Indonesia-made footwear has gained a following in the international market, due mainly to its competitive prices, unique designs and durability.
The low minimum order requirements and the wide range of materials used have also helped the country achieve export growth in recent years, with industry experts anticipating this upward trend to continue.
In fact, the Indonesian Footwear Association expects overseas sales to reach $1.76 billion by end-2008, a riseof 10 percent over the previous year.This increase will come mainly from new orders in Europe as Indonesia continues to capitalize on the anti dumping duties the EU imposed on leather footwear imports from China and Vietnam in October 2006.
To further increase sales, footwear makers in Indonesia are also expanding their product lines instead of specializing in just one or two shoe types.
Moreover, some suppliers have begun to focus on the upscale market, releasing pieces made of imported and exotic materials such as skins of stingray, lizard and crocodile.
Meanwhile, the influx of foreign investment into Indonesia’s footwear industry has given suppliers the financial capability to upgrade and expand their production lines.
Manufacturing and exporting footwear, however, is not always without challenges. Makers need to address several issues, including rising cost of materials and labor, and intensifying competition from other supply centers in Asia.
To maintain an edge over their competitors, footwear suppliers in Indonesia are continuously innovating on designs and material use.
The following are some key trends we see in Indonesia’s footwear industry:
• Exports in the line are expected to increase in the next 12 months. Suppliers will continue to target the EU and the US markets.
• Many companies will keep current price levels despite rising costs of labor and materials. In fact, of suppliers surveyed for this report, 52 percent expect prices to remain the same, while the rest anticipate an increase.
• Foreign investment will continue to flow into Indonesia’s footwear industry, either through the construction of new factories or the expansion of existing facilities.
• In the next 12 months, many suppliers will focus R&D efforts on creating footwear in simple and basic colors. Many makers are also developing models made of natural and environment-friendly materials.
The above is extracted from the Executive Summary of China Sourcing Report:Indonesia - Footwear
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/indonesia-footwear
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