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Special series : INDONESIA
OEM Production, supplying Brassieres to the Top Ten Manufacturers of the World
MARGARETH LIE PERMANA(李莉萍),
Business Development Director
Recently the company has been busy in the activities contributing to the society/region etc also Mr. Tonny Permana(方忠坤/CEO) and "Honey Lady" Mrs. Margareth Lie Permana(李莉萍/President Director), Mr. Ferdinand Permana(方寬哲/Business Development Director)
"There have been companies finding it difficult under the current recession; however the company has been able to realize a growth percentage of approx 8% in the fiscal year 2008 too. This could be achieved because of High Quality, adherence to the timely Delivery and Stable Finances" said CEO of the company- Mr. TONNY PERMANA; recently the company has been busy in the activities contributing to the society/region etc. rather than focusing on the work related to the company alone.
"At this juncture, shrinking lot size is painful for the buyer too. As the company receives orders from the buyers supplying to the World Top 10 Companies, situation is not so unsafe but is definitely a tough situation. Therefore in order to extend support to the buyers, the company cooperates by making proposals related to cost down etc." said Mr. PERMANA.
One can acquire reliability with measures such as high quality, and timely delivery, thus can continue growing even under circumstances like recession. There is a substantial amount of efforts in the background of the growth.
The company deals mainly in Brassieres and other items such as panties, camisoles -etc in the lingerie and the annual production volume is 23 million pcs /year. Company’s main production i.e. Brassieres account for 90% of the total volume.
100% of the products are exported, out of which 80% of the products are for U.S.A. and remaining 20% are exported to the European Market. Products are being offered to the global brands like U.S.A.(Victoria Secret, JC Penny's, Macy'se, Kohl's, etc.), CANADA (La Senza), Europe (Mark & Spencer, H&M, etc.)
"Honey Lady" was born in a home industry with 10 employees,
5 machines and with an area of 80m2
Our factory, now grown up to one of the largest brassiere factory in whole Indonesia, was also a small cottage industry unit when started in the year 1977.
Mr. TONNY PERMANA belongs to Northern Sumatra. I knew my wife (Mrs. MARGARETH LIE PERMANA: President Director) since childhood. From 15 years old, she has been helping her father to run a shop selling Brassieres in Medan and was procuring the Brassieres from Jakarta. On the other hand, In Jakarta, my beloved mother and I were just planning to start to learn how to make Brassieres.
Unfortunately, before the dream was realized my mother passed away. I was 17 years old then and was very sad. After I lost my mother, I discussed with the people around asking "what should I do now?" prompt advice was "start making Brassieres on your own!" Therefore with strong determination, I set my mind to realize my mother’s dream and not long after that, I started dating my wife and together we started producing Brassieres. We started from home with 5 machines and 10 people at disposal.
Since we did not know how to make or sew Brassieres, everyday was a new learning from the making of the patterns, to dyeing, to cutting and sewing. Moreover, we did not know the buyers directly, so followed the procedure of getting orders through small retail shops and door to door. From production to selling, and right from sales to production and delivery, it was all handled by us on our own. Before long, we were able to secure orders and with this, fell short of the man power. It was then we increased the man power scale to an extent of 50 people. "Honey Lady" was the brand which we created at that time.
Soon we started getting large orders, established a factory in North Jakarta in the year 1985, and ventured into Exports. We got orders from Vanity Fair through a buyer on the introduction of an uncle in Hong Kong. We had been into both Domestic and Export market, but with deterioration of the domestic market due to political instability in the country, we switched over to Exports exclusively in the year 1997.
30 people x 145 lines
Lot Size 5,000 to 600,000 pcs.
Presently we have factories at two locations, JAKARTA and SEMARANG; high end products are being produced at JAKARTA wh er e as mass production items are being produced at SEMARANG. There are 30 man powers in one line, JAKARTA factory has 85 lines and SEMARANG factory has 60 lines, a total of 145 Lines which are already operational.
The factory has an employees' strength of 6,500 employees. Sewing machines are 5,000 in number, out of which 4,350 have been deployed on the various lines. 650 machines are used according to the design, can say are spare.
Machines being used are almost 100% from JUKI with more of overlock machines and cover stitch machines in addition to standard sewing machine (lock stitch machines) for the light stuff lingerie alone. Production lot ranges from 5,000 pcs to 600,000 pcs for the larger lots. In case of a bigger lot size, measures are taken on specialized dedicated lines corresponding to the orders; presently we have approx 40% specialized dedicated lines.
A View on Entry into Domestic Market also
Business is doing well however wages have gone high. Even in Jakarta also, wages have gone up by approx 25% during these five years means, 750,000 Rp has gone up the extent of 1 million Rp. We do have share in the market for Exports to some extent, and next target is "Yes, we are preparing to re-enter the domestic market and eventually the Asian market in the near future. I think it's worth considering the Asian market now" said the "Lady of Honey Lady" Mrs. PERMANA.
"There have been so many ideas like either to develop with our own brand "Honey Lady" or to get a Brand License from one of the established clothing line brands that does not have a Brassiere line and develop from there. " said Mr. FERDINAND PERMANA (Business Development Director). As we have accumulated sufficient experience over the past 30 years since we started, we are really looking forward to the development of our own Retail Stores.
The high-end Brassieres market in Indonesia is estimated at about 10 million pcs, and being able to enter into the market of the World Top 10 in terms of quality and design, the company can expect moderate results linked to that. In addition, the prospect in the rest of Asia is still very bright. and we are looking forward to the future enthusiastically.
The factory has been designed in white tiles so that dirt/dust gets highlighted and is visible. It is clean and being maintained beautifully with cleanliness always in mind. This cleanliness is the origin of High Quality
JUKI Products are being used
1-needle, Lockstitch Machine with Automatic Thread Trimmer (DDL-8700-7)
Computer-controlled, High-speed, Bartacking Machine<For Foundation> (LK-1900AFS)
High-speed, 1-needle, Lockstitch, Zigzag Stitching Machine(with standard/3-step Zigzag stitching pattern changeover function) (LZ-2284N)
Single-thread, Chainstitch, Button Sewing Machine with Knot-tying Mechanism (MB-377NS)