The art of attracting customers
The art of attracting customers
JAKARTA (JP): Welcome to the retail battleground, but shop
carefully to avoid becoming the owner of unnecessary products.
Shopping wisely is not about lining up outside department
stores offering big sales to buy items you do not really need.
Shopping is about buying the things you need at fair, logical
prices.
But some people find it really hard to curb the urge to spend
money when there is such a variety of department stores,
superstores and megastores, especially when they are devise ways
to attract shoppers.
Some people find more pleasure in shopping at the abundant
supermarkets and department stores because there is no need to
bargain.
Sales seasons come and go. In certain periods, like year-end
sales, shoppers make lists and swarm into retail stores offering
discounts.
Interestingly, many retailers offer discounts not only in
certain periods, but year round. Some shoppers return again and
again to the same shopping center, spending their money on
anything offered therein.
Although there is no data on the spending habits of shoppers
in Indonesia, in Jakarta retailers have seen promising changes in
customer spending. These days, more people spend their leisure
time in malls and appear eager to spend their money.
As a result, the country's retail sector is almost as robust
as it was before the financial turmoil hit Indonesia, even though
the rupiah continues to depreciate.
The Association of Indonesian Retailers (Aprindo) estimates
that retail sales will increase by 20 percent to Rp 42 trillion
(some US$4 billion) this year due to continued strong consumer
confidence. Last year the sector grew by 20 percent.
Aprindo currently groups about 300 retailers nationwide,
including major chains Ace Hardware, Hero supermarket and
Matahari, Pasaraya, Ramayana and Sarinah department stores.
Some of them have opened several new outlets as signs continue
to point to a recovery in the country's retail sector.
The retail business has also played an important role in the
recovery of the property sector, according to some property
consultants. The demand in the retail sector has been strong,
which could be attributed to increased consumer spending, low
interest rates and bank liquidity.
A research company recently reported that consumer-led
recovery continued its upward trend, with retail sales of fast
moving consumer goods almost returning to the levels before the
monetary crisis.
Battle for customers
Common ways used by department stores and specialty shops to
lure customers include storewide sales or limited discounts. The
stores guarantee they are offering the lowest prices.
Some retailers offer cut-rate prices on products sourced
directly from suppliers rather than via the layers of middlemen
that clog the distribution network and drive up prices. Therefore
prices can be offered at lowered rates.
More and more retailers have likely followed this strategy,
making the battle even more fierce.
Ace Hardware, for instance, admits that prices should be
considered based on the competition.
"We classify our products in several categories, including
good, better and best which relate to prices and quality. We'll
consider the prices of general products also offered by our
competitors," said Jani Alif Soemarto of Ace Hardware.
She said the company also tried to offer unique products at
reasonable prices.
"We offer products which are hardly found at other stores,"
she said.
Other means that Ace Hardware uses to attract customers are
decoration, signs and banners.
"More customers will be attracted by good lighting, product
arrangement, representative window displays," she said, adding
that promotion through the mail was also a powerful strategy.
A store's strategies, which include sales and limited
discounts, definitely make a difference in attracting customers
and convincing them to spend money. (icn)