www.ChinaSourcingReports.com

Indonesia supplier profi lesDetailed profi les of 30 suppliers with verifi ed manufacturing and export credentials

Product gallerySpecifi cations and full-colorimages of 229 top-sellingexport products ranging from shoulder bags to hats

Industry trendsCoverage of current issues,plus insights into supply centers, products and pricing

July 2012US$150

Fashion Jewelry & AccessoriesEssential sourcing intelligence

Yogyakarta

East Java

Bali

MalaysiaMalaysia

Singapore

Thailand Philippines

INDONESIA

Philippines

Global Sources is off ering this series of Developing Country Sourcing Reports as part of its corporate social responsibility undertakings in partnership with the Hinrich Foundation, a philanthropic development organization whose mission is promoting sustainable global trade.

The aim is to give international buyers new sourcing opportunities from experienced exporters, generating orders and creating lasting jobs in developing economies.

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FASHION JEWELRY & ACCESSORIESSupplier capability in Indonesia

Indonesia’s fashion jewelry and accessories industry has been exhibiting continued growth in annual exports over the past three years.

The development is driven by revitalized demand from major markets such as the US, which is gradually recovering from the global economic crisis. Shipments to emerging destinations such as the Asia-Pacific region, the Middle East and South America are also increasing.

The industry relies on a number of strengths to keep up with growing turnover and cope with intense competition from other sourcing centers in Asia. The most important of these is accessibility to various types of natural materials that result in designs not readily available from other supply hubs. Companies also generally have low MOQs, which provides flexibility to customers.

Objective, methodology & scope

1. Suppliers of fashion jewelry and accessories from Indonesia generally expect to keep prices stable in the next six months in an effort to ensure competitiveness and gain new customers from alternative markets. Some companies intend to raise quotes, however, due to increasing raw material costs.

2. Fashion jewelry is the industry’s largest segment in terms of foreign revenue. It accounts for more than three-quarters of total turnover and has been growing by an average of 20 percent every year since 2009.

3. The most critical challenge confronting makers is the difficulty in establishing a stable client base in new markets they plan to expand to. Manufacturers typically have limited budgets and

Key findings

Executive Summary

In this report• 15 in-depth company profi les• 15 short company profi les• 229 top-selling export products• Supplier demographics• Supplier survey• Industry statistics and charts

This Indonesia Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise.

The Developing Country Sourcing Report series is part of Global Sources’ corporate social responsibility initiatives. It is offered in conjunction with the Hinrich Foundation, whose mission is promoting sustainable global trade. One of its objectives is to help create jobs in developing Asia through export promotion.

To produce this report, large, midsize and emerging manufacturers, all with substantial export experience, were surveyed. The selection of suppliers is designed to reflect the composition of the industry in Indonesia in terms of geographic location, materials used and range of products offered.

For in-depth profiles, our researchers visited the facilities of each company and interviewed senior executives who discussed their recent performance and provided forecasts for the next 12 months. All other makers in this report were either visited or contacted by phone.

In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including a breakdown of exports by product type and market. Suppliers also participated in a survey designed to provide insight into the industry.

This report covers the main types of fashion jewelry and accessories available in Indonesia, including bracelets and chokers, bags and wallets, headwear and neckwear, and belts. Each category has its own price guide that describes the features of low-end, midrange and high-end models.

The Industry Overview section discusses key issues affecting export manufacturers. It provides insight on the composition of the industry and elaborates on the important supply centers within Indonesia.

The Products & Prices section details the features and price ranges of fashion jewelry and accessories. It also examines the design and manufacturing processes, main materials used, and sourcing centers where components are procured.

skill in export promotion, which reduces opportunities for further development. Cutthroat competition with China also presents a hurdle to domestic SMEs.

4. Product quotes are generally determined by the material used. Plant-based components such as fiber are incorporated in low-end items. Midrange models are typically made of synthetic leather, wood and marine-derived inputs. High-end releases utilize animal skins and hides.

5. Prevailing designs feature seascape and indigenous motifs. Fashion accessories made of fabric or leather are often decorated with batik.

6. Fashion jewelry and accessories are available throughout Indonesia, although the major sourcing hubs are located in Java and Bali.

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4 Indonesia Sourcing Reports

CONTENTS

Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher’s affi liates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, “Contents”), whether as to the accuracy, completeness, quality, fi tness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or defi ciency in, or for any use of or reliance on, such Contents (or any portion thereof ).

All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. Products that are not the specifi c topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affi liates, and our affi liates’ respective directors, offi cers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof ) which infringe on any intellectual property or other rights of a third party.

Contents

Copyright 2012 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited.

