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
Brown, S., J., Pendleton-Jullian, A. and Adler, R., 2010 From Engagement to Ecotone: Land-Grant Universities in the 21st
Century. 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,government's policies ans
prospects. Indonesia's government 's policies towards textile industry and prospects, unknown, 1-6. Available
from: 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:
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2013]
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Lidia, M. et al., 2012. The asian journal of technology management. Applying system dynamics approach to the fast fashion
supply 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 a
textile-apparel network", International Journal of Operations & Production Management, Vol. 21 Issue: 4 pp. 446 - 460
Roger, C., 2012. Inside the indonesian textile industry, WTIN, 16 May 2012. Available
from:http://ei.wtin.com/article/qS9YQX6qldE/2012/05/16/focus_inside_the_indonesian_textile_industry/[Accessed Date 15
February 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. Available
from:http://www.thaitextile.org/iu_backup/link_content/Market/SourceASEAN_Indonesia_profile_100811.pdf [Accessed 14
Febuary 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. Available
from:http://www.adi.pt/docs/innoregio_supp_management.pdf[Accessed 15 February 2013].