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Shampoo industry growing steadily.

Steady growth has been recorded for Indonesia's shampoo industry to follow the growing population of the world's fourth most populous pop·u·lous  
adj.
Containing many people or inhabitants; having a large population.



[Middle English, from Latin popul
 country. The country's population was estimated at 238 million in 2010. The expansion of the industry also followed the trend of the country's economic development. The country's shampoo production rose from 31,000 tons in 2005 to 33,000 tons in 2009. The country's production capacity for shampoo, however, remained unchanged from 32,000 tons annually in 2005-2009 periods.

Currently, the country's shampoo industry is dominated by PT. Unilever Indonesia PT Unilever Indonesia Tbk was established in Indonesia on December 5, 1933 as Zeepfabrieken N.V., a subsidiary of Lever Brothers which initially operated a soap factory at Angke, Jakarta. The name was changed to Unilever Indonesia on July 22, 1980.  Tbk with its brands of Sunsilk and PT. Procter & Gamble with its brand of Pantene. The two big producers are known as consumer goods consumer goods

Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and
 producers with products including personal care, skin care, home toiletries toi·let·ry  
n. pl. toi·let·ries
An article, such as toothpaste or a hairbrush, used in personal grooming or dressing.

toiletries nplartículos mpl de aseo (=
, etc.

Competition is sharp in the shampoo market as shown in the intensive advertisements by big producers on television or other mass media. Almost every day shampoo products such as Sunsilk, Clear and Pantene are advertised on television or newspapers of shampoo using well known artists as advertisement stars.

Production capacity stagnant

The country's shampoo production capacity shampoo in 2005-2009 periods was unchanged from 32,000 tons per year with no new investment in the industry.

Production up 2% per year

The country's production of shampoo grew only 2% a year on the average in the period of 2005-2009. In 2005, the production was recorded at 31,000 tons, up to 33,000 tons in 2009. The production already exceeded the production capacity in 2009.

Based on the consumption trend, production was estimated to rise to 34,400 tons in 2010 and to 35,000 tons in 2011.

Shampoo products include ordinary shampoo and treatment shampoo, which is produced partly with herbal basic material. Ordinary shampoo dominates production. See the following table.

Sources : Agro chemical directorate general

Capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens.  up

Since 2007, the country's shampoo industry has been operating at full capacity to meet growing domestic demand. In 2007, the country's shampoo production already reached 33,700 tons, with a capacity utilization of 105.4%. The capacity utilization fell to 103.3% in 2008 but in 2009 it rose again to 105.4% as shown in the following table.

Big players

PT. Unilever Indonesia Tbk

The company started operation in Indonesia in 1933, known as a producer of bath soap with the brand of Lux. PT. Unilever Indonesia Tbk is he pioneer among the producers of shampoo in Indonesia with the brand of Sunsilk in 1952.

Its first factory is located in Surabaya, East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. . In the first years of its operation Unilever used glass bottle for packaging. In 1970, Unilever launched Sunsilk in plastic bottles.

Sunsilk grew quite fast in production. In 1975, Sunsilk Hitam, was launched and became the most popular variant of Sunsilk. In 1999 another variant of Sunsilk, Fruitarian fruit·ar·i·an  
n.
One whose diet includes fruits, seeds, and nuts but no vegetables, grains, or animal products.



[Blend of fruit and (veget)arian.]
 entered the market.

After Sunsilk succeeded in grabbing a dominant share of the domestic market, Unilever produced new shampoo products with the brands of Lifebuoy lifebuoy nbouée f de sauvetage , Clear and Dove. Sunsilk is for hair beauty care, clear for hair health care, Lifebuoy as family segment and Dove for hair beauty of premium segment. Dove is more for the treatment of damaged hair while Sunsilk is more match beauty market with more variants for hair beauty--from long black hair to dyed, dry, and falling off hairs.

Currently Unilever operates 6 units of factories in the Jababeka Industrial Estate in Cikarang, West Java and 2 units in the Rungkut Industrial Estates, Surabaya, and East Java. Unilever has 32 main brands of products including personal care, household cleaner, foods, etc. It has 700 branches and around 370 independent distributors helping the marketing of its products all over Indonesia.

PT. Procter & Gamble Indonesia

Procter & Gamble Co (P & G) is a multinational company established in 1837 in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . It operates in the industries of personal car, health care and household cleaner. P & G has 54 brands entering the world markets. PT. Procter & Gamble Indonesia (PT. P & G Indonesia) was established in 1989, handling the distribution and marketing of the products of P & G in Indonesia including razor with the brand of Gillette, face treatment (Olay), Toothpaste toothpaste,
n See dentifrice.
 and tooth brush (Oral B), clothe softener (Downy down·y  
adj. down·i·er, down·i·est
1. Made of or covered with down.