Published by Publishers Representatives Limited (on behalf of Trade Media Limited)4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322 SMB, George Town, Grand Cayman, Cayman Islandsc/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong

ISBN 978-988-15979-4-6

EXECUTIVE SUMMARY .............................................................................................................................................................................................. 3Key fi ndingsObjective, methodology & scope

INDUSTRY OVERVIEW ............................................................................................................................................................................................. 11Supplier Summary Exports

Products & prices ...................................................................................................................................................................................................... 13Production & export statisticsPrice guides

Supplier survey ......................................................................................................................................................................................................... 15Export pricesExport salesExport marketsMajor challengesR&D focus

SUPPLIER PROFILES .................................................................................................................................................................................................. 19Supplier matrix: Comparison of supplier location, sales revenue & export capability Profi les of 30 verifi ed suppliers

PRODUCT GALLERY .................................................................................................................................................................................................. 67JewelryFashion bags & walletsBeltsHeadwear & neckwear

CONTACT DETAILS .................................................................................................................................................................................................. 107

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Industry Overview

Industry Overview

The fashion jewelry and accessories industry in Indonesia is showing sustained development, as evidenced by rising demand from key markets abroad.

Foreign revenue has been increasing over the past three years, at an average of 22 percent annually. In 2011, exports of bags and wallets climbed 56 percent compared with the previous year. Fashion bags accounted for one-tenth of the segment’s output. Jewelry is the sector’s second fastest-growing line as sales surged 23 percent YoY.

The industry’s marked development is attributed to the US economy’s gradual recovery. Escalating orders from emerging destinations such as the Asia-Pacific region and South America are propelling revenue as well.

The US is the dominant overseas market, registering $170 million worth of orders last year. This is a significant improvement from the previous period’s $124 million. Singapore is the second-biggest destination, taking up $68.2 million. The UK absorbs $32.7 million. Completing the top five foreign markets are Canada and Japan at $13 and $9 million, respectively.

Export growth is forecast to continue in the year ahead as more

clients recover from the global economic crisis. Products in updated designs and made of environment-friendly materials are expected to drive orders.

Competitive advantagesThe industry has several strengths that contribute to its development.

First is the ready availability of raw materials. Natural components can be procured across the country, particularly in the provinces of Bali, and East, Central and West Java.

Another competitive edge of the sector is low minimum order requirement. Most manufacturers allow outbound shipments of 50 pieces. Large items have even smaller MOQs at five pieces or less. Makers are likewise flexible regarding replacement, refund and payment policies.

The sector is also buoyed by diverse yet distinct designs. Batik styles with flower, plant, bird and butterfly patterns are a specialization of the Sunda ethnic group in West Java. Bali suppliers focus on models with beach motifs that are composed of seashell and pearl.

Another strength enjoyed by local enterprises is government support through funding, information

dissemination and training. Official credit corporations, which grant SMEs loans of $4,000 to $6,000, are established in all provinces. The Ministries of Trade and Industry implement programs that aim to educate companies on exporting.

ChallengesThe industry faces a number of concerns that may hinder its continued progress.

Difficulty in establishing footholds in emerging destinations is one of these roadblocks. Local suppliers plan to attract more clients in new markets such as Russia, China, South Korea, Malaysia, Singapore, Thailand, India, Saudi Arabia, Turkey, Egypt, South Africa, Brazil, Argentina and Mexico. Most enterprises are unable to implement them, however, due to limitations in or absence of funding for marketing and promotion in

Supplier summary

Data: All surveyed suppliers

Suppliers surveyed 30Export sales $3.18mnExport ratio 93%Capacity utilized 51%Full-time employees 372

Exports

Leading markets2011

Fashion bags & wallets$ million

Source: Statistics Indonesia

2009 2010 2011

18

27

42

US43%

Singapore19%

Canada4%

Japan2%

UK9%

Others23%

Jewelry$ million

2009 2010 2011

192

229

282

Includes fine and fashion jewelry

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20 Indonesia Sourcing Reports

Supplier Profiles

*CompanyIn-depth profile

Year established Head office location Ownership Factory location(s) Full-time employees

Part-time employees

* Ahmad Azizah 2004 Denpasar (Bali)

Locally owned

Denpasar (Bali)

21 11

Alex Shop 2001 Badung (Bali)

Locally owned

Badung (Bali)

8 4

* Bali Nirmala 2000 Denpasar (Bali)

Locally owned

Denpasar (Bali)

5 10

* CV Agabong 1995 Badung (Bali)

Locally owned

Badung (Bali)

35

CV Bali Spot 1998 Malang (East Java)

Locally owned

Malang (East Java)

28 40

CV Para 1996 Badung (Bali)

Locally owned

Badung (Bali)

48 18

CV Tita 2010 Badung (Bali)

Locally owned

Badung (Bali)

18 6

CV Tresna 2001 Denpasar (Bali)

Locally owned

Denpasar (Bali)

8 6

* Downtown 2007 Badung (Bali)

Locally owned

Denpasar (Bali)

16 4

Fairos 2004 Yogyakarta (Yogyakarta)

Locally owned

Yogyakarta (Yogyakarta)

12 6

* Fajar 2010 Badung (Bali)

Locally owned

Badung (Bali)

7 100

Gendhis 2002 Sleman (Yogyakarta)

Locally owned

Sleman (Yogyakarta)

12 8

Hippie 2004 Badung (Bali)

Locally owned

Badung (Bali)

8

* Kasokana 1993 Badung (Bali)

Locally owned

Badung (Bali)

