Bold strategy needed to attract potential customers

Bold strategy needed to attract potential customers

By Rita A. Widiadana and Sri Wahyuni

JAKARTA (JP): Shopping centers in Jakarta are racing to upgrade their appearances and services to draw more tenants and, most importantly, customers.

Plaza Indonesia, owned by PT Plaza Indonesia Realty, has set up a strategy to improve services to both customers and tenants.

"We have just finished our total renovation project," Sylvia R. Ratulangie, the corporate secretary of the company, said.

After five years of operation, the management decided to launch the project to improve the quality of the place, to change its interior and tenant mix to make the shopping mall more attractive. Currently Plaza Indonesia sets rental fee at US$50 per square meter.

"We offer a new shopping atmosphere," she assured.

Anticipating growth in the shopping industry, the company plans to construct an additional 24,500 square meters of retail space. This second phase of the project is expected to be completed by the end of the year 2000. When it is finished, Plaza Indonesia will have a cinema complex, a six-floor shopping center, an apartment and office center and entertainment facilities.

The company also plans to attract other anchor tenants, a foreign chain department store, in addition to the Sogo Department Store. "It is very important to have more than two anchor tenants, they attract visitors," Sylvia said.

She admitted that the company must work hard to maintain its 300 tenants.

"Good communication with tenants and customers is our recipe to making them feel at home here," she said.

Special efforts are also made by the Pondok Indah Group which owns and manages Pondok Indah Mall in South Jakarta.

"It's our duty to make the mall convenient and interesting for the visitors," said Lina M. Husein, promotion division head of the company.

Pondok Indah Mall opened on Oct. 26, 1991 and is one of the most popular malls in Jakarta. The mall, located next to the Pondok Indah Waterpark and Believe It or Not Museum, is best known as a teenage hangout.

Occupying 6.3 ha, including parking space, the mall has 200 tenants as well as ATM services, restaurants, banks and smaller shops. "The rented area is fully occupied. There's no spare room left," Wibyakto, the deputy general manager of the mall, said .

According to Wibyakto, several factors attract visitors to the mall: prime location, design, careful mix of tenants, good management and convenience.

Also important are the additional programs held for Christmas and New Year, the mall's anniversary, Idul Fitri and school holidays. The programs include exhibitions and art performances. The mall usually hires local and international personalities -- including Disney World characters -- during these shopping peaks.

"That's all we can do to attract people to the mall. The rest depends on how each tenant attracts shoppers to buy their merchandise," Lina postulated, adding that the mall spends Rp 800 million on additional programs.

Mega Pasaraya is more aggressive. Considering itself a tourist destination as well as a recreational site, Mega Pasaraya in Blok M labels itself as a total shopping center.

"A shopping center is not just a shopping place. We can make it an entertainment as well as an information center," said Usman Ja'far, president of PT Pasaraya Nusakarya which operates Mega Pasaraya. Usman added that in order to give buyers more choices, Mega Pasaraya has opened Seibu, a Japanese retail business chain, which aims its merchandise at the upper class.

Mega Pasaraya also has a sports center, beauty saloons, a fashion center, a food plaza, a computer game center and a playground. They plan to launch their Pasaraya Club, a club designed to educate and provide information on a variety of day- to-day things.

"We plan to launch it in March next year," Usman said, adding that visitors will be free to use all the facilities. The club, said Usman, will have a library specializing in recreation and hobbies.

"In the club, you can also learn how to cook or how to design fashionable clothes," said Usman.

Pasaraya's efforts apparently satisfy both the shoppers and their tenants. Mrs Pitoyo, the owner of the Soto Sulung counter, said that her counter brings her the highest turnover as compared to her four other counters in several other shopping centers. She earns between Rp 125,000 and Rp 150,000 a day. During weekends, the amount increases to Rp 250,000.

"This fact amazes me," Mrs Pitoyo exclaimed.

Blok M Mall is another success story. Located under the Blok M Bus Terminal, the 44-hectare mall is bombarded with between 100,000 and 150,000 visitors a day. The shopping mall, managed by PT Langgeng Ayom Lestari, tries to tempt the 300,000 people who pass-through the bus terminal everyday. A survey reveals that 40 to 50 percent of these people will go down to the mall to shop or browse.

Otje FW Sumarauw, public relations officer of Blok M Mall, said the management thinks it necessary to organize special programs to attract people. The programs include song and karaoke festivals, dance performances and quizzes.

Otje said that Blok M Mall has an occupancy rate of 95 percent. The tenants consist of 170 big and small stores. They occupy the first and second floors. The plazas (Plaza I and Plaza II) are occupied by 30 kiosks, 50 food counters and 35 small shops. (swa/raw)