Indonesia Sourcing: Bags & wallets 2017

Indonesia Sourcing: Bags & wallets 2017 is a comprehensive guide for buyers interested in bags and wallets from Indonesia. In this report, buyers can find:

Verified exporters – 20 featured suppliers offering various bags and wallets

Products – Full-color images with specifications & prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

Export data – Indonesia-wide details and survey results from featured exporters

To read the full report, click on the section tabs below.


Sector highlightsSuppliers & productsIndustry overviewProduct featuresSupplier surveyPDF downloadSupplier list

Indonesia Sourcing: Bags & wallets 2017 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Indonesia’s exports of handbags, trunks and other containers under HS code 4202 amounted to about $266.9 million in 2016.

  • During the period, the US was the top overseas market.

  • The island of Nusa Tenggara and the provinces of West Java, Central Java, East Java and Bali are among the key production hubs.
  • Leather and other raw materials are sourced domestically or from nearby countries.

  • Most manufacturing processes are done in-house.

  • Models made of genuine leather are generally more expensive than those made of rattan, bamboo and pandan.

  • Most companies are optimistic of export sales growth in the next 12 months.

  • Upcoming releases will include models with traditional themes and patterns.

  • Most surveyed companies intend to keep prices at current levels in the next six months.

Indonesia Sourcing: Bags & wallets 2017 Suppliers & products

Indonesia Sourcing: Bags and wallets 2017

Indonesia Sourcing: Bags & wallets 2017

• Bags • Wallets

Our team has visited all Indonesia manufacturers featured here to verify their export capability. Each has a website on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.

Sections


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Bags   
Indonesia-bagsIndonesia-bagsIndonesia-bagsIndonesia bags
Indonesia-bagsIndonesia-bagsIndonesia bags
Wallets   
Indonesia-walletsIndonesia-walletsIndonesia-walletsIndonesia-wallets

Indonesia Sourcing: Bags & wallets 2017 Industry overview

Indonesia Sourcing: Bags and wallets Industry Overview

Indonesia Sourcing: Bags & wallets 2017

• Bags • Wallets

This section discusses key issues affecting export manufacturers in Indonesia, offering insight into industry composition and important supply centers.

Indonesia bag & wallet exportsCompetitive advantagesChallengesIndustry composition
  • Indonesia’s exports of handbags, trunks and other containers under HS code 4202 amounted to about $266.9 million in 2016.

  • During the period, the US was the top overseas market for the products.

  • Handbags accounted for 49 percent of export sales in the category.

  • Different types of leather, including bovine hides and reptile skins, can be sourced within the country.

  • The country has a large labor pool that includes skilled workers such as sewers and leather workers.

  • The government has policies and programs that encourage the growth of the industry.

    • Rising production costs are a major concern amid intense price competition.

    • Stringent environmental standards are also a challenge, primarily due to its effect on cost.

    • Many SMEs find it difficult to obtain loans with low interest rates from banks and other formal financial institutions.

    • Indonesia is home to more than 1,000 suppliers of bags and wallets.

    • The island of Nusa Tenggara and the provinces of West Java, Central Java, East Java and Bali are among the key production hubs.

    • Small and midsize companies make up the majority of the industry.

    Indonesia suppliers of bags and wallets are adopting sustainable materials amid rising environmental concerns among consumers. Bamboo, water hyacinth and seagrass are among the popular options.

    To ensure that they use sustainable materials and that these are from legal and traceable sources, several makers are obtaining certificates to show that they comply the guidelines of the Forest Stewardship Council (FSC), the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and similar standards.

    Export statistics

    Indonesia exported approximately $266.9 million worth of handbags, trunks, suitcases and other containers under HS code 4202 in 2016, according to data from the DESA/UNSD, United Nations Comtrade database. The value represents an increase of 17 percent from 2015 exports, which amounted to $228.6 million.

    The US was the top overseas market for the products, importing about $83.5 million to sales. The other major destinations were Belgium, the Netherlands, Japan, Germany and Italy, which together accounted for $93.7 million of export sales.

