Indonesian shopkeepers lack innovation

Hera Diani, The Jakarta Post, Jakarta

When you walk inside Plaza Senayan in Central Jakarta you are welcomed by a gigantic picture of a sweating, half-naked model in the window of the Christian Dior store.

Step inside the store and other shops that sell international brands and take a good look around, you are likely to notice certain patterns.

More expensive products are arranged at eye level. Products that sell well are placed on the right of the store. In the case of clothes, the majority of the items are folded rather than hung.

These days, retailing is not as simple as it used to be. The world has changed and shopping trends have shifted, so it is no longer enough just to pile up goods inside your store.

You need to have a strategy, know your customers' profile and understand the politics of store display.

According to research, since most people are right-handed their attention is more to their right side. Which is important in displaying products in a store. Research also shows that clothes that are folded sell better, as do products that are displayed at eye level.

Most international brands are very aware of the psychology of store displays. They realize that today's customers need a shopping experience that involves all of their senses.

The companies constantly renew their products and recreate experiences that influence the customers' senses. They make a great effort to ensure consumers spend as much time in their stores as possible, which increases the possibility the customers will buy something.

"A good example is Nike Town in the United States. Shopping there is no longer a simple experience, but more like a pilgrimage. Consumer interaction is no longer limited to the beauty of the products, the music or the lighting but also the virtual experience with the history of the heroes, that is the athletes. Browsing through the store is like being in a theater, and it's very inspiring," said Kafi Kurnia, a marketing expert, at a recent discussion.

The key, he added, is innovation.

"Nokia, for example, has continued to innovate with their products, launching new products all the time. And the result is that their revenue keeps growing. That's because today's customers love to be surprised."

Innovation, unfortunately, is something that is missing from many Indonesians, he said.

According to Kafi, Indonesians are very reluctant to innovate in selling their products.

"They (retailers) are still competing based on who's cheaper and which stuff has better quality," he said.

PT Jay Gee Enterprise, distributors of Omega and Rado Switzerland watches, confirmed Kafi's statement, saying that their agents in Indonesia still used traditional methods to sell the products.

"Traditional in terms of displaying the products or marketing them. So far, it's still effective. But for the long run, we don't find it compatible," said Renaldi Hutasoit, the company's watches division manager.

Kafi said the lack of innovation had become so severe that many local brands had been taken over by foreign companies, such as Cap Bango soy sauce which has been bought by British- Dutch Unilever and Aqua mineral water which is now owned by French Danone.

For other local products this lack of innovation is the reason they are not developed.

"Producers of jamu (herbal medicine) are not innovative. They should create more glamor and a more modern image instead of a traditional one," Kafi said.

"It's different in Singapore, for example. There is this gold jewelry manufacturer that has been selling its products for ages. The brand used to come from Chinese words. Recently, they recreated their image, changing the name into English and modernizing their style. The business is now bigger than ever."

This lack of innovation and development is a pity, he added, because Indonesia has so many resources. A simple example is agricultural products like fruits. We have abundant and varied kinds of fruits, but our agricultural sector is way behind neighboring countries like Thailand and Malaysia.

"Maybe you're familiar with the story of kopi luak, coffee whose beans are collected from luak's (civet) dung. The coffee is said to taste heavenly. People say that it's only a myth, but in Hong Kong there is a brand called kopi luak, owned by an English company. If you check www.edible.com you can also find it.

"However, later I found out that this coffee really does exist in the small town of Sidikalang, North Sumatra, and only costs Rp 20,000 (US$2.20) a kilogram," Kafi said.

Innovation, he added, is simple and easy as long as you use your imagination.

Even fruit vendors on the street can innovate by painting their carts, for instance, or arranging their fruit in a way that is eye-catching.

"And then don't say that my store is only visited by certain customers. If the display is interesting and the service is excellent, any kind of customer will come regardless of their economic condition. Maybe some will just buy small products but they buy anyway," Kafi said.

"The display has to be informed, entertaining, inspired, persuasive, amazing and constantly evolving. If that's done, customers will come to your store like bees to a flower," he said.