Indonesia Sourcing: Footwear 2017

Indonesia Footwear

 

In Indonesia Sourcing: Footwear 2017, buyers can find:

Verified exporters – 18 featured suppliers offering various types of footwear

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: Footwear 2017 Sector highlights

Industry overviewProduct featuresSupplier survey
  • India exported $4.6 billion worth of footwear and related parts in 2016.

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

  • Jakarta, Yogyakarta, West Java and East Java are among the key production hubs.



  • Genuine and synthetic leather are among the top options for the uppers.

  • Raw material options also include songket, batik and other fabrics.

  • Most manufacturing processes are done in-house.



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

  • Upcoming releases will include basic and simple designs.

  • Most surveyed companies intend to keep prices at current levels.


Indonesia Sourcing: Footwear 2017 Suppliers & products

indonesia-footwear-banner

Indonesia Sourcing: Footwear 2017

• Casual shoes • Formal shoes

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.

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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.

Casual shoes   
Indonesia-FootwearIndonesia-FootwearIndonesia-FootwearIndonesia-Footwear
Formal shoes   
Indonesia-FootwearIndonesia-FootwearIndonesia-FootwearIndonesia-Footwear

Indonesia Sourcing: Footwear 2017 Industry overview

Indonesia Sourcing: Footwear Industry Overview

Indonesia Sourcing: Footwear 2017

• Casual shoes • Formal shoes

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

 

Indonesia footwear exportsCompetitive advantagesChallengesIndustry composition
  • India exported $4.6 billion worth of footwear and related parts in 2016.

  • Models with leather uppers accounted for 49 percent of the export value.

  • The US was the top overseas market, importing about $1.3 billion million worth of footwear.


  • Government and trade association initiatives help boost the industry's exports.

  • Supporting industries including tanners and sole makers help the industry produce a wide range of footwear.

  • Indonesia footwear suppliers are active in online marketing platforms.


  • Footwear producers face intense price competition.

  • Raw material-related expenses are also on the rise.

  • Makers find it difficult to comply with costly international requirements.


  • Most footwear manufacturers operate on a small scale.

  • Annual sales of midsize companies, which employ up to 100 employees, reach $7.4 million.

  • Jakarta, Yogyakarta, West Java and East Java are the main centers for footwear production.

Indonesia is one of the world’s top exporters of footwear Statistics from the DESA/UNSD, United Nations Comtrade database show that the country sent more than $4.6 billion worth of footwear and related parts in 2016, making it the fifth largest exporter in terms of value. The figure represents an increase of 3 percent year over year.

The US accounted for $1.3 billion or 28 percent of the 2016 export value. The other key destinations were China, Belgium, Germany, Japan and the UK, which imported footwear worth a total of $1.6 billion, or 34 percent of overseas sales.

Models with leather uppers, which include sports shoes, accounted for 49 percent of the export value. Most of these are products manufactured for global brands such as Nike and Adidas.

Indonesia footwear Industry Overview Exports

Designs with textile uppers accounted for 37 percent of overseas sales. Those with plastic or rubber uppers generated 11 percent.

Competitive advantages

The existence of supporting industries, including leather tanners, rubber sole makers and accessory suppliers, enable footwear manufacturers to offer a wide range of products. The Asosiasi Penyamak Kulit Indonesia (APKI) or the Indonesian Tanners Association has more than 100 members, which include tanners, chemical producers and equipment suppliers. Most companies are located on Java island, according to the list on APKI’s website.

Another factor supporting the development of the footwear industry are the initiatives implemented by government and trade associations to help suppliers boost exports.

The Asosiasi Persepatuan Indonesia (APRISINDO) or the Indonesian Footwear Association offers training workshops for exporters and organizes exhibitions. Among the events that APRISINDO co-organizes is the Indo Leather and Footwear, which brings in visitors from all over the world.

Indonesia’s various trade pacts also benefit the industry. The country is a signatory of the ASEAN Free Trade Area agreement. As a member of the ASEAN, it has free trade agreements (FTAs) with China, South Korea, India, Australia and New Zealand, and Japan.

