Escolar Documentos
Profissional Documentos
Cultura Documentos
INTRODUCTION
1.1. Statement of the Problem Retail business is direct sale of goods in any type of outlet such as kiosk/stall, traditional/modern market, department store, boutique, etc., including delivery service, which generally supplies for purchasers personal consumption. Early 1970an was the beginning of massive changes in the retail business in western countries, this change had an impact on social and economic conditions of society. Retail change has occurred in the context of wide-ranging socioeconomic trends (Bromley & Thomas, 2003, p. 3). First, increasing affluence has been associated with a rise in car ownership and much greater mobility. Given the improvement in roads, people are now able and willing to travel far greater distances for their shopping and the car is increasingly being regarded by retailers as a shopping basket on wheels. However, those who do not own cars have become polarized as a disadvantaged group whose poor mobility constrains their access to urban facilities. The growth in car ownership and the consequent volume of traffic has also had detrimental effects on movement within the city, and growing central congestion has contributed to decentralization. Second, changes in the spatial redistribution and composition of population. Champion (1989, 1992) on Bromley and Thomas (2003) state that Counter-urbanization, involving the shift towards a less-concentrated pattern of population distribution, in which rural areas and small towns grow faster than large cities, was a dominant feature of the 1970s and 1980s. Furthermore, Champion & Townsend (1990) stated consumer services such as retailing have followed the population in decentralizing from city centres. Warnes (1989) stated Trends in composition have been equally significant. The population is ageing and the proportion of elderly people has increased markedly. There are now more households to participate in shopping and more of them are experiencing the restricted mobility associated with the
disabilities of age. Third, A set of socioeconomic trends result from the changing character of the working population. Part-time employment for both sexes grew considerably in the 1970s and 1980s, and retailing has been prominent in this trend (Townsend 1986 and Watson 1992). The proportion of women in the workforce has also increased, and retailing itself shows continued feminization of the workforce, with women comprising about62 per cent of workers (Sparks 1992). Those in work experience time constraints on their shopping patterns, a factor of particular relevance to women, whose traditional gender role has included being the principal shopper (Davies & Bell 1991). However, alongside these trends the growth of unemployment since the 1980s associated with deindustrialization should be noted, and the suggested emergence of an underclass (Eversley 1990). The shopping constraints of disadvantage are a hallmark of the unemployed. In Southeast Asia, the market share of traditional retail experience diminishing trend, along with the increasing number and capitalization of the modern retail business. In Indonesia, the performance of the modern market has increased, while traditional markets decline. AC. Nielsen noted the fact, that in 2004, the contribution of the traditional market of about 69.9%, this value decreased from 73.7% the previous year (2003), 74.8% (2002), 75.2% (2001), and 78.1% (2000). On the other hand, the opposite condition occurs in supermarkets and hypermarkets. The contribution of each type of the modern market was increasingly large. Suryadarma et.al. (2007) Researchers from independent research institutions in Indonesia, SMERU Research Institute in his report concluded, that the existence of modern markets (supermarkets) give effect to the reduction in the contribution and performance of traditional markets. Quantitatively, the existence of traditional markets (supermarkets) do not prove any significant effect. Decline in more traditional market performance caused by internal factors that lead to lack of competitiveness compared to the modern market. Furthermore Suryadarma reported also, that the
traditional markets that are close to the supermarket which is worse affected than the who are far away from the supermarket. AC Nielson (2010) mention that Indonesia is the second fastest developing market in South- East Asia with an annual share change of 1.6%. This is likely to continue to grow at a fast rate with modern trade still accounting for less than 40% of sales. The fastest growing channel in Indonesia has been the mini-market, led by local giants Indomaret and Alfamart. Over the decade, store numbers increased from just over 2000 to more than 11,500. It is now difficult in many cities to stand on a corner and not see at least 2 of these stores!! The impact of mini-markets on where people shop has been significant as their share of trade has increased nearly six-fold to over 17%. Chamber of Commerce (2010) or KADIN mentions that the retail industry is one of Indonesia's strategic industries. This industry is the second largest sector in terms of employment, which absorbs
