Outlets bringing in domestic tourists
Outlets bringing in domestic tourists
By Kafil Yamin
BANDUNG (JP): "Irma" played a part in Bandung's notorious
traffic congestion on a recent weekend.
She bundled all her family members into two vans, and headed
from their home in Pasar Minggu, South Jakarta, to Bandung, a
three-hour drive.
And all the 32 year old was in search of, as she put it, were
"very friendly priced clothes".
She said she was not an avid shopper, but she could not resist
a bargain. "My friends told me that I could afford to buy clothes
they were wearing. So we came here," she said.
Bandung has become a favorite destination of Jakarta residents
for what have become known as "shopping vacations". Outlets,
selling brand-name goods at discount prices, have sprouted up
across the city, from the hillside suburb of Dago to downtown.
It's the price that counts, shoppers say, as well as the fact
that Bandung is so close to the capital. It can be reached easily
by road or rail.
"Go to Sogo department store in Jakarta to buy Versace jeans,
and it will cost you Rp 250,000 or so. I can buy it here for Rp
75,000! It's a more friendly rate," said Natasha, a teenager who
arrived at one outlet in a car loaded down with her friends.
Natasha said she could buy classy clothes at cheap prices.
"I find the price margin (compared to Jakarta store prices) is
around 75 percent to 150 percent on average," she said.
Every weekend, vehicles bearing "B" license plates from
Jakarta crowd the outlets' parking spaces.
"It's as if the spots (factory outlets) are specially
prepared for the people from Jakarta," grumbled Nani Sumarni, a
Bandung resident who was shopping at the Otten One factory outlet
but could not find a parking space.
Her complaint has some truth to it. As more and more Jakartans
come for inexpensive clothes, bags and shoes, they are fueling a
growing industry, with outlets opening up seemingly every day.
"We are definitely responding to the exciting potential from
buyers from Jakarta," said Otten One manager Dede.
He said profits exceeded his expectations when he opened the
outlet two months ago. Not only does his outlet draw many
shoppers, he receives huge orders from his friends in Jakarta.
"They do not have time for weekends these days, so they ask me
to send the clothes," he said.
Outlets are successful in feeding those who are brand-minded
and hunger for foreign quality goods. Shoppers can find Aigner,
Gucci, DKNY, Chaps, Calvin Klein, Guess or Gap, which were
produced by Indonesian firms under export licenses.
It is the remainder from the export quotas that make it to the
outlets. And factory outlets, at least for middle scale business
standards, are not a big investment.
Outlet owners spend less for the "leftovers", even though they
sell them at lower prices. It is the volume of sales which
offsets the slight margin.
Dede rented an old house on Jl. Dr. Otten and renovated it
into an outlet of his own style. He sells from 200 to 300 items
of clothing a day. During the weekend, sales rise to 500 to 600
pieces.
He is one of the many trying for success in the business.
During the last seven months, at least 30 new outlets have
opened.
Dede said the outlets were only one of the attractions drawing
people to the city, but the "main attraction" was Bandung itself.
He said Bandung had everything it took to be an attractive
city.
"If you spend the weekend in Puncak (mountain resort, West
Java), for example, you will just indulge yourself in relaxing,
jogging, unwinding or eating fruit. Here in Bandung, you can move
easily from one spot to another for different forms of leisure."
Hotels are fully occupied during the weekend. Some travelers
from Jakarta said they would not have got a room if they had not
booked early in the week.
For travelers on a budget, there is cheaper accommodation
available.
Gudrun, a Canadian who watches every penny, said she stayed in
a rough-and-ready accommodation for only Rp 20,000 a night. "It
was dirty, but the important thing was it was safe -- and cheap."