Crisis dries up fashion industry

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.