approximately 18.9 million people, second only to the agricultural sector that could absorb around 41.8 million people. Retail industry is divided into two types: (1) Traditional Retail; and (2) Modern Retail. Traditional retail is represented by traditional markets and small shops on the roadside, while the modern retail is represented by Carrefour, the Ramayana, Indomart, Alfamart, and so forth. Furthermore, KADIN explained that traditional retailing in Indonesia has a strategic value. Traditional retail markets in Indonesia are among the most frequently visited, as many as 25 times per month, compared to India and Sri Lanka are only 11 times per month and the Philippines are only 14 times per month. There are several advantages of traditional retail markets, among others, is the ease of access for small suppliers, including farmers. Besides, in the traditional retail market can occur bargain, fresh goods, and close to home, but the traditional retail market has no place as comfortable as modern retail market.on the other hand, modern retail market in addition to having a comfortable place, the goods also have a
high standard and quality as usual modern retail company will maintain the company image. In addition, the service was excellent and also full of goods available, from electronic goods to everyday needs. However, the modern retail market cannot be negotiated. Initially, Indonesian modern retail market dominated by a few leading players who had long been in this business such as: Hero, Indomaret, Ramayana, the Sun, Alpha. Invasion of foreign hypermarkets are so intense in the 2000s made the competitive landscape of retail business becomes increasingly fierce. The development of modern retail business nationwide for the last five years is staggering. According to AC Nielsen survey (2006), the number of trade centers, both hypermarkets, wholesale centers, supermarkets, mini market, convenience stores, as well as traditional stores rose nearly 7.4% during the period 2003-2005. Of the 1,752,437 total outlets in 2003 to 1,881,492 in 2005 outlets. The development of a very high this indicates that the Indonesian market has a very promising potential for retail business. There are fears what will happen to domestic retailers, and even more are feared to shift the traditional market. AC Nielsen noted, from year to year starting in 2000, the market share of traditional retail market continues to decline. In early 2000 the market share of 78.3% traditional and increasingly reduced to 70.5% in 2005. The more proliferation of foreign retailers should be wary of going to disrupt the "underprivileged" who work on traditional markets. In line with the existence of socioeconomic shift, from the "A Consumers' (upper class consumers), penetrated into the" B and C Consumers "(Consumers middle and bottom), the traditional market infrastructure is absolutely necessary repaired immediately. The high rate of minimarkets development raises big questions, that is. (1) What is the impact of the presence of minimarket to the traditional retailer? (2) How much the percentage change in revenue/ received by traditional retailers after the presence of minimarket?
1.2. Objectives The objectives of this research are: 1. To describe the traditional retailer and minimarket development in Malang City 2. To identify the factors that influence consumer shopping in minimarket and traditional retailer 3. To assess the impact of minimarket on traditional retailer.
2.1.
Retail Market : An Overview in Asia Pacific The growth volume of the grocery sales was degenerated in 2009.
Nielsen (2010) notified, throughout the Asia Pacific region, countries experiencing lower growth rates of grocery sales in 2009 compared with a very strong performance in 2008. AC Nielsen noted that the countries with the strongest market growth rates in 2009 are India and Vietnam, with total sales increased by close to 15% when compared to the year 2008. Furthermore, Nielsen reported that In China and Indonesia, a market that has consistently enjoyed double digit growth during the last 5 years, the growth rate slowed down to +3% and +5% respectively. China has seen a strong recovery, although since Q4 2009 and now back to a growth of 11% in Q1 driven by strong demand for food categories. The 2000s noted by Nielsen as a decade of change for grocery retailing in Asia. More than ten years, throughout Asia, the rapid changes in the retail grocery business were recorded, driven by the retailers investment in the establishment of new stores. Across the region, the modern trade now accounts for 53% of the packaged grocery sales tracked by Nielsen, from the 35% share in 2000. This shift of consumer spending of nearly 2% per annum has been strongest in North Asia led by China where the importance of modern trade increased on average by 3%. The biggest number of expansion was seen in the China market, China accounted for over 100,000 new stores or more than 60% of the total new store investment and equivalent to a 1000% increase in a 10 year period. Furthermore, modern market share increased from 34% to 64% during the decade with all formats that encourage growth. In china, hypermarkets are the strongest modern trade channel accounting for 28% of packaged grocery sales. The importance of Hypermarkets differ significantly by city; in Shanghai, 77% of shoppers
claim to use them as their main store compared to just 45% in Beijing. The biggest growth opportunity for this channel is now coming from the lower tier cities with the key cities generally reaching development (Nielsen, 2010). Beside China, Korea was another market where the speed of change has been rapid. Korea is a market where Hypermarkets occupy a very strong share of trade (31%) (Nielsen, 2010). Beside Hypermarket, there is another channel have also expanded rapidly in this country the Convenience stores-, it achieve a 12.5% share and the number of store growing from 3,000 to nearly 17,000 stores in the last 10 years. Traditional grocery stores have suffered most in Korea, with a closure rate of 5% per year or more than 50,000 stores during the decade (Nielsen, 2010). relatively mature level of
2.2.
