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)