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  • Indonesia Climbs the Ranks as 4th Largest Food & Beverage Exporter in ASEAN, Eyeing More Global Growth

    Indonesia Climbs the Ranks as 4th Largest Food & Beverage Exporter in ASEAN, Eyeing More Global Growth

    Indonesia is emerging as an influential player in the food and beverage (F&B) industry. According to Dyah Roro Esti, Indonesia’s Deputy Minister of Trade, the nation’s F&B exports have accumulated a value of $6.25 billion. This figure positions Indonesia as the fourth-leading F&B exporter in the Association of Southeast Asian Nations (ASEAN), trailing Thailand, Vietnam, and Singapore.

    Indonesian F&B Industry: Potential for Expansion

    Esti shared these insights during the Indonesia Food and Beverage Trade Promotion Forum held in Jakarta. She emphasised that the F&B sector has significant prospects for expansion and growth. The Ministry of Trade is actively encouraging local businesses to explore international markets via Indonesia’s extensive global trade network.

    Comparatively, Indonesia’s F&B exports rank fourth in ASEAN nations, following Thailand ($17 billion), Vietnam ($8.8 billion), and Singapore ($6.5 billion).

    Esti pointed out the robust potential for Indonesian F&B products in international markets, particularly the ones complying with halal standards. Highlighting the Middle East as a promising marketplace, she expressed optimism about the export prospects for Indonesian businesses.

    Support for Domestic Businesses

    To propel domestic businesses, the trade ministry is utilizing a network of Trade Attachés and Indonesian Trade Promotion Centers in 33 countries. This framework aims to facilitate connections between Indonesian enterprises and potential overseas partners and purchasers.

    Indonesian food products are steadily gaining a firmer foothold in international markets. This growth is attributed to the continuous overseas expansion of local businesses and restaurants. Additionally, the global Indonesian diaspora serves as a substantial market for the country’s F&B products.

    In conclusion, the Ministry of Trade believes that leveraging its international trade network, penetrating new markets, and capitalizing on the rising demand for halal food will be instrumental in boosting exports in the future.

    Questions & Answers

    What is the current value of Indonesia’s food and beverage exports?
    As per Indonesia’s Deputy Minister of Trade, Dyah Roro Esti, the nation’s food and beverage exports have reached a value of $6.25 billion.

    What strategy is the trade ministry employing to support domestic businesses?
    The trade ministry is leveraging a network of Trade Attachés and Indonesian Trade Promotion Centers in 33 countries to help domestic businesses connect with potential overseas partners and buyers.

    What’s the significance of halal standards for Indonesia’s food and beverage industry?
    Halal compliant food and beverage products have a robust potential in international markets, particularly in the Middle East. The trade ministry sees the rising global demand for halal food as an opportunity to boost Indonesia’s exports.

  • Kao Corporation Targets $2.68b In Sales With Major Cosmetics Business Revamp

    Kao Corporation Targets $2.68b In Sales With Major Cosmetics Business Revamp

    Kao Corporation, a Tokyo-based company specializing in chemicals and cosmetics, has recently revealed plans to revamp its cosmetics business. The strategy will focus on the growth and expansion of its six core brands.

    The New Strategy

    Kao’s primary goal is to achieve a net sales target of 400 billion yen (US$2.68 billion), alongside an operating margin of 15 percent, as early as possible after 2030. To this end, the company will concentrate its growth and development efforts on six brands: Sensai, Molton Brown, Kanebo, Sofina, Curel, and Kate. The expansion strategy will be tailored to the specific markets where these brands meet consumer demands.

    As part of this reorganization, skincare brand Curel is expected to experience accelerated growth. The company plans to increase Curel’s store presence in Europe by sixfold, aiming to generate 50 percent of the brand’s total sales outside Japan by 2027.

    Focusing on the European and Asian Markets

    Sensai and Molton Brown, two brands that have proven successful among European consumers, will pivot their growth strategy to target the Asian luxury market. The company’s ambitious aims include a 150 percent increase in Sensai sales and a doubling of Molton Brown sales in Asia by 2027.

    For Kanebo and Kate, Kao plans to adapt their expansion to the distinctive characteristics of each Asian market, using Thailand as the initial target market. The company hopes to boost sales of these two brands by 150 percent in Thailand by 2027.

    In a simultaneous move, Kao intends to consolidate Sofina and its sub-brands under one umbrella. The aim is to enhance Sofina’s sales in Asia by 50 percent by 2027.

    Enhancing Profitability and Long-Term Growth

    Beyond brand-specific expansion plans, Kao’s revamp includes a broader focus on improving profitability and fostering long-term growth. This will involve the implementation of core technologies, cost reductions through improved supply chain management, and the application of digital and AI technologies.

    The restructuring process will be spearheaded by Tomoko Uchiyama, executive officer and president of global consumer care – cosmetics business, who began her role in January.

    Uchiyama emphasized the company’s adaptability in the face of change, explaining, “Our cosmetics business has the flexibility to respond to changing times and market dynamics with a diverse portfolio of brands.” She assured that, coupled with the robust foundation of the Kao Group, the company is well-positioned to pioneer advancement of globalization.

    In addition to cosmetics, Kao’s business segments also include hygiene living care (which counts Attack and Laurier among its brands), health beauty care (owner of Biore, among others), and chemical products.

    Questions & Answers

    What are the core brands Kao Corporation is focusing on?
    Kao Corporation will be focusing on the expansion of Sensai, Molton Brown, Kanebo, Sofina, Curel, and Kate.

    What are the business goals of Kao Corporation under the new strategy?
    The company aims to achieve a net sales target of 400 billion yen (US$2.68 billion) and an operating margin of 15 percent, as early as possible after 2030.

    Who will be leading the restructuring process at Kao Corporation?
    The restructuring process will be led by Tomoko Uchiyama, executive officer and president of global consumer care – cosmetics business.