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Indonesian, Malaysian footwear makers join forces
18
May '12
In the midst of decreasing orders from European markets, the Indonesian and Malaysian footwear makers have agreed to work together to tap the emerging shoe markets in the two neighbouring countries.

The Malaysian Footwear Manufacturers Association (MFMA) and the Indonesian Footwear Association (Aprisindo) have inked a Memorandum of Understanding (MoU) in this respect.

The MoU would ease information exchange between the shoe industries of the two countries.

Next to the US, China, India and Japan, Indonesia is the sixth largest consumer of footwear across the globe, with a market worth Rp 25 trillion or US$ 2.7 billion, said Eddy Widjanarko Widjanarko, Chairman of Aprisindo.

According to Mr. Widjanarko's estimates, the worth of Malaysian footwear market is around one-fourth that of the Indonesian market. He informed that the Malaysian footwear industry penetrated in the Indonesian space around 25 years back, mainly through women footwear brands.

Presently, around 20 Malaysian brands have their presence in Indonesia, as against only two Indonesian brands – Andre Valentino and Rotelli – having their presence in Malaysia, he said.

Mr. Widjanarko said Indonesia's footwear outsourcing is poor as compared to Malaysia, which gets its footwear prepared in China. He further revealed that Malaysia is now focusing on the high-end footwear retail market of Indonesia, whereas the Indonesian footwear industry retains its focus on bulk production.

The Aprisindo Chairman expects that the MoU would enhance the number of Indonesian footwear brands in Malaysia to 10, as brands like Gino Mariani and Mario Minardi are already eyeing penetration in Malaysian market by the end of current year. He believes it is the right time and opportunity for Indonesia to encourage its brands to enter Malaysian market.

While around 45 percent of Indonesia's footwear exports are towards Europe and 30 percent towards the US, just one percent of the same is shipped to Malaysia, Mr. Widjanarko said.

Looking at diversifying its export markets, next to Malaysia, Aprisindo also plans to sign MoU's with Taiwan, South Korea and China during the current year.

Aprisindo entered into a MoU with the US for footwear trade, around three months back. However, for MFMA it was for the first time that it inked a MoU on cooperating with footwear industry of any other country.

Indonesia last year exported footwear worth US$ 3.3 billion, up 32 percent over its previous year's exports of US$ 2.5 billion. However, in view of ongoing financial crisis in the European countries, Aprisindo eyes a moderate 10 export growth for the current year.

Fibre2fashion News Desk - India

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