Is Indonesian denim apparel export struggling ?

Indonesia, one of the most promising garment exporters in SEA, has been hit severely by the COVID-19 pandemic. Garment Export is one of the major contributors to the GDP of Indonesia, In FY 2019 the garment export alone contributed 11% to the total manufacturing exports and 5% to the total exports. This sector employs approx. 5.2 million workers and is one of the highest employment generators.

The USA is the prime export destination for Indonesia. However, since the USA itself facing immense pressure on demand and reports suggest that in April, the retail sales in the USA dropped by 88% and all the major brands including H&M and GAP experienced a heavy fall in their sales. Since there is a problem on the demand side, the suppliers’ side had to suffer.

Garment Imports in the USA and Japan — the two largest importers of clothing products from Indonesia — fell by 12 percent and 10 percent respectively compared to the same quarter in 2019.

In recent times, the Indonesian government is trying very hard to bring the Indonesian Garment industry on track, and to boost the export, the government is working on an Indonesia-Turkey Comprehensive Economic Partnership Agreement(IT-CEPA) to remove the additional tarries between both the countries.

In this report, we have analyzed the denim apparel exports for the month of October 2020, to understand the denim apparel export for the month of June 2020, click here.

Particulars

Tables and Graphs Showing Leading Denim Exporting Destinations

Table And Graphs Showing Leading Denim Suppliers Of Indonesia

Table and Graphs Showing Leading Denim Buyers

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Leading Denim Exporting Destinations

In the month of October 2020, Indonesia has exported approx. 2.98 million pcs of denim garments. This is approx. 35% lesser than what it exported in the month of June 2020.

With 2.15 million pcs and 72.09% share, the USA ranked #1 export destination for Indonesia. The average price at which the USA bought the denim pieces was $6.45/pcs. Japan is the next biggest importer which imported 3.82 lacs pcs from Indonesia at an average price of $7.64/pcs.

(Note: this data has been captured from various govt organizations including customs. the actual imports are likely to be higher than this figure .)

Country of Destination	Units(In 000)	Avg Pcs Price($)	% Share
UNITED STATES	2151	6.45	72.09
JAPAN	382	7.64	12.82
SOMALIA	61	2.18	2.03
UNITED KINGDOM	60	8.71	2.01
THAILAND	48	5.44	1.62
ITALY	46	10.05	1.53
AUSTRALIA	35	7.54	1.19
PHILIPPINES	30	0.33	1
GERMANY	29	11.21	0.97
CANADA	25	7.16	0.85
OTHERS	116	8.52	3.9
TOTAL	2983	6.68	100

Leading Denim Suppliers

So far as the leading garment exporters are concerned, Eratex Djaja TBK and Glory Industrial Semarang are the two biggest garment exporters during Oct 2020.

Eratex Djaja TBK exported 5.81 lacs pcs at an average price of $9.61 and Glory Industrial Semarang exported 5.17 lacs pcs at an average price of $2.84. There is a substantial difference in the average prices of the both the companies, the reason for the same we understand when we will analyse their buyers in detail at the end.

Suppliers	Units(In 000)	Avg Unit Price($)	% Share
ERATEX DJAJA TBK.	581	9.61	19.48
GLORY INDUSTRIAL SEMARANG	517	2.84	17.32
SAI GARMENTS INDUSTRIES	306	4.40	10.27
GUNUNG SALAK SUKABUMI	266	6.02	8.91
DAEHAN GLOBAL	233	6.34	7.82
TAINAN ENTERPRISES INDONESIA	132	12.66	4.43
SANDANG ASIA MAJU ABADI	114	13.72	3.81
SAN SAN SAUDARATEX JAYA	110	5.25	3.67
LESTARI JAYA GARMINDO	103	1.82	3.47
OTHERS	622	7.18	20.83
TOTAL	2983	6.68	100

Leading Denim Buyers

Walmart and Sojitz Corporation are the two biggest buyers of denim garment in Indonesia followed by Target and JC Penney. Walmart bought 3.85 lacs pcs at an average price of $1.89, all garments were bought from a single supplier – Glory Industrial Semarang. Sojitz Corporation from Japan which bought 3.21 lacs pcs, bought it entirely from Eratex Djaja TBK during October 2020.

