Home / Knowledge / News / Apparel/Garments / Apparel brands attracted to low cost Indonesian production
Apparel brands attracted to low cost Indonesian production
Jun '10
Footwear and garment brands, with a view to keep low costs of their products, are relocating their production plants to Indonesia, as it has a large labour group, stable wages and comparatively less regulations.

The production volume of sports footwear, meant to be exported, is likely to go up approximately to 25 percent in the next few years, according to the Indonesian Footwear Association.

Indonesia seems to have a good growth potential, owing to a ready supply of workers with steady wage structure, unlike China, where the wages amplify faster. Hence, people are slowly opting for this island nation to set up their production units.

China, at one point in time, had attracted American companies to set up plants at low costs, in its economic zones, near large coastal cities, due to availability of large number of workers. But, some industries faced challenges to do business in these economic zones.

The reason being, people in China are becoming more skilled and are gaining opportunities locally. So, very few local people are willing to work in zones.

China enjoys the number one position in the world among athletic footwear producers; while, Indonesia is on the third position.

The sports garment producers look for reasonable labour overseas, in a bid to increase profits and tag their products with reasonable prices. With a view to meet the expectations and requirements of the customers, as well as the company investors, industries are seeking ways to cut down costs along the entire supply chain.

Due to vast competition in the market, traders want to sustain their precincts, but are unable to quote a higher price for their products. This helps the consumers to avail benefit of getting low-priced products.

Indonesia, which stands fourth in the world in terms of population, is becoming the next choice of garment and footwear manufacturers to set up production plants, after Vietnam and India. The country provides loads of skilled labourers.

Garment manufacturers for brands such as, Victoria's Secret and Japanese sportswear company, Mizuno, are also expanding their businesses in to the country.

Fibre2Fashion News Desk - India

Must ReadView All

Textiles | On 27th Oct 2016

Teijin Frontier develops Solotex RC lightweight fibre

Teijin Frontier Co. Ltd, fibre products converting company and part...

Tosha Hays addressing the conference. Courtesy: College of Family and Consumer Sciences, UGA

Textiles | On 27th Oct 2016

Industry experts discuss future of fabrics at UGA

Industry experts, researchers and military officials discussed the...

Courtesy: Global Denim Awards

Fashion | On 27th Oct 2016

Anbasja Blanken & Italian mill ITV Denim win GDA

Dutch designer Anbasja Blanken and Italian mill ITV Denim was the...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search