attractive prizes, the campaign was a
(TopView, R&F) huge success.

The campaign reached 63 million unique users and drove


over 2.1 million User Generated Content. Most importantly,
the campaign exceeded the benchmark for participation
and message exposure.

The Impact

>63M
HTC Unique Reach

>2.79B
HTC Video Views

>2.1M
Creations

>292K
Total Engagements
(Likes, Comments, Shares)
18
2 Beauty Hacks | Step-by-step guide to launch and grow beauty brands on TikTok

ACQUIRE CUSTOMERS & RETARGETING

OMG Cosmetics drove high ROAS


and high consideration with engaging
Video Shopping Ads

The Story
Objective OMG Cosmetics wanted to drive awareness and
Awareness, ROAS consideration of their reasonably priced skincare products
and Complete product through tutorial-like videos showcasing the
Payment  application and price of the product.

Solutions The videos had a straightforward message, focused on the


Video Shopping Ads product, and were entertaining. In the videos, creators were
(VSA) lip-syncing and acting to the trending background music,
with the display card for Video Shopping Ads showing up as
an overlay.

The display card was able to help drive more consideration


to purchase or find out more about the product. When
clicked, users will be led to the Product Detail Page.

The Impact

>230%
Complete Payment
Uplift vs. Previous

>4.75X
ROAS

19
2 Beauty Hacks | Step-by-step guide to launch and grow beauty brands on TikTok

ACQUIRE CUSTOMERS & RETARGETING

Azarine drove phenomenal purchase


results with a combination of Video
and Live Shopping Ads
The Story
Objective Azarine leveraged both Live and Video Shopping Ads
Conversion, to drive their target audience to make purchases on
Direct Sales their TikTok Shop with an always-on (always-present,
always-available) strategy. The goal is to enable TikTok
Solutions users to view the livestream and purchase conversions
Live Shopping Ads on TikTok Shop directly, without ever leaving the app. 
(LSA) & Video
Shopping Ads (VSA) In their ad creatives, Azarine showcased product
demonstrations with text overlays, to emphasize their
product benefits alongside popular music. For their
livestream, they had 1 to 2 hosts demonstrating a range
of products, while promoting them in tandem. Investing
in both Video and Live Shopping Ads together, have
resulted in phenomenal purchase results on Azarine
Indonesia TikTok Shop.

The Impact

>145K
Live session viewers
who stayed on at least
10 seconds from Live
Shopping Ads

>3.9X
Return on ad spend (ROAS)
on Live Shopping Ads

>2.1X
Return on ad spend (ROAS)
on Video Shopping Ads
20
03
Seasonal
Marketing
Essentials
Driving performance during
peak seasons

21
3 Seasonal Marketing Essentials | Driving performance during peak seasons

Suggested approach
for 3 types of marketing
occasions in Indonesia

Cultural Sale Specific


Moments Occasions Celebrations

Commemorative Big, must-have Niche and geared


dates that are not very promotional holidays towards specific
commercial where consumers are demographic or theme
ready to spend

Purpose Sales Purchase


Marketing Promotions Inspiration

Branding Creative
Campaign Sweepstakes Visuals

Celebration Product Customized


Message Recommendation Advertising

22
3 Seasonal Marketing Essentials | Driving performance during peak seasons

Important marketing Cultural


Moments

occasions in Indonesia
Sales
Occasions

Specific
Celebrations

Q1 Q2 Q3 Q4

Occasions to plan for

Valentine’s Ramadan Back to Sales Seasons


Day Month School (Harbolnas)

Chinese New Independence National


*must have!*

Eid Al-Fitr
Major

Year Day Mothers Day

Kartini’s
Christmas
Day

School
Graduation

International National Labor 9.9 Sale Halloween


Women’s Day Day

Lazada Tokopedia Shopee


Earth Day
Birthday Anniversary Anniversary
Others

Double Digit Fathers Day Double Digit End of year


Promotion Promotion music festivals

International End of year


Mothers Day celebrations

Double Digit New Year’s


Promotion Eve

*The occasions are for illustration purposes only 23


3 Seasonal Marketing Essentials | Driving performance during peak seasons

Thought process for


seasonal marketing
planning
Identify Marketing Prioritize by Tier and Type
Occasions

• What are the relevant marketing • For each marketing occasion selected,
occasions for my brand in this new what type is it?
market?
• Is this a mega/medium/small
scale season?

Set Key Message and Select Key Tactics and


Campaign Objectives Formats

• What is the campaign’s key message? • What key tactics and ad formats
should I use to meet my campaign
• What are the campaign objectives
objectives?
e.g. Reach (% Reach of TikTok’s MAU),
Engagement (Video Views, Likes, • How far ahead should I start planning?
Shares etc), Conversion (Sales)?

24
04
Beauty
Brand
Takeaways
The landscape of
successful local beauty
brands in Indonesia

25
4 Beauty Brand Takeaways | The landscape of successful local beauty brands in Indonesia

When local beauty brands


win Indonesians’ hearts
Started by visionaries and driven by people behind them, these
powerful beauty brands were born with their own impressive
marketing strategies. From just 1-2 product variants, the product
portfolio of these brands grew with more variants and categories.
These brands were developed with a deep understanding of local
skin’s needs and go-to-market approaches. That understanding
has been the foundation of how these local beauty brands can win
Indonesians’ hearts and flourish even more.

