Are you familiar with beauty tech startup? Historically, beauty has become a social norm all over the world. People have been using cosmetics ever since the Ancient Egypt era in 4000 BCE. Back then, Egyptians used cosmetics for practical and spiritual purposes and even as a sign of their social class. Our pursuit of beauty persists in the modern era. Today, beauty has turned into a million-dollar industry and is even intertwined with technology. According to Terakeet, globally, the total spending in the beauty industry in 2020 reached $483 billion.
The beauty industry has grown significantly in every part of the world. With its rapid population growth, Indonesia has become one of the strategic markets for beauty products. According to Statista, the demand for beauty products in Indonesia has increased in the past few years. The revenue for beauty and personal care products is constantly rising, from $6.1 billion in 2017 to $7.4 billion in 2021.
The rapid growth of the beauty industry in Indonesia has invited various beauty tech startups to step into the industry. The beauty tech startups in Indonesia can be classified into several segments. First is the makeup sector which consists of products to enhance and highlight facial features including eyes, nails, face, and cheeks. Second is the skincare sector, which focuses on cosmetics to support skin integrity, enhance its appearance, and relieve skin conditions. Third, the hair care sector consists of products to increase hair hygiene and health. Lastly, the fragrance sector which focuses on perfume products.
Sociolla or also known as Social Bella is an all-in-one beauty tech platform established in 2015. As the leading beauty e-commerce in Indonesia, Sociolla offers various types of products ranging from skincare, makeup, haircare, fragrance, to beauty tools. Sociolla has cooperated with famous brands such as Carasun, Scarlett, Cosrx, and many more.
Sociolla is an emerging beauty tech startup with a lot of success in its 6 years of establishment. In 2020, Sociolla has acquired 42 million users. Since its establishment, Sociolla has received $166 million of funding. Recently, this startup has received $56 million of funding from venture capital, East Venture.
Another emerging beauty tech startup in Indonesia is HelloBeauty. Established in 2016, HelloBeauty is the first and the biggest beauty tech service in Indonesia. Different from Sociolla, HelloBeauty is an all-in-one beauty service startup. HelloBeauty’s unique selling point is it connects professional Makeup Artists (MUA) to clients. Some of its services are make-up and hairdo, wedding makeup, photoshoot, everyday makeup, and many more.
By now, HelloBeauty has partnered with more than 6,000 beauty professionals and has more than 50,000 visitors. Beyond that, HelloBeauty has operated in 35 cities in Indonesia. HelloBeauty is currently in its seed funding phase. With its unique business model, HelloBeauty is expected to grow in the future.
Base is another emerging beauty tech startup in Indonesia. Established in 2019, Base is different from any other beauty tech startup in Indonesia. First, they focused on offering vegan skincare products to the customers. Second, aside from being e-commerce, Base is also a skincare brand that sells its own products. Base targets a specific and emerging market in Indonesia. A lot of people have started becoming more eco-conscious in the past few years.
Base is an emerging beauty tech startup with a bright future. Base revenue is constantly growing over time and has acquired more and more loyal consumers. Recently, Base received Pre-Series A investment in a disclosable amount led by East Ventures and Skystar Capital. With this fund in its pocket, Base is expected to grow in the future.
The beauty industry has proven to be resilient even amidst the covid-19 pandemic. Beyond that, the demand for beauty products and services has shown a significant improvement and will continue to grow in the future. According to Statista, the demand for beauty products will rise to about 9.6 billion in 2025.
In the future, we can expect the beauty tech startup to expand its market in the Asia Pacific region. The Asia Pacific is the biggest market for the beauty industry, accounting for 43% market share. Some of the biggest markets are China, South Korea, and Japan.
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