Can Glodok maintain sales supremacy for electronics?

Can Glodok maintain sales supremacy for electronics?

By Imanuddin and Ivy Susanti

JAKARTA (JP): It is no exaggeration to say Glodok in West
Jakarta is the trading hub for electronic items not only for
Jakarta, but the nation.

With daily trading value of not less than Rp 50 billion
(US$11.2 million), the subdistrict is undoubtedly the busiest and
most liquid trading site in the city.

It was established as a residential area in 1740, mostly for
Indonesians of Chinese descent, and European and Chinese-
influenced architecture still predominates.

Glodok was developed as a business center in the early 1950s.
In line with the rapid development of electronic technology and
increasing demand for electronics, it shifted into a trading
center for this sector in the early 1980s.

There are several blocks of buildings, including the Harco
Glodok, Glodok Makmur, Glodok Jaya, Glodok Plaza and Orion Plaza,
which sell electronics.

But business is not always brisk. Others whose core business
is nonelectronic products are attempting to muscle into the
sector by opening sales centers in other areas.

Property developers have been influenced by the development.
They have opened integrated electronics sales centers with
complete facilities available for visitors' comfort.

These electronics centers have been established in nearby
Mangga Dua, West Jakarta, and in Central Jakarta.

One of the newcomers opened in the Jakarta International Trade
Center. Another operates an electronics sales department at the
Pasar Pagi Mangga Dua, which is located across from the trade
center.

The Harco Superstore is also in Mangga Dua.

Meanwhile, the operator of the Bendungan Hilir market in
Central Jakarta realigned its function from a general purpose to
electronics-oriented center.

Shop owners at the Glodok electronics centers could not ignore
the challenge from the new competitors because the latter provide
a comprehensive array of electronics, a draw for the public.

Some owners admitted their sales had declined by about 20
percent in recent years, especially since the Harco Superstore
started operating in April 1994.

But price still reigns as the dominant factor in getting
people into the stores.

"Many of our customers, who had turned to other electronic
centers, returned here just because the prices of our electronic
goods are reasonable," said Sharno Gousen, who sells computer
equipment in Orion Plaza.

People intending to shop in Glodok should first have mastered
the general "formula" on how to get the goods at cheap prices.

This includes good bargaining skills, conducting informal
market research on the exact prices of the goods they want to buy
or by asking a friend who has a close relationship with the
sellers to do the bargaining.

This formula can enable someone to get a 29-inch Sony TV set
for Rp 100,000 to Rp 200,000 less than in other shopping centers.

But pleasing product displays are not a priority at the Glodok
shopping complex.

Some owners pile their goods haphazardly inside their shops,
while others stack them so high that they block customers' views
of the stock.

"We have to stack our goods inside our stores because we do
not have enough space to store them," Sharno said.

The size of each shop in Glodok varies from 12 square meters
to 60 square meters, said a maintenance official at the Orion
Plaza.

The shopfronts and interiors sometimes appear dimly lit as
some owners appear not to care about the value of illuminating
their wares.

"However, people still come to my shop to buy televisions,
laser disc players and other entertainment electronic goods,"
said Budi, a shop owner in Glodok Jaya.

Budi's shop is not only unattractive inside, but also
difficult to reach as it is situated in the back of the building.

Sharno said he did not pursue a huge profit margin for every
product sold.

"I prefer to have a rapid flow of my goods sold than keep them
long in storage while awaiting buyers to buy expensive
merchandise," he said.

He said he sometimes sold the goods at no profit.

"I have to do that because I need cash to continue my
business," he said.

"However, people never believe me when I tell them that I got
no profit at all."

Budi also revealed his strategy in selling cheap electronic
goods.

"I get the electronic goods directly from the source (the
producer)," he said.

A shop owner at Glodok Makmur said he managed to sell quality
electronic products at cheaper prices because he paid lower
building maintenance and operational fees than tenants in other
electronic centers.

"I have checked with other electronic centers that Glodok
charges the cheapest building maintenance fees from its tenants,"
the shopowner, who asked for anonymity, said.

He said Glodok's supremacy in the sector goes along with its
image as a complete electronic center with a large variety of
goods available.

"Glodok's image as a cheap and complete electronic center in
the city contributes to our supremacy," he said.