Retail Market Development In Indonesia Indonesia is the second fastest developing market in South-East
Asia (AC. Nielsen, 2010). Rangkuti (2010), state that the Indonesian retail sector began its rapid expansion in 1999, when a Presidential Decree allowed Carrefour, a French retailer, to increase its outlet numbers in Jakarta. As other foreign and local retailers followed, the Indonesian retail sector grew and consumers benefited from stronger competition between retailers. Furthermore, he state that the modern retail businesses such as hypermarkets, supermarkets, and mini-markets are replacing more traditional retail outlets, including wet markets and independent small grocers. The retail industry is one of Indonesia's strategic industries (Kadin, 2009). Kadin state that this industry is the second largest sector in terms of employment; this absorbs approximately 18.9 million people. It is behind agricultural sector that could absorb around 41.8 million people. Especially in traditional retailing, the traditional retailing in Indonesia still has strategic value. Furthermore, Kadin mentions that the traditional retail market in Indonesia is the market's most frequently visited, as many as 25 times per
month, compared to India and Sri Lanka are only 11 times per month and the Philippines are only 14 times per month. There are several advantages of traditional retail markets, among others, is the ease of access for small suppliers, including farmers. Also in traditional retail markets, buyers can haggle, the place is close to home, and goods is fresh, but in the traditional retail market has no place as comfortable as modern retail market. Kadin (2009) categorize the retail industry in Indonesia into two categories; (1) Traditional Retail; and (2) Modern Retail. Traditional retail is represented by traditional markets and small shops on the roadside, while the modern retail is represented by Carrefour, the Ramayana, Indomart, Alfamart, and so forth. Unlike traditional retail markets, modern retail market not only has a comfortable place, but also have quality goods because it typically modern retail company will maintain the company image. In addition, the service was excellent and also full of goods available, from electronic goods to everyday needs. However, the modern retail market price is not negotiable The development of modern retail market in Indonesia is experiencing expeditious progress. Ten years ago almost all supermarkets located in Greater Jakarta, but now only 50% of them. Supermarket development has expanded into other islands, even large villages in Java. Initially the supermarket is just to A consumers (Upper class consumer). However, it has now expanded to B and C consumers (middle class and low class consumer respectively). This phenomenon occurs because of incessant supermarket expansion into smaller cities in Indonesia. There are many advantages to be gained from the development of modern retailing in Indonesia, among others: consumer feel pampered with convenient shopping, security, a diverse variety of products, and also the prices of competing products. On the other hand the presence of modern retailers raises several issues, such as the elimination of the traditional retail market. This is unavoidable due to their competitive ability
is still low and also the lack of capital to support business activities of traditional retailers. Currently, the development of modern markets increasingly flourishing and have started to intervene into the countryside. Among Hypermarkets, Supermarkets, and minimarket, AC Nielsen (2010) record that the fastest growing channel in Indonesia has been the mini-market, led by local giants Indomaret and Alfamart. Over the decade, store numbers increased from just over 2000 stores in 2001 to more than 11,500 stores in 2010. It is now difficult in many cities to stand on a corner and not see at least 2 of these stores! The impact of mini-markets on where people shop has been significant as their share of trade has increased nearly six-fold to over 17%. To protect the local player, government issued Presidential Decree No 112/2007. The decree stated that only supermarkets under 1,200 square meters and minimarkets less than 400 square meters should be owned by domestic investor. Table 1 The number of Retail market in Indonesia period 2004 - 2009
No 1 2 3 4 Kind of Store Traditional Grocery Outlets Minimarket Supermarket Hypermarkets
