The footwear industry in Indonesia has gained worldwide recognition for its exceptional shoemaking expertise, fueled by a long history of craftsmanship and a skilled workforce. The country has become one of the leading footwear manufacturers in the world, with the export value of leather, finished leather and footwear reaching US$4.62 billion by June 2022 – a 41.26% increase from 2021, official figures indicate.
In this article, we'll explore the demand for Indonesia's shoemaking prowess, and tips for breaking into the global market with international shipping.
Indonesia's shoemaking expertise
The footwear industry in Indonesia is deeply rooted in its cultural heritage. The country's traditional crafts have been passed down through generations, and shoe manufacturing has been a significant part of the Indonesian industry for decades. The industry's growth is supported by the availability of high-quality raw materials, low production costs, and a skilled workforce.
Global demand for Indonesian footwear
The global demand for Indonesian footwear is strong, with key foreign markets being the United States, China, Japan, Belgium and Germany. The US is the largest importer of Indonesian footwear, accounting for approximately 33% of total exports, followed by China, with a 12% share. The demand for Indonesian footwear is driven by its competitive pricing, high quality, and unique designs.
Tips for breaking into the global market
For companies in Indonesia looking to ship shoes internationally, it's essential to have a thorough understanding of the global trade landscape. This includes understanding the regulations, customs requirements, and market demand of the target country. These are some best practices when courting the global market:
1. Utilise free trade agreements (FTAs)
Indonesia has signed several free trade agreements (FTAs) with other countries, including Japan, China, and Australia. These agreements can provide opportunities for Indonesian footwear exporters to access new markets by reducing or eliminating tariffs and other trade barriers. For instance, the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) allows for duty-free access to the Australian market for Indonesian footwear products, among other items.
2. Consider brick-and-mortar vs. e-commerce
When expanding globally, companies should consider whether to sell their footwear products through brick-and-mortar stores or e-commerce platforms. Brick-and-mortar stores can provide a physical presence in the target market, allowing customers to see and try on products before purchasing them. E-commerce businesses, on the other hand, can provide access to a wider audience with lower overhead costs. For example, companies can use online marketplaces like Amazon or eBay to reach global customers.
3. Establish distribution networks
Putting a reliable distribution network in place is critical for the successful international shipping of shoes. Companies can work with local distributors or establish their own distribution channels to ensure that their products are readily available in the target market. Distributors can help with logistics, customs clearance, and local marketing efforts, among other things. Companies can also consider using third-party logistics providers to manage their transportation and warehousing needs.
4. Understand new markets
How to start shipping shoes to international markets? Understanding the target market first is essential. Companies must research consumer behaviour, preferences, and regulations to be sure that their products meet the market's demands and comply with local laws. This includes understanding the target market's size, demographics, income levels, and cultural norms. Companies should also be aware of any relevant regulations and certifications required to sell their products in the target market.
