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

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Anvita Mehra
Confidential Couture

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

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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


July 2017

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

news category

Related Categories:

Planning to Take the Leap towards

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search