As many local factories in Indonesia shut down, the local fashion industry faces growing challenges.
As of September 9, the total workforce in the textile and textile products industry affected by layoffs reached 15,114 people. Of these, 75% of the layoffs in the TPT (Textile and Textile Products) industry were caused by factory closures. About 25%, or 3,774 workers, were laid off for efficiency [1].
Several factors are causing the national textile industry to be in hard condition now. This situation began when the COVID-19 pandemic led to rising inflation worldwide, decreasing global purchasing power and demand. Geopolitical conflicts, such as those between Ukraine and Russia, have also affected the stagnation of the worldwide textile market. The rupiah’s depreciation against the US dollar has also increased the cost of raw materials, as a significant portion is still imported.
The influx of imported Chinese products has left national textile products with little market share domestically due to their significantly lower prices. As a result, the utility of the textile industry declines, which leads to layoffs [2]
Reasons Consumers Prefer Imported Clothing
Nowadays, many Indonesian consumers are turning to imported clothing and thrifting. Why is this trend occurring?
Two primary reasons consumers prefer imported clothing are quality and design. Many foreign brands are perceived to offer more attractive styles and better quality. For instance, brands like Uniqlo and H&M have gained popularity due to their trendy designs and affordable pricing, often seen as better value during sales events [3]. This perception encourages consumers to choose imported items over local offerings.
Moreover, the influence of social media and fashion influencers also plays a significant role in shaping consumer preferences, since many influencers promote foreign brands, creating a desire among their followers to emulate these trends.
The Thrifting Phenomenon
The phenomenon of thrifting has also gained traction among younger consumers. Thrifting offers a unique shopping experience, allowing individuals to find vintage and one-of-a-kind pieces at affordable prices. This trend provides cost-effective options and promotes sustainable shopping practices, appealing to environmentally conscious consumers [4].
Jakarta offers several attractive spots for thrifting enthusiasts. Various options for second-hand clothing, including branded and quality items, can be easily found at the following thrifting locations. These places are strategically located throughout the city and are easily accessible, with many situated near public transportation. The example of thrifting stores located in Pasar Senen, Blok M, Pasar Baru, Taman Puring, and Pasar Santa [5]
Impact on the Local Fashion Industry
However, the impact of these changing consumer behaviors is significant for the local fashion industry. Closing local factories means fewer job opportunities and reduced diversity within the fashion market. Local brands often struggle to compete with the allure of international brands, which can offer larger marketing budgets and more extensive distribution channels.
Thus, in order to help our local fashion industry, consumers’ support is necessary. By recognizing the value of local products, they could help revitalize the industry and contribute positively to the economy and environmental sustainability. The hope for the future is that the local fashion industry can rebound and provide competitive products that attract consumer interest in Indonesia.
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Sources:
[2] https://www.bbc.com/indonesia/articles/cmj2n2kxkgdo
[3] Nielsen. (2023). Consumer Trends in Indonesia: The Rise of Imported Fashion.
[4] Ward, T. (2023). Thrifting in Indonesia: The Growing Appeal of Second-Hand Fashion.
[5] https://lifestyle.kompas.com/read/2024/01/09/184847020/5-tempat-thrifting-di-jakarta-pasar-senen-hingga-santa
