A Fast Look into Indonesia’s Footwear Industry

A Fast Look into Indonesia’s Footwear Industry

Written by Leong KexinNovember 6, 2019

A Fast Look into Indonesia’s Footwear Industry

As increased competition makes the current retail landscape tougher, more retailers will have to venture into new categories as a means for growth. Footwear holds great potential due to the increased demand among consumers, particularly in Asia. 

The revenue for Footwear in Southeast Asia will reach an estimated total of $1 billion by the end of 2019, signifying ample commercial opportunity and also an influx of local retailers eager to supply to the increasing demands. Indonesia is a significant contributor, as the country ranked in fourth place for global shoe production

As local demand proliferates, retailers will have no choice but to quickly adapt to fast-moving trends. In today’s competitive landscape, failure to do so will result in missed opportunities.

To analyse the current footwear industry in Indonesia, we looked at the data of multi-label retailer, Zalora Indonesia. Its UK counterpart, Asos, was used as a comparison to uncover any shifts in demand between the Indonesian and UK markets.

We ranked the top five footwear subcategories and found that Boots had varying ranks in both markets – which could be linked to seasonality differences. However, Heels remained the largest category for both markets. 

To spot trending demands from the local market, we’ll be zooming into the top three leading footwear subcategories on Zalora Indonesia.


The classic silhouette of pointed-toe heels made its appearance on the runway of FW19 from renowned designers such as Balenciaga and Burberry. The trend was already adopted by the mass market and also on the Indonesian market, as shown by our data. 

Bestselling heels Zalora Indonesia

From left to right: Mandy’s, Mandy’s, Call It Spring 

Above are examples of the bestselling styles of Heels with a pointed-toe silhouette. Beige-pink hues were a stand-out shade. 

Sandals and Flip Flops 

Bestselling sandals Zalora Indonesia

From left to right: Birkenstocks, Mango, Berrybenka Label 

Due to the tropical climate of Indonesia, it is no surprise that sandals and flip flops – shoes that are typically synonymous with summer – are the second most-stocked subcategory at Zalora. The bestsellers above depict the market’s preference for fuss-free silhouettes, such as slides.  


Bestselling flats Zalora Indonesia

From left to right: Berrybenka Label, Call It Spring, Marc & Stuart Shoes 

Under the Flats subcategory at Zalora Indonesia, it can be observed that the trend of pointed toes crossed into Flats, giving the classic Ballet Pump style an update. This indicates a trend that can be adapted into different subcategories of footwear. 

Full price breakdown of Shoes Zalora Indonesia
Price ranges of top 3 Shoes subcategories at Zalora Indonesia.

Pricing Architecture 

Understanding market demands require more than just spotting product trends in retail. Once the bestselling trends have been established, it is also important to take note of price points set by a retailer. Pricing too high or too low minimises profit gain, especially when benchmarked against industry leaders.

The majority of the footwear assortment at Zalora Indonesia sits within the IDR 300,000 – 400,000 price range. This highlights the average price range for the three biggest subcategories.

Although looking at the price architecture at a retailer will deliver insight into its pricing strategy, a further step will allow you to reveal how much consumers are willing to spend on different subcategories of shoes.

Sellout price of Shoes Zalora Indonesia
Sellout by full price of top 3 Shoes subcategories at Zalora Indonesia.

By cross-analysing the price ranges offered by a retailer against the price ranges that actually went out of stock, an ideal price range can be easily determined. Comparing the two graphs shows the SKU count for Heels at a full price exceeding the sellout count, especially for the higher price range. This could lead to an overstocked inventory problem and the retailer will have to resort to excessive markdowns in order to drive sales. 

Key Takeaway

With estimated annual revenue growth of 5.4%, the Indonesian footwear industry shows no signs of slowing down.

Demands will inevitably increase. Acquiring accurate insights with maximum speed will allow retailers to stay ahead in the competitive market.

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