Start Your Fashion Business: Simple Guide to the Indonesian Market

Despite a decline in consumer purchasing power in Indonesia during Q3 of 2024, small and medium enterprises (SMEs) in the country have taken this challenge as an opportunity to innovate and adapt through creativity and strategic marketing.

Among the businesses that continue to thrive during economic downturns, the fashion market stands out as one of the most promising sectors. This dynamic industry evolves with changing consumer demands and diverse fashion trends, offering vast opportunities for entrepreneurs looking to explore or expand their presence in the market.

Fashion remains a basic necessity, ensuring the sector’s longevity. Additionally, the industry continues to innovate and cater to modern consumer preferences. As reported by ukmindonesia.id, the fashion industry is the second-largest contributor to Indonesia’s creative economy, accounting for 18% of the nation’s GDP and dominating 56% of the country’s creative economy exports.

Fashion Market Trends in Indonesia

Translating the success into tangible market opportunities, let’s explore some key trends shaping Indonesia’s fashion landscape. According to IDX Channel, several promising opportunities within Indonesia’s fashion market remain resilient against economic challenges:

  1. Sportswear

The demand for stylish and comfortable sportswear is growing, particularly in major cities like Jakarta, as fitness awareness and habit rise among Indonesians.

  1. Custom T-Shirt Printing

Custom t-shirt printing has become a trending business, allowing customers to design their own shirts. Advances in digital printing technology make this business accessible and increasingly popular.

  1. Muslim Fashion

The market for hijabs and Muslim apparel is also expanding, driven by demand for modern, comfortable, and dynamic designs. With Indonesia’s predominantly Muslim population, this segment holds substantial potential.

  1. Maternity and Nursing Wear

Maternity and nursing wear are growing in demand, as more mothers prioritize comfort and functionality during pregnancy and breastfeeding.

  1. Women’s Basic Clothing

Casual fashion indeed immortal. Therefore, the women’s basic clothing business also has a very promising opportunity. Many women need this basic clothing to complete their appearance in various activities such as shirts, t-shirts, outers, sweaters, trousers to leggings.

Tips for Starting a Fashion Business

For those new to the fashion industry, these essential steps will help you establish a successful business:

  1. Conduct Market Research

Start by researching current fashion trends, price ranges that match consumer purchasing power, and competitors. This helps create a well-informed business plan.

  1. Define Your Target Market

Identify your target audience by considering factors such as age, preferences, occupation, shopping behavior, and budget. This will guide you in setting competitive prices and tailoring your products to your audience.

  1. Manage Initial Capital Wisely

Starting a home-based fashion business requires minimal capital. You can operate from home without renting space or hiring employees initially. Digital marketplaces provide excellent platforms for selling your products. As your business grows, you can explore funding options like bank loans.

  1. Develop a Business Concept

Design a clear business plan that includes product descriptions, unique selling points, packaging, and marketing strategies. Beginners might consider starting as resellers or dropshippers before launching their own brand.

  1. Find Best Suppliers

Partner with reliable suppliers who offer high-quality materials at reasonable prices. Ensure they meet the expectations of your target market to maintain product quality.

  1. Manage Production and Distribution

For those creating original products, the production process involves designing, sourcing materials, sewing, and packaging, quoting Niagaholster.

  1. Leverage Effective Promotions

Use social media and marketplaces to create engaging promotional campaigns. Learn to craft viral product content with appealing visuals, and invest in paid advertising to maximize brand awareness and sales.

A Bright Future for Fashion SMEs

The diverse opportunities in the fashion industry for SMEs provide endless possibilities for growth and innovation. Entrepreneurs can compete with larger retail players by offering unique products and leveraging creative marketing strategies.

This continued activity in the fashion sector not only boosts Indonesia’s SME landscape but also contributes to the nation’s economic growth, highlighting the vibrancy and promise of the Indonesian fashion industry.

 

Source: idxchannel.com, ukmindonesia.id, Niagahoster

Image source: Getty Images

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.