The bargains and brand names of Mangga Dua

JAKARTA (JP): "Rp 3,500 for one or Rp 10,000 (US$4.2) for four" is a common sign in the T-shirt shops of Pasar Pagi Retail Center and the Jakarta International Trade Center in Mangga Dua, North Jakarta.

Believe it or not, Armani shirts, which should carry a price tag of over Rp 100,000, sell for less than Rp 30,000 there.

The low prices and the wide range of products have made Mangga Dua popular not only with locals but also with foreigners.

Prices are around 30 percent below those in department stores. Certain products even sell for half.

Branded watches, sun-glasses or leather belts are 50 to 70 percent cheaper than the same items in Singapore, Bangkok or Hong Kong.

For instance, you can buy Etienne Aigner leather shoes for Rp 350,000, far less than the Rp 575,000 at the local agent. Gucci leather bags sell for Rp 125,000 instead of Rp 325,000.

You can also find the latest Jean Paul Gaultier wallets for Rp 65,000 or Esprit wallets for only Rp 25,000. Emporio Armani shirts cost only Rp 29,900, and T-shirts costs Rp 49,900.

In its boutique, Armani shirts sell for more than Rp 100,000 and T-shirt for over Rp 200,000.

Why are the prices so low ? Maybe because the products are fake.

A leather shop attendant swears the products are original. "My boss bought the products in Korea," he said.

Another attendant said that the products in his store were imported from Bangkok and Hong Kong. "I don't know if it's fake or not but many people buy this stuff," he said, pointing at Armani clothes.

But Fransisca M. Tjandra, Emporio Armani brand manager in Sarinah shopping center, says that the Armani products in Mangga Dua are counterfeit.

"Little can be done to prevent this from happening due to the lack of protection under Indonesian trademark law," Fransisca said.

Armani products are faked because people can't afford to buy them, she said. "There is only one Armani boutique in Indonesia, this one,".

She refused to explain how to differentiate between fakes and the real thing. "If I tell you, people will know how to counterfeit them better," she added.

A 29-year-old shop-owner at Pasar Pagi said that not all cheap products are fake. "We cut the margin as low as possible to attract buyers. That's quite workable because most of the products are bought directly from the manufacturers," he said.

Some of the retailers are also the producers so it is possible to sell their products at even lower prices, he added.

In addition, many retailers cooperate with small garment manufacturers to sell T-shirts, casual shirts and children's clothing, he added.

"Under such cooperation arrangements, we can sell the clothes much cheaper because we don't have to pay them in advance," he explained.

Many shops offering branded leather goods, accessories and stationery are also exporters. Selling directly to customers in Mangga Dua is more profitable.

Andry, who started his business at Pasar Pagi Retail Center since its opening in September 1989, is one of the retailers who produce their own products.

He said that by selling the products directly to consumers, shop-owners can make up to 15 percent profit, more than the 5 percent if they sell through distributors or so-called auxiliary traders.

Who are their customers?

Andry said that most of customers are locals but foreigners are on the increase.

"Some of the foreign buyers buy to resell the stuff in eastern Asia or eastern Europe. They usually place orders at maybe six shops, worth maybe Rp 6 million per order."

The foreign purchasers usually look for casual clothing made of cotton. Local consumers usually look for branded items, he said.

Foreigners mostly shop for themselves or their families. They are a common sight on the weekends.

Kathy from Australia, with three shopping bags in her right hand and two more in her left, smiled and said that she was shopping for herself and her husband, standing next to her with more shopping bags.

"These are not much... this is only for both of us,".

She said that she had bought some clothes and handbags, while her husband had bought a pair of shoes.

"The quality is good and the prices are cheaper than in Hong Kong," said Kathy, who learned about Mangga Dua from her guide.

She said that she would return before leaving Indonesia. "I think I have to buy some more for my friends," she said.

Marina from Malaysia was in Mangga Dua with two relatives. "Many traders here sell branded products at reasonable prices. The quality is very good too. I don't think I bought fake products," Marina said.

Most of the foreigners visiting Mangga Dua come from Malaysia, Brunei, Dubai, Japan, Yemen, Hong Kong, Singapore, Taiwan, India, Saudi Arabia, South Africa and Nigeria. They come to buy from the garment wholesalers, who make up 65 percent of the center's traders.

An Australian pair, Mr. and Mrs. Watts, said that prices in Mangga Dua are very low.

Some 30,000 people visit Pasar Pagi every day, and 200,000 on holidays, particularly before Idul Fitri, Christmas and New Year's Eve.

83,000-square-meter Pasar Pagi was built in 1989 on a 2.1- hectare plot, and cost Rp 80 billion.

It is equipped with 27 escalators, two capsule-shaped elevators, and staircases. A number of banks have opened branches. Several automatic teller machines are also available. Spacious parking lots make shopping more convenient.

However, many customers complain that the toilets are filthy and poorly maintained. The masses of people squatting on the floor are also an eyesore.

About 80 percent of the 2,500 stalls or shops in Pasar Pagi Retail Center sell garments, while the others sell leather goods, accessories and stationery.

A garment shop in a prime location can book a turnover of Rp 15 million (US$6,450) a day, much more than elsewhere.

It's logical that the price of retail space is going up.

Shop-owners said that a good position will cost Rp 150 million per square-meter while a remote spot will cost just Rp 40 million.

The stalls were initially sold at between Rp 3.2 million and Rp 5.8 million per square-meter.