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Reduced buying power worries Indonesian apparel sector
Mar '12
The Indonesian apparel sector is worried over the likely decline in the purchasing power of the people post hike in fuel and electricity prices.

Indonesian Textile Association (API) said there would be decline in purchasing power of the people as the rise in electricity and fuel pries now look imminent.

API explained the rise in fuel prices will trigger a hike in cost of transportation, leading to rise in prices of primary goods. This would force people to postpone their other buying needs, particularly clothing.

Thus, there would be a decline in demand for garments in domestic market. This would add to the existing troubles of Indonesian apparel sector, which is currently facing competition from imported apparel items, especially from China.

Fibre2fashion News Desk - India

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