Why We Partnered with Rosé All Day: Indonesia’s Insurgent Cosmetics and Skincare Brand

We are elated to announce our partnership with Rosé All Day (RAD), Indonesia’s trailblazing beauty sensation that empowers women to shine. Founded in 2017 by Cindy Gunawan and Tiffany Danielle, RAD is an omnichannel, back-to-basics colour cosmetics and skincare brand that caters to young, ambitious women who want to look and feel good by embracing their “real-est” selves. Its vision is to be Indonesia’s leading beauty and personal care (BPC  brand for all progressive and aspiring women who believe in the elegance of “looking like the best version of you.” DSG Consumer Partners believes that RAD will be Indonesia’s game-changing, face-shaping brand in BPC, and here’s why:

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Indonesia’s Beauty Scene: A blemished industry ready for a stunning makeover

Rosé All Day (https://roseallday.co/) was born from a pressing need in Indonesia for high-quality yet affordable local beauty products. Back in 2017, there was a stark absence of local players in the BPC industry who could match the quality and branding of international brands or resonate with younger Indonesian women.

General Trade store in Bandung (left) and Modern Trade store in Surabaya (right), crammed from floor to ceiling with outdated mass-market local and international brands.

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Indonesian consumers who sought better products had limited options: either buying expensive imported brands at upscale stores or going abroad to acquire them. These imported products often came with steep mark-ups from resellers, sometimes costing double or even triple the original price. Those who couldn't afford these options were left drowning in an abundance of low-quality mass-market products, which still dominate the fragmented Indonesian beauty market today.

Cindy and Tiffany embarked on a mission to reshape the perception of the industry and etch the RAD brand indelibly onto the canvas of the Indonesian beauty landscape.

Co-founders from left to right: Cindy Gunawan (CEO) and Tiffany Danielle (CMO & Head of Product).

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Building a business in beauty from the ground up, brick by brick

At the dawn of their journey, Cindy was pregnant with her first child and Tiffany was still a college student - neither had a background in the beauty industry. Bootstrapped with an initial investment of $10,000 and armed purely with unwavering determination, they took a courageous leap of faith. In a mere two years, RAD was a profitable business born in a humble basement. The early years were as trying as they were memorable. The founders had to navigate unchartered waters, traveling to establish their supply chain, taking turns as beauty advisors at local bazaars, personally responding to messages on social media, and building a team.

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Fun Fact: In Sep 2022, a warehouse fire wiped out 100% of RAD’s inventory right before the end-of-year sales season. Rather than throw in the towel, RAD rallied its community in support of the brand, which is on track to achieve 6x growth in 2023!

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7 years later, RAD has risen as one of Indonesia’s leading insurgent beauty brands is available through all major offline and online channels, and boasts a devoted following nationwide. The founders have maintained impressive capital efficiency while staying true to their roots. RAD is poised for robust growth across the country and beyond. With the wind at their backs, Cindy and Tiffany believe that their journey has only just begun. Today, RAD proudly stands as an Indonesian beauty brand firmly rooted in five key pillars:

1. Representing the rich diversity of Indonesian women across the archipelago

2. Championing the celebration of authentic, natural beauty at its core

3. Crafting products that are suitable and culturally appropriate for the daily lives of busy Indonesian mothers, working professionals, and university students

4. Designing user-friendly products that seamlessly integrate into every stage of a woman’s journey in beauty

5. Being steadfastly committed to providing high-quality products with transparent, clean formulations, innovative and environmentally friendly packaging, and full halal, cruelty-free, and vegan certification

Empowering women through quality and innovative products that slay

The 4 core categories of the Rosé All Day Cosmetics line: Complexion, Eyes, Face and Lips

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RAD products stand out for their back-to-basics, minimalistic and sleek designs. Its everyday portfolio of products gives women elegantly aspirational no-makeup makeup looks rather than an overly cakey exterior. Each product is lauded for its ingredient-led approach of infusing skincare into its cosmetics as well as its multifunctionality and innovative packaging.  