2004 1.745.589 5.604 956 68 2005 1.787.897 6.465 1.141 83 2006 1.846.752 7.356 1.311 105 2007 1.900.332 8.889 1.379 121 2008 2.469.465 10.607 1.571 127 2009 2.520.757 11.569 1.146 141
Kadin (2009) categorize the retail industry in Indonesia into two categories; (1) Traditional Retail; and (2) Modern Retail.. The first is traditional groceries, this category includes traditional market (wet market), grocery stores and kiosks located at the edge of the road. The amount is probably much less than the total number of traders in the field, given the traditional traders in Indonesia are very numerous, and sometimes difficult to determine the actual amount. The second type until the fourth is in the
10
modern merchant category, which consists of Minimarket, Supermarket, and Hypermarkets. Astonishing growth is the type Minimarket and Hypermarkets. Within 6 years, the growth of both types of modern retail traders has been doubled (see Table 1).
2.2.1. Traditional Retail Market Development In Indonesia Traditional Market means a market that is built and managed by the Government, the Regional Governments, Private Entities, StateOwned Entities and Region-Owned Entities, including through cooperation with private entities with such places of business as stores, kiosks, stalls and tents owned/managed by small or medium traders, community selfreliance or cooperative with smallscale enterprises, small capital and dealing in commodities through bargaining; (President Regulation No 112 of 2007). The role of traditional markets (shops or stalls), for this moment is still larger than the role of modern market in contributing to the Gross Domestic Product (GDP) of Non-Oil and Gas in 2000. It is a condition that the opposite happens; that the modern market in the province, have a greater contribution to revenues, as compared with the municipality / district. The contribution of the modern market looks bigger in urban than rural areas. Efforts to compensate for the speed of development of the modern market by using the instrument levy does Generate Revenue (Pendapatan Asli Daerah-PAD) which is greater at the provincial and district levels. However, the redistribution of income is addressed by the modern market in the form of higher capitalization. In addition, modern market contributed to the PAD responded by submitting reporting lower output and the occurrence of the phenomenon of increased hindrance (entry barrier) to prospective new entrepreneurs to enter the modern market (supermarkets).
11
2.2.2. Modern Retail Market Development In Indonesia According to the Regulation Of The President Of The Republic Of Indonesia Number 112 Of 2007, market is means a place where goods are dealt in by more than one seller that is referred to as either a shopping center, traditional market, store, mall, plaza, trade center or other reference; and Modern Store means an independent self-service store that retails a large variety of goods through Minimarkets, Supermarkets, Department Stores, Hypermarkets or grocers that constitute Grocery Stores; The modern retail market development in Indonesia, most retail observers would immediately remember the name "Sarinah Department Store". Sarinah department store may be cited as the first modern retail presence in Indonesia. 1970s-1980s, continued growth in this retail business format. The early decades of the 1990s, 'Sogo' -one of Japan's largest retailer-was entering the Indonesian markets; this decade is often referred to as a historical landmark entry of rite lasing in Indonesia. Modern retailing in Indonesia and then developed so rapidly as the government, according to Presidential Decree no. 99 year, 1998, issued a retail business from the negative list for foreign investment (Pandin, 2009). Before the decree issued, the number of foreign retailers in Indonesia is very limited. Retail formats in Indonesia has continued to develop according to the economic development, technology, and people's lifestyles. To view the early development of the modern retail market in Indonesia, let us look at Figure 1. The figure show that in the period of 1968-77 there was only one supermarket registered in Jakarta. Then, supermarket outlets began to spread rapidly after 1983 along with economic growth and increases in income per capita marked as the beginning of the green revolution era (Natawidjaja, 2005). The first supermarket in Indonesia was recorded in the early 70s and there was no further development for ten years.
