Competition in retail business<\/p>\n
In the last five years, the retail industry has grown rapidly.
\nMany shopping centers appear like mushrooms during the rainy
\nseason, not only in Jakarta but also in the suburbs, including
\nBekasi and Tangerang in West Java. There are 46 modern shopping
\ncenters -- plazas, malls, supermalls and megamalls -- in
\noperation. Another 16 are being built and will open next year.<\/p>\n
These shopping centers, many of which include foreign
\nretailers, compete with local retailers. Apparently the foreign
\nretailers are invited to open stores in shopping centers as a way
\nto attract tenants and customers. For example, Sogo in Plaza
\nIndonesia, Metro in Pondok Indah Mall, the (closed) Yaohan in
\nSenen Atrium, JC Penney and Walmart in Supermall Lippo Village,
\nTangerang, and Seibu in Pasaraya Blok M, are all intended to be
\nstrong drawing points for the shopping centers.<\/p>\n
The establishment of these foreign retailers heated up the
\ncompetitive atmosphere. Today, the local retailers are in a
\nstronger position to compete, although there is no guarantee that
\nthey can stay in business, particularly if foreign retailers are
\nallowed to develop chain stores.<\/p>\n
Foreign retailers have a greater chance to win the war because
\nthey are equipped with high technology, modern and efficient
\nmanagement systems, well-trained employees and high quality
\nproducts. Moreover, they join with reputable conglomerates.<\/p>\n
Our local retailers realize that the only way to survive in
\nthis competitive era is to improve efficiencies. So, they hire
\nforeign experts to develop human resources and adopt new
\ntechnology for their entire systems, such as store operations,
\ndistribution, warehousing, and administration systems. Of course
\nthe government has to play its role in this competitive business
\nera so that the interests of the local retailers can be
\naccommodated.<\/p>\n
SAHAT DAMANIK<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/competition-in-retail-business-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }