Exploiting the commercial potential of Idul Fitri

Exploiting the commercial potential of Idul Fitri

By Shanti Venkateswaran

JAKARTA (JP): Lebaran means different things to different people. To the devout and deeply religious, it is the time of year given entirely to prayers and fulfilling religious obligations. To the not-so-religious but God-fearing nevertheless, it is an opportunity to once again renew their faith and adhere to religious practices given the go by during the year past.

Whatever its religious significance to the average Moslem, its commercial potential never fails to be exploited or taken advantage of, long before the sighting of the moon that signals the start of the fasting month of Ramadhan.

Department store chains and retail outlets of all denominations start planning their market strategies for the coming Lebaran long before Christmas. In a way, the Christmas season is a sort of testing ground for the year's newcomers to the marketplace. And somehow, the festive spirit that begins with Christmas never really seems to go away; the expectancy is palpable in the bazaars all around us.

The bigger among the retail chains strive to be different with each passing year; after all, they claim exclusivity as their raison d'etre. In this category falls Pasaraya, 22 years in the retail business and a household name among Jakarta's elite.

In keeping with the sentiment of being different from the rest, the Pasaraya group organized a Ceramah Ramadhan on Jan. 28 at Mega Pasaraya in Kebayoran Baru. Freely translated, it means A Discourse on Islam and the Koran.

Meant to be a dialog between Islamic scholars and the man on the street, it was the chain's special way of helping spread a better understanding and appreciation of Islam and make better Moslems of its customers.

Leading ASEAN Islamic scholar Quraish Shihab and Toto Tasmara addressed the gathering and answered questions put forth by the participants, who came from different age groups. An annual Lebaran happening, the event also discussed trends among young executives in carrying out fasting obligations during Ramadhan.

In the context of hectic executive work schedules, it was hoped that this event would provide a forum for a free and frank exchange of views and discussion of problems encountered in fulfilling religious obligations juxtaposed with work obligations. Admissions were by invitations only to its members.

Dressing up

Lebaran is that time of year when purses are cash-rich with annual bonuses and hearts are filled with the desire to be trendily attired. Clothes are traditionally a fast-moving commodity during festive seasons with the ready-to-wear fashion having a year-round market.

To cash in on this, the Pasaraya group also organized a fashion show of Busana Muslim, featuring leading Indonesian designers such as Ida Leman, Ida Royani, Anne Rufaidah, Lydia Wibowo and Nani Widjaya.

Held on Jan. 21, the start of the Ramadhan month, the two-hour show featured 15 designers and 20 models. Some of the creations were sold right after the show. The buyers were mostly in the above-30 age group. Quizzed on the preferences of its customers, Pasaraya's Manager for Direct Marketing Syamsul Munir said that the majority prefers pret-a-porter fashion except where specific size considerations were taken in. The group targets the upper- middle segment and elite segment of the consumer market.

Hampers

If trendy clothes are in for the upwardly mobile, can gift hampers be far behind? Nobody is exactly sure when or where this practice of giving gift hampers began in Indonesia. However, all are agreed that they have been around for as long as one can remember.

What began as home-cooked Idul Fitri specials -- distributed among relatives and a few close friends in the neighborhood -- have since become organized sales efforts, catering to a variety demands and tastes.

When the business of parcels first began, alcoholic drinks figured prominently. However, with more Islamization, consumers and retailers alike began to turn to parcels which truly reflected Islamic values. A typical Ramadhan parcel shuns alcoholic beverages; instead, it would include a white prayer outfit, praying mat, a Qiblat to indicate the direction of Mecca in its contents.

In recent times, prestige and status have come to be closely associated with parcel contents. While food hampers continue to be a favorite draw for those at the lower end of the income scale, there are those among the nouveau riche who consider food hampers to be ordinary. They seek exclusivity in custom-made hampers, even if it is at a price. Popular hamper items with the middle and upper-middle class are crockery and cutlery, glassware, bedspreads, towels and table mats.

Golden Truly is a department store chain with six outlets located in Jakarta. In the retail business since 1981, its target customers come from different income and educational levels.

In keeping with its one-stop-shopping policy, the chain not only stocks ready-to-buy parcels but also has a service to take orders for parcels. Large corporate concerns eager to avail themselves of discounts on bulk orders, take advantage of reasonable prices to place orders for thousands of parcels at a time. Consumers buying more than 10 parcels get a 5 percent discount at its supermarkets, while a 22 percent discount is given to those buying even just one parcel from its department stores.

In a typical department store like Golden Truly, the baskets used in hampers are purchased from cottage industries. During the Christmas and Idul Fitri seasons, some of its staff are assigned the job of putting the hampers together. Customers' orders for parcels given in small boxes are packed in the shop. Baskets with non-food items such as crockery, bedspreads and so on are usually prepared before Ramadhan. Food and drink hampers follow next, with careful attention paid to expiry dates.

The more established among the department store chains usually allow exchange if an error in a hamper's contents is brought to their notice.

At Pasaraya, prices range from Rp 100,000 to Rp 500,000 for food hampers and from Rp 200,000 to Rp 1,000,000 for non-food hampers. The latter is also made up of silk and handmade batik collectibles. Exclusivity is their hallmark. Owing to its pricey feature, these are usually targeted at big companies and the very rich among its clients.

Collectibles are usually targeted at individuals, while the big companies prefer food hampers whose contents can be distributed among many.

Syamsul Munir confirms that food hampers continue to be popular because of the close connection between fasting and food. Discounts on hampers depends on whether the buyer is a Pasaraya card member or not.

In a bid to corner the lucrative market for hampers, major retail chains, including Makro, Pasaraya, Golden Truly and Hero, think up imaginative and attractive designs and exclusive contents. Catalogs detailing the various food and non-food hampers, as well as mixed ones on offer for the coming Lebaran season are mailed well in advance to members and customers. Special orders are also accepted.

Sales peak in the days immediately preceding Idul Fitri. Contents of hampers not sold find their way back to the shop shelves, while the baskets themselves are put away until the time comes next year to grace shop windows once again.