July 26, 2008

Recycling bags from plastic trash backed by major store

By Agnes Winarti

Supermarket chain Hypermart announced it would begin selling products made from recycled plastic, drawing approval from home industry producers of the goods.

Marketed under the brand Trashion (trash fashion), the products — ranging from wallets to laptop bags — will be available in three Hypermart outlets.

Trashion products are priced according to the level of complexity in the production process, with wallets retailing from Rp 25,000 (US$2.80) and laptop bags retailing from Rp 250,000.

"Previously we did not have a production target, but now we are looking to make between 40 and 50 items per week," said Rahayu Istari, one of 10 groups of female entrepreneurs in Jakarta producing Trashion.

Housewives and other small business entrepreneurs have struggled for years to introduce their recycled plastic products to a mass market. However, their endeavors often only took them from one exhibition to another. But now, the recent trend toward a green lifestyle in urban areas means more people are showing an interest in the products.

About 100 women are currently engaged in the production of Trashion in various workshops and homes across the capital.

PT Unilever Indonesia provided the initial funding and equipment to get the businesses going.

Istari said she began making Trashion products with her neighbors in Cipinang Melayu, East Jakarta, last year. She added Hypermart was the first big retailer to express interest in marketing the products.

Heriyanti, a Trashion maker in Pasar Minggu, South Jakarta, said she was planning an initial marketing run of 200 items at Hypermart's stores.

"We will wait and see what the customer response is like. We plan to supply 70 pieces per week for each of the 21 Trashion items sold at Hypermart," she said.

Carmelito J. Regalado, director of marketing and merchandising at Hypermart's Indonesian operator PT Matahari Putra Prima, said the company was not seeking to be the exclusive retailer of Trashion.

"We hope other retailers will follow in our steps in addressing problems of waste," he said.

Local enterprise Plastic Works is holding training sessions to help Trashion entrepreneurs improve their production skills.

Aswin Aditya, founder of Plastic Works, said there was great market potential for Trashion, both domestically and abroad.

"The main challenge faced by these manufacturers is that people here are not as accustomed to recycled products as people overseas," he said.

"Customers still regard products made of trash as being too expensive, and that's because they have no understanding of the manufacturing process."

For instance, he said, a single umbrella made from recycled plastic could sell for up to Rp 150,000 because it took two or three days to make.

He said Plastic Works exported some 70 percent of their products to the United States, Singapore, Australia and the Netherlands, while the rest were marketed locally at exhibitions and through word of mouth. [The Jakarta Post]

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