Sourcing Report: Indonesia - Basketware14 Oct 2011 • by Natalie Aster
Indonesia’s basketware industry is supported by several factors that help it remain viable in the face of mounting difficulties resulting from the effects of the global economic crisis.
The sector enjoys easy access to a wide selection of indigenous raw materials, many of which are not readily available to suppliers in other countries. Because of this, the line has developed numerous sourcing centers located in nearly all major islands throughout the archipelago. Each hub employs distinctive methods of creating and styling products.
Baskets from Indonesia are mostly handmade. Depending on buyers’ preferences, they can be crafted to feature modern designs in an assortment of colors, or traditional styles that have a plain look. In addition to their practical applications, several models are constructed as decorative ornaments.
The report “Sourcing Report: Indonesia - Basketware” by Global Sources covers the main types of basketware available in Indonesia, including models made of bamboo, natural and synthetic rattan, and various types of indigenous materials. Each product category has its own price guide that describes features of low-end, midrange and high-end models.
- Exports of basketware from Indonesia remain weak as demand in key foreign markets experiences sustained sluggishness due to the lingering effects of the global economic crisis. Overseas shipments have been declining since 2008, with the most significant contraction being recorded last year.
- In an effort to counteract diminished revenue from traditional destinations such as the US and the EU, an increasing number of suppliers are expanding their reach in new markets. These include the Asia-Pacific region, the Middle East, Eastern Europe and Africa. Success has been limited, however, as considerable challenges affect makers’ ability to penetrate such locations.
- The national government provides assistance to the sector by spearheading initiatives aimed at promoting locally made products among overseas buyers. Agencies under the Ministry of Trade establish linkages with foreign chambers of commerce and industry associations.
- Quotes over the next six months are generally expected to stay unchanged. The majority of suppliers will adopt this strategy to keep remaining customers and to attract potential clients in alternative markets.
- The sector emphasizes the low-end and midrange segments. The former includes products in basic weaves and plaits. Midrange items have more decorative elements. Metal frames and fabric lining are common.
Sourcing Report: Indonesia - Basketware
Published: August 2011
Price: US$ 75.00
Report Sample Abstract
Supplier profiles: CV Cahaya Anugrah
CV Cahaya has been producing and exporting basketware since 1996. The company registered $600,000 in revenue last year. One-half of output in the line is sent abroad. The EU accounts for four-fifths of shipments, with Italy, France and Spain being the top markets. Fifteen percent goes to Australia and Malaysia. The rest is taken up by the US.
Fifty percent of orders are made under OEM basis. Three-fifths of exports consist of natural rattan basketware. Bamboo models represent 35 percent. Fruit baskets are the best-sellers.
The company offers items for all price segments. Quotes start at $0.40 and reach $40. A five-piece storage basket set made of bamboo is offered for $6. A natural rattan fruit basket measuring 35x35x125cm is available for $10.
Banjarmasin, the provincial capital of South Kalimantan, is the maker’s sourcing hub for bamboo and rattan. Palm leaf and other natural materials are also purchased in the city.
The owner is the principal designer. Every year, up to 60 models are released. Samples are normally finished within a week.
CV Cahaya has a 2,200sqm factory in Banjarmasin. All steps of production are done in-house. There are eight full-time and 30 temporary workers. The peak season is from August to December. QC is carried out by three inspectors. Visual checks are conducted on weaving, shaping, coloring and packing. The total monthly capacity is 8,000 pieces. On average, 3,000 pieces are manufactured every 30 days.
Cartons are normally used as packaging. The minimum order requirement is 100 pieces per model. Delivery is within 45 days.
CV Cahaya has participated in the Jakarta International Handicraft Trade Fair. It plans to expand market reach in the Asia-Pacific for the year ahead.
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