The government is seeking trade deals with more economies to help boost exports. It is in talks with Australia, India, South Korea, Chile and a number of European countries. Negotiations for the comprehensive economic partnership agreement (CEPA) with Chile are slated to be completed in 2017.

The Indonesian Footwear Industry Development under the Director General of Small and Medium Industry of the Ministry of Industry provides training workshops on basic shoemaking, pattern-making, coloring and branding. The center also holds footwear design competitions to encourage creativity and seek new designs that represent unique Indonesia footwear.

Adoption of online marketing among Indonesia footwear suppliers are also helping to boost exports. The country, for instance, has 45 million active users of the photo-sharing app Instagram each month, according to a July 27, 2017, report on the Jakarta Globe. Active users include local businesses promoting their products. Many footwear suppliers, in particular, have Instagram accounts to post their latest designs, increase brand recognition and easily access potential buyers.

Challenges

Makers face intense price competition in the domestic and international market. Their main competitors are suppliers in China and Vietnam, which are also among the world’s top footwear producers.

Rising labor costs are among the factors threatening suppliers’ price competitiveness. In Jakarta, for instance, the monthly minimum wage is 3,355,750 rupiah (about $248), up 8 percent from 2016. In 2018, the monthly rate is set to go up to 3,648,035 rupiah (about $270).

Raw material costs are also increasing. In the past 12 months, cowhide and sheepskin have gone up about 10 percent to approximately 38,750 rupiah ($2.87) and 26,250 rupiah ($1.94) per square foot, respectively.

Compliance with international requirements, which includes obtaining certification from independent, is also pushing quotes upward. Companies using wood in their products, for instance, have to be certified compliant with Sistem Verifikasi Legalitas Kayu (SVLK) requirements. SVLK is the country’s timber legality assurance system. Exporters of EU-bound leather products have to meet the market’s restrictions on chromium.

Industry composition

Indonesia’s footwear industry comprises more than 200 companies. Small makers account for the majority of suppliers.

Employing fewer than 20 people, small companies generate less than 1 billion rupiah (about $74,000) in sales annually. These suppliers have factories no larger than 500sqm and are capable of producing up to 10 containers monthly.

Midsize companies have up to 100 full-time employees and their manufacturing facilities range from 500 to 2,000sqm. They can roll out up to 20 containers each month and their annual sales reach 100 billion rupiah (about $7.4 million).

Manufacturers with larger workforces and factories can produce more than 20 containers monthly. The output of these enterprises includes products for Adidas, Nike, Bata and other well-known brands. Key manufacturing centers for footwear include Jakarta; Yogyakarta; Tangerang in the province of Baten; Bekasi and Bandung in West Java; and Surabaya and Sidoarjo in East Java.

Supplier location map

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

Indonesia Footwear Industry Overview Locations Map

Indonesia Sourcing: Footwear 2017Product features

Indonesia Sourcing: Footwear Suppliers and Products

Indonesia Sourcing: Footwear 2017

• Casual shoes • Formal shoes

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

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

Sections


 

Materials & designsManufacturing & QCPricing
  • Genuine and synthetic leather are among the top options for the uppers.

  • Raw material options also include songket and batik or fabrics printed to look like such textiles.

  • Rubber and TPR are the main choices for outsoles.

  • Most production processes are done in-house.

  • Sewing, leather splitting and steam thread blowing are some of the steps completed using computerized machines.

  • Orders are typically produced within one month.

  • Footwear prices vary depending mainly on the shoe design and materials used.

  • Models with synthetic uppers are generally less expensive than those with genuine leather versions.

  • Many companies plan to keep quotes at current levels in the next six months.


Materials & designs

Indonesia suppliers offer various styles of casual, formal and athletic footwear. Sandals, sneakers, boots and loafers are among the types offered for casual wear. Formal shoes include oxfords, derby shoes and monk straps for men, and heeled pumps and dress sandals for women. Buyers looking for athletic footwear will find running, hiking and soccer shoes, among others.

