This is the first time I am writing a blog so pardon me if some words might sound awkward, I’m trying to be as natural as I can.
So I originally come from Indonesia, this is the place where I got my first experiences as merchandiser. Back then when I just start this job around 15 years ago, orders flooding like tsunami and they are a massive order, big quantity good price. There is even a single style with more than 1 million quantity, I must say merchandising job back then is heaven, every single things we do it seems worth with the profit that comes with it.
I can’t really remember the exact year when the changes coming. Buyer price getting steep and our minimum wages is not helping either. Well, back then they calculate minimum wages based on the price of basic needs which is clothing, food, transport, housing and certain other items. Recently they inquired movie tickets and perfume are included in basic needs but I am not talking about basic necessities here. Continuing about orders….
Nowadays if you wish to get massive quantity then be prepared to haggle with “cut throat” price, well officially if the price in the price ticket only 5 to 7 dollars, how much you think their budget of making it? And that’s not including shipping, handling and advertising. Especially “ADVERTISING”, sometimes I think those models got paid a lot more than a factory earns in a month.
There are times when company need to take break even point order just to avoid idle capacity.
But of course not all orders like that there are also the good price, but be prepared to see order quantity that makes you think “is this bulk order or sample?”, plus unreasonable lead time. Yes, I am talking about the high fashion line.
Some garment company already open facilities outside of Indonesia years ago where the minimum wages lower than Indonesia. And the rest mostly shifted to lower wages area but still within Indonesia.
But that’s also have its own problem, last time before I left Indonesia they are still struggling to find workers in low wages area. WHY? Because it seems most of factories choose the same area. But I’m sure everything will turns out fine eventually.
As for the situation in Malaysia, I will get back with you on my next blog. Have a nice day fellow MD’s :)