ID fashion firms face sourcing dilemma

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Hello reader,

I’ve never been someone that cared that much about clothes and fashion, much to the chagrin of my fiancee. S$90 (US$66) for a shirt? Get out of here. I’m happy with my cheap Uniqlo T-shirts and shorts.

That said, I’m aware that it’s not easy to get clothes that are both cheap and good-quality, which is an issue that many Indonesian fashion brands are grappling with right now.

As such, some of them have turned to sourcing materials overseas despite the country’s long history in garment manufacturing. But is relying on foreign sources truly the best way forward for these startups?

Today we look at:

• Why Indonesian fashion startups are beginning to source from abroad
• A foodtech startup’s US$2.5 million funding round
• Other newsy highlights such as eToro’s potential US IPO and Amazon’s acquisition of Axio

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The overseas allure

Image credit: Timmy Loen

As much as many founders might want to support their local industries, the startup game is so cutthroat that you’ve got to maximize gains. As such, I can understand why several Indonesian fashion startups are sourcing materials from overseas. Let’s take a look at the current state of affairs.

• The question of quality: Ben Wirawan, co-founder and CEO of travel gear brand Torch, says that local firms have to match overseas ones in terms of quality, as Indonesian consumers are becoming more exposed to international products.
• Support local: That said, Christie Johana, co-founder of fashion brand Claude, argues that getting good quality materials locally is possible if startups build strong relationships with the country’s suppliers. She cites local factories supplying to large firms like Nike, Zara, and Uniqlo as indications of this.
• Banding together: Small Indonesian brands can consider working together to meet local factories’ production capacity requirements while maintaining lower costs.

Read more: Indonesia’s textile woes push fashion startups to source abroad

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Thanks fam

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