2.
a. Resembling down: downy white clouds.

b. Quietly soothing; soft.

Adj.
), battery and flashlight (Duracell) and diaper (Pampers Pampers is a brand of disposable diaper (or nappy) marketed by Procter & Gamble worldwide. Product information
Diapers
Pampers Diapers come in sizes going all the way up to Size 7.
).

In Indonesia P & G sells its shampoo with the brands of Pantene, Rejoice and Head & Shoulders. Currently shampoo Pantene has four variants of anti dandruff dandruff, excessive flaking of skin from the scalp, apparent as dry or greasy diffuse scaling with variable itching. It is the sign of a skin disease, such as seborrhea or a fungal infection. , total care, hair fall, smooth & silky silky

female spirit who does household chores. [Br. Folklore: Briggs, 364–365]

See : Domesticity
, and recently Pantene came up with a new variant Nature Care.

Since 2004 all products of P&G sold in the country are imported from other countries including Thailand, Vietnam, the Philippines and Malaysia.

P & G's factory in Thailand produces skincare and shampoo, in the Philippines produces homecare such as detergent and pampers, in Vietnam produces pampers, powder detergent, and in Malaysia produces snack Pringles. P & G targets to chalk up 5 billion consumers of its products all over the world in 2015. Currently the number of its consumers already reached 4 billion people.

In 2011, PT P & G Home Products Indonesia invested US$ 100 million in its first factory in Indonesia. The construction of the factory that will produce disposable diapers will take 3 years. It will be the first factory in Indonesia to receive LEED (Leadership in Energy & Environmental Design) certification, an international certification granted by Green Building Council of the United States to buildings meeting a number of criteria for an environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1]  factory.

The new factory to be built in Karawang, West Java, will; be equipped with modern facilities to produce diapers with the brand of Pampers. Part of the production will be exported to other countries in this region.

Meanwhile, PT. P & G Indonesia plans to cooperate with state plantation company PTPN PTPN Physical Therapy Provider Network
PTPN Protein-Tyrosine Phosphatase, Nonreceptor-Type
PTPN Preemptive Time Petri Net
 III to build oleo-chemical factory in the industrial cluster of Sei (Software Engineering Institute, Pittsburgh, PA, www.sei.cmu.edu) A federally funded research and development center that is under contract to Carnegie Mellon University and is devoted to the advancement of software engineering and the quality of software support systems.  Mangke, North Sumatra North Sumatra (Indonesian: Sumatera Utara) is a province of Indonesia. Its capital is Medan. Geography and population
The province of North Sumatra stretches across the island of Sumatra between the Indian Ocean and the Strait Malacca.
. The project is to better guarantee supply of 200,000 tons of fatty alcohol fatty alcohol
n.
Any of various alcohols derived from plant or animal oils and fats and used in plastics and pharmaceuticals.
 needed by P & G per year in the next 10 years. P & G needs fatty acid fatty acid, any of the organic carboxylic acids present in fats and oils as esters of glycerol. Molecular weights of fatty acids vary over a wide range. The carbon skeleton of any fatty acid is unbranched. Some fatty acids are saturated, i.e.  and vegetable oils <onlyinclude> This list of vegetable oils includes all vegetable oils that are extracted from plants by placing the relevant part of the plant under pressure to extract the oil.  from Indonesia to support its global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. .

Currently the country's production capacity for fatty alcohol is around 320,000 tons from three producers PT Ecogreen Oleochemicals, PT Musim Mas, and PT Bakrie Sumatera Plantations. The country's production capacity is expected to rise to 784,000 tons after the operation of a factory of the Wilmar Group with a capacity of 464,000 tons per year in Gresik, East Java.

PT. Lion Wings

PT. Lionindo Jaya was established in 1981, as a joint venture between the Wings Group in Surabaya and Lion Corporation of Japan. Lion Corporation is a leading producer of consumer products in Japan producing tooth paste a paste for cleaning the teeth; a dentifrice.

See also: Tooth
, tooth brush, cosmetics, soap, shampoo, and detergent, dish washing detergent, household cleaners, foods and medicines. Lion Corporation has a chain of subsidiaries in Southeast Asia such as Singa Selatan Sdn. Bhd in Malaysia, Lion Corporation Thailand and Lion Corporation Singapore Pte. Ltd.

