Indonesia: E-commerce threatening imported footwear outlets: Aprisindo

• Feb 05, 2018

The rapid growth in online retailers, or e-commerce, has apparently affected the sustainability of imported footwear outlets in Indonesia, the Indonesian Footwear Association (Aprisindo) has revealed.

The closure of at least two imported footwear outlets in Indonesia was evidence of an obvious decline in the imported shoe market, Aprisindo head Eddy Widjanarko said on Friday, according to a kontan.co.id report.

Clarks, an international shoe manufacturer and retailer based in the UK that is set to close all of their outlets in Indonesia at the end of this month, launched a 50 percent to 80 percent “everything must go” sale on Jan. 31 at all its stores. Meanwhile, PT Mahkota Petriedo Indoperkasa, the official distributor of France-based global fashion brand Kickers, will also close their footwear outlet at Kota Kasablanka Mall in South Jakarta.

Eddy said three significant factors negatively affected imported shoe sales in Indonesia: the high cost of renting outlet space, high import duties and the fast growth of e-commerce.

“People today, especially the youth, can easily purchase imported shoes online by themselves. This is actually another threat to retailers,” said Eddy.

Eddy said shoe manufacturers that opened outlets in Indonesia had bigger challenges in making a profit, as they spent more operational costs in paying import duties as well as rent for outlet spaces. These factors also raised the prices of imported shoes sold in physical outlets, making them more expensive than the same products sold online.

Clarks opened its first Indonesian outlet in 2004 under its local distributor, PT Anglo Distrindo Antara. Clarks has 25 stores across the country. (roi/bbn)

Source: http://www.thejakartapost.com/news/2018/02/05/e-commerce-threatening-imported-footwear-outlets-aprisindo.html