FIFA World Cup bodes well for apparel makers

The Jakarta Post, Jakarta | Mon, 04/26/2010 12:11 PM | Business


The much anticipated 2010 FIFA World Cup, which will run from June 11 to July 11 in South Africa, is creating new opportunities for Indonesian firms to produce and sell football apparel.
"We are producing the apparel in large volumes and with competitive quality and design both for the domestic and foreign markets," Benny Soetrisno, the former chairman of the Indonesian Textile Association (API), said Thursday.
The demands for the products from Asia, Africa, Europe and the US were very high, he said.
The World Cup continues to be the largest draw for football fans around the world and even attracts those who have no knowledge of the game.
Apart from the hoots and cheers that will echo throughout bars, homes and even street hawker stalls during the tournament, there are already signs of soccer fever season manifested through the sudden uptake in people sporting World Cup-themed attire and accessories.
The euphoria of the tournament clearly benefits manufacturers since it sparks great demand for souvenirs and apparel.
"The Indonesian national side did not make it to the World Cup, but Indonesians will still celebrate the tournament by wearing the kit of their favorite teams," Benny said.
He acknowledged that local garment manufacturers benefited from the tournament by producing replica playing kits of the teams in the event.
The World Cup arguably has a great impact on the Indonesian textile industry, unlike other major sporting events such as the Olympics.
"Every country has its own national team with its own kit," API chairman Ade Sudradjat told The Jakarta Post on Friday.
"Each of us has a favorite team and player, and we show our support through buying the official merchandise," he said.
He said the global excitement surrounding the World Cup helped increase global demand for locally produced garments, including T-shirts and shoes.
"We make products not only for the official brands but also for unofficial brands, which are of lower quality," Ade said.
The sales of World Cup merchandise, he said, would help increase the country's textile exports to US$10.6 billion. Textile exports last year reached $9.3 billion, a drop from $10.3 billion in 2008.
Ade said strong demand for World Cup merchandise showed that while local producers could still compete with garment products from other Asian countries including Vietnam, Bangladesh, Thailand and China, the domestic industry still needed to be strengthened.
"Textile exports have been stagnant in the last few years due to a lack of improvement in machinery and erratic energy supply," Industry Minister MS Hidayat said Thursday on the sidelines of the API's national meeting.
He said that more than 80 percent of textile machinery was older than 20 years, resulting in production inefficiency.
Hidayat said the government would take steps to help modernize the industry.
He added that the government was committed to increasing electricity supply by prioritizing the construction of new power plants. (ebf)