    The products sent abroad included models with outer surfaces of leather, plastic, textile, vulcanized fiber or paperboard. In 2016, designs with plastic or textile exteriors generated more than 60 percent of overseas revenue.

    Indonesia Bags and wallets Industry Overview Exports

    Handbags accounted for the majority of overseas revenue, with exports exceeding $130.7 million. Trunks, suitcases, vanity-cases, executive-cases, briefcases, school satchels and similar containers contributed about $15.6 million.

    Competitive advantages

    Among the factors enabling Indonesia suppliers to offer a wide selection of bags and wallets at various price points the diversity of natural materials that can be found in the country.

    For one, Indonesia is a major source of different types of leather. Leather from the country includes skins or hides from bovines, goats and sheep, which can be found in large numbers on Java island. Leather from crocodiles, lizards, snakes, and saltwater and freshwater fish such as catfish, manta rays, and tilapia are also available.

    The country’s large pool of skilled workers also provides the bags and wallets industry an advantage. Indonesia has a population of more than 260 million, with about 127 million in the labor force, according to figures posted on the World Bank’s website, which cites the International Labour Organization, using World Bank population estimates. The country’s labor force includes skilled sewers and leather workers.

    The Directorate General of National Export Development (DGNED), an arm of the Ministry of Trade, assists suppliers in marketing their products by organizing trade missions and exhibitions. It also provides market research and advice on export procedures, licensing requirements and financing.

    Indonesia’s growing e-commerce market provides the industry an opportunity to reach more buyers and boost sales. In 2016, the government introduced a policy roadmap to encourage investment in the sector.

    Challenges

    Amid intense price competition in the domestic and international markets, increases in the cost of raw materials, labor and other inputs are a major concern. In Jakarta, for example, minimum wages rose to 3,355,750 Indonesian rupiah (about $252) in 2017 from 3,100,000 Indonesian rupiah (about $232) in 2016.

    Rising consumer concerns, and the subsequent implantation of stricter standards, are also a challenge, as the necessary testing and certification to meet these requirements are costly and push up prices.

    For small and midsize suppliers, having limited access to financing is another roadblock. Many companies find it difficult to obtain loans with low interest rates from banks and other formal financial institutions. Consequently, they do not have the financial resources to invest in market research, product development, equipment upgrades and other activities to grow their businesses.

    The Indonesia government provides credit to micro, small and medium-sized enterprises through the Kredit Usaha Rakyat (KUR) program. Through this initiative, MSMEs can obtain loans from certain banks at low interest rates.

    Industry composition

    Indonesia is home to more than 1,000 suppliers of bags and wallets, with most located on the island of Nusa Tenggara and in the provinces of West Java, Central Java, East Java and Bali. Small and midsize companies make up the majority of the industry.

    Small enterprises have up to 20 full-time employees and their factories occupy less than 500sqm. Their annual revenue does not exceed 1 billion Indonesian rupiah or $75,000.

    Midsize companies can employ up to 100 people their production facilities cover 500 to 2,000sqm. These suppliers can generate annual sales of up to 100 billion Indonesian rupiah or $7.5 million.

    Yearly sales of makers with larger workforces and factories can exceed 100 billion Indonesian rupiah or $7.5 million.

    Supplier locations map
    The highlighted areas on the map show the locations of the head offices and factories of the bags and wallets suppliers featured in this report.

    Indonesia Bags and wallets Industry Overview Locations Map

    Indonesia Sourcing: Bags & wallets 2017 Product features

    >Indonesia Sourcing: bags & wallets Suppliers and Products

    Indonesia Sourcing: Bags & wallets 2017

    • Bags • Wallets

    This section offers information on how trends in materials, design and manufacturing are impacting prices offered by Indonesia bags and wallets suppliers.

    Buyers can also learn more about the materials used and the common price ranges of certain designs.

    Sections


    Materials & designsManufacturing & QCPricing
    • Leather, plant strips and fibers, coconut shells, seashells and textiles are among the materials adopted in bags and wallets.

    • Raw materials are typically sourced domestically or from nearby countries.

    • Companies usually provide customization in terms of materials, colors and sizes.

    • Most manufacturing processes are done in-house.

    • Several steps are still done by hand, including crocheting, embroidery and painting.

