It is very hard to make selling in modern retailers in Indonesia. It's difficult entry, many costs. It's so, does not guarantee its products glance buyers,said a retail supplier of modern, half-complaining.
Supplier's complaint seems to be tolerated. Because, entering the goods (production) to modern retailers (hypermarkets, supermarkets, or mini) is not an easy affair. Especially for small suppliers. They usually have to comply with the trading terms. In addition, they also have to pay a listing fee and such fee gondola fee. However, all is not guarantee that they ogled merchandise buyers, because they can not just strategic placement. although its already paid, does not mean that suppliers can sleep calmly. Still overshadowed the possibility of its products in-delete by retailers, Sambas said Winata, Marketing Director of PT Tang Mas (Group 2 Tang).
According to Sambas, in order to enter the modern retail, other than taking things easy is difficult, also cost a lot. There are several requirements that bind the supplier if they want to continue displaying their products. Among other things, pay attention to the existence of term trading system. Usually, the modern retailer requested a portion of 30% of sales - if negotiate can be 10%. Also, there is a gondola fee and dancing-up fee (so products can be installed in the hallway shelf). Each retailer does have different standards. One of the hypermarket, for example, charge a fee of Rp 2 million per week per store. Imposition of costs also continued to shelving on ordinary shelves. This is specific to a particular retailer who is œmenjualâ € â €? shelf. The goal, seducing suppliers put a lot of product. The cost varied, ranging from USD 500 thousand to Rp 1 million per month per store. And there are still many other expenses that must be borne by suppliers, such as promotions.
So, how to suppliers (producers) can successfully market its products in modern retail, so the cost of the issuance is not in vain? â € œAgar successful working of modern markets need effective ways and techniques, â €? Joko said, consulting the distribution of Kasa Research. According to Joko, there are several alternative techniques or tips that can be done by suppliers or brand owners to marketing its products in modern retail network to be successful, ranging from studying consumer behavior to place the key account manager is good at negotiation (see box).
Meanwhile, Harry Sanusi, CEO and President Director of Kino Corporation, suggested suppliers should be clever-clever chose rent. Once a place is selected, the supplier should try to find a location or a certain level is good. For example, for children's products certainly display adjusted with the height of children. Terminology, eye-level. For example, in the end gondola, at the checkout counter, or on regular shelves. However, recognized Harry, all it needs big cost.
In addition, if the product can already signed, suppliers must be clever in negotiations. Similarly, in terms of promotion. In addition to the promotion with retailers, suppliers also need to promote their own products. In essence, the supplier must find a way so that their products could be leading. â € œWe have changed from number one or die. The only way, ya have to create demand, â €? said Harry.
Harry's argument, if it could be number one in a modern retail outlets, a product must have high bargaining power, so easy to negotiate. so, it was determined by the achievement of product sales itself.
Harry admitted, many laws and disproportionate bargaining between suppliers and retailers. For example, in terms of promotion, the retailer has to determine the supplier must perform a few times a promotion. Suppliers also charged campaign, which reached 10% of sales. then, they sent selecting programs that fit with us and adjusted with a set budget retailers,said Harry. but, if our products could become the market leader, the retailer will not be arbitrary. Therefore, they must sell products.
Harry was also suggested, so that no out-of-stock items or to process expedited shipping (from the warehouse to the shelf), the supplier should put the sales clerk (usually termed a sales promotion girl [SPG]). Because, although the retailer uses an automated system, the possibility of human error is still there. Thus, sales personnel need to be placed there. Kino parties, for example, placing 1-2 SPG (houseful and personal care), depending on the large-small its hypermarkets. In fact, Kino has a mobile SPG, which move from one retail outlet to other retail outlets. For example, one to three hyermarket SPG, and there are only stay in one place. Depending on their needs. â € œKalau not be managed like that, bujetnya not strong. If large companies could put three SPG's more, â €? said Harry.
According to Harry, to be displayed in modern retail outlets, one product could cost you different. It's known, each retailer has a different tariff. For example, for personal care products in one of the hypermarket is the charge could reach USD 6 million. Rate it just for one item at a store outlets. If you have five items, for example, means counting: 5 x USD 6 million x number of stores. â € œBelum again, if a different size multiplied by two again. For example if the size of 50 ml with 100 ml, is multiplied by two. This count will change if suppliers had only one category. Not multiplied, can be directly charged USD 600 million at the same time, â €? said Harry.
Given the high fees charged when they want to put products into a modern retail network, Budiono Gondosiswanto have certain tricks. President Director and owner of PT songgo Geni Majum - manufacturer of household cleaning (detergent, hand soap, floor cleaner) - it would prefer to be maklun (managing outsourcing contracts) for the house brand / store brand of a hypermarket.
The result, according Budiono, very satisfying. Surplus brand its products which are able to occupy the top three brands in terms of sales for the category of household cleaning products at Carrefour. No doubt, some of modern retailers in Indonesia hunt for his services, such as Hero, Giant, Alpha and Indomaret.
According Budiono, a house brand maklun for the modern retailer costs are relatively lighter than go with the brand itself. "The important thing is to maintain price levels remain below the average market price, with good enough quality. During that can be maintained, then we will continue their goods birthday message, â €? he said. Still, the risks also exist, namely development costs, production and packaging is charged to the producer. Until the year 2002 is still a maklun Budiono house brand for several hypermarkets and other modern retailers, with a turnover of USD 250-300 million / month. However, currently only supply company for Makro, Alfa and Yogya.
Ways of Product Marketing in the Modern Retail
1. Learn patterns of consumer behavior and shopping patterns. With a deep insight on consumer buying behavior, can be an alternative position of the corresponding product placement, do not complicate consumers, but its rating is not expensive space. Could also be developed for the determination of the preferred type of consumer promotion, price and discount that can motivate purchase, etc..
2. Increase in equity products / brands that have a high attraction, so that no space is too dependent on a high rating, but still has a high turnover.
3. Learn and understand the detailed procedures and trading terms so that it can be a combination of techniques and strategies are customized according to the potential product / brand.
4. Set the main purpose of each product / brand: whether to trigger the selling, maintaining product availability, build awareness or the other, so that costs and resource allocation can be adjusted, not beaten flat.
5. Understand the true strength and weakness of the product / brand that can be developed that are owned (or avoided) strategy (less) competitive against rivals.
6. Select and place the key account managers who have skills to negotiate and good interpersonal relations. Not infrequently trading terms and rigid rules can be penetrated by those who have good negotiation skills.
7. Keep good relations with the modern outlets. This could facilitate the settlement or negotiation of certain deals. Moreover, in Indonesia to build good relationships often more effective than other techniques.
June 19, 2010
Two of modern Ritel in Banten do not have license legal completely
Modern retail sealed because assessed do not meet the licensing,Alfamart Pelamunan Village and Village Alfamidi Kramatwatu.
Radar observations of Banten, Thursday (3 / 6), although the sliding door (rolling door) shop has been padlocked by the district, both modern retail was still open. Alfamart in Pelamunan, for example, of three doors sealed only one door on the right. Meanwhile, two other doors opened so that can still perform transactions as usual. Likewise Alfamidi located in Jalan Raya Cilegon.
Camat Kramatwatu Nur Saad said it had asked both the store to complete the licensing letter if you do not want closed. According to him, in accordance with decree No. 27 Year 2006, there were at least four business permit that must be adopted ie trade business license (SIUP), place of business permit (SITU), sign the list of companies (TDP), and disturbance permit. "All the conditions were not taken, so we seal," he said.
Previously, said Nur Saad, it also has sealed the two stores on March 29 and then for the same reason, but both stubborn. "I'll be naughty again if I close all the doors and I will not tolerate anymore," he said.
Johari, Head Pelamunan Alfamart Stores, said that his shop was legal. He said after being reprimanded by his party district party directly completed in accordance with required permits. "Already we take care to head office, after which administers the affairs of the central to local government," said Johari.
Khoirullah, Corporate Communications PT Sumber Alfaria Trijaya, denied Alfamart unlicensed. He ensures that every company Alfa Group, founded always comply with applicable law. "There's no way we open a business without a license, it's all we care to related parties," he said.
Area Operations Manager Alfamidi Tangerang Banten Yudi Sobari denied when it was confirmed last night sealed his shop. But he admitted that he had received a letter of invitation from the District Kramatwatu to attend district office. "Invitations at headquarters. So I do not know the time and agenda, perhaps only silaturrahim course, "said Yudi.
