Clean Batik Initiative - National Policy Dialogue -

Clean Batik Initiative

- National Policy Dialogue -

Marketing Survey Results

2012

Partners

Supporting Organisations

CLEANER

PRODUCTION

(CP)

Marketing Seminar

Note: Only for Batik SMEs that pass evaluation

POLICY DIALOGUES

CBI Timeline

CBI Implementation 2nd Half Year 2012 Marketing Seminars & Policy Dialogues

Marketing Seminar for Multipliers

12.09.12

KELANTAN

TERENGGANU

Policy Dialogue

Marketing Seminar for SMESs

*16 or 17.10.12

Policy Dialogue in Kuala Lumpur

*28.11.12

Policy Dialogue in Kota Bharu

12.09.12

Policy Dialogue in Kuala Terengganu

19.09.12

Marketing Seminar for SMESs & Multipliers

*27.09.12

Policy Dialogue in Kuala Lumpur

*28.11.12

Policy Dialogue

Marketing Seminar for SMESs*22.10.12

CR Conference Kuala Lumpur

2.10.2012,

IGEM Exhibition Kuala Lumpur 10 - 13.10 .12

Question 1: Number of Staff

2%

32%

39%

16%

2% 1% 8%

Number of staff

1

2 to 5

6 to 10

11 to 15

16 to 20

21 to 25

n.a.

• 39% of Batik SMEs employ 6 – 10 staff

• 32% of Batik SMEs employ 2 – 5 staff

• 16% of Batik SMEs employ 11 -15 staff

• The industry provides 3703 – 5999 jobs

Question 2: Type of produced Batik

18%

11%

0%

9%

43%

19%

Type of produced Batik

Cap (stamped)

Tulis (written)

Printing (printed)

Kombinasi (combination)

Lukis (drawn)

n.a.

• “Chanting” has widely replaced “Cap”

• “Drawing” is the most common “chanting”

• The Batik SMEs are highly specialized

• Only 9% combine Batik techniques

• “Printing” SMEs are excluded from CBI

Question 3: Batik product variation

30%

8%

20%

24%

6%

2%

2% 2% 2%

4%

Batik product variation

Kain Batik (Batik cloth)

Sarung (Sarong)

Busana Wanita (Womens attire)

Busana Lelaki (Mens attire)

Selendang, Syawl, pashmina (scarf,syawl,pashmina) Tali lehar (Necktie)

Cadar (Bed cloth)

Lukisan (Drawing)

Alas meja (table cloth)

Lain-lain (others)

• 30% of Batik products are Batik clothes

• Followed by Batik clothing for men and women

• Accessories are only a small share of production

Question 4: Type of cloth used for Batik production

20%

33%

3% 6% 3%

16%

4%

2%

3% 2% 4%

4%

Type of cloth used for Batik production Kapas (cotton)

Sutera (silk)

Crepe

Jacqart

Cotton

Fuji

Rayon

Poplin

Kaftan

Chiffon

lain-lain (others)

n.a.

• Silk, cotton and Fuji are the main raw materials

• Other materials are only subordinate sources

Question 5: Main Batik product

13%

11%

45%

7%

5%

3%

2%

2% 1% 7%

4%

Main Batik product

Kemeja

Kaftan

Kain Batik

Sarung

Busana Wanita

Busana Lelaki

Pakaian Siap

Sutera

Jubah

Lain-lain

n.a.

