Garment producers to roll in profits from big foreign orders

22 Aug '08

2 min read

The Garment industry of Indonesia is making good profits this year by fulfilling orders worth US $230 million placed by some 17 branded garment producers from countries including US, South Korea and Taiwan.

Being the highest valued in the past three years, the orders were made out to 30 local garment manufacturers by global producers who were lured by the competitive prices and high quality of products offered by domestic textile and garment manufacturers.

While the quality of Indonesian garment products are better than those offered by other countries including Bangladesh, the prices are more competitive than those of Vietnam, Philippines, China and Cambodia. So much so that experts believe Indonesian garments are likely to take over the Chinese market very soon.

Orders were place by companies including Abercrombie & Fitch, Dewhirst, HanesBrands, J.Crew, JC Penney, GAP, Jones Apparel, Li & Fung, Linmark, Liz Caliborne, Nike, PIERS, Ralph Lauren, Target, Vanity Fair and Walmart.

Individually, GAP placed an order for 12-14 million pieces worth $100 million while Walmart had ordered 11-13 million pieces valued at $80 million. Additionally, SOT and Marks & Spencer submitted orders for 8 million pieces, worth $60 million.

Orders from other global garment manufacturers like Target, Nike, Adidas, Levi's, Arrow, and Van Heusen, was less than $50 million and are expected to grow by an average of 10 percent annually.

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