He also said, Alfamidi being built already has a full license for each there is the establishment of the store there is always a permit. "All the licensing file at the central office. Our shop is legal, "he said
Radar observations of Banten, Thursday (3 / 6), although the sliding door (rolling door) shop has been padlocked by the district, both modern retail was still open. Alfamart in Pelamunan, for example, of three doors sealed only one door on the right. Meanwhile, two other doors opened so that can still perform transactions as usual. Likewise Alfamidi located in Jalan Raya Cilegon.
Camat Kramatwatu Nur Saad said it had asked both the store to complete the licensing letter if you do not want closed. According to him, in accordance with decree No. 27 Year 2006, there were at least four business permit that must be adopted ie trade business license (SIUP), place of business permit (SITU), sign the list of companies (TDP), and disturbance permit. "All the conditions were not taken, so we seal," he said.
Previously, said Nur Saad, it also has sealed the two stores on March 29 and then for the same reason, but both stubborn. "I'll be naughty again if I close all the doors and I will not tolerate anymore," he said.
Johari, Head Pelamunan Alfamart Stores, said that his shop was legal. He said after being reprimanded by his party district party directly completed in accordance with required permits. "Already we take care to head office, after which administers the affairs of the central to local government," said Johari.
Khoirullah, Corporate Communications PT Sumber Alfaria Trijaya, denied Alfamart unlicensed. He ensures that every company Alfa Group, founded always comply with applicable law. "There's no way we open a business without a license, it's all we care to related parties," he said.
Area Operations Manager Alfamidi Tangerang Banten Yudi Sobari denied when it was confirmed last night sealed his shop. But he admitted that he had received a letter of invitation from the District Kramatwatu to attend district office. "Invitations at headquarters. So I do not know the time and agenda, perhaps only silaturrahim course, "said Yudi.
He also said, Alfamidi being built already has a full license for each there is the establishment of the store there is always a permit. "All the licensing file at the central office. Our shop is legal, "he said
June 6, 2010
Traditional Markets Difficult to Growth
After experiencing an economic boom as a driver of the city in mid 1980 and complacent over the past two decades, traditional markets in Jakarta now faces a difficult problem.
On one hand, the traditional market surrounded by modern shopping centers. On the other hand the difficulties of traditional market stakeholders to improve the competitiveness of traditional shopping centers.
Modern Market which was established by multinationals and national companies surrounded the downtown to the outskirts of Jakarta. Modern Market has all the comfort that captured the traditional market customer market.
In the period 1995-2008, the number of supermarkets increased from about 100 units to 210 units. Total shopping center rose from about 50 units to 110 units and mini increased from 100 to 650 units in that period
Number of modern markets make the number of traditional markets custemer plummeted. Chairman of the association of market traders across Indonesia DKI Jakarta, Hasan Basri said that about 10 000 traditional market stall empty left by them
On one hand, the traditional market surrounded by modern shopping centers. On the other hand the difficulties of traditional market stakeholders to improve the competitiveness of traditional shopping centers.
Modern Market which was established by multinationals and national companies surrounded the downtown to the outskirts of Jakarta. Modern Market has all the comfort that captured the traditional market customer market.
In the period 1995-2008, the number of supermarkets increased from about 100 units to 210 units. Total shopping center rose from about 50 units to 110 units and mini increased from 100 to 650 units in that period
Number of modern markets make the number of traditional markets custemer plummeted. Chairman of the association of market traders across Indonesia DKI Jakarta, Hasan Basri said that about 10 000 traditional market stall empty left by them
Modern Market Change Consumers Life style
The growth of an increasingly modern markets surged to change the style of consumer in making decisions and buy products.
"The rapid growth of modern markets also change ourselves, change the way kiita as consumers in making decisions and buy products," said President Director of PT Taylor Nelson Sofres (TNS),
According to him, market conditions in Indonesia have undergone many fundamental changes in recent years, particularly in terms of marketing channels from a variety of products for consumption.
Also, when this modern market consisting of hypermarkets, supermarkets, mini, which contributed almost half of the products consumed in Jakarta.
He added, it is impossible for the staff of marketing, sales, or distribution to ignore the role of today's modern market. This is not a trend or fashion, since this is a phenomenon that will continue to exist in Indonesia.
