The bargains and brand names of Mangga Dua
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.