It is aiming for revenue of Rp 500 billion (US$37 million), down 16.67 percent from the Rp 600 billion set previously.

As of the third quarter of this year, the company saw its revenue decline by 9 percent year-on-year (yoy) to Rp 236.17 billion although it managed to record net profits of Rp 1.49 billion. The profit reversed a Rp 5.61 billion loss it posted over January-September last year.

“The drop in revenue was mostly caused by weak consumer spending,” Mustika Ratu corporate secretary Boma K. Sebayang told a press conference, claiming that the distribution of illegal cosmetics also affected business.

He acknowledged that the decrease in sales happened concurrently with major events, such as the Idul Fitri festivities and school holidays, when spending normally peaked.

In order to meet its revised revenue goal, Mustika Ratu is seeking to further enhance efficiency and promote its products through non-conventional advertising channels, such as social media.

Its efficiency measures have proven effective in helping the firm turn its losses into profits.

“We have applied operational efficiency by reducing overheads, fixed and marketing costs,” Boma explained.

Mustika Ratu aims to book Rp 5 billion in net profits toward the end of this year with earnings generated from its seven brands, namely Mustika Ratu, Mustika Puteri, Bask for Men, Biocell, Moor’s, Ratu Mas and Taman Sari Royal Heritage Spa.

The Mustika Ratu brand, which falls into the personal care category, made the biggest contribution to its revenue over the first nine months of this year at 65 percent.

In order to boost sales through the end of this year, it will conduct product demos and samplings in shopping malls or market places in addition to intensifying promotional activities through social media platforms such as Twitter and Instagram

“Our target customers are the millennial generation with unique behaviors. Social media is their main communication channel,” Mustika Ratu marketing director Isabella Silalahi said, adding that the firm would focus on strengthening its marketing strategy mainly for two categories with good business prospects, namely skin care and make up.

Furthermore, the publicly listed cosmetics maker will intensify its sales in minimarkets instead of hypermarkets and supermarkets as at present because of a change in consumer spending patterns that it has observed.

According to a survey conducted by Nielsen, consumers tended to shop in minimarkets and traditional markets last year.

The growth of shopping in minimarkets, especially for personal care products, reached 12 percent in 2016.

In 2017 the company launched new products such as the Kolang Kaling bottled drink, Mustika Ratu Lip Matte and Mustika Puteri Lip Cream Matte.

“In total, we will launch five new products in personal care categories toward the end of this year,” Boma said.

To boost sales, Mustika Ratu will also push its exports, which currently account for 5 percent of its revenue. It is looking for partners to sell more of its cosmetics items in Africa and the Middle East.

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