Can Glodok maintain sales supremacy for electronics?<\/p>\n
By Imanuddin and Ivy Susanti<\/p>\n
JAKARTA (JP): It is no exaggeration to say Glodok in West
\nJakarta is the trading hub for electronic items not only for
\nJakarta, but the nation.<\/p>\n
With daily trading value of not less than Rp 50 billion
\n(US$11.2 million), the subdistrict is undoubtedly the busiest and
\nmost liquid trading site in the city.<\/p>\n
It was established as a residential area in 1740, mostly for
\nIndonesians of Chinese descent, and European and Chinese-
\ninfluenced architecture still predominates.<\/p>\n
Glodok was developed as a business center in the early 1950s.
\nIn line with the rapid development of electronic technology and
\nincreasing demand for electronics, it shifted into a trading
\ncenter for this sector in the early 1980s.<\/p>\n
There are several blocks of buildings, including the Harco
\nGlodok, Glodok Makmur, Glodok Jaya, Glodok Plaza and Orion Plaza,
\nwhich sell electronics.<\/p>\n
But business is not always brisk. Others whose core business
\nis nonelectronic products are attempting to muscle into the
\nsector by opening sales centers in other areas.<\/p>\n
Property developers have been influenced by the development.
\nThey have opened integrated electronics sales centers with
\ncomplete facilities available for visitors' comfort.<\/p>\n
These electronics centers have been established in nearby
\nMangga Dua, West Jakarta, and in Central Jakarta.<\/p>\n
One of the newcomers opened in the Jakarta International Trade
\nCenter. Another operates an electronics sales department at the
\nPasar Pagi Mangga Dua, which is located across from the trade
\ncenter.<\/p>\n
The Harco Superstore is also in Mangga Dua.<\/p>\n
Meanwhile, the operator of the Bendungan Hilir market in
\nCentral Jakarta realigned its function from a general purpose to
\nelectronics-oriented center.<\/p>\n
Shop owners at the Glodok electronics centers could not ignore
\nthe challenge from the new competitors because the latter provide
\na comprehensive array of electronics, a draw for the public.<\/p>\n
Some owners admitted their sales had declined by about 20
\npercent in recent years, especially since the Harco Superstore
\nstarted operating in April 1994.<\/p>\n
But price still reigns as the dominant factor in getting
\npeople into the stores.<\/p>\n
"Many of our customers, who had turned to other electronic
\ncenters, returned here just because the prices of our electronic
\ngoods are reasonable," said Sharno Gousen, who sells computer
\nequipment in Orion Plaza.<\/p>\n
People intending to shop in Glodok should first have mastered
\nthe general "formula" on how to get the goods at cheap prices.<\/p>\n
This includes good bargaining skills, conducting informal
\nmarket research on the exact prices of the goods they want to buy
\nor by asking a friend who has a close relationship with the
\nsellers to do the bargaining.<\/p>\n
This formula can enable someone to get a 29-inch Sony TV set
\nfor Rp 100,000 to Rp 200,000 less than in other shopping centers.<\/p>\n
But pleasing product displays are not a priority at the Glodok
\nshopping complex.<\/p>\n
Some owners pile their goods haphazardly inside their shops,
\nwhile others stack them so high that they block customers' views
\nof the stock.<\/p>\n
"We have to stack our goods inside our stores because we do
\nnot have enough space to store them," Sharno said.<\/p>\n
The size of each shop in Glodok varies from 12 square meters
\nto 60 square meters, said a maintenance official at the Orion
\nPlaza.<\/p>\n
The shopfronts and interiors sometimes appear dimly lit as
\nsome owners appear not to care about the value of illuminating
\ntheir wares.<\/p>\n
"However, people still come to my shop to buy televisions,
\nlaser disc players and other entertainment electronic goods,"
\nsaid Budi, a shop owner in Glodok Jaya.<\/p>\n
Budi's shop is not only unattractive inside, but also
\ndifficult to reach as it is situated in the back of the building.<\/p>\n
Sharno said he did not pursue a huge profit margin for every
\nproduct sold.<\/p>\n
"I prefer to have a rapid flow of my goods sold than keep them
\nlong in storage while awaiting buyers to buy expensive
\nmerchandise," he said.<\/p>\n
He said he sometimes sold the goods at no profit.<\/p>\n
"I have to do that because I need cash to continue my
\nbusiness," he said.<\/p>\n
"However, people never believe me when I tell them that I got
\nno profit at all."<\/p>\n
Budi also revealed his strategy in selling cheap electronic
\ngoods.<\/p>\n
"I get the electronic goods directly from the source (the
\nproducer)," he said.<\/p>\n
A shop owner at Glodok Makmur said he managed to sell quality
\nelectronic products at cheaper prices because he paid lower
\nbuilding maintenance and operational fees than tenants in other
\nelectronic centers.<\/p>\n
"I have checked with other electronic centers that Glodok
\ncharges the cheapest building maintenance fees from its tenants,"
\nthe shopowner, who asked for anonymity, said.<\/p>\n
He said Glodok's supremacy in the sector goes along with its
\nimage as a complete electronic center with a large variety of
\ngoods available.<\/p>\n
"Glodok's image as a cheap and complete electronic center in
\nthe city contributes to our supremacy," he said.<\/p>",
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