Matahari's steps in awaiting value migration<\/p>\n
E-commerce is still considered a luxury in Indonesia,
\nespecially considering the fact that e-commerce infrastructure is
\nnot yet cheaply available countrywide. And in the current hard
\neconomic conditions, with the rupiah still very low against the
\nU.S. dollar, it is almost impossible to build e-commerce
\ninfrastructure widely and cheaply. Therefore, businesses which
\nhave the potential to be affected by value migration due to e-
\ncommerce still exist.<\/p>\n
But, this does not automatically mean that these businesses
\ncan exist peacefully, ignoring the threat. E-commerce, however,
\ndepends on telecommunications and the Internet. There is, in
\nfact, another mode which enables the emergence of businesses like
\ne-commerce, such as home shopping services through television or
\njust telephones.<\/p>\n
This change is unavoidable because everywhere in the world
\nthere is always a change in the business model, which leads to
\nmore power for the customers. Business was initially determined
\nby manufacturers; they were in the position of pushing their
\ninterest to the customers. Just remember the popular quote by
\nFord automotive industry founder Henry Ford: \"You can choose any
\ncolor as long as it's black.\"<\/p>\n
Yet, the dominance of the manufacturer began to fade when the
\nnumber of manufacturers began to increase drastically and the
\ncustomers were becoming smarter. The large number of players did,
\nindeed, increase choices but, customers usually wanted to choose
\nproducts that were offered easily and comfortably. This kind of
\ncondition led to the mushrooming of supermarkets, department
\nstores and, more recently, specialty stores.<\/p>\n
In such a condition, intermediaries like supermarkets,
\ndepartment stores and specialty stores were able to obtain a
\npower which was even stronger than that of the manufacturers and
\ncustomers. With the capability to lure prospective customers,
\nthey could finally determine the types of products that could be
\noffered by manufacturers to the customers.<\/p>\n
It can be acknowledged that in their efforts to attract
\nprospective customers, supermarkets, department stores and
\nspecialty stores always rely on context differentiation: trying
\nto sell an atmosphere. That's why, in the condition where
\nsupermarkets, department stores and specialty stores still play
\nthe key role, customers frequently carry out their buying
\nactivities not only for shopping but also for recreation.
\nHowever, context differentiation is not always dependable,
\nespecially when the customers are faced with shortcomings like
\ntime and distance. So they will usually take into consideration
\nthe ease with which to get their needs and cheap prices. To
\novercome this problem, they usually try to create a new
\ndifferentiation, so that they can continue to attract prospective
\ncustomers to their premises. This kind of effort leads to the use
\nof private labels (house brands), where they label products as
\ntheir own.<\/p>\n
Generally, house brands comprise daily basic household goods,
\nsuch as sugar, rice and even drinks. The most important thing is
\nthat they are for daily consumption. Why? Because for daily
\nconsumption products, besides quality, price usually becomes the
\nmain consideration. The functional benefit. While the emotional
\nbenefit usually becomes a secondary reason.<\/p>\n
Though they can actually house-label other products, including
\nthose other than routine household needs, still, not many
\nretailers or specialty stores leverage their brand-equity by
\nusing private labels. Therefore, the decision taken by the
\nMatahari Department Store to launch Stanley Adams is clearly an
\ninteresting phenomenon. Matahari is the biggest department store
\nchain in Indonesia. It launched its own brand, Galeria, to
\ncapture the class-A and class-B economic strata. In its
\ndepartment stores, Matahari has, of course, become the place for
\nmany local and foreign garment producers to promote their
\nproducts.<\/p>\n
Matahari has not only been successful as a department store,
\nbut has also become a trendsetter for the Indonesian people's
\nlifestyle. Matahari has succeeded in pushing changes in the
\nshopping behavior of Indonesians, besides having a strong
\nposition to attract prospective customers. In short, Matahari has
\na clear position. Therefore, they want to leverage their brand-
\nequity by launching private labeling. It is interesting that
\nMatahari does this for its garment products, which are not
\nroutine household needs.<\/p>\n
Matahari seems serious in launching its private label for its
\ngarment products Stanley Adams. This is understandable since the
\nproducts are introduced amid tight competition with renowned
\nbrands already occupying Matahari counters, such as Valino,
\nArrow, Piere Cardin and Saville Row. Therefore, Stanley Adams
\ncannot only take advantage of the opportunity as a product made
\nand owned by the department store but must rely on its brand-
\nequity.<\/p>\n
What does Stanley Adams need to do for this? First, by showing
\nit has quality. And Matahari clearly carries this out through its
\nPin Poin, which is the garment's fabric composition attached to
\nthe item's label, like clarifying a special weaving technique
\nusing 100 percent cotton, fabric which is nonwrinkle, soft,
\ncomfortable to wear, long lasting and easy to maintain.<\/p>\n
Second, inexpensive pricing. The price could be between 30
\npercent and 40 percent cheaper compared to other products of the
\nsame quality. This is made possible by the fact that Stanley
\nAdams can save storage costs and distribute its products to all
\nMatahari counters economically. The third step is by launching a
\nloyalty program through offering special facilities and gifts to
\nloyal customers. These three ways of building brand-equity proved
\neffective; the Stanley Adams brand quickly gained popularity.<\/p>\n
Of course, the success in building this brand-equity has had a
\npositive impact for Matahari and Galeria, which have become
\nexclusive places to sell Stanley Adams. Nationwide, Matahari has
\ngained a respected context differentiation which attracts
\ncustomers. This is an interesting phenomenon. Matahari has
\nmanaged to build a bastion which will help minimize the
\npossibility of value migration from shopping at department stores
\nto home shopping. Taufik<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mataharis-steps-in-awaiting-value-migration-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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