In 2004, the name of PT Lionindojaya was changed with PT Lion Wings, after the take over of the majority share of PT Lionindo Jaya by the Wings Group. PT Lionindo Jaya produced and sold various types of consumer goods including tooth paste, tooth brush, household cleaner, etc. Wings have exported part of its production to more than 55 countries all over the world.

PT. Lion Wings produced dish cleaning soap (Mama Lime, Mama Lemon, Mama Apple, Oxy), tooth paste (Ciptadent), Smokers' tooth paste (Zact, Dentor Systema), tooth brush (Ciptadent), baby tooth baby tooth
n.
See deciduous tooth.
 paste (Kodomo), any mosquito lotion lotion /lo·tion/ (lo´shun) a liquid suspension, solution, or emulsion for external application to the body.

lo·tion
n.
1.
 (Lavenda), baby product (Kodomo), tooth brush and tooth paste (Ciptadent and Systema), perfumes (Fresh & Fresh). Lion Wings also produces shampoo with he brands of Emeron, Botanical, Zinc, and Kodomo.

The basic material for PT. Lion Wings is supplied by sister companies including PT Unipack Indosystems for label sachet sa·chet  
n.
A small packet of perfumed powder used to scent clothes, as in trunks or closets.



[French, from Old French, diminutive of sac, bag, from Latin saccus; see sack
 shampoo and PT Mitra Indotra Abadi for tooth paste boxes.

The Wings Group controls oleo-chemical industry from the upstream to downstream sectors. Together with the Djarum Group and the Lautan Luas Group, the Wings Group took over PT. Ecogreen Oleochemical Oleochemicals are chemicals derived from biological oils or fats. They are analogous to petrochemicals which are chemicals derived from petroleum. The hydrolysis or alcoholysis of oils or fats form the basis of the oleochemical industry.  (PT. EO) from the Salim Group The Salim Group is Indonesia's big­gest conglomerate with assets including Indofood Sukses Mamur, the world's largest instant noodle producer, and Bogasari, a larg­e flour-milling operation [1]. The group was founded by Sudono Salim. . PT. EO PT. EO is a major producer of oleo-chemical including natural fatty alcohol in the world with a capacity of 110,000 metric tons/year. PT. EO supplies basic materials for the subsidiaries of the Wings Group. Oleochemical is a basic material for body care, soap and detergent, foods, plastics, pharmaceuticals, etc.

PT. Gondowangi Tradisional Cosmetics

The company was established by Mr. Liem Sudarno in 2000 in Jakarta. Previously in 1970, Mr. Liem Soedarno was an exporter of seaweed seaweed, name commonly used for the multicellular marine algae. Simpler forms, consisting of one cell (e.g., the diatom) or of a few cells, are not generally called seaweeds; these tiny plants help to make up plankton.  to France where it as used as a basic material of cosmetics. In 1972 Mr. Liem Sudarno began to produce cosmetics using seaweed as the basic material.

PT. Gondowangi Tradisional Cosmetics (PT. GTK See GTK+. ) produces hair care products from natural basic material without chemicals. PT. GTK sells shampoo with the brand of Natur. Currently Natur has been exported to a number of countries such as Malaysia, Singapore, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Australia, South Korea, etc.

In addition to Natur shampoo, PT. GTK also produces skin care with the brand of Natur White and face care product with the brand of Miyagi which consists of whitening day cream, whitening night cream and lightening plus moisturizing soap.

Shampoo exports

Indonesia's exports of shampoo in the 2005-2009 periods grew but not smaller than imports.

In 2009, the country's shampoo exports grew to 8, 000 tons from 5,000 tons in 2005. Currently, there is tens of shampoo products exported from the country including Sunsilk, Clear, Nature, etc.

PT. Unilever Indonesia Tbk, the largest producer of shampoo in the country has exported shampoo to various countries. Exports including shampoo contribute 6% to total exports of PT. Unilever Indonesia. Its export destinations to Malaysia, Singapore, Japan, African countries and Middle East countries.

Shampoo imports

In the period of 2005-2009, Indonesia's imports of shampoo was larger than its exports indicating that domestic production capacity was not enough to meet domestic requirement.

In 2005, imports totaled 12,000 tons, up to 18,000 tons in 2006 and to 27,000 tons in 2009. See the following table.

Imported products

Imported products make up part of the supplies of shampoo in the country. Imported products are mainly those of premium types for the middle to high class consumers.

