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#39854 - 03 Jan 07 12:02 JP/Minimarkets forcing us out, say angry shopkeepers
biznews Moderator Offline
Pujangga Besar

Registered: 24 Apr 08
Posts: 7508
Loc: Jakarta
Minimarkets forcing us out, say angry shopkeepers

The Jakarta Post, Jakarta

The growing number of minimarkets and convenience stores in Jakarta is forcing many small-scale traders out of business.

"I lost most of my customers when a minimarket opened up right in front of this market (Bintang Mas market in Kemanggisan, West Jakarta) a few months ago," Lilis, a shopkeeper, said Wednesday.

After receiving a number of complaints from traders like Lilis, who have suffered financial losses due to the proximity of minimarkets to traditional markets, the Jakarta administration has decided to ban the establishment of new minimarkets in the city through Gubernatorial Decree No.115/2006.

"We are trying to temporarily stop issuing licenses for the establishment of minimarkets, because there are too many such shops opening up, Subaning Rustriantono, the head of the city administration's small and medium enterprises and market activities division, was quoted as saying by weekly business tabloid Kontan.

There are at least two convenience stores in many neighborhoods -- mostly franchised minimarkets -- often just a few hundreds meters away from each other. The rights to operate a francise usually cost some Rp 300 million (about US$32,000)

According to data from AC Nielsen, in 2005 two of the nations major retail chains experienced growth of more than 20 percent in their number of outlets.

Alfamart had 1,263 outlets last year, 22 percent higher than 973 in the previous year, while Indomaret recorded a 29 percent growth in the number of shops to 1,420 in 2005 from 1,001 in 2004.

With such growth, the market share of traditional stores, currently at 70 percent, is predicted to drop by 2 percent per year.

"We are very disappointed with the governor's instruction, it is not fair to implement a regulation for one side only," Tutum Rahanta, the secretary-general of the Indonesian Retailers Association, told The Jakarta Post on Wednesday.

He said the ban would not only seriously impact traders but leave consumers with less options.

Rather than restricting the number of minimarkets in the city, Tutum said the city administration should better regulate operations in the retail sector.

"Convenience stores are a new form of the old stores we established through trial and error. If the government intends to improve small- and medium-scale enterprises, we can help them by providing assistance."

He said that even after the economic crisis hit the country in 1997, the retail sector had continued to prosper.

"We have proven that we can improve our performance without government interference," he said.

An operational manager of one of the major retail chains, who asked not to be named, said the government should focus more on quality control management at the existing stores, rather than preventing the establishment of more minimarkets.

"The problem is the conventional shops are not willing to improve their services and quality," he said. (05)
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#39856 - 03 Jan 07 13:12 Re: JP/Minimarkets forcing us out, say angry shopkeepers [Re: KuKuKaChu]
Piss Salon Offline
Pujangga Besar

Registered: 27 Jun 06
Posts: 4039
Loc: Jakpus
Though impinging on a traditional way of life in Indonesia, Warung owners are racist (they overcharge bule) and don't, generally, sell cold beer. I don't agree with the overkill on the part of circle K et al either though.
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#39861 - 03 Jan 07 15:26 Re: JP/Minimarkets forcing us out, say angry shopkeepers [Re: Piss Salon]
riccardo Offline
Pujangga

Registered: 12 Oct 05
Posts: 2195
Loc: Jakarta
The stinking, filthy "traditional" markets are dinosaurs and they're trying to hang on despite the overwhelming desire of urban consumers to shop at modern markets.

So now they've employed thug gangs in collusion with certain political parties to try to keep their backward way of life going in the midst of modern, globalized changes.

The only way for them to survive is to modernize -- cleaner places to shop, price transparency, hygienic produce, parking areas, polite staff, no more thugs etc.. ALAS, they don't have the education or the vision to see any of that. So it's just going to be an ugly fight, which they'll never win, despite any regulations pushed through by thugs.

At the end of the day, Indonesia's urban consumers will put them out of business and it will be a fatal lesson for them to learn. They're stupid enough to actually believe the battle is between modern market owners and and government bureaucrats. They fail so miserably to understand that their business is built on satisfying the consumers -- who by the way are changing rapidly and like modern markets now.

But they're unwilling to see the writing on the wall, and too uneducated and too blind to change and thus give the consumer what they want.

It's really a microcosm of so many things in this country.
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#39868 - 03 Jan 07 23:06 Re: JP/Minimarkets forcing us out, say angry shopkeepers [Re: riccardo]
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
this is part of the rentier business mentality so prevalent here. businesspeople (including traders) feel that consumers owe them a living.

consumers, of course, have other priorities, like service, price, honesty, and most importantly, the shopping environment. air-con shopping malls nowadays are part of social experience, where going shopping doesn't just mean purchasing daily necessities.

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