Indonesia Sourcing: Bags and wallets 2018

 

In Indonesia Sourcing: Bags and wallets 2018, buyers can find:

Verified exporters – 18 featured suppliers offering various bags and wallets

Products – Full-color images with specifications and prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

Export data – Indonesia-wide details and survey results from featured exporters

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewProduct featuresSupplier surveyPDF downloadSupplier list

Indonesia Sourcing: Bags and wallets 2018 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Indonesia exported handbags, satchels, suitcases, briefcases, and other containers under HS code 4202 amounting to $363.2 million in 2017.

  • The country has an abundance of natural materials, including goat, sheep, cow, and buffalo hides and crocodile skin.

  • Indonesia has over 1,000 suppliers of bags and wallets, most of which are small and midsize enterprises.
  • Most bags and wallets are made of environment-friendly materials such as seagrass, rattan, and paper for the decoupage.

  • Prices are based mainly on design and the materials used.

  • Some production process are done by hand while other steps require the use of machines.
  • Most basketware suppliers intend to increase prices in the next six months.

  • Most companies are looking to produce minimalist and contemporary bags and wallets.

  • Export sales are anticipated to rise in the next 12 months.

Indonesia Sourcing: Bags and wallets 2018 Suppliers & products

Indonesia Sourcing: Bags and wallets 2018

Indonesia Sourcing: Bags and wallets 2018

• Bags • Wallets

Our team has visited all Indonesia manufacturers featured here to verify their export capability. Each has a website on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.

Sections


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Bags   
Indonesia-bagsIndonesia-bagsIndonesia-bagsIndonesia bags
Indonesia-bagsIndonesia-bagsIndonesia bags
Wallets   
Indonesia-bagsIndonesia-bagsIndonesia-bagsIndonesia bags

Indonesia Sourcing: Bags and wallets 2018 Industry overview

Indonesia Sourcing: Bags and wallets Industry Overview

Indonesia Sourcing: Bags and wallets 2018

• Bags • Wallets

This section discusses key issues affecting export manufacturers in Indonesia, offering insight into industry composition and important supply centers.

Indonesia's exports of bags & walletsCompetitive advantagesChallengesIndustry composition
  • Exports of handbags, satchels, suitcases, briefcases, and other containers under HS code 4202 amounted to $363.2 million in 2017.

  • Cases and containers designed with plastic or textile exteriors generated sales of more than $180.9 million.

  • Handbag exports sales grew from $130.7 million in 2016 to $149 million in 2017.
  • Indonesia has an abundance of natural materials, such as goat, sheep, cow, and buffalo hides and crocodile skin.

  • Exporters benefit from having a large pool of skilled workers, 60 percent of whom are young talent.

  • The rapid growth of online platforms enables suppliers to promote products and expand their reach.

  • Minimum wages rose about 8.71 percent year over year in 2018.

  • Suppliers without sufficient financing are limited in their capacity to meet the demands of larger markets.

  • Exporters need to contend with strict international standards on sourcing environment-friendly materials.

  • Indonesia has more than 1,000 suppliers of bags and wallets, most of which are small and midsize enterprises.

  • Suppliers mostly operate in Bali; in East, West and Central Java; and on the island of Nusa Tenggara.

  • SMEs have global export sales of up to 100 billion Indonesian rupiah per year.

Indonesia’s bags and wallets sector has been growing. Interest in natural and sustainable materials has prompted buyers from around the world to turn to the country’s exports. Suppliers offer bags and wallets that are made of hides, exotic skins and other natural components easily sourced throughout Indonesia.

The country is on the cusp of digital transformation in commerce and trade. Homegrown e-commerce websites open up opportunities for small and midsize enterprises to reach international markets.

Export statistics

In 2017, Indonesia’s exports of handbags, satchels, suitcases, briefcases and other containers under HS code 4202 amounted to $363.2 million, based on data from DESA/UNSD, United Nations Comtrade. The figure marks an increase in overseas revenue by 36 percent, from $266.9 million in 2016.

