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Indonesia Priority shoe leather and other industrial sectors

Published on:2013/11/21 13:15:24

Keyword:Clothing, market, shoes, sewing machines, clothing, price, textiles, sewing equipment, garment machinery, embroidery
Introduction:Indonesian Government is vigorously supported the development of the domestic apparel industry. As the worlds fourth most populous Muslim nation and t...

Indonesian Government is vigorously supported the development of the domestic apparel industry. As the worlds fourth most populous Muslim nation and the worlds largest country, meet religious requirements for the Indonesian market and get on the same time, the trend of the huge demand for clothing, according to estimates, its market worth up to $ 100 billion, or about 6082 one hundred million yuan.

The mid-1990s, Indonesia lost its Asian manufacturing power status, it seems to re-ignite a big manufacturing country and the revival of hope, the worlds attention once again focused standing seam Indonesian market.

Demand-driven market space can be expected

Indonesia guards the Strait of Malacca, is ASEANs largest economy. Its textile and garment, footwear manufacturing industry has rapidly developed into an important industry in Indonesia, output and exports with the scale of employment in their home country in various sectors in the first position. Indonesia has a fairly complete industrial supply chain, manufacturing fiber, spinning, weaving, dyeing and finishing, garment manufacturing and other necessities, became the worlds top ten textile and garment producers with exporters. Among the policy of strong support for the Indonesian textile and garment, footwear manufacturing rapid rise of an important safeguard. Indonesian government priority to the development of nine industrial sectors, textiles, footwear with leather furniture industry are in the middle.

Abundant and cheap labor is the main advantage of its rapid development in Indonesias 94 million working population, 12% concentrated in the manufacturing sector (about 1130 people), employment in the textile industry accounts for about 15% of the manufacturing sector (about 175 million people, do not contain 2 million indirect employment of the population). Indonesian workers a monthly basic salary of 1.5 million rupiah (about 810 yuan), while the Indonesian Industry Minister Hidayat has revealed that the basic salary may be increased to 2 million rupiah (about 1,100 yuan), but with our and other relatively still greater advantage.

From Indonesia Textile Association, information display, the moment Indonesia has about 2869 large-scale garment factories, mainly produce shirts, cotton shirts, bras, underwear, jackets, sweatshirts and other clothing with pants. Marks & Spencer, mango (mango), Zara Most of the products are manufactured in Indonesia.

Indonesias textile and garment enterprises are mainly located in Bandung, West Java and Jakarta neighborhood, many manufacturers from Taiwan Province of China with the Hong Kong Special Administrative Region, managers come from mainland China. Bandung, Indonesias garment industry is the most developed cities, according to incomplete estimates, the annual output value of clothing Bandung region accounted for over 40% of the national costume. In recent years, because of labor costs increase, Indonesia, East, West Java, some large garment factory chose to Yogyakarta in Central Java and other regions with migration, the formation of multi-flowering situation.

Domestic and external demand growth stimulating the Indonesian textile and garment, footwear manufacturing industrys rapid development. Domestic perspective, Indonesias domestic political stability, economic development momentum.

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In recent years, the country 240 million people on the textile and garment, footwear huge demand increase, the formation of a stable domestic market; external demand point of view, Indonesian apparel with footwear products in the United States, European Union, Japan, the Middle East, and Africa country or region has a certain market. As a major international brands of production base, Indonesian textile and garment exports in recent years an average of about 130 billion U.S. dollars, of which exports to the U.S. over nine billion U.S. dollars, annual growth rate of 13 percent, the U.S. apparel imports of the top five countries.

Thanks to the local textile and garment, footwear industry, the rapid development of Indonesia sewing machinery market development space is extremely broad.

Upgrading and updating our sewing machine ushered opportunity

Indonesia has a certain degree of development of domestic machinery manufacturing base, but the sewing machine manufacturing capacity is limited, and most of the old domestic equipment, replacement demand urgent.

In order to continue with the footwear of textile global competitiveness, the Indonesian government not only to attract foreign capital, the implementation of profit tax relief policies, the integration of the two industries, has also developed a specific device update program, and promised to raise the necessary funds to phase out old equipment, improve labor productivity, procurement needs to grow.

Moment, Indonesia sewing machinery products is our main source of imports, South Korea, Singapore, Japan and so on. 2010, China - ASEAN Free Trade Area launched, the Chinese sewing machinery products exported to Indonesia mainly the implementation of zero tariff, the industry usher in "Indonesian opportunities." 2005-2012, China sewing machinery products to Indonesia Exports increased to $ 39,450,000 from the $ 84,430,000, exports doubled in eight years, more than 2 times.

In addition to 2008, 2009, Europe on China after the abolition of textile quotas, Indonesian textile and garment industry was significantly affected by the sharp drop in demand for equipment, the China Sewing Machinery exports to Indonesia showing an overall growth developments. Moment, China Sewing Machinery Indonesia exports volume has surpassed Japan and Taiwan to become Indonesias total exports than any other country.