RAD holds the highest standards and meticulously tailors for the Indonesian consumer with their in-house R&D team. An idea at RAD undergoes a rigorous community-driven approach, beginning with customer insight evaluations, global market reviews, and followed by extensive product testing before an offering is launched.

Best sellers include The Realest Lightweight Concealer, Thunder Lash Mascara and Gloss Pill, which have continued to rack up nationally acclaimed awards from BeautyFest Asia, Tokopedia Beauty Awards, and Female Daily.

After years of experimentation and listening to loyal customer feedback, RAD proudly unveiled the Rosé All Day Skincare line in July 2023 which carries on the RAD mission to illuminate the truest essence of every Indonesian woman. It remains resolute in its commitment to providing a clean, derma-tested, vegan, cruelty-free, and eco-friendly product range. Notable offerings in this collection include The Big Calm Serum, Don’t Forget Sunscreen, and Tripeptide Lip Care.

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An industry primed for a bedazzling glow-up

A blossoming BPC market:

Indonesia’s cosmetic industry was valued at USD 794 million in 2022 and is projected to grow to USD 1.24 billion by 2026, with YoY growth between 14% to 16%. Within the industry, lip products represent the category with the highest revenue contribution, with an estimated USD 298 million sales value in 2023. The next largest category contributors are facial makeup at a projected USD 187 million and eye makeup at USD 119 million.[1] Indonesia’s skincare market was valued at a significantly higher USD 2.43 billion in 2022 and is projected to grow to USD 3.93 billion by 2026, with YoY growth between 10% - 15%. Facial care products dominate the industry, contributing USD 1.8 billion of sales in 2022, of which USD 1.1 billion was from moisturizers and USD 547 million was from facial cleansers.[2]  

SEA’s largest Millennial and Gen-Z driven economy demands premiumization:

On the macro scale, Indonesia’s GDP per capita has the potential to rise from USD 4,800[3] in 2022 to USD 7,000 by 2028.[4] Should this optimistic target be achieved, disposable income levels will unlock a new wave of aspirational consumerism throughout the archipelago. Indonesia is also home to Southeast Asia’s largest expanding Millennial (75 million) and Gen-Z (70 million) economy.[5] The median age of the country’s 275 million people is 29[6], which presents an enormous catalyst for growth in the digital economy and consumption patterns. DSGCP believes Millennial and Gen-Z Indonesians will continue to drive strong demand for premiumization and variety of BPC products.

Digitally supercharged by massive e-commerce and social media penetration:

Indonesia’s digital economy reached USD 77 billion in 2022 and is projected to grow at a CAGR of 19%, reaching between USD 220 billion and USD 360 billion in 2030, largely driven by the adoption of e-commerce which boasts an impressive 89% penetration rate across urban digital users. Indonesia’s e-commerce market is projected to grow from USD 59 billion in 2022 to USD 95 billion in 2025, a CAGR of 17%.[7] TikTok Shop, an increasingly popular platform for Indonesian consumers, has garnered 113 million active users and recorded a GMV of USD 2.5 billion in 2022 in the country.[8]  Incidentally, 2 out of 4 of the platforms top-selling products in Indonesia by sales volume were in skincare.[9] In 2022, 15.8% of Indonesia’s BPC market was through online channels and is projected to reach 27.2% by 2025.[10]

Made-In-Indonesia pride will disrupt an outdated, fragmented market:

The premium BPC market has long been dominated by high-priced international brands, making them financially inaccessible to the majority of Indonesians. Consequently, consumers have been left with limited options: either turning to mass-market international players whose products do not align with their everyday needs, or opting for mass-market local brands that are often associated with lower quality and effectiveness. Today, Indonesian consumers are increasingly confident in the ability of their fellow countrymen and women to create brands that not only compete effectively on the global stage but also resonate deeply with the aspirations of their rapidly developing nation. A study conducted by Snapcart in April 2023 revealed this shift in consumer sentiment, with 60% of the 2,000 respondents expressing a preference for local brands, while only 19% favoured imported ones.[11] This data underscores the growing belief in the potential of homegrown brands to meet the diverse needs and preferences of the Indonesian market.

