Indonesia’s apparel industry General information: Apparel continues its strong performance in 2011 Imported and local products continue to compete in a fragmented market The trend for Muslim wear strengthens, especially among female Good growth to continue in the forecast period(Global Business Guide Indonesia, 2012) Nuttanan Tangsuksavangporn
Indonesia’s apparel industryThe main characteristics Top 10th country in apparel industry (Plunkett Research, n.d.) Industrial labor force or 1.34 million people in 2,853companies and accounted for 8.9% of total exports in 2010. (Global Business Guide Indonesia, 2012) Large-scale factory production (Global Business Guide Indonesia, 2012) Support from government (Plunkett Research, n.d.) abundant natural resources. Ex: cotton, silk (Source Asean Quality Textiles & Apparel, 2010)key players Moderate competitors in apparel industry There are almost 20 apparel supplier on websiteTrends China is less attractive than before due to labor cost and currency More consumers trade up to higher-quality brands Consumer become more interested in local production compare to other countries Muslim wearing are become more popular Ailada Pongpamorn 4483037
Indonesia’s apparel industry Map the value network of the Indonesias apparel industrySecond-tier Suppliers First-tier Suppliers Channel Consumers Thread Fabric Wholesaler End-user Metal Machinery Retailer End-user Chemical Apparel End-user Industry Dyer Paper Government End-user Plastic Packaging Institution End-userSource: (Romano P., and Vinelli A, 2001), (Brown, S., J., Pendleton-Jullian, A. and Adler, R., 2010) Jirayu Pongvitayapanu 4509782
Indonesia’s apparel industry Collaboration • Form of Production : Import cotton from USA and Australia etc. • Form of Technology : Import of textile machinery from China. • Form of Marketing : Participation in the BC fair 2012.Source: (Indotextiles, 2012), (Chongbo, W, n.d.) Kanokrat Ruenkaew 4464345
Indonesia’s apparel industrySupply Chain Management - process that is used by a company to ensure that its supply chain is efficient and cost effective(Zigiaris, S., 2000)Benefit of sourcing from Indonesia - Save time of trade system - Save cost of cotton import - Decrease unemployment rate in the country(Roger, C., 2012)Risk of sourcing from Indonesia - Lack of some raw material - Indonesia textile workers are still largely unskilled - Indonesia Electricity tariff are higher than other Asian countries(Roger, C., 2012) Atjima wongsupachat 4462264
Conclusion Apparel has good chance to grow strongly in Indonesia Indonesia happens to be the largest textiles and apparel manufacturer in the region Clothing imports and exports to the USA and Japan are increased Increased availability of local and international brands in the country Continued growth in the economy and emerging middle class Rachata Takiennud 4472336
ReferenceBrown, S., J., Pendleton-Jullian, A. and Adler, R., 2010 From Engagement to Ecotone: Land-Grant Universities in the 21stCentury. Available from: http://www.changemag.org/Archives/Back%20Issues/November-December%202010/engagement-to-ecotone-full.html [Access 16 Feb 2013]Chongbo, W., n.d.. Studies on Indonesia textile and garment industry:current situation,challenges,governments policies ansprospects. Indonesias government s policies towards textile industry and prospects, unknown, 1-6. Availablefrom: http://www6.cityu.edu.hk/ [Accessed 14 February 2013]Euro Monitor international, 2012, Apparel in Indonesia. Available from: http://www.euromonitor.com/apparel-in-indonesia/report [Access 14 Feb 2013]Global Business Guide Indonesia, 2012, Manufacturing Overview of Fiber, Textiles & Garments. Available from:http://www.gbgindonesia.com/en/manufacturing/article/2011/overview_of_fibre_textiles_and_garments.php [Access 14 Feb2013]Indotextiles, 2012. Textile Indonesia at "Sourcing at magic". Indonesia: Indotextiles. Availablefrom: http://www.indotextiles.com/ [Accessed 14 February 2013]Lidia, M. et al., 2012. The asian journal of technology management. Applying system dynamics approach to the fast fashionsupply chain: case study of an SME in Indonesia. The asian journal of technology management, 5 (1), 42.Romano P., and Vinelli A., 2001,"Quality management in a supply chain perspective: Strategic and operative choices in atextile-apparel network", International Journal of Operations & Production Management, Vol. 21 Issue: 4 pp. 446 - 460Roger, C., 2012. Inside the indonesian textile industry, WTIN, 16 May 2012. Availablefrom:http://ei.wtin.com/article/qS9YQX6qldE/2012/05/16/focus_inside_the_indonesian_textile_industry/[Accessed Date 15February 2013].Plunkett Research, n.d., Introduction to the Apparel & Textiles Industry. Available from:http://www.plunkettresearch.com/apparel-textiles-clothing-market-research/industry-trends [Access 14 Feb 2013]Source Asean Quality Textiles & Apparel, 2010. Indonesia textile and apparel Industry profile. Thailand: thaitextile. Availablefrom:http://www.thaitextile.org/iu_backup/link_content/Market/SourceASEAN_Indonesia_profile_100811.pdf [Accessed 14Febuary 2013]USDA Foreign Agricultural Service, 2012.Indonesia cotton and products annual report 2012. Unknown:USDA, ID1209.Available from:http://www.thefarmsite.com/reports/contents/indoncotapril12.pdf[Accessed 15 February 2013].Zigiaris, S., 2000. Supply chain management. Unknown. Availablefrom:http://www.adi.pt/docs/innoregio_supp_management.pdf[Accessed 15 February 2013].
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