Genuine and synthetic leather are among the top options for the uppers. Genuine leather, particularly cowhide and reptile skin, is often used in formal footwear and high-end casual shoes. The skins and hides can be sourced from various islands in Indonesia, including Java and Nusa Tenggara.

Synthetic leather made from PU or PVC, a less expensive alternative to genuine leather, is usually obtained from West Java.

Indonesia’s footwear selection also includes models with uppers made of songket and batik or fabrics printed to look like such textiles. These materials are often sourced from the provinces of Central Java and North Sumatera.

For the outsoles, rubber and TPR are the main choices. These are sourced from the city of Bandung in West Java.

Footwear suppliers in Indonesia are taking diverse routes in terms of design. A number intend to release more casual shoes with simple designs or fewer embellishments because these are salable to a wide range of buyers.

The trend for environment-friendly products is also affecting development of new shoes. Many companies are making their models more eco-friendly by adopting materials such as vegetable-tanned leather, cork and recycled rubber.

Manufacturing & QC

Most production processes are done in-house using computerized machinery. Sewing, crimping, leather splitting, sole trimming and steam thread blowing are some of the processes completed through the use of machines.

Footwear production begins with cutting the material for the uppers, soles and other parts of the shoe. The next stage is closing, where the various upper parts are sewn together. Each upper is then placed around a foot mold or last, where it is attached to the insole and other shoe parts.

The product then undergoes finishing, which includes trimming of excess materials, waxing and buffing. Other details such as the laces, labels and tags are also attached to the shoes at this stage before packaging.

Orders are typically produced within one month. Companies usually have up to five workers conducting quality checks. These personnel visually inspect the color, size and other details of the shoes against client specifications.

Pricing

Footwear prices vary depending mainly on the shoe design and materials used. In general, models with synthetic uppers are less expensive than those with genuine leather versions.

Below $10, the selection includes casual women’s sandals with EVA or PVC uppers and TPR or rubber outsoles. Models between $10 and $30 have PU uppers and wood or TPR outsoles. Embellishments include studs, stones and beads.

Genuine leather uppers are options at higher price points. These are paired with PU, wood or rubber outsoles.

Men’s dress shoes with synthetic leather uppers are widely available for less than $25. Higher-priced designs have genuine leather uppers, which are usually handcrafted.

Many companies plan to keep quotes at current levels in the next six months.

Price guide

Price guide: Women's sandals
Less than $10
EVA or PVC uppers; TPR or rubber outsoles; monochromatic
$10 to $30
PU or fabric uppers; TPR or wood outsoles; monochromatic; with studs, stones or beads
More than $30
Genuine leather uppers; PU, wood or rubber outsoles; multicolor; handpainted patterns
 

Click image to enlarge.

Indonesia Footwear product features Typical Components of casual footwear

Price guide: Men’s dress shoes
Less than $10
Loafers or oxfords; PVC leather uppers; EVA insoles; TPR outsoles
$10 to $30
Oxfords; genuine leather uppers; PU insoles; rubber outsoles
More than $30
Brogues, monk straps or oxfords; genuine leather uppers; PU insoles; rubber outsoles
 

Indonesia sourcing footwear product features Typical Component of formal footwear

Indonesia Sourcing: Footwear 2017 Supplier survey

Indonesia Sourcing: Footwear Supplier Survey

Indonesia Sourcing: Footwear 2017

• Fashion footwear • Business footwear • Travel footwear • Specialty footwear

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

Export pricesExport markets & salesProduct trendsChallenges
  • Of interviewed suppliers, 58 percent intend to keep current prices to stay competitive.

  • Thirty-three percent of suppliers plan to raise prices to a minimum to cope with rising material costs.

  • Companies raising quotes will be capping increases at between 5 to 10 percent.

  • Thirty-nine percent of suppliers are optimistic export sales will increase.

  • The same percentage of suppliers, meanwhile expect sales to stay the same.

  • The Asia-Pacific will be a key export destination for many suppliers.

  • Models with basic and simple designs are expected to increase.

  • Footwear with improved fit and durability will also grow in number.

