Apparel and footwear market in Indonesia - statistics & facts

The impact of COVID-19 on the Indonesian apparel and footwear industry

The COVID-19 pandemic has negatively impacted both the demand and supply sides of the apparel and footwear industry in Indonesia. The industry has been known to absorb a significant number of workers as it is labor-intensive and requires little formal training. In 2018, the number of workers in large and medium scale apparel manufacturing alone amounted to more than 760 thousand. However, many firms had to lay off many of their workers during the pandemic due to the social distancing restrictions as well as other health standard protocols, which eventually forced firms to close their factories or utilize them below their production capacities. The apparel and footwear industry has also experienced disruption in global demand as many international brands outsourcing their production saw large decreases in sales or closure of shops. Many of them canceled their orders, to the detriment of Indonesian manufacturers. This in turn has also caused the exports from the country to decline.

Shifts in consumer behavior patterns

In the domestic market, shifts in consumer behavior have led to a decline in demand for apparel and footwear products. During the pandemic, Indonesian households’ expenditure for clothing and footwear amounted to around three percent. Consumers prioritized essential products during the COVID-19 pandemic, such as food and personal health care products, as well as other preventive products such as hand sanitizers. However, for those who were still keen on purchasing fashion products, modern trade was the most preferred purchase channel for clothing and footwear.

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