20 100

* Lima Leather 2000 Badung (Bali)

Locally owned

Jembrana (Bali)

6 2

* Minta Sari 2000 Denpasar (Bali)

Locally owned

Denpasar (Bali)

4 10

Murad 2002 Badung (Bali)

Locally owned

Badung (Bali)

10

*Nino 2005 Denpasar (Bali)

Locally owned

Denpasar (Bali)

3 15

*Papiya 2008 Badung (Bali)

Locally owned

Denpasar (Bali)

24

*Paragi 2010 Badung (Bali)

Locally owned

Badung (Bali)

8

SUPPLIER MATRIX

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26 Indonesia Sourcing Reports

Supplier ProfileSupplier Profiles

Capability

Contact details

Ahmad Azizah

Annual sales $100,000Share of total sales 100%Annual export sales $100,000Total monthly capacity 20,000 piecesAverage monthly output 15,000 piecesCapacity utilized 75%Average monthly exports 15,000 piecesExport ratio 100%

Company facts

Ahmad Azizah was established in 2004. The company manufactures necklaces and bracelets. Total sales last year reached $100,000.

The company’s entire output is sent abroad. The EU is the largest market, accounting for 60 percent of exports. France, Spain, Greece and Italy are the important destinations there. Australia and South Africa each absorb nearly one-fifth of shipments. The rest goes to Morocco, Egypt and the UAE.

Eighty percent of orders are made under ODM basis.

Synthetic pearl bracelets are quoted at about $1. Necklaces that adopt the freshwater type and semiprecious stones such as turquoise, onyx, amethyst and tiger eyes are available at approximately $8.

Plastic and glass beads, brass, leather, synthetic suede, wood and semiprecious stones are the materials used. Most are purchased from suppliers in Jakarta and Bali province. The rest is imported from China.

The owner is the main designer and can create 50 models monthly. Samples are completed within three days.

The company runs a 200sqm factory in Denpasar city of Bali. All production steps are done manually and in-house.

The facility can produce 20,000 pieces every month. The average monthly output is 15,000 pieces.

There are 21 permanent workers. Eleven additional workers are hired during the peak months of February, March and September to November.

Three inspectors conduct visual checks on finished products before packing.

Packaging consists of polybags with silica gel and cartons. The minimum order requirement is 10 pieces per model. Delivery is completed within a month.

Ahmad Azizah plans to expand its market presence in the EU in the year ahead. The supplier will focus on models with new shapes and colors over the next six months.

Year established 2004Head offi ce location Denpasar (Bali)Ownership Locally ownedFactory location(s) Denpasar (Bali)Full-time employees 21Part-time employees 11Total annual sales (all products) $100,000

Sales & output: Fashion jewelry & accessories

Materials used Leather YesBamboo NoFabric YesPlastic YesMetal YesWood & other natural materials Yes Exports by product Jewelry 100%Fashion bags & wallets –Belts –Headwear & neckwear – Exports by market North America –EU 60%Europe (non-EU) –Asia-Pacific 15%Middle East 10%Other 15%

Business contactAZIZAH AhmadPhone(62-361) 732-160Fax(62-361) 732-160E-mailazizahinbali@gmail.comURLwww.globalsources.com/ahmadazizah.coAddressJalan Double Six, Legian Kaja, Kuta, Badung, Bali, Indonesia

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Product Gallery

Jewelry

PRODUCT GALLERY

Ahmad Azizah (profile page 26) Model: AA02MOQ: 10 pieces Packaging: Polybag with silica gel, cartonDelivery: 7 daysPrice: $5.55Description: Necklace; freshwater pearls and glass beads; 86cm; in various colors

Ahmad Azizah (profile page 26) Model: AA04MOQ: 10 pieces Packaging: Polybag with silica gel, cartonDelivery: 7 daysPrice: $2.77Description: Necklace; brass, turquoise, plastic beads and polyester thread; 90cm chain and 4x3cm Buddha pendant; in various colors

Ahmad Azizah (profile page 26) Model: AA05MOQ: 10 pieces Packaging: Polybag with silica gel, cartonDelivery: 7 daysPrice: $3.33Description: Necklace; faux pearls and resin; 86cm chain and 9x6cm cross pendant; in various colors

Ahmad Azizah (profile page 26) Model: AA03MOQ: 10 pieces Packaging: Polybag with silica gel, cartonDelivery: 7 daysPrice: $2.77Description: Necklace; stainless steel pendant and cotton thread; 90cm chain and 9x6.5cm pendant; in various colors

Ahmad Azizah (profile page 26) Model: AA01MOQ: 10 pieces Packaging: Polybag with silica gel, cartonDelivery: 7 daysPrice: $5.55Description: Necklace; freshwater pearls and glass beads; 86cm; in various colors

Ahmad Azizah (profile page 26) Model: AA06MOQ: 10 pieces Packaging: Polybag with silica gel, cartonDelivery: 7 daysPrice: $3.33Description: Necklace; brass, red coral and plastic beads; 80cm chain and 7.5x6cm heart-shaped pendant; in various colors

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