Buyers	Units(In 000)	Avg Unit Price($)
WAL-MART STORES INC	385	1.89
SOJITZ CORPORATION	321	8.03
TARGET	268	6.74
JC PENNEY PURCHASING CORPORATION	258	4.21
CFL DISTRIBUTION INC	147	14.55
ANN TAYLOR INC	184	6.32
FAMILY DOLLAR STORES,INC.,	84	1.74
THE WILLIAM CARTER COMPANY.	82	5.08
KOHLS DEPARTMENT STORE	79	4.54
OLD NAVY, LLC	75	6.01
OTHERS	1101	7.39
TOTAL	2983	6.68

ERATEX DJAJA TBK.

Sojitz is the biggest buyer of Eratex during October 2020 which bought 3.20 lacs pcs , Ann Taylor from the USA is the next big buyer which bought 99.36 thousand pcs at an average price of $10.94/pcs.

ADDRESS:
AXA TOWER (KUNINGAN CITY) LT.43 JL. PROF DR. SATRIO KAV.18, KARET KUNINGAN, SETIABUDI, JAKARTA SELAT

Consignee Name	Quantity	Av.Price($/Pcs)	Country of Destination
SOJITZ CORPORATION	3,20,516	8.03	Japan
ANN TAYLOR INC	99,360	10.94	United States
CFL DISTRIBUTION INC	82,671	13.39	United States
RL EUROPE SARL	38,914	10.23	Italy
OTHERS	39,550	10.65	United States, Taiwan and Korea
TOTAL	5,81,011	9.61

GLORY INDUSTRIAL SEMARANG

Glory sold more than 50% of its garment to Wal Mart Stores in the USA, however price is unbelievably competitive. Kohls is the 2nd big retailer whom Glory exported 79.24 thousand pcs of denim at an average price of $4.54.

ADDRESS
DUSUN SECANG RT.01 RW.01 DESA SAMBAN RT. RW.,BAWEN

Consignee Name	Quantity	Av.Price($/Pcs)	Country of Destination
WAL-MART STORES INC	3,85,168	1.89	United States
KOHLS DEPARTMENT STORE	79,242	4.54	United States
SDC-0017	47,969	7.47	United States
SANMAR CORPORATION	4,188	5.44	United States
TOTAL	5,16,567	2.84

SAI GARMENTS INDUSTRIES

More than 80% of garment exports by SAI Garment Industries went to JC PENNEY only during October 2020. JC Penney bought 2.58 lacs pcs of denim from SAI Garments at an average price of $4.21/pcs

ADDRESS:
KAWASAN BERIKAT JL. BRIGJEN SUDIARTO KM 12, PENGGARON KIDUL, PEDURUNGAN, KOTA SEMARANG, JAWA TENGAH

Consignee Name	Quantity	Av.Price($/Pcs)	Country of Destination
JC PENNEY PURCHASING CORPORATION	2,58,356	4.21	United States
MAMIYE BROTHERS INC.,	45,246	5.69	United States
BRIARA TRADING COMPANY	2,653	1.56	United States
TOTAL	3,06,255	4.40

GUNUNG SALAK SUKABUMI

Gunung Salak exported all denim garments to Target USA only at an average price of $6.02/pcs.

ADDRESS:
JALAN BABAKANPARI BLOK PASIR DALEM RT/RW: , 001 / , 002, BABAKANPARI, CIDAHU, KAB. SUKABUMI, JAWA BA

Consignee Name	Quantity	Av.Price($/Pcs)	Country of Destination
TARGET	2,65,902	6.02	United States

DAEHAN GLOBAL

Old Navy USA is the biggest buyer for Daehan Gloabal during October 2020, the brand bought 98.65 thousand pcs of denim from the company at an average price of $6.07/pcs.

ADDRESS:
JL. MAYOR OKING 112B RT. RW.,CIRIMEKAR, CIRIMEKAR, CIBINONG, KAB. BOGOR, JAWA BARAT

Consignee Name	Quantity	Av.Price($/Pcs)	Country of Destination
GAP (CANADA) INC	3,940	7.11	Canada
GAP (SHANGHAI) COMMERCIAL CO.,LTD	2,950	7.68	China
GAP (UK HOLDING) LIMITED	3,838	9.56	United Kingdom
GAP JAPAN K.K.	5,643	8.12	Japan
LANDS’ END EUROPE LIMITED	4,097	3.78	United Kingdom
OLD NAVY (CANADA) INC	13,654	6.56	Canada
OLD NAVY LLC	98,652	6.07	United States
OXFORD COLLECTIONS	49,169	5.81	United States
TARGET AUSTRALIA PTY LTD	16,628	5.36	Australia
THE GAP INC.,	34,589	7.73	United States
TOTAL	233,16	6.34

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