Indonesia Bags and wallets Industry Overview Supplier Exports

Cases and containers under commodity code 420292, which are designed with a plastic or textile exterior, generated sales of more than $180.9 million and constituted nearly half (49.82 percent) of the country’s exports in this sector.

Handbag export sales also grew from $130.7 million in 2016 to $149 million in 2017, while suitcases, briefcases, satchels and other similar containers generated $15.7 million in overseas sales.

Competitive advantages

Indonesia has an abundance of hides, skins and other inputs that can be used to make bags and wallets, a factor that helps suppliers keep quotes competitive.

Over the past year, the cost of cowhide and snake- and crocodile skin has remained stable, according to interviewed suppliers. Studs, zips, tassels and other accessories, which are usually also sourced locally, have become less expensive.

Exporters also benefit from having a large pool of skilled workers, including sewers and leather tanners. In 2017, the country had a population of nearly 264 million people, about 48 percent of which belong to the labor force, according to figures from the World Bank Open Data.

The growth of online platforms and marketplaces also provides sellers an avenue to promote products and expand their reach. Homegrown e-commerce websites such as Qlapa, WebeMall, Tokopedia, Bukalapak, Lazada and Shopee, and international sites Alibaba and Global Sources open new markets.

There are also a number of fashion and trade shows that Indonesia companies participate in to help grow the bags and wallets industry.

For its part, the Indonesia government has introduced new policies to bolster local businesses. In 2018, the Ministry of Trade launched Free Trade Agreement (FTA) Centers in Jakarta, Surabaya, Medan, Bandung and Makassar to attract foreign investors to the country’s import commodities sector and provide information about Indonesia’s exports to overseas buyers.

The FTA Centers are operated by the Ministry of Trade’s Directorate General of International Trade Negotiations, in cooperation with several state universities in the five major cities. Each FTA Center has a team of three consultants who provide expertise in international trade agreements, financing and export procedures, and promotional and marketing strategies.

Challenges

Among the most common challenges Indonesia suppliers face are the rise in labor costs, lack of capital, strict overseas standards, inflation and the threat of economic crises.

Minimum wages in 2018 are about 8.71 percent higher than 2017 rates. Besides pushing up production costs, some companies that fail to anticipate a sudden fall in demand often end up struggling to pay wages. To offset the rising cost of labor, suppliers are opting to hire part-time workers over full-time employees.

Another challenge for SMEs is the lack of capital to maintain production. Without enough funding, suppliers are limited in their capacity to meet the demands of larger markets.

Exporters also need to contend with strict regulations in importing countries. Sellers are often required to cover the costs of certifying exports as eco-friendly. The additional cost is passed on to importers in the form of higher prices. Some companies cut costs by partnering with overseas buyers who are willing to process the requirements for international trade standards.

Inflation and other potential economic crises may also hinder the growth of the exports sector. Amid the rising cost of materials, increase in tariffs, or a decline in overseas demand, exporters are forced to adjust the prices of their products.

Many bag and wallet exporters have expanded their export markets because of the strengthening value of the dollar, according to a report on Medcom.id.

Manufacturers who retained the price of their products were able to maintain their profit margin because of the lower cost of imported materials. These companies also had the option of slashing prices and increasing sales volumes.

Industry composition

Indonesia has more than 1,000 suppliers of bags and wallets, most of which are SMEs, operating in Bali and in East, West and Central Java, and on the island of Nusa Tenggara.

Small enterprises have global export sales of 1 billion Indonesian rupiah per year. They employ up to 20 workers and operate in factories with an area less than 500sqm.

Midsize companies register export sales of up to 100 billion rupiah per year. They scale up production with up to 100 employees working in 500sqm to 2,000sqm facilities.