    • QC involves visual inspection of the color, size and other details of the bag or wallet against client specifications.

    • Prices of bags and wallets depend mainly on the material and design of the model.

    • Genuine leather models are generally more expensive than those made of rattan, bamboo and pandan.

    • Synthetic leather bags and wallets are available for less than $20.

    Materials & designs

    Indonesia suppliers offer various bag and wallet styles. Satchels, totes, messenger bags, backpacks and evening bags are among the common types offered. Wallet options include bifolds, trifolds, wristlets and clutch styles.

    In terms of raw materials, the selection includes synthetic and genuine leather, plant strips and fibers, coconut shells, seashells and textiles. These are typically sourced domestically.

    Synthetic leather is usually obtained from East and West Java. The material is made of either PU or PVC.

    Genuine leather models, positioned mostly as midrange or high-end items, come in bovine hides and the skins of sheep, goats, snakes and crocodiles. For high-end pieces, manta ray and stingray leather are also options. These are costlier because supply of the material is limited because of wildlife conservation laws.

    The skins and hides can be sourced from various islands in Indonesia. Interviewed makers procure leather from Kalimantan and the islands of Bali, Sumatra and Java.

    Indonesia’s selection of bags and wallets also include those made of or featuring textiles with batik, ikat and other traditional patterns. Such fabrics are often sourced from Yogyakarta and Solo on Java, as well as the islands of Bali, Sumatra and Nusa Tenggara.

    For woven bags, rattan, bamboo, abaca, pandan and mendong are popular raw material options. Suppliers featured in this report typically obtain the strips and fibers from Java. For rattan, Sumatra is another major source.

    Coconut shells, meanwhile, are obtained from the islands of Bali and Java. Seashells are sourced mainly from Bali, but some bag and wallet makers procure the materials from Micronesia or New Zealand.

    Amid rising demand for environment-friendly products, makers intend to release more models in sustainable natural materials such as water hyacinth, coconut shells and seagrass.

    In terms of designs, articles featuring elements that reflect Indonesia’s culture will remain prevalent. Upcoming models in line with this trend include products adopting textiles with batik and ikat patterns.

    Some suppliers will be differentiating their products using beadwork, embroidery and other embellishments. A number of companies are focusing on function, and will be releasing convertible designs such as satchels with shoulder straps and handbags that can be turned to backpacks.

    Basic or simple styles, however, will remain widely available as these are salable to a wide range of buyers.

    At most makers, up of five people focus on developing new designs. Companies also typically provide customization in terms of materials, colors and sizes. Few suppliers offer customization of other details because there is greater risk of client rejection.

    Makers can usually develop product samples within 30 days.

    Manufacturing & QC

    Most production processes are done in-house. Several steps are still done by hand, including crocheting, embroidery and painting. Depending on the size of the company, the various parts of the bag or wallet can be handsewn or stitched together with the assistance of sewing machines. The machines usually procured domestically or imported from China or Japan.

    In the production of leather bags and wallets, skins and hides are cut to specifications in factories. The sheets pass through a skiving machine to achieve the specified thickness before being polished. Depending on the style of the bag or wallet, the bottom, sides or gussets, flaps and handles are usually assembled and stitched after this process.

    For styles that require structure, cutouts for each part are prepared. Made of foam and paper, these cutouts are covered with the hides, glued on the sides and assembled. Pockets, linings, zippers are attached beforehand.

    Once the pieces are assembled, the sides are punched with prong punchers and stitched with waxed leather or linen thread. Zipper, locks and other enclosures are stitched and the wax finish is applied.

    To produce bags and wallets made of woven rattan, bamboo, abaca or mendong, dried strips or fibers of the material are typically woven by hand. The handles, closures and embellishments are stitched.

    Companies usually have up to five workers conducting quality checks. These personnel visually inspect the color, size and other details of the bag or wallet against client specifications.

    Makers can have bags and wallets ready for delivery 30 to 45 days from order confirmation.

    Pricing

    Prices of bags and wallets depend mainly on the design of the model and the materials used to create it. Fluctuations in logistics costs, currency exchange rates and other market factors are also taken into consideration when pricing.