12
Source: Natawidjaja, (2005) Figure 1 Early Development of Supermarket in Indonesia 1968-97 In the period 1978-1992, the supermarket sector grew 85% per year. While the growth rate declined, expansion continued at 12% per year between 1993 and 1997 (Natawidjaja, 2005). On that period, initially, the development of supermarkets mostly in Jakarta, and then spread to major cities (the capital of the province) on the island of Java, like Bandung, Semarang, Yogyakarta, and Surabaya. In the mid-1990s, the concept of hypermarkets started to go into Indonesia. It is characterized by the entry of retail giants of French companies, "Carrefour and Continen" in 1997. In Indonesia, they become one company by the name which operates 12 Carrefour hypermarkets in Jakarta, Surabaya, and Medan. In 1998, the giant company USA "Wal-mart" also entered the retail business in Indonesia. In that year also their first store on fire during riots in Jakarta as a result of the multi-dimensional crisis in Indonesia. After the incident, WalMart then decided to leave Indonesia. After the crisis that hit Indonesia, that moment is just like to bring fresh air in modern retailing developments in Indonesia. Because the issues discussed was the decentralization of development. With the issue of decentralization of development, the construction of the shopping center began to spread to small towns in the area. Natawidjaja, (2005) notes, there are two new actors in hypermarket
13
business, Giant and Hypermart. Giant is managed by Hero Group and Giant, a retail company from Malaysia. Hypermart is managed by Matahari Group. As we can see on Figure 2, the number of hypermarkets is still quite small but consistently increasing by 27% per year in the last 5 years. Today, the modern retail business in Indonesia is expanding its territory up to the remote areas quickly. Many opinions are pros and cons of their existence. The presence of hypermarkets, supermarkets, and mini markets, for most consumers of modern markets are providing an attractive alternative to shopping. Not only offers the convenience and quality products, but also their prices are also quite competitive it is even cheaper than the traditional market (Tambunan, 2004). On the other hand, these circumstances make small retailers feel worried. Some small retailers feel the true impact of the presence of modern markets, such as hypermarkets, i.e. their income is significantly lower.
Source : Natawidjaja (2005) Figure 2 Development of Modern Market in Indonesia period 1997-2003 Nowadays, Nielsen (2010) state That the "2000's" - a decade of change for grocery retailing in Asia. And this is happening in Indonesia. If you look at figure 3 above, it appears that modern developments in the Indonesian market are growing very rapidly, especially the minimarket.
14
Source: Nielsen 2004 2010 (diolah) Figure 3 Development of Modern Market in Indonesia period 2003 -2009 Nevertheless, the rapid development of modern market often created protest from the party that was inflicted, such as traditional market or even modern retail itself. Even, the President Regulation No. 112 of 2007 about Arrangement and development of traditional market, shopping center, and modern market, which was just validated in December 2008, created a controversial. Especially, concerning the violation of modern retail that is selling nine basic goods below the price of traditional market. Even the violation of zone and distance that has been going on for a long time, has taken many casualties from the traditional market. However, the Association of Retail Businessmen Indonesia (Asosiasi Pengusaha Ritel Indonesia - APRINDO) has filed a complaint from modern retailer about the content of regulation of trade ministers No. 53 of 2008, among other concerning trading term cost limitation from the juridical and commercial aspect. The phenomenon of the rise of retail business actually been seen since the mid-1990s. A survey conducted by AC Nielsen (2006) showed that the number of traditional markets in Indonesia, as many as 1.7 million or 73% of the overall market, the remaining 27% of the modern retail