PT. P & G Indonesia imports and sells only the products of P & G. There are four shampoo products of P & G sold in Indonesia Pantene, rejoice, Head & Shoulders and Herbal Essence.

All products of P&G sold in Indonesia are supplied through imports. Shampoo and skin care products of P&G are imported from P & G Thailand.

Domestic Consumption

Shampoo consumption in the country is assumed to be the same as supply, which is production plus imports minus exports.

Based on the assumption, shampoo consumption in the country in the period of 2005-2009 grew 8.8% per year on the average. In 2009 the country's shampoo consumption rose to 52,000 tons from 38,000 tons in 2005.

The consumption in the following years was estimated to follow the growing trend in the previous year. In 2010, the country's shampoo consumption was estimated to reach 56,000 tons, up again to 61,000 tons in 2011.

Market share

Two large producers--PT. Unilever Indonesia Tbk and PT. P & G Indonesia dominate 90% of the market of shampoo in the country. PT. Unilever Indonesia Tbk has a 60% market share and PT. P & G Indonesia has a 30% share of the domestic market. Other producers split he remaining 10% of the market.

PT. Unilever has its main product with the brand of Sunsilk, which an old brand is dating back to 1933, when it had only one variant. Now Sunsilk has 9 variants Black shine, Anti dandruff, Soft & smooth, Clean & fresh, Hail fall solution, Damage hair treatment, Bouncy curls, Straight & sleek, and Co creation.

In addition to Sunsilk, PT. Unilever produces other shampoo products including Dove, Lifebuoy, and Clear each with different market segments. Sunsilk is for beauty care, clear for hair health and Lifebuoy as family shampoo and Dove for hair beauty of the premium segment. Combined, all products of PT. Unilever have a 60% share of shampoo market in Indonesia.

PT. P & G Indonesia also has four brands of shampoo Pentene, Rejoice, Head & Shoulders and Herbal Essence. PT. P & G has the second largest share or 30% of shampoo market in the country.

The two largest producers compete sharply on the domestic market. Sunsilk is facing Pantene in the competition in the premium market segment and Clear is facing Head & Shoulders in the market of treatment shampoo.

PT P&G Indonesia is set to boost sales of Head and Shoulders to be the leader in the market of anti dandruff shampoo as it is the number one in the world market. The country has large demand for anti dandruff shampoo now dominated by Clear of the Unilever.

The domination of Unilever and P & G is now challenged by PT. Lion Wings with its products of Emeron and Zinc. In the market of herbal shampoo, competition involves PT Gondowangi with its brand of Natur, PT. Mustika Ratu with its brand of Mustika Ratu and PT. Martina Berto with its brand of Sari Ayu.
Table-1
Production capacity of shampoo industry, 2005--2009

Year             Production capacity (tons)

2005                       32,000
2006                       32,000
2007                       32,000
2008                       32,000
2009                       32,000

Sources: Agro chemical directorate general

Table-2
Production of shampoo, 2005--2009

Year              Production    Growth
                    (tons)        (%)

2005                 31,155
2006                 31,778        1.9
2007                 33,723        6.1
2008                 33,062       -1.9
2009                 33,723        1.9
Average growth                     2.0

Table-3
Capacity utilization of shampoo industry, 2005--2009

Year             Capacity utilization (%)

2005                       97.4
2006                       99.3
2007                      105.4
2008                      103.3
2009                      105.4

Sources: Agro chemical directorate general

Table-4
Shampoo producers and brands

Producers                       Brands                Types

PT. Unilever Indonesia Tbk   Sunsilk        Black shine, Anti
                                            dandruff, Soft & smooth,
                                            Clean & fresh, Hail fall
                                            solution, Damage
                                            treatment, Bouncy curls,
                                            Straight & sleek

PT. Unilever Indonesia Tbk   Clear          Ice cool menthol, Complete
                                            soft care, Anti hail fall,
                                            Soft & shiny

PT. Unilever Indonesia Tbk   Lifebuoy       Anti dandruff, Herbal,
                                            Anti hair fall

PT. Unilever Indonesia Tbk   Dove           Damage Therapy Cool
                                            Moisture, Damage Therapy
                                            Revival, Nourishing Oil
                                            care, Straight & Silky

PT. Lion Wings               Emeron         Rose, Anti dandruff, Silky
                                            moist, Shiny growth,
                                            Smooth straight, Shining
                                            black

PT. Lion Wings               Zinc           Refreshing with Menthol
                                            and Green Tea, Re-
                                            Energizing with Ginseng