• 45% consider clothes as most important product

• Kemajas and Kaftans play an important role

Question 6: Product capacity per month/per product

0

5

10

15

20

25

30

Product capacity per month/per product

1 - 250

251 - 500

501 - 1000

1001- 2000

2001 - 3000

>3000

• Most Batik-SMEs have a capacity of up to 250 units per month

• Only a minority have a monthly output of 1000+

Question 7: The uniqueness of your

product compared to competitor

34%

20%

15%

23%

1%

5%

2%

The uniqueness of your product compared to competitor

Motif/corak (motive/pattern)

Mutu (quality)

Harga (price)

Warna (colour)

Penggunaan warna alam (usage of environmental colours)

Bahan material (material)

Lain-Lain (others)

• The pattern/motive is considered as unique

feature

• Colors and quality play an important role

• The price is of minor importance

Question 8: The pattern and motive of

your batik product is made:

32%

63%

4%

1%

The pattern and motive of your Batik product is made:

Sesuai dengan corak dan motif yang saya inginkan dan saya mampu sahaja (Suitable to the pattern & motive that I desire & only to my own capabilities)

Sesuai dengan keinginan dan keperluan pelanggan (Suitable with the desires & needs of customers)

Mengikut corak dan motif pesaing-pesaing saya (According to the patterns and motives of my competitors)

• Consumer preferences are determinants

• Followed by own preferences & capabilities

• Plagiarism hardly take place

Question 9: Does your product have a marking

or label?

0%

7%

7%

65%

21%

Does your product have a marking or label?

Tanda (marking)

Label (label)

Tanda & Label (marking & label)

Tanpa Tanda & Label (Without marking and label)

n.a.

• Batik SMEs hardly do branding

• Respectively 7% of the enterprises label or mark and label their products

Question 10: Where and how do you

sell your Batik products

20%

18%

9% 9%

30%

14%

Where and how do you sell your Batik products?

Dipasarkan sendiri (Door to door)

Menjual di gerai sendiri (Sell in own shop)

Memasarkan di internet (Via internet)

Meletakkan di gerai orang lain (Placed in other shops)

Melalui agen/distributor (via agents/distributors)

Lain-lain (others)

• Agents/distributors are the most important distribution channels

• Door to door distribution and sale in the own shops play an important role

Question 11: Method of promoting

your Batik products

13%

6%

20%

1% 4%

26%

9%

8%

13%

Method of promoting your Batik products

Tidak anda (none)

Risalah (Brochure)

Pameran (Exhibition)

Yellow pages

Majalah (Magazine)

Kad nama (Name card)

Internet

Lain-Lain (others)

n.a.

• The use of name cards is the most common promotion tool

• 20% are using exhibitions as opportunity to promote their products

• 15% do not promote their products at all

Question 12: How high is your annual turnover?

72%

2% 0%

0%

26%

How high is your annual turnover?

< RM 1 juta

RM 1-5 juta

RM 6-10 juta

> RM 10 juta

n.a.

• The vast majority of the Batik SMEs experience an annual turnover of <RM 1 million

Question 13: Have you got an organized

accounting?

54%

23%

2%

0%

21%

Have you got an organised accounting?

Belum (Not yet)

Sudah, tapi belum maksima (Done, but not maximised yet)

Sudah (done)

Lain-lain (others)

n.a.

• More than the half of the industry do not apply book-keeping

• 23% do not apply book-keeping methods consistently

Question 14: Your Batik product price

compared to similar products of your main

competitor

5%

66%

11%

18%

Your Batik product price compared to similiar products of your main-competitor

Lebih tinggi (higher)

Lebih kurang sama (almost equal)

Lebih rendah (lower)

n.a.

• The industry is characterized by a low price differentiation

Question 15: Competitor’s product advantages

16%

4%

3%

2%

3%

6%

2% 10%

54%

Competitor's product advantages motif/corak (Motive/pattern)

Lebih Kurang sama (More or less the same)

Reka Bentuk (Shapes and design)

Haga murah (Cheap price)

teknik (Technique)

tidak pasti (Not sure)

Boleh Produksi kuantiti lebih banyak untuk tempoh pendek (Higher productivity)

lain-lain (Others)

n.a.

• Hardly able to identify competitor’s strength

• A large share consider motives/patterns as competitor’s advantage

Question 16: Competitor’s product weaknesses

7%

25%

7%

4%

2%

12%

43%

Competitor's product weaknesses

Kualiti (Quality)

Motif (Motive)

Warna (Colour)

Mahal (Expensive)

Tidak Pasti (Not sure)

Lain-lain (Others)

n.a.

