How cruelty-free, Halal-certified D2C cosmetics brand RADC achieved 4X growth in 2022

While Cindy Nyoto Gunawan and Tiffany Danielle struggled to find high-quality beauty products in Indonesia that resonated with their different styles and personalities. Most premium products available in the local market were exorbitantly priced. Upon research, they discovered that many others also encountered the same problem.

“We aspired to create a brand that offered premium, yet affordable products, ensuring they were accessible to everyone, not just the well-off. Everyone deserves access to quality beauty products, regardless of income,” says Gunawan.

That was the beginning of Rosé All Day Cosmetics (RADC).

Launched in 2017 by Gunawan, Danielle, and Samantha Wijaya, with their combined savings of US$10,000, RADC is a Halal-certified D2C beauty brand that provides consumers with diverse makeup and skincare solutions, from innovative, skin-loving formulae to timeless classics. It introduced what it claims to be the first refillable eyebrow pencil in Indonesia.

Gunawan says RADC stands out for its emphasis on sustainability. “We’re committed to a shift towards eco-friendly skincare, demonstrated through our rebranding with packaging made from recyclable materials. This sustainability focus will soon extend to our new makeup products. We emphasise recyclable and refillable products.”

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The startup has started implementing these sustainable practices with its skincare line and plans to extend them to its makeup products.

According to her, the company collaborates with original equipment manufacturer (OEM) partners to produce its cruelty-free and vegan makeup and skincare solutions. It maintains “full transparency” about the ingredients used in its cosmetic and skin care products, enabling consumers to make informed choices about what they put on their skin.

She admits that while cruelty-free production incurs more costs, RADC doesn’t compromise quality. “We place great importance on environmental sustainability and are dedicated to making our products accessible to all. Yes, these commitments pose additional challenges, especially when trying to keep our makeup affordable, but they’re challenges we are proud to embrace.”

Primarily targeting females aged between 17 and 34, RADC sells its products online (via its own website and marketplaces) and offline (through stores like Sephora and Sociolla). While 60 per cent of its sales come from online platforms, offline channels contribute 40 per cent.

Its product pricing ranges from US$3 to US$12.

In 2020, the company raised undisclosed seed funding from AC Ventures and GIA Venture.

Competition with Korean brands

Global offline brands have a significant presence in Indonesia. However, these brands, including many popular Korean ones, often aren’t affordable for the masses, claims Gunawan. RADC focuses on innovation, and competitive pricing, and maintains high-quality standards to compete effectively. “We adapt our products to local preferences and market needs, which is a crucial part of our strategy.”

The startup’s biggest dream is to grow globally. It sees immense potential in showcasing an Indonesian brand on the international stage and wants to prove it can stand shoulder-to-shoulder with global competitors and excel.

Gunawan claims the company grew 4X in 2022, primarily driven by its omnichannel strategy. Its goal is to achieve 6x growth in 2023 and is on track to reach this goal. “We plan to continue leveraging our omnichannel strategy, refining our product offerings, and deepening our connections with consumers to deliver exceptional and satisfying beauty solutions.”

While its key focus remains Indonesia due to the vast market potential, RADC also plans to branch out into new markets in Southeast Asia, starting with Malaysia.

Surviving COVID-19 and economic slowdown

RADC has faced a few notable challenges throughout its journey. The first major challenge was the COVID-19 pandemic; surviving it amidst a halted beauty and cosmetic industry required strategic adjustments. It implemented budget cuts on its marketing spending and decelerated the release of its new products. Its primary focus shifted to growing its online sales, a significant part of its sales even before the pandemic.

“Although our offline sales dropped to 10 per cent, our online sales continued to thrive. Despite the crisis, the beauty and cosmetic industry remained robust, and interestingly, our colour cosmetics, a majority of our SKUs, continued to sell well. This resilience enabled us to achieve a 2x revenue growth even amidst the pandemic in 2020,” Gunawan notes.

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In 2022, it experienced supply chain issues that posed significant hurdles. Additionally, finding and hiring quality talent while maintaining sustainable growth has also been a considerable challenge.

The current slowdown in the market also poses massive challenges but it also presents opportunities. “A significant focus in the beauty industry is environmental sustainability, with constant innovations emerging. We’re committed to staying at the forefront of these developments, continually adapting and innovating to align our products and processes with sustainable practices,” Gunawan wraps up.

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