Larger enterprises exceed 100 billion rupiah in annual export sales by offering products made from a variety of materials, including natural elements. They enlist a workforce of more than 100 employees. Production is housed in 2,000-plus sqm. facilities.

Supplier locations map

The highlighted areas on the map show the locations of the head offices and factories of the bags and wallet suppliers featured in this report.

Indonesia bags and wallets Industry Overview Locations Map

Indonesia Sourcing: Bags and wallets 2018 Product features

Indonesia Sourcing: bags and wallets Suppliers and Products

Indonesia Sourcing: Bags and wallets 2018

• Bags • Wallets

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by Indonesia bags and wallets suppliers.

Buyers can also learn more about the materials used and the common price ranges of certain designs.

Materials & designsManufacturing & QCPricing
  • Bags and wallets with artisanal detailing such as beading and studs became a favorite of consumers.

  • Most products are made of environment-friendly materials such as seagrass, rattan, and paper for the decoupage.

  • In terms of design, consumers choose an item based on their lifestyle and activities.
  • Some steps in the production process are done by hand while other steps require the use of machines.

  • Quality inspectors are responsible for conducting visual inspections of the size, color and detailing of each unit.

  • All items can be tailor-made to match buyers' specifications, as long as tools and machines are available to carry out requests.
  • The prices of bags and wallets are based primarily on their design and the materials used.

  • Those made of natural materials such as abaca, seagrass or rattan, and feature fabric lining and leather straps cost between $25 and $50.

  • Suppliers consider currency exchange rates, changes in logistics costs and other market factors when determining product prices.

Materials & designs

Suppliers in Indonesia offer bags and wallets in a variety of styles. The most common types of bags are handbags, satchels, totes, messenger bags, backpacks and evening bags. As for wallets, suppliers provide bifolds, trifolds, wristlets and clutches as options.

Beaded bags became a favorite of consumers in 2017. Indonesia suppliers witnessed an increase in the sales of bags featuring artisanal detailing, or those with beading, chains and studs. Bags can also feature a combination and a variety of color combinations.

Most of the products are made of environment-friendly and sustainable materials such as seagrass, rattan and paper for the decoupage seen on some bags and clutches.

In terms of design, consumers choose an item based on their lifestyle and activities. Commuters, for example, prefer simple bags with less detailing but with larger storage so they can carry more items while traveling.

Manufacturing & QC

The lead time for the development of product samples is between 30 and 45 days on average. In 2017, an average of 30 to 40 new models were released per month.

Each item goes through a production process that includes preparing the raw materials, designing, cutting, assembling and sewing the bags. The knitting and crocheting of the bags are usually outsourced to women contract workers in their own homes. However, the designing, checking of raw materials, cutting of shapes and patterns, assembly, finishing, and packing are done in-house by the manufacturer.

Some steps in the production process (sewing, assembly, and packaging) are done by hand while other steps (cutting, sewing, molding, pressing and steaming) require the use of machines. Sewing machines are the most commonly used machine in production.

Companies typically have a team of five workers who perform quality checks during production. The personnel are responsible for conducting a visual inspection of the size, color and detailing of each unit to ensure that client specifications are met. They also determine whether production facilities comply with manufacturing standards on machinery and environmental waste.

In practice, all items can be tailor-made to match buyers’ specifications, as long as tools and machines are available to carry out such customization requests. Some custom orders can also be mass produced, depending on the size and color of the item and the availability of the fabrics and other materials. The manufacturer may require a minimum order quantity (MOQ) based on the price and complexity of the product.

Pricing

The prices of bags and wallets are based primarily on their design and the materials used to create them. However, suppliers also consider currency exchange rates, changes in logistics costs and other market factors when determining product prices.

Simple handbags and tote bags made of synthetic leather typically cost less than $25. Those made of natural materials such as abaca, seagrass or rattan, and feature fabric lining and leather straps cost between $25 and $50. The same types of bags made of genuine leather, snake skin or ethnic fabric with silk or ethnic fabric lining cost more than $50 on average.