• Hardly able to identify competitor’s weaknesses

• A large share identified the motives/patterns of their competitors as weakness

Question 17: Have your products ever

been exported?

18%

82%

Have your products ever been exported?

Ya (Yes)

Tidak (Never)

• Only 18% of the Batik SMEs export their products

• 82% produce for the domestic market

Question 17b: To which countries are

your products exported?

46%

8% 8%

8%

17%

13%

To which countries are your products exported?

Brunei

Singapore

Australia

USA

Europe

Others

• Brunei is the most important market for Malaysia’s Batik industry

• Followed by Europe

• Australia, USA and Singapore are only importing 8%

18%

82%

Did you/your Batik enterprise ever received marketing training previously?

Ya (Yes)

Tidak (Never)

Question 18: Did you/your Batik

industry ever received marketing training

previously?

• Hardly any Batik SME has participated in marketing trainings so far

50%

16%

17%

17%

Who offered this marketing training?

Kraftagan

Mara

others

n.a.

Question 18b: Who offered this

marketing training?

• Kraftangan has offered 50% of the marketing trainings for Batik

SMEs

• Mara has offered 16% of the marketing trainings for Batik SMEs

Question 19: Which marketing topic

does your Batik enterprise require?

17%

12%

12%

5% 7%

12%

8%

7%

10%

10%

0%

Which marketing topic does your Batik enterprise require?

Perancangan pemasaran (market planning)

Pembangunan produk dan reka bentuk (product development & design)

Iklan/Promosi (advertisement/promotion)

Tindakan susulan oleh pengguna (Follow-up actions by users)

Pembungkusan (Packaging)

Akses pasaran (market access)

Penentuan harga dan rundigan (pricing and negotiation)

Imej produk (jenama) (product image/branding)

Komunikasi perniagaan (business communication)

Pameran (exhibition)

Lain-lain (others)

• CBI covers all topics demanded by Batik SMEs

28%

69%

3%

Has your Batik industry ever had a loan from a bank?

Pernah (yes)

Tidak (never)

n.a.

Question 20: Has your Batik industry

ever had a loan from a bank?

• The vast majority has never had a bank loan

29%

12%

13% 8%

17%

17%

4%

Which bank gave you a loan?

SME Bank

Tekun

Mara

CIMB

Agro Bank

BSN

Amanah ikutiar

Question 20b: Which bank gave u a loan?

• The SME Bank and BSN provided most loans for the Batik SMEs

5%

2%

34%

22%

14%

6%

17%

Why did your Batik SME never applied for a bank loan?

Risiko (Risk)

Sukar Berpotensi (hard potential)

n.a.

Tidak tahu prosedur (do not know procedure)

Tidak ada keperluan (not necessary)

Susah mandapat pinjaman (hard to receive loan)

Lain-lain (Others)

Question 20c: Why did your Batik

SME never applied for a bank loan?

• 22% of Batik SMEs do not understand the procedure to apply for a loan

• 14% never considered a loan as necessary

26

21

1

11 12

28

20

26

0% 1% - 25% 26% - 50% 51% - 75% 76% - 99% 100%

To whom will you sell your batik?

Export Local n.a.

Question 21: To whom will you sell

your batik?

• 47 of the interviewed SMEs produce up to 50% for the export market

• 60 SMEs produce more than 50% of their production for the domestic market

2 3

35

11

6 7 7 6

45

4 3 3

0% 1% - 25% 26% -50% 51% - 75%

76% - 99%

100%

Local market which target groups?

in your own province

outside of your own province

Question 22: Local market which

target groups?

• Almost equal shares are produced for the local and national market

17%

35%

34%

14%

You sell Batik

via own shop/outlets

to distributors/wholesalers

directly to clients

n.a.