Affordable price is often misinterpreted as not having good quality


– but not with these ambitious brands. Delightfully, consumers
perceive this as a fantastic combination in the beauty industry.
They can afford beauty products of great quality.

Halal and BPOM certification have been hygiene values that are
commonly held in the years of late. Select beauty brands are
also showcasing natural ingredients, trustworthiness, and safety
perceptions as their added value.

Indonesian consumers benefit from the increasingly diverse beauty


brand choices for them, but at the same time, it challenges brands
to ensure their consumers remain loyal. That’s where they have been
innovatively competing in the market – to win potential consumers
with an aggressive and nimble strategy.

26
4 Beauty Brand Takeaways | The landscape of successful local beauty brands in Indonesia

GTM Route Pre & Post Pandemic


Omnichannel as the key: Burgeoning local beauty
Online channels at the core, brands adapted to challenging
with a balanced use of Offline times gracefully

Scarlett started with a website, Pandemic has been both challenge and
WhatsApp, and LINE as their main a blessing for these local beauty brands.
channels. They began with online
channels to optimize their early success Implora’s business remained strong
rate through the channels that they are during the pandemic. Brands such
familiar with the most. as Scarlett and Hanasui also saw
sales dramatically increase during the
pandemic due to the stay-at-home
lifestyle.

Wardah started its digital transformation Some factors are due to resellers
in 2019. While sales contributions from increment (stay-at-home impact
offline are still massive, Wardah is externality) for Scarlett and consumer
actively building and exploring consumer behaviour shifting from offline to online
journeys on e-commerce. Wardah uses for their convenience.
beauty advisors and strives for parity
between consumers’ experience online
and offline.

These winning local beauty brands


agreed that they must keep innovating
their products as one of the ways to
Azarine transformed from a beauty adapt, survive, and thrive, especially in
salon product to a mass market with a challenging macroeconomic times.
rebranding as Azarine. The rebranding
kicked off a phase where Azarine focused 1. Implora launched a new product
on targeting to B2C segment, with price category to stay relevant to the
points that are made more affordable for pandemic situation and keep
mass market. Azarine saw the massive balancing online-offline placement
momentum that e-commerce and digital after the pandemic passed by on
marketing gained in this era and started Q4 2021
tapping into online channels as their
primary channel. 2. Somethinc and Azarine agreed that
being fluid and adaptable to the
market situation are always needed

27
4 Beauty Brand Takeaways | The landscape of successful local beauty brands in Indonesia

Trends TikTok For Business


More connection and staying Massive success by Local
relevant by joining trends Beauty Brands on TikTok
HALAL • Powered by TikTok community and potent
Wardah is one of the pioneering brands in halal sharing culture, products are growing alongside
beauty trends. Wardah always intends to add content, with trending hashtags such as
value to their products, not only in pricing, but #GaraGaraTikTok and #RacunSkincare. All
also in brand equity. This distinguishes Wardah these have brought Beauty & Personal Care
from indie brands. Wardah stays relevant with category to be within the top 3 most-bought
the current consumer trends – in lifestyle, value, categories among Indonesia TikTok users.
product needs – especially in halal.
• Scarlett attested that TikTok is a powerful engine
KOREAN WAVE to driving impact to businesses, especially with
More than ever, local beauty brands have the power of TikTok’s community.
started using Korean stars and world-leading
K-wave cultural charisma as part of their • Azarine sees TikTok as an opportunity to be
marketing strategy. Examples include Scarlett, as creative as possible in exploring content
Somethinc, and Azarine. The secret recipe of production on the platform, especially for beauty
utilizing Korean attributes while keeping them brands where sound and video are extremely
aligned with the brand identity is also emulated important.
and implemented by Wardah and OMG
Cosmetics. • OMG Cosmetics sees TikTok as an emerging
platform that is new for many brands, which
GENDER FLUID implies that there is an evergreen opportunity
Scarlett, Somethinc, Hanasui, and Azarine to set up new standards. OMG Cosmetics ran
started to make products that are unisex. As for trials and tests by joining trends, utilizing various
Paragon (Wardah), they have stepped up their communication styles, and more structured
game even further by launching a separate explorations.
personal care brand for men.
• Brands are starting to allocate more dedicated
CROSS COLLABORATION resources for TikTok, with the likes of Hanasui
Cross collaborations are one of the ways that and Azarine hiring designated host to run TikTok
these local beauty brands have adopted to Livestream routinely and regularly on their TikTok
strengthen their business. These winning brands account. Scarlett and Hanasui have invested
understood that collaborations provided the in their own studios in their office for their Live
winning combination of familiar novelty and shopping sessions. Alongside them, Wardah and
commerciality. Examples include Coffeeinc OMG Cosmetics are preparing to build their own
Body Scrub by Somethinc x Kopi Kenangan, as livestreaming studio while exploring affiliates on
well as Azarine x Marvel collaboration for the TikTok to generate sales.
launch of their new Super Serum variants. These
innovative partnerships are reshaping and • “TikTok’s algorithm is like a magnet that attracts
revitalizing the beauty industry in Indonesia. new users”, quipped Hanasui. Seeing successes
on TikTok, Hanasui plans for more integrated
and always-on campaigns to boost brand
presence and existence on the platform.
28
Contact your TikTok partnership
team for further discussions

tiktokbeautyplaybook-id.com

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