The first half of 2013, Chinese exports to Indonesia sewing machinery products totaled $ 55,010,000, an increase of 17.51 ​​percent, ranking China first export market of similar products 7, second only to India, the U.S., Singapore, Vietnam, Japan, Brazil. Indonesia is the second largest in Southeast Asia, China Sewing Machinery export market.

From the product type, Indonesian clothing, footwear industry, the rapid development of Chinas exports to determine the industrial sewing machine with embroidery machine based. Customs data show that from January to June 2013, Chinese exports to Indonesia kinds of sewing machinery products, in addition to the amount of down garment machinery products, the remaining major products showed growth: exports of industrial sewing machines 147,000 units , exports $ 29,120,000, an increase of 10.71% with 26.00%; exports household sewing 62,000 units, exports $ 2,170,000, an increase of 5.45% with 16.63%; export embroidery machine 1033 units, exports 10,000,000 U.S. dollars, an increase of 27.85% with 19.10%; export garment machinery 18,000 units, up 21.25 percent, exports of 8.41 million U.S. dollars, down 10.48 percent; exports of parts and components $ 5,310,000, an increase of 31.09%.

2013, along with the rising cost of domestic production in Indonesia, the introduction of intelligent, efficient, affordable sewing equipment gradually become a local clothing, footwear enterprises purchase equipment developments. But Indonesia sewing equipment replacement demand for the release is relatively flat, still in its infancy, has not yet formed the rapid growth of the Vietnamese market-like situation. From the first half of the data, the Chinese auto category of the Indonesian export volume of industrial sewing machines in 2012 representing an increase of approximately 10 percent, which automatically stretch sewing machine products because the base is small, fast-growing, export volume year on year growth in completed a few times .

Low export price was confused

In recent years, the Indonesian market demand for our products remains focused on sewing machine low-end products. In 2012 Indonesias ranking of the International Trade Association, industrial sewing machine market share ranked first in our country, but the average price was the lowest. With towers, industrial automatic sewing machine products, for example, Chinas exports of this product in 107 countries, the export price of Indonesia ranked last 24.

Japans exports to Indonesia from sewing machinery products situation, according to the Japanese Finance Ministry data show that exports, the first half of 2013, Japans exports to Indonesia sewing products also showed an increase of the overall trend, although its exports relatively significant gap with China However, the average export price of its products, especially industrial sewing products export price was significantly higher than China. 1-6 months, Japans total exports of sewing machinery products in Indonesia about 200 million yen (about 12.71 million yuan), an increase of 33.29%. Which, exports of industrial sewing machines 871 units, exports 180 million yen, an increase of 4.69% with 32.04%, the average export price $ 2,091 / unit, higher than the average price of Chinese exports of industrial sewing machines more than 10 times.

It is understood that the current market in Indonesia, our main customers are sewing products of small and medium garment, footwear manufacturing enterprises and rural handicraft workshop, its equipment performance requirements are relatively low, price sensitivity is quite high, and annual demand for Indonesian market accounted for over 50% of total demand. Be able to say, "Chinas manufacturing" has been its absolute cost advantage has won Indonesian medium and small clothing, footwear manufacturing enterprises recognized, but with the domestic similar to that in large high-end apparel manufacturing companies in Indonesia, the China Sewing Machinery recognition Although the degree of growth year after year, but the overall level is not high.

With long-term market outlook for short-term challenges seduction

Throughout Indonesia sewing machine market development in the long term, either from the local government for the textile and garment, footwear manufacturing industry with the support of the protection of, or a complete industrial chain with local cheap labor advantage, coupled with the current Chinas labor costs continue to rise, Bangladesh garment factories were several security incidents bring order "transfer opportunities," more and more international clothing, footwear brand will look to invest in Indonesia, the Indonesian market demand growth is inevitable sewing machine development trends. And since 2013, keeping the rupiah devaluation Indonesia textile and garment, footwear products export growth, increased demand for equipment played a positive role.

According to estimates, in 2015 Indonesias fashion apparel market size is expected to jump to $ 35 billion. An enterprise market foreign trade personnel have described the Indonesian market - "That was my long fought the battlefield, I have seen her bright future. "

As of the end of June 2013, the Indonesian textile exports grew by 2%. According to the Indonesian Textile Association (api) estimates that in 2013 Indonesias textile exports could reach $ 13 billion (129 trillion rupees), compared with 2012 increased by 5%.

However, another perspective, we must also see the current export Indonesian market some of the challenges faced: First, Indonesian presidential election with the next parliamentary elections approaching, political factors such as emotional instability, will likely lead to weakening the policy environment in Indonesia, affecting its potential for economic development; Second, labor costs increased by nearly 20 per cent of business efficiency but also to be no small impact, but this year, the Indonesian government will phased electricity prices increased by 15%, which is to some extent slowed Indonesian companies seamer procurement needs release.


Keyword:Clothing, market, shoes, sewing machines, clothing, price, textiles, sewing equipment, garment machinery, embroidery

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