Digital Competition Is Reshaping Indonesia’s Beauty Industry
Indonesia’s cosmetics market continues to expand rapidly, driven by rising consumer awareness of self-care and personal appearance. Industry reports estimate the beauty and personal care sector to be worth more than USD 9 billion, with steady annual growth projected through the end of the decade.
Despite this growth, competition among brands has intensified, particularly on e-commerce platforms. Data from the Top Brand Index indicate that Wardah’s lipstick category share declined significantly between 2022 and 2025, signaling weakening repurchase intention among consumers. The dominance of digital marketplaces—especially Shopee—means that purchase decisions increasingly depend on online experiences, peer reviews, and user-generated content rather than traditional advertising.
These trends highlight the importance of understanding how digital engagement shapes customer satisfaction and loyalty.
How the Study Was Conducted
The research used a quantitative explanatory design with a cross-sectional survey approach.
- Respondents: 120 Wardah lipstick users in Bandung
- Criteria: at least 17 years old and had purchased the product more than once
- Data collection: online questionnaire using a five-point scale
- Analysis methods: multiple regression analysis and Sobel tests
The study examined four main variables:
- User-Generated Content (UGC): reviews, testimonials, ratings, photos, and online interactions
- Online Shopping Experience (OSE): visual design, navigation ease, social interaction, and transaction efficiency
- Customer Satisfaction
- Repurchase Intention
The model explains about 88.3 percent of variation in repurchase intention, indicating a strong relationship among the variables studied.
Key Findings
The results demonstrate clear connections between digital engagement, satisfaction, and loyalty.
Implications for Brands and E-Commerce Platforms
The findings from Universitas Jenderal Achmad Yani suggest that digital marketing strategies must move beyond promotion and focus on customer experience.
The researchers emphasize that customer satisfaction serves as the central bridge between digital engagement and consumer loyalty. When expectations formed through reviews and online experiences match the actual product performance, repurchase intention increases naturally.
Why This Study Matters
The research reinforces the Expectation Disconfirmation Theory, which explains that satisfaction arises when real experiences meet or exceed prior expectations.
In the digital marketplace, this means:
- Consumers trust peer reviews more than brand messaging
- Online experience becomes part of the product value
- Loyalty depends on both functional quality and emotional satisfaction
The findings help explain why brands with strong online visibility do not automatically achieve repeat purchases unless they also deliver consistent customer experiences.
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