After beauty, which industry will take the reins?

The selfie culture has brought the beauty industry to a whole new level. There are new palettes launching every now and then that you’ll think beauty companies are on steroid. The $445 billion beauty industry is the future. Independent cosmetics and skincare lines are entering the scene since there is no better time to start a beauty company than today.

The beauty industry is also soaring in Indonesia. Although the country has its own heritage beauty brands like Martha Tilaar and Sari Ayu, it is Wardah that captures the attention from the millennial. Wardah is an independent beauty company catered to Muslim women. It has been in the industry since 1996. Before Wardah was born, its founder, Nurhayati, started with shampoo brand called Putri in 1985. Then, skincare lines like Juara, The Bath Box, and Mineral Botanica started to emerge. So did cosmetics brands. Indonesian cosmetics brands doubled over the year with Make Over being the first cosmetic brand and independent brands like Esqa, Mad for Lipstick, They Talk About, SASC, and Purbasari. Those independent brands have one focus: lipstick. The growth of the beauty industry even surpasses that of fashion in the country.

In fashion, athleisure is taking the reins; slowly becoming a lifestyle rather than a clothing category. It has the health and fitness industry to thank for. Just like the beauty industry, there is a surge on independent athleisure brand start-ups. Huge corporations are dominant in the casual clothing market, but there is plenty of room for independent athleisure brands.

In the accessories category, contemporary bags are on the rise. It goes way back to Anya Hindmarch and her printed canvas tote, then Mansur Gavriel with its bucket bag that generated long waitlist in 2013. More brands are coming up with well-made leather bags in the $100-$500 price range, proving that it is possible to produce genuine leather products with luxury quality without a hefty price tag. Financial Times in early 2016 reported that Net-a-Porter increased its contemporary bags purchasing by 45%. Danse Lente and Cult Gaia are following Mansur Gavriel’s footsteps by launching their bags direct-to-consumer via social media and e-commerce platform. Other notable contemporary bag brands are Loeffler Randall, Little Liffner, and Staud. Solid and Striped, which started as swimwear line, also ventured out onto contemporary bags.

In Indonesia, there is a spike in contemporary leather goods spending although it is not as intense as in overseas market, and the overall local contemporary goods remain almost the same other than the rise of Meraki Goods and Byo. Meraki Goods has introduced a line of handbags that are on par with global brands, in terms of both the colour and the design. Byo is unique because of its interweave technique.

Contemporary bags are more prominent than designer clothing lines. Seasonal designer clothes could go out of trend and fast fashion always manage to produce cheaper version of runway garment, making the luxury garment obsolete for most people. On the other hand, leather is an expensive material to work on. Fast fashion might copy the design of leather goods but it replaces genuine leather with synthetic leather in its products. Hence, contemporary pieces are worth the splurge.

The next queen of the throne, according to TFR, would be jewellery. Jewellery is currently retaining the normal industry format that leans towards middle-aged target audience. It is also synonymous with sparkling diamond and gold. It is the minimalist jewellery line with emphasise on younger generation that will take the reins.

The old guard of jewellery are Cartier, Harry Winston, Bvlgari, Tiffany’s, and Frank&Co for Indonesian customers. The trend can be traced back to Cartier’s love bracelet. It is so simple yet one of Cartier’s most appealing items. Love bracelet has been around for more than 50 years but younger customer base still flocked to Cartier to get the $5,000 piece. The bracelet is often spotted on beauty Youtubers. The subtle but recognisable design is the winning factor. That fits well with younger clientele.

Independent jewellery brands like KAR Jewellery, From Tiny Island, and Litany are slowly gaining momentum with their minimalist approach. Another example to illustrate is when Indonesian-based Adelle Jewellery launched a 12 zodiac signs necklace series that garnered 3,000 pre-orders within two weeks. The price of the necklace is around Rp3,000,000 or approximately $200. Similar to contemporary bags, minimalist jewellery line with lower entry price point proves to be favourable among the consumer. In Adelle’s case, the brand is introducing a simpler design for its younger consumers while still carrying diamond and gold pieces for older clientele.

Luxury e-commerce players also started to invest on contemporary jewellery pieces with some pieces start at $33 on Net-a-Porter site. Moda Operandi and Luisaviaroma are not far behind with $100 to $200 pieces.

Jewellery has a major advantage for designers compared to other fashion categories. Every jewellery piece automatically gets copyright protection because it is considered as decoration, which falls under the sculpture category. Moreover, a lot of people buy jewellery as investment as opposed to leather goods or clothing. The lowest people get after selling back their diamond ring or necklace to the store is 20% off the original price. That is not bad compared to the value of clothing that falls immediately after it’s been worn.