"All of this means that how the marketing activities undertaken has really changed and what is happening in retail stores is a truth," he said.
Based on the data it possesses, consumer has more choices today are much more plentiful in terms of product categories and brands in the category.
Then, retail stores currently present with the existence of adequate space for their goods marketed to conduct in-store communication and promotion.
In addition, there is an opportunity for consumers to choose their own time to shop (compared to shopping in traditional stores), making the consumer like a king.
"Packaging, packaging size, and price to be easily seen by consumers and this has the effect of a much more important," he said.
Next, shop at the modern market like this (especially in the hypermarkets) into an experience by itself and as a joint activity for the family outside the home
"The rapid growth of modern markets also change ourselves, change the way kiita as consumers in making decisions and buy products," said President Director of PT Taylor Nelson Sofres (TNS),
According to him, market conditions in Indonesia have undergone many fundamental changes in recent years, particularly in terms of marketing channels from a variety of products for consumption.
Also, when this modern market consisting of hypermarkets, supermarkets, mini, which contributed almost half of the products consumed in Jakarta.
He added, it is impossible for the staff of marketing, sales, or distribution to ignore the role of today's modern market. This is not a trend or fashion, since this is a phenomenon that will continue to exist in Indonesia.
"All of this means that how the marketing activities undertaken has really changed and what is happening in retail stores is a truth," he said.
Based on the data it possesses, consumer has more choices today are much more plentiful in terms of product categories and brands in the category.
Then, retail stores currently present with the existence of adequate space for their goods marketed to conduct in-store communication and promotion.
In addition, there is an opportunity for consumers to choose their own time to shop (compared to shopping in traditional stores), making the consumer like a king.
"Packaging, packaging size, and price to be easily seen by consumers and this has the effect of a much more important," he said.
Next, shop at the modern market like this (especially in the hypermarkets) into an experience by itself and as a joint activity for the family outside the home
Modern and Traditional Market Grows 10% in 2010
Research Institute PT AGB Nielsen Media Research (Nielsen) predicts that sales growth rates in traditional markets and modern in Indonesia year 2010 will increase 10 percent. Sales contribution is still dominant in the modern market will increase to 20 percent and traditional markets itself up 7 percent.
Director, Retailer Services Nielsen, Yongky Susilo Said in Jakarta,
"We predicted that total market sales of modern and traditional can grow 90-10 percent," he said.
He said the year 2009 alone sales growth target to 3 percent or traditional markets significant decline experienced from last year's 20 percent.
"This is due to the low purchasing power that is also low because of global crisis and the inflation rate which was in position 2%, while for 27 percent of the modern market," he said.
The more rapid growth of mini, continued Yongky, will be the main attraction in 2010 with 20% market share.
"But the traditional market with 80% market share will still be the main objective Indonesian consumers who want products that have a low quality for affordable prices such as vegetables and fruits, plus the traditional markets such as the wagon began to resemble vegetables, almost there in every corner of the shelter, "he explained.
The same place the Executive Director of Retail services, Nielsen Media Research Teguh Yunanto explains, the traditional 80 percent market share could dwindle if some of the products sold in the market tradsional also sold in a modern market.
"For example, if smoking was issued then only 60 per cent market share, if the egg was also issued to shrink again," he said.
But he also said sales would still increase because the current consumer reaction is quite evident from improved consumer confidence index rose from 77 in April 2009, to 86 in October 2009.
"Indonesia has become the country's two positive customers," he added.
Modern trade, still become stronger in the year 2010 although at a lower pace, fostering its contribution 30% to 37% within five years. "And more than 800 outlets open a new modern trading in the year 2009. This shows that convenience and proximity play an important role in consumers' minds," he said.
Director, Retailer Services Nielsen, Yongky Susilo Said in Jakarta,
"We predicted that total market sales of modern and traditional can grow 90-10 percent," he said.
He said the year 2009 alone sales growth target to 3 percent or traditional markets significant decline experienced from last year's 20 percent.
"This is due to the low purchasing power that is also low because of global crisis and the inflation rate which was in position 2%, while for 27 percent of the modern market," he said.
The more rapid growth of mini, continued Yongky, will be the main attraction in 2010 with 20% market share.
