Crisis dries up fashion industry
By Rita A. Widiadana and Agni Amorita
JAKARTA (JP): The once lucrative and glittering Indonesian fashion industry is singing the blues, especially with the 14- month-old economic crisis showing no signs of abating.
A number of prestigious boutiques that sell famous international fashion brands in Jakarta malls and hotels have put "On Sale" signs in their windows because buyers rarely enter their stores.
Some of them have painstakingly tried to survive by discounting luxury items by up to 70 percent. Yet only a few customers venture into their stores.
Local people's desire to wear expensive Donna Karan suits, Kenzo shirts, Giorgio Armani evening gowns or Calvin Klein jeans has dimmed in line with the decline of their purchasing power and the steep prices of these imported goods due to rupiah's sharp depreciation against the U.S. dollar.
However rich some Indonesian people may be, it is likely they'll think twice before buying a pair of Manolo Blanik leather shoes for US$2,000 (approximately Rp 22 million) or a Prada or Channel handbag for $4,000, the equivalent price to that of a new modest van.
The director of the United Kingdom Apparel and Textile Challenge, Ken Watson, once predicted that Indonesia and other Asian countries would become the most important consumer market for the next millennium.
There is a strong consumer base in Asia, with more than 60 percent of its population aged between 15 and 65, and news about international fashion trends is rapidly absorbed, Watson said.
Indonesia also enjoyed robust years when its textile and garment industry generated multimillion dollars in export revenue. But Watson's prediction could well become invalid because of the region's economic turmoil.
To adjust to their dwindling purchasing power, people will probably stop buying luxury goods, including fashion items, and they will most likely start dressing down, if they haven't already.
Poppy Dharsono, chairwoman of the Association of Indonesian Fashion Designers (APPMI), is optimistic and says that designers' targets are the middle and upper classes, whose finances have not changed much.
"I believe people still buy fashion items and they will likely eye local designers' products," she explained,
With prices ranging from Rp 200,000 ($19) to Rp 1 million ($100) a item of first line ready-to-wear clothes, Indonesian fashion items are very competitively priced.
Indonesian designers should immediately study this changing market map and be ready to tap this rare opportunity that may not come again, said Poppy.
"I suggest local designers get together to strengthen their market and bargaining power in facing owners of department stores and consumers," said Poppy.
Poppy's advise is sound. Early this month, a number of designers jointly held fashion shows to promote their newest collections.
Twenty-three designers, including Itang Yunasz, Ramli, Sebastian Gunawan, Raizal Rais and Nelwan Anwar, presented their latest creations at Hotel Mulia in a bid to attract more local buyers and expatriates.
Other designers such as Ghea S. Panggabean, Poppy Dharsono, Stephanus Hamy, Biyan Wanatmadja displayed their latest ensembles at Kafe La Moda, Plaza Indonesia, recently.
Active
"These activities are mainly intended to show that Indonesian designers are still producing despite the gloomy condition," explained Ramli, whose embroidery works fascinate both local and foreign fashion lovers.
Ramli admits, however, that it will not be easy for local designers to tap the market, previously dominated by international fashion brands.
"Products must be of high quality in terms of design and tailoring, with attractive prices and prompt delivery to the market," Ramli added.
A large number of clients say they like wearing Indonesian fashion products. But they find that many designers overlook the fine details, which are important in creating first-class standard products.
Apart from this, Indonesian designers also face difficulties in finding raw materials, including fabrics and accessories to produce their collections.
Designer Nelwan Anwar explained that local fashion products have a high import content.
Anwar explained that silk, chiffon, velvet, organza and other fabrics are all imported. In addition, accessories like beads, threads, buttons, zippers are also foreign made.
"It cannot be denied that imported items are still needed in creating quality dresses, but as their prices skyrocket, many local designers cannot afford to buy them," he said.
The prices of imported fabrics have risen by between 200 percent and 300 percent, while local fabrics have increased by between 50 percent and 100 percent.
Extensive use of local content is another way to reduce the industry's dependency on imported materials, said Anwar, who has been experimenting with various styles of tenun (single and double woven fabrics) from various provinces.
In order to survive in this grim situation, designers should be smart and experiment with existing materials without sacrificing the quality of their products.
"In past years, people bought fashion ensembles for status, but now they do it for quality. Not many people have extra money for fashion," Anwar said.
Other strategies must be developed if designers want to survive. Some have tried to explore foreign markets. Ramli's and Nelwan Anwar's designs are available in Singapore, Malaysia, Brunei Darussalam, and in some countries in the Middle East, Eastern Europe and Latin America.
Some local designers have also set up a close relationship with big companies, a common collaboration in the Western fashion industry.
Such partnerships enable both parties to improve their working performance in terms of designing, producing and marketing efforts.
Designer Dandy Burhan has set up cooperation with PT Tarumatex and garment producer Elisa. Designer Poppy Dharsono is collaborating with license holders of Wacoal lingerie producer and Country Fiesta.
"This is the kind of partnership that should be developed by Indonesian designers and related-fashion industries," said Syamsidar Isa, chairwoman of the Indonesian Fashion Designers Association (IPMI).
Regardless of these hard attempts to boost the local fashion industry, designers admit that they cannot image how their businesses will fare in the long run.
"I really have no idea what the future will hold if the country's economy continues to worsen," said Ramli.