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    Fierce Competition In The European Market, Indonesia And Malaysia Shoe Manufacturers Are Working Together To Find New Business Opportunities.

    2012/5/22 10:38:00 67

    Footwear Industry In Malaysia

    As orders from European markets continue to decrease, Indonesia and Malaysia Footwear manufacturing Traders have reached an agreement to work together to develop new footwear markets in two neighboring countries.



       Footwear industry in Malaysia A memorandum of understanding (MoU) was signed by the manufacturers' Association (MFMA) and the Indonesian Footwear Association (Aprisindo).


    The memorandum of understanding makes the exchange of information between the two shoemaking industries easier.



    Eddy Widjanarko Widjanarko, President of the Indonesian Footwear Association, said Indonesia ranked the sixth largest footwear producer in the world after the United States, China, India and Japan, with a market value of US $2 billion 700 million.


    According to Mr. Widjanarko, the market value of footwear in Malaysia is about 1/4 of that in Indonesia. He said that the footwear industry in Malaysia entered the Indonesian market through women's footwear brands 25 years ago.


    He said that at present, there are about 20 Malaysia brands in the Indonesian market, but Indonesia has only two famous brands, Valentino and Rotelli, to enter the Malaysia market.


    Mr. Widjanarko said that the outsourcing of Indonesian footwear products was very poor compared with that of Malaysia, and Malaysia shoes entered the Chinese market. He also revealed that Malaysia is now concentrated in the high-end footwear retail market in Indonesia, while the Indonesian footwear industry will focus on mass production.


    Aprisindo president predicts that the MOU will increase Indonesia's footwear brand in Malaysia to 10 brands, such as Gino Mariani and Mario Minardi, which have already been covetous, and plan to enter the Malaysia market at the end of the year. He believes that for Indonesia, this is a suitable time and opportunity to encourage its brand to enter the Malaysia market.


    About 45% of Indonesia's footwear products are exported to Europe. 30% exports to the United States, only 1% exports to Malaysia.


    Indonesia plans to diversify its export market. Besides Malaysia, Aprisindo also plans to sign a memorandum of understanding with Taiwan, South Korea and China this year.


    Last year, Indonesia's footwear exports amounted to 3 billion 300 million US dollars, up 32% from last year's exports of US $2 billion 500 million. However, due to the current financial crisis in European countries, Aprisindo expects exports to grow moderately by 10% this year.

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