Interview with Mr Liong Juen Fat of Priskila Prima Makmur

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Priskila Prima Makmur | Mr Liong Juen Fat

Maintaining the price and quality is very important; for example we are in competition with China for cheap perfume and cosmetics products in the ASEAN market but customers still prefer to use us as we have always remained focused on quality over price. Mr Liong Juen Fat, President Director
Priskila Prima Makmur started its activities in the 1980s specializing in cosmetic products such as perfumes and deodorants. What is the background to the establishment of the company and how has the strategy of the group evolved to date? We are a family company and focus on manufacturing perfumes as well as the distribution of the products. We have ventured into other cosmetics products but our real success has been in perfume. We started the business through local brands as we know that Indonesia has a large domestic market with plenty of demand for cosmetic products. International brands are very prevalent in the market but the price is very high and out of reach for most of the population. Therefore, we created local brands which offer the same high quality and we are continuously improving the product standards, design and packaging. Our products are manufactured in the same way as branded international products and we learn a lot from our suppliers in Europe for example on the packaging and production technology. The company is now moving towards becoming more professional and we are recruiting experienced professionals from a variety of sources. What are the main challenges being faced by the company today to expand your market share in Indonesia? The challenge we face is in reaching international standards in our production methods while still keeping prices competitive. It is also important to continually set goals and to never be complacent about our existing product portfolio. The main area that we need to focus on is the distribution of our perfume products by opening up more branch offices and making partnerships with distributors. For manufacturing, we must improve our human resources and business processes. We also look at global export markets and demand from customers is increasing but our manufacturing capacity is not currently sufficient to be able to meet the demand. For 2012-2013 we plan on doubling our manufacturing capacity through our new production plant. However, we are currently facing delays with regards to government bureaucracy for licensing which is often a problem faced by businesses in Indonesia.	What can you tell us about your perception of how the Indonesian consumer market has evolved over the past decade? The income of the average Indonesian has increased rapidly and they are now prepared to pay more for quality which was not the case in the past. Therefore we must keep evolving to offer new products to the market. This means we have to stay a step ahead in terms of machinery, packaging and product formulation. Also we have to look at market demand and carry out market research whereas before we used to rely on our own internal concepts and ideas only. The company has extensive experience in exporting to international markets. What are your targeted export markets for the future? We are open to exporting to all markets. Europe is an area of interest and we have spoken with potential business partners there but we have not moved forward yet as we have not found the right agreement over price and quality. We can produce high quality products and packaging but of course the price must reflect this. We have regular customers in Africa, the Middle East and South East Asia so we are very open. Finding local partners for distribution in these markets can be a challenge however. Maintaining the price and quality is very important; for example we are in competition with China for cheap perfume and cosmetics products in the ASEAN market but customers still prefer to use us as we have always remained focused on quality over price. What new perfume or cosmetic products can we expect from the company in the near future? We are focused on perfumes for now but we are hoping that next year we can move into make up as the market demand in Indonesia is there. These types of product also offer high profit margins so they are a very good business opportunity.

Maintaining the price and quality is very important; for example we are in competition with China for cheap perfume and cosmetics products in the ASEAN market but customers still prefer to use us as we have always remained focused on quality over price.

Mr Liong Juen Fat, President Director

Priskila Prima Makmur started its activities in the 1980s specializing in cosmetic products such as perfumes and deodorants. What is the background to the establishment of the company and how has the strategy of the group evolved to date?

We are a family company and focus on manufacturing perfumes as well as the distribution of the products. We have ventured into other cosmetics products but our real success has been in perfume. We started the business through local brands as we know that Indonesia has a large domestic market with plenty of demand for cosmetic products. International brands are very prevalent in the market but the price is very high and out of reach for most of the population. Therefore, we created local brands which offer the same high quality and we are continuously improving the product standards, design and packaging. Our products are manufactured in the same way as branded international products and we learn a lot from our suppliers in Europe for example on the packaging and production technology.

The company is now moving towards becoming more professional and we are recruiting experienced professionals from a variety of sources.

What are the main challenges being faced by the company today to expand your market share in Indonesia?

The challenge we face is in reaching international standards in our production methods while still keeping prices competitive. It is also important to continually set goals and to never be complacent about our existing product portfolio.

The main area that we need to focus on is the distribution of our perfume products by opening up more branch offices and making partnerships with distributors. For manufacturing, we must improve our human resources and business processes.

We also look at global export markets and demand from customers is increasing but our manufacturing capacity is not currently sufficient to be able to meet the demand. For 2012-2013 we plan on doubling our manufacturing capacity through our new production plant. However, we are currently facing delays with regards to government bureaucracy for licensing which is often a problem faced by businesses in Indonesia.

What can you tell us about your perception of how the Indonesian consumer market has evolved over the past decade?

The income of the average Indonesian has increased rapidly and they are now prepared to pay more for quality which was not the case in the past. Therefore we must keep evolving to offer new products to the market. This means we have to stay a step ahead in terms of machinery, packaging and product formulation. Also we have to look at market demand and carry out market research whereas before we used to rely on our own internal concepts and ideas only.

The company has extensive experience in exporting to international markets. What are your targeted export markets for the future?

We are open to exporting to all markets. Europe is an area of interest and we have spoken with potential business partners there but we have not moved forward yet as we have not found the right agreement over price and quality. We can produce high quality products and packaging but of course the price must reflect this.

We have regular customers in Africa, the Middle East and South East Asia so we are very open. Finding local partners for distribution in these markets can be a challenge however. Maintaining the price and quality is very important; for example we are in competition with China for cheap perfume and cosmetics products in the ASEAN market but customers still prefer to use us as we have always remained focused on quality over price.

What new perfume or cosmetic products can we expect from the company in the near future?

We are focused on perfumes for now but we are hoping that next year we can move into make up as the market demand in Indonesia is there. These types of product also offer high profit margins so they are a very good business opportunity.

Global Business Guide Indonesia - 2012