15
market. Surprisingly is the survey conducted by FAO in 2006 which states that between 1997 to 2003, the retail business increased by almost 30%, with growth reaching 15% for modern retail and 5% for the traditional market. This indicates a shift from public market into the modern market. The growth rate is different than the traditional market is expected to create increasingly eliminated from the competition arena. AC Nielsen in its calculations mentioned that the elimination of the traditional markets of 1.5% annually. (Kadin, 2009) Tabel 2 presents the number of hypermarket developments from 2003 until 2010. From the table, there are four big players in the hypermarket business in Indonesia, namely: Carrefour, Alfa Gudang rebates (in 2009 purchased shares of Alfa Carrefour), Hypermart, and Giant. Table 2 also show how Carrefour dominated the hypermarket market in Indonesia. Table 2 Number of Hypermarkets (the 4 biggest player) in Indonesia periods 2009 - 2010 Brand Name 2003 2004 2005 2006 2007 2008 2009 2010 Carrefour 11 15 19 29 37 58 60 42 Alfa Gudang Rabat 23 35 34 32 31 16* 16* Hypermart 4 16 26 36 43 43 46 Giant 10 12 17 17 26 30 34 *) : ex Alfa, become Carrefour
Source: AC. Nielson (2004); AC. Nielson (2005); AC. Nielson (2006); AC. Nielson (2007); AC. Nielson (2008); AC. Nielson (2009); AC. Nielson (2010) (compilation)
16
Figure 4 Hypermart and their locations in Indonesia Figure 4 is the present distribution of hypermarket in Indonesia. In gdari picture shows that most of the hypermarket is still there / is concentrated in the area of Jakarta, Bogor, Tangerang, Bekasi an, ie by 58%. As for which dominate the market Hypermarket in several areas in Indonesia is Carrefour.
Sri Ratu 8 8 7 8 Source: AC. Nielson (2004); AC. Nielson (2005); AC. Nielson (2006); AC. Nielson (2007); AC. Nielson (2008); AC. Nielson (2009); AC. Nielson (2010) (compilation)
17
Still the same as the distribution of Hypermarket, supermarket distribution is also concentrated in Java. Supermarkets are the biggest percentage presence in the area of Jakarta, Bogor, Tangerang and Bekasi (Greater Jakarta).
Mini market is the self-service market just like supermarket that have only one or two machines only, and only sell products basic household needs (basic necessities). Minimarket, one of the modern markets, currently is growing rapidly, offering convenience stores or outlets because of its location close to consumers in the residentialhousing. According to President Decree No 112 of 2007 size of the store or outlet is not too large, approximately not more than 400 square meters and sells items 3000-4000 units. Mini market does not necessarily require huge investment and most of its market share is an individual and housewives, especially those who work and give priority to the convenience and speed or time not long in the shop. Here the number of minimarket in Indonesia (see Table 4). The data only show the five biggest retail chains in Minimarket.
18
Table 4 Number of Minimarket in Indonesia periods 2009-2010 Minimarkets Indomaret Alfamart Yomart Star Mart Alfa Midi 2003 2004 2005 2006 801 1.001 1.420 1.857 546 973 1.263 1.629 25 66 110 39 44 52 64 2007 2008 2009 2010 2.425 3.093 3.312 3.892 2.361 2.736 2.896 3.422 146 162 177 220 87 116 122 124 71 109 60
Source: AC. Nielson (2004); AC. Nielson (2005); AC. Nielson (2006); AC. Nielson (2007); AC. Nielson (2008); AC. Nielson (2009); AC. Nielson (2010) (compilation)
Looking at a rapidly development of minimarket, minimarket become the most rapid progress in retail business. Minimarket player, in building its business, will build a minimarket in areas close to residential. They will provide low prices to customers; in addition, they also provide a variety of promotional and discount programs, making it very attractive to customers.
