What are some of the promising prospects of the fast fashion industry? What is the Indonesian Creative Economy?
In 2022, one of Indonesia’s local clothing brands, Erigo, had successfully paved its way to one of the most prestigious fashion events, which is the New York Fashion Week. They were also able to attend the 2021’s New York Fashion Week, but this year was more special due to the fact that they were able to invite a lot of new artists and influencers to New York. This event poses a shine of opportunities for foreign investors in trying to invest in Indonesia’s fast fashion industry, given the growing aspect of Indonesia’s creative economy.
With that issue in hand, let’s try to see what are the opportunities of Indonesia’s fast fashion industry? How is the government supporting it? What is the creative economy and how is the condition of Indonesia? Read more to find out!
Overview of Indonesia’s Fast Fashion Industry
Fast Fashion refers to clothing designs which move fastly from fashion events to stores in order to fulfill the new fashion trends. They allow the public to purchase these products at an affordable price, in which most products are manufactured in a different country. In recent years, Indonesia has played a significant role in the manufacturing process of these fast fashion products given that textile exports have grown exponentially.
Indonesia is among the top producing textile nations in the world and is currently the 12th largest textile and apparel exporter. Most of these products are being exported to the United States, the Middle East and the European Union. In 2022, revenue in the fashion segment is projected to reach USD 9.30 billion in 2022. In the fashion segment the number of users is expected to amount to 117.0m users by 2025. While the user penetration will reach 31.6% in 2022 and is expected to hit 40.8% by 2025.
Overview of Indonesia’s Creative Economy
The creative economy has no single definition, but it is an evolving concept which is interconnected between human creativity and intellectual property, knowledge, and technology. The Gross Domestic Product from Indonesia’s creative economy sector in 2021 grew by 4.04%, contributing quite well to the national economic growth. In 2020, the creative economy sector was corrected 1.70%. Indonesia’s creative economy industry is also inline with the rapid growth of the country’s e-commerce industry.
The government has done several supporting measures to ensure the growth of Indonesia’s Creative Economy in the form of incentives and new regulations to facilitate investors who are interested in investing in this sector. According to BEKRAF, the creative industry sector was able to provide employment to 16.4 million people in 2017, which was an increase compared to 16.2 million people in 2016.
One of the biggest challenges of this industry is the lack of financing. Most of the players in the sector are small and medium businesses with limited capitals. Most creative industry players in Indonesia are self-funded and have not received any outside funding such as through bank loans.
How Are They Affecting One Another?
Textiles, fashion, footwear, leather sectors, and others operate at the intersection between arts, business and technology. They are in a strategic position to connect creativity and innovation at a time when culture based creativity is an essential feature of business innovation in the new economy.
The digitalization of fashion will no doubt impact the Earth’s environmental and social footprint. Though there are some companies who imposed a new innovation, which is sustainable fashion, this experimentation has failed to lessen its planetary impact.
Other Industries With Prospects from Indonesia’s Creative Economy
Given the prospects of Indonesia’s creative economy, here are some other industries aside from the fashion industry which have positive prospects:
- Culinary Industry
- Hospitality and Tourism
- Film & Video
- Computer Games
- Writing and Publishing
Enter Indonesia’s Fast Fashion Industry and Creative Economy with BRIGHT Indonesia
It would take a lot of in-depth research about the Indonesian fast fashion industry in Indonesia. In order to enter the Indonesian market, you would need the right local partner to assist you.
BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.
BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:
- Provide assistance for you in expanding and developing your business by identification of potential partners.
- Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arrange business meetings, and act as a liaison.
- Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
- Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.
For more information, email email@example.com.