PT. L'Oreal Indonesia        Elseve         Liss intense, Volume
                                            control, Smooth intense,
                                            Nutritio

PT. Mandom Indonesia Tbk     Johnny         Soft & Straight, Style &
                             Andrean        Color, Black & Shiny,
                                            Extra volume

PT. Martha Tilaar            Rudy           Ginseng, Sunflower,
                             Hadisuwarno    Teatree

PT. Martina Berto            Sari Ayu       Lidah Buaya, Merang,
                                            Urang- Aring, Wortel,

PT. Mustika Ratu Tbk         Mustika Ratu   Merang, Daun Waru, daun
                                            Landep, Teh Hijau, Bayam

PT. Gondowangi Tradisional   Natur          Ginseng
Cosmetics

Producers                        Sizes (ml)

PT. Unilever Indonesia Tbk   90, 180, 200, 360

PT. Unilever Indonesia Tbk   90, 180, 360

PT. Unilever Indonesia Tbk   90, 180, 360

PT. Unilever Indonesia Tbk   90, 180

PT. Lion Wings               5, 50, 100, 200,
                             300, 500

PT. Lion Wings
                             100, 200

PT. L'Oreal Indonesia        50, 200, 250, 400,
                             500

PT. Mandom Indonesia Tbk     250

PT. Martha Tilaar

PT. Martina Berto            100, 170

PT. Mustika Ratu Tbk         175

PT. Gondowangi Tradisional
Cosmetics

Sources: ICN

Table-5
Exports of shampoo, 2005--2009

Year     Volume (tons)     Value (US$ 000)

2005            5,803              11,915
2006            6,112              11,675
2007            7,380              16,250
2008            7,253              17,770
2009            8,641              20,399

Sources : Agro chemical directorate general

Table-6
Imports of shampoo, 2005-2009

Year       Volume (tons)     Value (US$ 000)

2005             12,957              45,372
2006             18,425              49,316
2007             18,378              74,985
2008             18,831              76,889
2009             27,640              83,859

Sources: Agro chemical directorate general

Table-7
Shampoo imports

Producers               Importers            Brands

Procter & Gamble,   PT. P&G Indonesia   Pantene
Thailand

Procter & Gamble,   PT. P&G Indonesia   Rejoice
Thailand

Procter & Gamble,   PT. P&G Indonesia   Head & Shoulders
Thailand

Procter & Gamble,   PT. P&G Indonesia   Herbal Essence
Thailand

Producers                       Types                  Sizes (ml)

Procter & Gamble,   Pro V, Long black, Anti hair    5, 90, 180, 200,
Thailand            fall, Anti dandruff,            360, 700, 950
                    Nourished shine , Smooth &
                    silky, Nature care

Procter & Gamble,   Manageable black, Anti hair     100, 180, 360
Thailand            fall, Fruity

Procter & Gamble,   Menthol, Cool menthol,          75, 180, 360
Thailand            Smooth & silky, Anti hair
                    fall

Procter & Gamble,   Anti dandruff, Classic          90, 180, 200, 360
Thailand            clean, Hair Endurance,
                    Smooth & silky, Clinical
                    strength, Citrus breeze,
                    Scalp care, Sensitive care,
                    Extra volume, Refresh, Ocean
                    life,

Sources: ICN

Table-8
Domestic consumption of shampoo, 2005--2009
(Tons)

Year     Production   Exports   Imports   Consumption

2005       31,155      5,803    12,957      38,309
2006       31,778      6,112    18,425      44,091
2007       33,723      7,380    18,378      44,721
2008       33,062      7,253    18,831      44,640
2009       33,723      8,641    27,640      52,722

Sources: ICN processed

Table-9
Market share, 2011

                                                     Market share
Brands                        Producers                  (%)

Sunsilk            PT. Unilever Indonesia Tbk            30.0
Clear              PT. Unilever Indonesia Tbk            24.0
Lifebuoy           PT. Unilever Indonesia Tbk            5.0
Dove               PT. Unilever Indonesia Tbk            1.0
Pantene            PT. Procter & Gamble Indonesia        23.4
Rejoice            PT. Procter & Gamble Indonesia        4.0
Head & Shoulders   PT. Procter & Gamble Indonesia        2.6
Lain-lain                                                10.0
Total                                                    100

Sources: ICN
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Title Annotation:INDUSTRY
Publication:Indonesian Commercial Newsletter
Date:Sep 1, 2011
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