Copying: Development strategy in garment business<\/p>\n
Text and photos by Benito Lopulalan<\/p>\n
DENPASAR (JP): Garment copying is big business in Asia these
\ndays. Hong Kong and South Korean industrialists started the trend
\nin the 1970s and ever since profits have been impressive; so much
\nso that garment companies in several other Asian countries have
\nhad to reevaluate their design and production strategies. This
\nbecame even more necessary with the arrival of Vietnam and China,
\nthemselves masters of the art of duplication with cheap labor.<\/p>\n
Almost all garment manufacturers in Bali are now copying
\nitems. This can be easily seen in Kuta, Sanur, Ubud or any other
\nmarket. Similar items are sold in street stalls and boutiques.
\nAny hot item is grabbed by the copiers.<\/p>\n
The sample items can come from tourists, Jakartans or from
\nexpatriates. Many companies are backed by expatriates whose
\nnationality often hampers their business. They are able to invest
\nhere because the regulations favor foreign investment.<\/p>\n
\"This is a common practice all over the world because it's the
\nusual way for foreigners to do business,\" said one American woman
\nin the garment business in Bali.<\/p>\n
Of the copying itself, she admitted that she has \"copied many
\nParisian designs and sales have been high, both in Nusa Dua and
\nabroad. Much better, in fact, than self-designed garments from
\nBali, which rarely do well on the international market.\"<\/p>\n
For many producers, expatriate investors -- legally or
\nillegally -- are a reliable sources of income. Some consumers
\nbelieve that the copies are made with better quality of the
\nmaterials used.<\/p>\n
\"Often tourists choose better raw materials, such as thread,
\nthan we would have chosen,\" said Gusti Made Karya, a manufacturer
\nin Gianyar who agreed that copied garments sell better.<\/p>\n
Darodjat Husnan, head of the Bali office of the Ministry of
\nTrade, emphasized that the situation is the result of difficult
\naccess to the international market.<\/p>\n
\"The assumption is that the buyers are right as they have
\naccess to the consumers' demand,\" he said, then added that many
\nproducers don't have a clue about how to enter the international
\nmarket.<\/p>\n
Kembar Kerepun, Bali chairman of the Association of Indonesian
\nTextile Companies, is confident that there will not be any major
\nproblems \"as long as the garment companies can copy and produce
\ngarments which are of higher standard than the original ones.\"<\/p>\n
Potential crisis<\/p>\n
There are indications, however, of a potential crisis in
\nBali's garment industry. Although the province's garment exports
\nhave increased three percent compared to last year's figures,
\nvolume has decreased 13.7 percent.<\/p>\n
Smaller companies are following buyers' orders to copy
\ngarments, creating competition which has resulted in cut prices
\nand some companies going bankrupt.<\/p>\n
\"I have been able to finance my son's university studies
\nbecause of my small garment manufacturer,\" said Pande Mangut, a
\nsmall producer in Beng, Gianyar. Recently she was compelled to
\nsack some of her workers because of the decline in the business.<\/p>\n
Not only international designs are duplicated. Local designers
\nhave also complained about the local copiers.<\/p>\n
\"Copying can be tantamount to suicide in this business,\" said
\nHandoyo, a designer in Denpasar. \"Although it's one strategy for
\ndeveloping the clothing industry, we shouldn't have to rely
\nexclusively on copying to increase profits.\"<\/p>\n
The designer, who has opened a boutique with prominent
\ndesigner Arthur Harland, then added, \"When we do depend on it,
\nbuyers fight to get the lowest price possible by going to
\ndifferent producers and claiming they have just been given a
\nlower quote by competitors.\"<\/p>\n
When than happens, product quality is then sacrificed to
\nenable manufacturers to compete, said Handoyo.<\/p>\n
There is another reason for the poor quality of garments.
\nNicolaas Arthoer from an Amsterdam-based broker company blames
\nthe problem on the standard of Indonesia's raw materials,
\nespecially compared to China. He speculated that the poor quality
\nwas the result of a manufacturing monopoly of raw materials.<\/p>\n
\"Even Vietnamese products sometimes have better raw materials
\nthan Indonesian ones,\" he said.<\/p>\n
Kembar Kerepun is not convinced.<\/p>\n
\"Comments like that are usual,\" he explains. \"Claiming raw
\nmaterials are inadequate is just a brokers' strategy to get
\nprices lowered.\"<\/p>\n
He insists that Indonesian raw material producers have already
\nbeen accepted in the international market and many of them have
\ninternational licenses.<\/p>\n
Despite these licenses, several designers say it is still
\ndifficult to obtain a regular and reliable supply of quality
\nfabric and dyes.<\/p>\n
\"The fabric is sometimes poorly weaved and the color quality
\nof the dyes has not been standardized,\" said Handoyo. He believes
\nthat the garment industry, either self-designed or copying, will
\ntumble if good materials continue to be scarce.<\/p>\n
\"It is impossible for garment manufacturers to produce a
\ngarment for sale overseas if they have to make do with shoddy
\nmaterials,\" he argued.<\/p>\n
\"Recently, many high standard producers have been selling at
\nhigher prices. They still sell more,\" he continued.<\/p>\n
Manufacturers cash in on Bali's reputation -- or image -- for
\ncraftsmanship and creativity. The reputation is also very useful
\nfor other regions. In Lumajang, East Java, three villages with
\nmore than 1,000 workers have become the source of garments sold
\nin Bali.<\/p>\n
Husnan asserts that to ensure Bali fortifies its position,
\nproducers must be prepared tightened patent laws.<\/p>\n
\"Obtaining a patent is still too complicated for many
\nproducers and designers,\" he acknowledged. He gave JAK-PAK as an
\nexample. Initially it was a Balinese brand. \"Then it was produced
\nin America, registered under America's patent law,\" he said.
\n\"Ever since, Balinese exports with the American trademark have
\nbeen illegal.\"<\/p>\n
Husnan suggests that producers consider hot international
\nstyles rather than copy them.<\/p>\n
Copying, however, is entrenched in the Indonesian garment
\nbusiness. Last month Kerepun warned managers and owners of
\nhandicraft and garment exporting businesses of the possibility of
\nother producers stealing their lucrative ideas at exhibitions.<\/p>\n
Having said that, he added, \"You should obviously keep an eye
\nout for new and interesting designs to copy yourselves.\"<\/p>",
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