    Genuine leather models are generally more expensive than those made of rattan, bamboo and pandan. Embroidery, beadwork and other trimmings push up quotes.

    Synthetic leather handbags with minimal embellishments are available for less than $20. Totes made of coconut shells, pandan leaves and bamboo strips are also offered at this price point.

    Between $20 and $50, the selection includes models woven from rattan or seagrass fibers. Higher up the price range are designs made of cowhide or snakeskin.

    Basic pouches, purses and wallets made of synthetic leather, plastic, coconut shells or wood are priced less than $20. Clutch wallets made of goatskin and cowhide are available between $20 and $50. Higher-priced designs include models made of snakeskin, lizard skin or stingray skin.

    Price guide
    Price guide: Handbags
    Less than $20
    Synthetic leather, coconut shell, pandan, bamboo, or nylon, wool or cotton yarn; polyester lining; plain or with handpainted artwork
    $20 to $50
    Woven rattan or seagrass, or cowhide; cotton or polyester lining; genuine leather handles and straps; embellished with ribbon, coconut shells or beadwork
    More than $50
    Cowhide, snakeskin, or genuine leather combined with fabric; silk or suede lining; leather top handles and removable shoulder straps

    Click image to enlarge.

    Indonesia bags and wallets product features Typical components of a handbag

    Price guide: Genuine leather wallets
    Less than $20
    Bifold, trifold or clutch wallet; cowhide; multiple pockets for credit cards, IDs and photos; plain exterior or with stamped pattern; magnetic button closure
    $20 to $50
    Bifold or trifold; goatskin, cowhide or snakeskin; multiple pockets for credit cards, IDs and photos; magnetic button or zipper closure
    More than $50
    Clutch wallet; cowhide, snakeskin, lizard skin or stingray skin; multiple pockets for credit cards, IDs and photos; with embroidery, beadwork or handpainted pattern; magnetic button or zipper closure; 23x12cm

    Indonesia sourcing bags and wallets product features Typical Component of genuine leather wallets

    Indonesia Sourcing: Bags & wallets 2017 Supplier survey

    Indonesia Sourcing: Bags and wallets 2017

    Indonesia Sourcing: Bags & wallets 2017

    • Bags • Wallets

    To give buyers first-hand information from active exporters of bags and wallets in Indonesia, we have surveyed the manufacturers featured on this site.

    The companies surveyed reflect the composition of the Indonesia bags and wallets industry in terms of company size, geographic location, product range offered and materials used.

    Export pricesExport markets & salesProduct trendsChallenges
    • Most suppliers will be keeping prices at current levels for the next six months.

    • Of those intending to raise quotes, many will cap increases at 10 percent.

    • Price increases are meant to cover higher costs.
    • Most companies are optimistic of export sales growth in the next 12 months.

    • Of the surveyed suppliers, 30 percent are expecting increases of 11 to 20 percent.

    • The majority of surveyed companies intend to boost exports to the EU and the Asia-Pacific region.
    • Upcoming releases will include designs featuring traditional themes and patterns.

    • Models with beadwork, embroidery and other decorative elements are also anticipated.

    • Adoption of sustainable natural materials will remain a strong trend.
    • More than one-third of surveyed companies see rising labor and material costs as the major roadblock to growth.

    • Twenty-five percent indicated lack of capital as the primary constraint to improving their businesses.

    • Finding new export markets is also a major challenge.

    Export prices

    Most Indonesia suppliers of bags and wallets will be keeping prices at current levels in the next six months to remain competitive. Among the companies surveyed for this report, 55 percent plan to take this strategy. Five percent intend to reduce prices to attract more buyers.

    Forty percent of the survey respondents will raise quotes to cover higher labor costs and other expenses. Of these companies, 25 percent intend to cap price increases within 5 percent and 62 percent plan to keep adjustments within 6 to 10 percent.

    Indonesia Bags and wallets Survey Export Prices

    Export markets & sales

    Most makers of bags and wallets are optimistic of export sales growth in the next 12 months. Of the surveyed companies, 40 percent are anticipating increases of up to 10 percent and 30 percent see growth ranging from 11 to 20 percent. Ten percent of the respondents expect overseas revenue to go up more than 20 percent.

