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Feasibility Analysis for Exporting Lingerie to Indonesia

Feasibility Analysis for Exporting Lingerie into Indonesia

Based on the contemporary socio-economic and political profiles of Indonesia, there are many problems inherent in exporting American-made lingerie garments into that country. However, based on the economic outlooks proposed by any respected authorities, there are potentially large profits to be made. This analysis discusses these problems and potentialities in four major sections: Section 1, The Economic Variables; Section 2, The Economic Forecast; Section 3, the Market Demand; and Section 4, Economic Risk.

Indonesia's population of some 198 million is spread across 13,700 islands in the Pacific Ocean, with several main cities, most notably the Capitol Jakarta, Medan and Bali. The 1995 Gross National Product in U.S. dollars was $153,270 million and the nation has a per capita income of $780. Total 1995 imports were $16,359.6 million and total exports were $40.1 billion. Its major trading partners are the United States, Australia, Japan, Taiwan, and Singapore.

A major economic variable which must be taken into consideration for this feasibility analysis is the fact that the $780 per capita figure though statistically accurate is quite misleading, since approximately 75 percent of the attributed population of Indonesia consists of a wide variety of ethnic tribes. When those people (who would not be potential customers of a lingerie line anyway are factored out, the revised per capita income is much higher.

Average population age is another critical variable to consider. Three out of every four Indonesian citizens are under the age of 40, a fact which prompts another government information source to say "Indonesia is very much a nation for the future of the world. With youth comes energy and ambition. And Indonesia has plenty of both." Over the last 25 years the Indonesian economy has diversified and matured, growing at an average rate of 6.9 per cen...

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Feasibility Analysis for Exporting Lingerie to Indonesia. (1969, December 31). In LotsofEssays.com. Retrieved 10:44, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1691104.html