Paragon Corporation’s Faith-Based Approach Creates Global Market Leadership

Humble Beginnings to Industry Leadership

Paragon Corporation, Indonesia’s leading cosmetics manufacturer encompassing 11 brands, over 1,400 SKUs, plus a workforce exceeding 12,000 employees, originated from modest garage operations. Former pharmacist Nurhayati Subakat, alongside her chemical engineer husband Subakat Hadi, introduced the ‘Putri’ hair shampoo brand to Indonesian markets in 1985.

Initially marketing products through door-to-door sales, Nurhayati quickly recognized greater appreciation within hair salon networks, shifting her distribution strategy accordingly. This early adaptation demonstrated the entrepreneurial flexibility that would characterize her company’s growth trajectory.

Adversity Sparks Vision Transformation

After five years of dedicated effort, Nurhayati’s family faced devastating loss when fire destroyed their home plus production facility. Drawing strength from Quranic teachings—”So, surely with hardship comes ease”—she found inspiration to rebuild while expanding her vision beyond hair care products.

This crisis catalyzed Nurhayati’s recognition of cosmetics market potential while reinforcing her commitment to Islamic principles. Her devout faith motivated the decision to ensure all future products would maintain halal certification, addressing concerns about ingredients like lard commonly used in conventional cosmetics.

Pioneering Halal Certification Standards

Understanding Indonesia’s predominantly Muslim demographic, Nurhayati emphasized: “I wanted Muslims to feel safe to use cosmetics.” This vision led to Wardah Cosmetics’ 1995 launch, implementing comprehensive halal systems guaranteeing product purity plus quality from sourcing through consumer delivery.

Nurhayati explained their philosophy: “We needed to apply the halal philosophy truly to our ways of working, not only as branding or symbolism, because it is the best guidance given to us.” This authentic approach distinguished Wardah from competitors treating halal certification merely as marketing strategy.

Market Education Challenges

The journey proved challenging initially, as halal cosmetics remained unfamiliar to consumers. Nurhayati noted: “We had to build awareness among consumers plus Muslim communities in Indonesia.” This required extensive educational efforts to establish understanding of halal cosmetics benefits beyond religious compliance.

Fortunately, the 2010s witnessed a boom in hijab adoption across Indonesia, as women modernized religious headwear while maintaining spiritual requirements. This cultural shift provided significant business momentum, with Wardah uniquely positioned as the market’s only halal cosmetics option at that time.

Strategic Growth Through Values-Based Leadership

Greater consumer awareness plus positive market reinforcement propelled Wardah to Indonesian cosmetics market leadership by 2018, while establishing global halal cosmetics leadership. Nurhayati’s corporate group expanded to include personal hygiene, skincare, plus perfume products, maintaining 100% halal certification across all offerings.

Scaling from initial limited products to over 1,400 items, Nurhayati emphasized five core values shared with staff: faith in God, care, humility, grit, plus innovation. These principles guided substantial investments in employee welfare plus quality innovation adoption.

Intellectual Property Protection Strategy

Dr. Sari Chairunnisa, Nurhayati’s daughter plus Vice President of Research & Development at Paragon Technology, prioritized securing her mother’s lifelong dedication through comprehensive intellectual property protection. Having witnessed both her mother’s development efforts plus the devastating fire’s impact, Dr. Sari ensures all business assets—trademarks, claims, packaging, formulations—receive proper legal protection.

“We see IP protection as very important because it’s one of our ways of ensuring quality. The IP system protects us from the potential of other parties counterfeiting or imitating us,” Dr. Sari explained, recognizing intellectual property as crucial for maintaining competitive advantages while preserving innovation investments.

This comprehensive approach demonstrates how faith-based business principles can successfully integrate with modern corporate strategies, creating sustainable competitive advantages while serving underserved market segments through authentic value delivery.

Original Article:

World Intellectual Property Organization. (September 22, 2025). Beautifying the Muslim World with Halal Cosmetics. WIPO. Retrieved from https://www.wipo.int/en/web/ip-advantage/w/stories/beautifying-the-muslim-world-with-halal-cosmetics