    Suppliers are optimistic that promotions on online business-to-business platforms and trade shows will result in additional orders. Leather goods suppliers in Yogyakarta are also projecting that government efforts to promote tourism and other local industries will improve export sales.

    The EU will stay a key export destination for Indonesia bags and wallets. Of the surveyed suppliers, 40 percent indicated that it will be their most important target market in the next 12 months. Thirty-five percent of the respondents plan to increase penetration of the Asia-Pacific region.

    Indonesia Bags and Wallets Supplier Survey Export Forecast

    Product trends

    The selection of bags and wallets from Indonesia are expected to become more diverse in coming months as suppliers take different directions in product development.

    Among surveyed companies, 30 percent will continue to showcase traditional themes and patterns such as batik and ikat in their products. For 5 percent of the respondents, on the other hand, the focus will be on modern designs.

    Ten percent of the featured suppliers intend to enhance the value of their models through decorative elements such as beads and embroidery. Releases from one-fourth of the survey respondents, meanwhile, are expected to consist mainly of simple and elegant pieces.

    Targeting the growing number of eco-conscious buyers, 25 percent of the surveyed companies will use sustainable materials such as water hyacinth, coconut shells, pandan and seagrass. The rest of the respondents plan to offer more versatile models such as handbags that can be converted into backpacks.

    Challenges

    Survey results indicate that the main challenges facing Indonesia’s bags and wallets suppliers are the following: rising costs, lack of capital and finding new export markets.

    Amid the intense price competition in the domestic and international markets, 35 percent see rising labor and material costs as the primary concern. In Yogyakarta, for example, the minimum wage increased to 1,337,645 Indonesian rupiah (about $100) in 2017 from 1,237,700 Indonesian rupiah (about $93) in 2016.

    One-fourth of the survey respondents indicated lack of capital as the main constraint to growth. These suppliers are hoping to obtain financing with low-interest rates from banks to invest in product development, marketing and other efforts to grow their business.

    Indonesia Bags and wallets Survey Key Findings

    For 20 percent of the featured companies, finding new export markets is the major roadblock to growth due to the time, effort and financial resources this requires.

    India Sourcing: Bags 2017 PDF download

    Indonesia Sourcing: Bags and wallets

    Indonesia Sourcing: Bags & wallets 2017

    ✓Verified suppliers

    ✓New products

    ✓Valuable market intelligence

    Print Friendly, PDF & Email

    Click on the download button to get a PDF copy of the full report, which contains the following:

    Supplier & products

    Sections


    • Products
    • Indonesia bags & wallets suppliers

    Industry overview

    Sections


    • Highlights
    • Export statistics
    • Competitive advantages
    • Challenges
    • Industry composition
    • Indonesia bags & wallets suppliers

    Charts


    • Bag & wallet exports
    • Supplier locations map

    Product features

    Sections


    • Highlights
    • Materials & designs
    • Manufacturing & QC
    • Pricing
    • Price guide
    • Indonesia bags & wallets suppliers

    Supplier survey

    Sections


    • Highlights
    • Export prices
    • Export markets & sales
    • Product trends
    • Challenges
    • Indonesia bags & wallets suppliers

    Charts


    • Export prices
    • Export forecasts
    • Key findings

    India Sourcing: Bags 2017 Supplier list

    Indonesia bags & wallets suppliers

    Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

    Suppliers featured on
    Supplier statusBagsWallets
    Abekani Leather Active
    Bebo Indonesia Active
    Borneo Ethnic Active
    Cordelia Active  
    CV Panelindo Active
    Edward Manding Active
    Gendhis Bag Active
    Gulma Mutiara Craft Active  
    Javatic Leather Bag
    Active

    Kaay Bags
    Active
    Keys Leather Bag & Crochet Active
    Little Big Paper Active
    Manding Active
    Manggar Naturals Active  
    SEAGA Active
    Tas Batik Jogja Active  
    Tas Kerajinan Jogja Active
    Tas Kulit Polos Leather
    Active  
    Troyee Bags Active
    Trumpah Kulit Active