GREEN COSMETICS TREND: CAN CONSUMER BEHAVIOR INFLUENCE SUSTAINABILITY AND ETHICAL DECISIONS IN THE INDONESIAN COSMETIC INDUSTRY?

• Main Author: Syazani, Alifah
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/77292
• Institution: Institut Teknologi Bandung

This research seeks to determine the degree to which a company willfully upholds sustainability while modifying for changes in recent consumer behavior. The cosmetics industry is one of Indonesia's economic sectors that is expanding the fastest. Additionally, many companies are competing to create eco-friendly and organic cosmetics, making this a trend among Indonesians and even a standard by which they may differentiate themselves from their rivals. Therefore, it is essential to look more into the company's efforts of that have contributed to ESG in order to uncover chances for innovation that may be explored further in the future. In order to thoroughly examine the data for this study, the author choose to take a qualitative approach utilizing interviews and surveys. Because the data used originates from the company's internal domain, qualitative research can help me comprehend occurrences or phenomena in more detail. The results of the research show that there is an influence of consumer behavior in the company's decision-making process which involves sustainability. This is a challenge for some companies because there is a value gap in which they must adapt to dynamic consumer behavior trends and carry out programs that maintain sustainability at the same time. As a result, 3 out of 2 respondents said that it is important to segment customers from the start in order to create an appropriate strategy. The major limitation include the geographic focus and only in 3 major Indonesian cosmetics companies. Since it is limited to Indonesia's cosmetic industry, several aspects of business, law, and ethics will be different from those of the international cosmetics sector. In order to obtain more alternative viewpoints, more research is required. However, the limited studies about the relationship between consumer behavior and sustainability from a business perspective are what make this research distinctive.