Indonesia’s crowded and fragmented BPC industry has witnessed a notable rise of local mass-premium brands (top right-hand corner of axis) in recent years.

Enhancing beauty beyond boundaries: women, society and the environment

Building a strong business isn’t all there is to RAD. DSGCP takes immense pride in supporting this female-founded brand that embodies the passionate mission its founders. RAD wholeheartedly embraces tangible environmental, social and corporate governance (ESG) practices that are central to its ethos:

1.     Fostering Female Leadership: RAD proudly boasts a female-led workforce, with 83% of its team being women. An impressive 9 out of 10 managerial positions within the company are held by talented Indonesian women.

2.     Commitment to Clean Beauty: Renowned for its clean and cruelty-free makeup and skincare solutions, RAD upholds the highest standards throughout every stage of its product development process. The company provides complete transparency regarding its formulation ingredients and product claims, meeting the discerning expectations of the modern Indonesian consumer.

3.     Pioneering Skincare-Infused Formulations: RAD stands as a pioneer in introducing better-for-you, skincare-infused formulations in Indonesia’s cosmetics industry. The brand was the first to launch a vegan, anti-pollutant skin tint, addressing the unique challenges posed by Indonesia’s heavily polluted and tropical climate.

4.     Eco-Friendly Packaging: RAD is at the forefront of sustainable packaging solutions in Indonesia. They are first in the country to introduce LIMEX (limestone and calcium carbonate) packaging for their acclaimed Lip & Cheek Duo product. LIMEX significantly reduces reliance on petroleum-based plastics, contributing to a reduction in carbon emissions. The company is dedicated to continuous innovation in materials that promote sustainability.

5.     Democratizing Access: RAD’s unwavering commitment from day one has been to democratize access to quality, safe, and good-for-you cosmetics and skincare products. The company manufacturers its products through trusted global leaders, ensuring its customers have access to best-in-class products while maintaining an affordable price point for the majority of Indonesian women.

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Illuminating the future of beauty with Rosé All Day

The passion and unwavering determination displayed by Cindy and Tiffany in building Rosé All Day embodies the very essence of what the brand represents today. Through years of dedicated experimentation and well-deserved growth, they have cultivated one of Indonesia's premier consumer-loved insurgent brands in the BPC sector. With a superior back-to-basics product lineup, a steadfast commitment to affordability, remarkable capital efficiency, and an enduring dedication to propagate their mission of unveiling "The Realest You" in every Indonesian woman, DSGCP is confident that RAD has what it takes to be a leader in the industry. We are thrilled to stand beside Cindy and Tiffany as they venture to redefine beauty in Indonesia.

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References:

[1] Euromonitor, Color Cosmetics in Indonesia, 2022.

[2] Euromonitor, Skincare in Indonesia, 2022.

[3] World Bank. Indonesia GDP Per Capita 2022.

[4] Statista, Indonesia: Gross domestic product (GDP) per capita in current prices from 1987 to 2028.

[5] Deal Street Asia, Why Betting On Gen Z and Millennials in Indonesia is Rewarding.

[6] Statista, Indonesia – average age of the population 1950-2100.

[7] Google, Temasek, Bain & Company, The e-Conomy SEA 2022.

[8] Tech In Asia, Can TikTok Shop Catch Up with Shopee, Tokopedia in Indonesia.

[9] Momentum Works, The TikTok Shop Playbook.

[10] Statista, Distribution of beauty and personal care market sales in Indonesia from 2017 to 2025, by channel.

[11] Deal Street Asia, Indonesia’s Rose All Day Cosmetics said to be raising up to $6m in new funding.

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