For shoulder bags, models made of synthetic leather or goat leather in plain designs are available for less than $25. Sling bags made of synthetic leather with leather straps cost between $25 and $50, while those made of genuine leather with leather or metal straps typically cost upwards of $50.

Plastic or synthetic leather backpacks in simple designs can be bought at less than $25, and canvas or leather backpacks in various colors and patterns between $25 and $50 a piece. Genuine leather backpacks in various colors and patterns with pockets and buttons are pricier at more than $50.

Pouches, wallets and purses made of plastic, synthetic leather, or natural materials (coconut shell, wood) in simple designs are priced at less than $25. Clutches, purses, wallets and bags made of genuine goat or cow hides in various colors and patterns cost between $25 and $50. Premium clutch models made of genuine leather or exotic skin (snake, lizard, stingray) with beads and handmade embroidery are a lot more expensive at more than $50 per item.

Price guide

Price guide: Handbags and tote bags
Less than $25
Synthetic leather; simple and plain designs
$25 to $50
Natural materials (abaca, seagrass, rattan); fabric lining, leather straps
More than $50
Genuine leather, snakeskin; silk fabric or ethnic fabric inner lining

Click image to enlarge.

Indonesia bags and wallets product features Typical features of a laundry hamper

Price guide: Wallets
Less than $25
Synthetic leather, natural materials (coconut shell, wood); simple and plain designs
$25 to $50
Genuine leather (goat, cow); various colors and patterns
More than $50
Genuine leather, exotic skin (snake, lizard, stingray); handmade embroidery, beads

Indonesia sourcing bags and wallets product features Typical features of a serving tray

Indonesia Sourcing: Bags and wallets 2018 Supplier survey

Indonesia Sourcing: Bags and wallets 2018

Indonesia Sourcing: Bags and wallets 2018

• Bags • Wallets

To give buyers first-hand information from active bags and wallets exporters in Indonesia, we’ve surveyed the manufacturers featured on this site.

Export pricesExport sales & marketsProduct trendsChallenges
  • Two-thirds of suppliers surveyed plan to increase the export prices of bags and wallets in the coming months.

  • More than half of these companies intend to increase prices by up to 5 percent.

  • Suppliers plan to raise export prices, in part, because of the rising cost of labor in Indonesia.
  • As many as 61 percent of suppliers will focus on the Asia-Pacific market because they believe the region offers business opportunities.

  • Others plan to concentrate on the EU and North America, which have been major markets for sellers in the past few years.

  • More than half of the suppliers surveyed projected export sales will increase by as much as 10 percent.

  • Most suppliers are looking to produce minimalist and contemporary bags and wallets.

  • More than 22 percent of sellers plan to offer products made of environment-friendly materials.

  • About 17 percent of suppliers will feature bags and wallets with classic designs.

  • Most companies are concerned about keeping up with the price competition in international markets.

  • More than 22 percent of suppliers are keeping a close eye on the costs and availability of materials.

  • The EU and North America remain viable markets despite the stringent regulations on raw materials.

Export prices

Two-thirds of Indonesia suppliers surveyed plan to increase the export prices of bags and wallets in the coming months. This optimism is likely because of the economy’s positive performance in the first half of 2018. Indonesia’s trade balance had a surplus of $1.74 billion in June, Statistics Indonesia reported.

One-third of the Indonesia sellers surveyed plan to retain their export prices from last year to retain current clients and attract new buyers.

Of those planning to raise prices, 59 percent say they will increase them by up to 5 percent in the following months, while 33 percent see a potential price increase between 6 and 10 percent. The remaining 8 percent will raise prices by 11 to 15 percent.

Indonesia Bags and wallets Survey Export Prices

One factor that compels suppliers to raise prices is the cost of labor in Indonesia, which is expected to increase after the government mandated a minimum wage hike of 8.71 percent.

