The document summarizes Indonesia's apparel industry in three main points: 1) Apparel continues to be a strong performing industry in Indonesia, competing with both imported and local products. Muslim wear is becoming increasingly popular. 2) Indonesia has a large apparel industry workforce and is one of the top 10 countries globally in apparel production. It benefits from government support and natural resources. 3) Key trends include consumers trading up to higher quality brands and preferring more local production over other countries. The industry collaborates through participation in trade fairs and importing cotton and machinery.

1. UNIQLO CASE
Group B

2. 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

3. Indonesia’s apparel industry
The 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 website
Trends
 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

4. Indonesia’s apparel industry
Map the value network of the Indonesia's apparel industry
Second-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-user
Source: (Romano P., and Vinelli A, 2001), (Brown, S., J.,
Pendleton-Jullian, A. and Adler, R., 2010) Jirayu Pongvitayapanu 4509782

5. 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

6. Indonesia’s apparel industry
Supply 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

7. 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

8. Reference
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Chongbo, W., n.d.. Studies on Indonesia textile and garment industry:current situation,challenges,government's policies ans
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2013]
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Romano P., and Vinelli A., 2001,"Quality management in a supply chain perspective: Strategic and operative choices in a
textile-apparel network", International Journal of Operations & Production Management, Vol. 21 Issue: 4 pp. 446 - 460
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Plunkett Research, n.d., Introduction to the Apparel & Textiles Industry. Available from:
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from:http://www.thaitextile.org/iu_backup/link_content/Market/SourceASEAN_Indonesia_profile_100811.pdf [Accessed 14
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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. Available
from:http://www.adi.pt/docs/innoregio_supp_management.pdf[Accessed 15 February 2013].