Question 23: You sell Batik

• Distributors/wholesalers and other clients are the most important customers for Batik SMEs

62

11

1 1

13

25 19

3 1 1 2

14 10

23

11

0% 1% - 25%

26% - 50%

51% - 75%

76% - 99%

100%

How many % of Batik is sold:

via Internet

Governmental institution/teachers/pupils

Distributors/wholesalers

Question 24: How many % of Batik is

sold

•Distributors/wholesalers purchase the most produced Batik

•Governmental Institutions/teachers and pupils are other important customers

4%

18%

17%

36%

25%

Percentage of your business with your one largest customer?

≤ 10%

≤ 25%

≤ 40%

over 50%

n.a.

Question 25: Percentage of your

business with your one largest customer

• 36% of all Batik SMEs are highly dependent on one customer

13%

18%

17% 28%

24%

Percentage of your business with your Top 3 largest customers

≤ 20%

≤ 40%

≤ 60%

≤ 80%

n.a.

Question 26: Percentage of your business with your

Top 3 largest customers

• 28% of all Batik SMEs depend on their Top 3 largest customers

22%

25%

16%

18%

2%

17%

Your sales activities out of your own state, are:

no outside activities

With Kraftangan events in Kuala Lumpur

With Kraftangan events in other states

Other exhibition

Overseas exibition

n.a.

Question 27: Your sales activities out

of your own state, are

• Kraftangan in Kuala Lumpur is the most important Exhibition for Batik SMEs in Malaysia

• Followed by other Kraftagan events Malaysia

• 22% of Batik SMEs do not use this opportunities

25%

21%

18%

36%

In the last 3 years, my company has attended:

1-3 sales events out of my state

3-6 sales events out of my state

more than 6 sales events out of my state

n.a.

Question 28: In the last 3 years, my company

has attended

• The companies who use exhibitions, do so frequently

Question 29: Have you ever tried to

work with natural dyes?

75%

15%

2% 8%

Have you ever tried to work with natural dyes?

No, never

Yes, but just for a trial once

Yes, we work permanently with it

n.a.

• Hardly any SME has ever tried natural dyes

• 15% have tried natural dyes once, but switched back

• Only 2% permanently work with natural dyes

41%

17%

21%

13%

8%

The price of fabric raw material increased over the last 2 years:

over 30%

over 50%

over 80%

over 100%

n.a.

Question 30: The price for raw materials

increased over the last 2 years

• Every Batik SMEs have experienced price increases from 30% up to 100% +

14%

35% 34%

7%

10%

The cheap batik imports from China are:

no threat at all for my sales

a normal challenge

a large threat

a threat on our existence

n.a.

Question 31: The cheap batik imports

from China are:

• 34% regard cheap batik imports from China as a large threat

• 35% as a normal challenge

• 7% as a threat to their existence

• Only 14% do not see a threat for their business

1%

36%

47%

8%

8%

Increase of raw material challenges my business:

Not at all

Just a little

Strongly

Threaten my existence

n.a.

Question 32: Increase of raw material

challenges my business

• 47% perceive this development as strong challenge

• 36% are only affected a little

• 8% consider it as a threat to their existence

11%

34%

37%

10%

8%

Batik import of China challenges my business:

Not at all

Just a little

Strongly

Threaten my existence

n.a.

Question 33: Batik import of China (open, no

customs, since January 2010) challenges my

business

• 37% consider imported Batik as a strong challenge

• 34% define it as a little challenge

• 10 % see a threat for their existence

• Only 11% perceive the development as no challenge

24%

14%

37%

17%

8%

Implementation of water regulation of DOE challenges my business:

Not at all

Just a little

Strongly

Threaten my existence

n.a.

Question 34: Implementation of water

regulation of DOE (with penalties) challenges

my business

• 17% consider the up-coming DOE water regulations as threat to existence

• 37% as a strong challenge

• 14% as a little challenge