Export sales & markets

The Asia-Pacific is a target market for many suppliers. As many as 61 percent of suppliers interviewed believe the region offers excellent business opportunities. According to the Asian Development Bank (ADB), sound trade policies, increased exports and a strong demand within the region are contributing to economic growth.

The ADB said the region also benefits from strong regional trade links and increased financing from investors, making it more resilient against external shocks such as trade tensions and rapid outflows.

Twenty-seven percent of suppliers surveyed plan to concentrate on the EU and North America, which have been major markets for sellers in the past few years.

Meanwhile, the remaining 11 percent of sellers surveyed prefer to shift their attention to non-EU markets. These suppliers are concerned about political and economic uncertainties such as Brexit unfolding in the region.

Because of the recent positive performance of the Indonesia economy, most suppliers feel optimistic about export sales. As many as 56 percent of sellers believe that export sales will increase by as much as 10 percent, while 5 percent of them have a more optimistic projection of about 11 to 20 percent.

Indonesia bags and wallets Supplier Survey Export Forecast

While most sellers anticipate their export sales to grow, some are preparing for figures to stay the same in the coming months. About 39 percent of those surveyed believe export sales will remain the same. According to Troyeebags and TKP Leather, many suppliers have had a difficult time meeting orders from international buyers.

Most suppliers are looking to produce minimalist and contemporary bags and wallets that incorporate new components of canvas in their design. These products are also often made with a combination of leather and fabrics and accented with studs. Many of these models are more colorful compared to other designs.

Twenty-two percent of sellers, meanwhile, plan to offer products made of environment-friendly materials such as seagrass and rattan. Some bags and clutches will also make use of paper in their decoupage detailing.

Seventeen percent of suppliers will feature bags and wallets with classic designs. These products will be made using a combination of elements such as canvas, leather, studs and vaporate.

Challenges

Thirty-eight percent of sellers have expressed concern about keeping up with the price competition in international markets. Many companies plan to stay ahead by producing quality products that meet the specifications of buyers and regulatory standards of importing countries.

Another challenge for suppliers is the rising cost of labor, considering the recent minimum wage increase across Indonesia. A third of suppliers believe that the recent development could impact prices.

More than 22 percent of suppliers surveyed are keeping a close eye on the costs and availability of materials used for production.

Indonesia bags and wallets Supplier Survey Key Findings

Indonesia Sourcing: Bags and wallets 2018 PDF download

Indonesia Sourcing: Bags and wallets 2018

Indonesia Sourcing: Bags and wallets 2018

• Bags • Wallets

Print Friendly, PDF & Email

Click on the download button to get a PDF copy of the full report, which contains the following:

Supplier & products

Sections


  • Products
  • Indonesia bags and wallets suppliers

Industry overview

Sections


  • Highlights
  • Export statistics
  • Competitive advantages
  • Challenges
  • Industry composition
  • Indonesia bags and wallets suppliers

Chart


  • Exports of bags and wallets
  • Supplier locations map

Product features

Sections


  • Highlights
  • Materials & designs
  • Manufacturing & QC
  • Pricing
  • Price guide
  • Indonesia bags and wallets suppliers

Supplier survey

Sections


  • Highlights
  • Export prices
  • Export markets & sales
  • Product trends
  • Challenges
  • Indonesia bags and wallets suppliers

Chart


  • Export prices
  • Export forecasts
  • Key findings

Indonesia Sourcing: Bags and wallets 2018 Supplier list

Indonesia bags and wallets suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured on
Supplier StatusBagsWallets
Abekani Active
AnjaniListing
Asbarada Active
Bali Ayu CraftListing
Bebo Indonesia Active
BudivisListing
Cordelia Active
Dewa Export ProductListing
GendhisListing
Keys Active
Manding Active
Manggar Natural Active
Scano Exotic Active
Tara Bags Active
Tas Batik Jogja Active
TKP Leather Active
Troyee Bags Active
Vie Vie ShopListing