  • Features with colorful patterns are anticipated in upcoming releases.

  • Price competition is the main challenge fo most suppliers.

  • Raw material costs are on the rise.

  • Lack of skilled manpower and modern facilities are also major challenges.

Export prices

To stay competitive, more than 50 percent of the footwear suppliers interviewed for this report will keep prices at current levels in the next six months, while 11 percent plan to cut quotes. The remaining respondents intend to raise prices to cope with the higher cost of leather and other materials.

Of the companies that indicated they were increasing quotes, 50 percent will cap adjustments at 5 percent and the rest will keep price changes between 6 and 10 percent.

Indonesia Footwear Survey Export Prices

Export markets & sales

Many footwear companies are anticipating increases in export sales but most do not see growth exceeding 10 percent. Among the survey respondents, 39 percent are projecting increases of up to 10 percent in overseas sales. Only 16 percent are expecting higher growth because of existing clients with repeat orders.

The remaining companies have a more cautious outlook on export revenue. Of the surveyed suppliers, 39 percent expect sales from products sent abroad to stay flat year over year, primarily because they are finding it difficult to find new markets. Six percent see sales declining, expecting to get fewer orders due to price increases.

Of the surveyed suppliers, 72 percent indicated that the Asia-Pacific region will be their most important target market in the next 12 months. This is mainly because of the proximity of markets in this region, which entails cheaper shipping costs.

Indonesia Footewar Supplier Survey Export Forecast

Indonesia’s footwear selection is expected to expand further in coming months as suppliers go on different paths in terms of product development.

Among surveyed companies, 28 percent intend to increase the number of basic and simple models that are lightweight. Interviewed makers indicated they are taking this direction in line with trends and buyer preferences in Europe and the US.

Twenty-two percent of the suppliers featured in this report will focus on improving the durability and fit of their models. As part of this effort, they will be using genuine leather in upcoming models, as the material is naturally breathable.

For 17 percent of the survey respondents, the focus will be on aesthetics. Companies will be adopting colorful batik patterns in their releases. Natural colors, pastel and solid colors such as are will remain on trend.

The remaining respondents will be making their products more environment-friendly by using materials such as vegetable-tanned leather, recycled PU and cork.

Indonesia Footwear Survey Key Findings

Challenges

For 56 percent of the survey respondents, price competition in the international market is the main challenge. Rivalry in the domestic market is also intense due to imports from China and other nearby hubs.

More than 20 percent of surveyed suppliers indicated the cost and availability of raw materials as their main concern. Cowhide, snakeskin and lizard skin have become more expensive due to regulations restricting the use of animals skins.

The remaining suppliers see the lack of modern facilities and skilled workforce as the major hindrance to growth. Many companies are unable to invest in equipment upgrades due to financial constraints. In terms of skilled workers, vocational schools tend to focus on other industries.

Indonesia Sourcing: Footwear 2017 PDF download

Indonesia Sourcing: Footwear

Indonesia Sourcing: Footwear 2017

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Supplier & products

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  • Products
  • Indonesia footwear suppliers

Industry overview

Sections


  • Highlights
  • Competitive advantages
  • Challenges
  • Industry composition
  • Indonesia footwear suppliers

Chart


  • Footwear exports
  • Supplier exports
  • Supplier locations map

Product features

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

Supplier survey

Sections


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

Chart


  • Export prices
  • Export forecasts
  • Key findings

Indonesia Sourcing: Footwear 2017 Supplier list

Indonesia footwear suppliers

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

Suppliers featured on
Supplier statusCasual shoesFormal shoes
13th Shoes Active
CV Karunia Multiniaga Active
CV Karya Anjani Nusantara
Active
Dwijaya Active
Fashionstylepedia Active
Helloyouli Shoes Active
Indoto Shoes Active
Klastik Footwear Active
Kloom Clogs Active
Kuma
Active
Lembayung Handicraft Active
Look Footwear Active  
Onadi Crochet Shoes Active
Sepatuku
Active
Shoes Island

Active
Simple Leather Active
Vee Project
Active
Worklife Active