"But the traditional market with 80% market share will still be the main objective Indonesian consumers who want products that have a low quality for affordable prices such as vegetables and fruits, plus the traditional markets such as the wagon began to resemble vegetables, almost there in every corner of the shelter, "he explained.
The same place the Executive Director of Retail services, Nielsen Media Research Teguh Yunanto explains, the traditional 80 percent market share could dwindle if some of the products sold in the market tradsional also sold in a modern market.
"For example, if smoking was issued then only 60 per cent market share, if the egg was also issued to shrink again," he said.
But he also said sales would still increase because the current consumer reaction is quite evident from improved consumer confidence index rose from 77 in April 2009, to 86 in October 2009.
"Indonesia has become the country's two positive customers," he added.
Modern trade, still become stronger in the year 2010 although at a lower pace, fostering its contribution 30% to 37% within five years. "And more than 800 outlets open a new modern trading in the year 2009. This shows that convenience and proximity play an important role in consumers' minds," he said.
Modern and Traditional Market Grows 10% in 2010
Research Institute PT AGB Nielsen Media Research (Nielsen) predicts that sales growth rates in traditional markets and modern in Indonesia year 2010 will increase 10 percent. Sales contribution is still dominant in the modern market will increase to 20 percent and traditional markets itself up 7 percent.
Director, Retailer Services Nielsen, Yongky Susilo Said in Jakarta,
"We predicted that total market sales of modern and traditional can grow 90-10 percent," he said.
He said the year 2009 alone sales growth target to 3 percent or traditional markets significant decline experienced from last year's 20 percent.
"This is due to the low purchasing power that is also low because of global crisis and the inflation rate which was in position 2%, while for 27 percent of the modern market," he said.
The more rapid growth of mini, continued Yongky, will be the main attraction in 2010 with 20% market share.
"But the traditional market with 80% market share will still be the main objective Indonesian consumers who want products that have a low quality for affordable prices such as vegetables and fruits, plus the traditional markets such as the wagon began to resemble vegetables, almost there in every corner of the shelter, "he explained.
The same place the Executive Director of Retail services, Nielsen Media Research Teguh Yunanto explains, the traditional 80 percent market share could dwindle if some of the products sold in the market tradsional also sold in a modern market.
"For example, if smoking was issued then only 60 per cent market share, if the egg was also issued to shrink again," he said.
But he also said sales would still increase because the current consumer reaction is quite evident from improved consumer confidence index rose from 77 in April 2009, to 86 in October 2009.
"Indonesia has become the country's two positive customers," he added.
Modern trade, still become stronger in the year 2010 although at a lower pace, fostering its contribution 30% to 37% within five years. "And more than 800 outlets open a new modern trading in the year 2009. This shows that convenience and proximity play an important role in consumers' minds," he said.
Director, Retailer Services Nielsen, Yongky Susilo Said in Jakarta,
"We predicted that total market sales of modern and traditional can grow 90-10 percent," he said.
He said the year 2009 alone sales growth target to 3 percent or traditional markets significant decline experienced from last year's 20 percent.
"This is due to the low purchasing power that is also low because of global crisis and the inflation rate which was in position 2%, while for 27 percent of the modern market," he said.
The more rapid growth of mini, continued Yongky, will be the main attraction in 2010 with 20% market share.
"But the traditional market with 80% market share will still be the main objective Indonesian consumers who want products that have a low quality for affordable prices such as vegetables and fruits, plus the traditional markets such as the wagon began to resemble vegetables, almost there in every corner of the shelter, "he explained.
The same place the Executive Director of Retail services, Nielsen Media Research Teguh Yunanto explains, the traditional 80 percent market share could dwindle if some of the products sold in the market tradsional also sold in a modern market.
"For example, if smoking was issued then only 60 per cent market share, if the egg was also issued to shrink again," he said.
But he also said sales would still increase because the current consumer reaction is quite evident from improved consumer confidence index rose from 77 in April 2009, to 86 in October 2009.
"Indonesia has become the country's two positive customers," he added.
Modern trade, still become stronger in the year 2010 although at a lower pace, fostering its contribution 30% to 37% within five years. "And more than 800 outlets open a new modern trading in the year 2009. This shows that convenience and proximity play an important role in consumers' minds," he said.
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