The minimarket players which dominate the market are Indomaret and Alfamaret. Indomaret is the pioneer of Minimarket in Indonesia. In
19
2001, Indomaret already have, more than 550 stores spread across Jakarta, Bogor, Tangerang, Bekasi, Bandung, Surabaya and Yogyakarta. Currently Indomaret growth rapidly and spread over the country. In 1997, Indomaret decided to use franchise concept in their development of the store. With this method, the number of outlets Indomaret increasingly scattered in small towns. Alfamart, is the second largest player in the retail format Minimarket. Alfamart started Minimarket business sector by in 1999 with a brand of 'Alfa Minimart' by Alfa Mitramart Utama Company. In 2002, the company already has 141 outlets Alfa Minimart, and since then started expanding exponentially with the new name of 'Alfamart'. Despite the global economic crisis in late 2008, the Company achieved significant growth in terms of market coverage, supported by a growing number of stores amounted to 21.4% or 594 of 2779 in 2008 to 3373 in 2009.
2.3.
The Impact of Modern Retailer on Traditional Retailers Consumers generally put a cheap price in the first rank among
several factors in shopping. This usually applies to all commodities in traditional and modern markets. In addition to price, in terms of service, consumers are also very concerned about environmental security as a very important factor. Consumers sometimes do not give a high priority on commodity factors, namely: neat packaging, product availability, and variety of the items sold. Similarly for factor services, consumers sometimes regard; proximity of the location of the house, opening hours are long, and the proximity of the location of the office. Toward consumer goods, consumers generally place an accurate measure factors in the second rank after the price. Another factor that can sometimes be the concern of consumers when shopping is on: grading the quality of commodities, and product counterfeiting. Consumers will evaluate the behavior of traders who indicated fraudulent practice should be a priority to be addressed. Consumers pay high attention to the importance of safety,
20
comfort, and cleanliness at the time of shopping. Consumers do not take priority over the location of the proximity factor shopping from home or office. There are indications that Minimarket provides consumer
satisfaction level higher than the traditional market. In general, the high levels of consumer satisfaction to minimarket are on these factors: size, packaging, hygiene, comfort, safety, and adequacy of public facilities. As for traditional markets, factors that usually provide services such as low levels of consumer satisfaction. In general, there are no attribute traditional markets that provide high satisfaction to the consumer. In the development of an increasingly developed market, the more negotiable the price factor can be shifted by a factor of grading the quality and size accurately. The common impact of the presence of minimarket, based on at a glance observations in the field are: the number of types of merchandise, the number of buyers, and the amount of labor. The existence of minimarket will reduce the number of types of goods traded in traditional markets. This indicates that, when the minimarket is built, the development of the number of buyers, the number of suppliers, and the amount of labor in the traditional market will tend to decline. The most prominent problems are the development of the number of shoppers at traditional markets. The Presence of minimarket, currently not negatively impacted the performance of several indicators of traditional market traders, namely: the average turnover, inventory turnover, and margin commodity prices. Based on at glance observations in some traditional markets, the average turnover in traditional markets showed a decline, but this should not be too worried by the traditional traders. In terms of turnover of goods in the traditional markets, it has not been influential. For the price margin at the first glance indicator of the results of field observation showed no effect, so it can be concluded that the existence of mini not negatively impact the price margins in traditional markets. Overall attendance was minimarket only negatively impact the number of shoppers at traditional markets. This
21
suggests that the demise of the traditional markets is caused by changes in consumer tastes. In response to this, one way for traditional markets to survive can be done by way of retaining customers not to switch to modern markets, namely by making traditional markets become more convenient for consumers. Traditional markets have non-economic advantages from the perspective of macro-economic interests, namely the provision of choice of business opportunities, employment, and the contribution of output, although these options may conflict with the interests of local governments to increase the original income (Pendapatan Asli Daerah-PAD). Therefore, it is not surprising that the protection of traditional retailers have not got a very important priority when viewed from the interests of regional development. Delays in the development of traditional markets is much less rapid than the modern market penetration has become evident that the government tends to be more open to modern retail investment rather than develop the traditional markets.
22
According to Baker (2000), a comprehensive evaluation is defined as an evaluation that includes monitoring, process evaluation, cost-benefit evaluation, and impact evaluation. This research is only considered on the Impact evaluation. According to Baker (2000), impact evaluation is intended to determine more broadly whether the program had the desired effects on individuals, households, and institutions and whether those effects are attributable to the program intervention. Furthermore, impact evaluations can also explore unplanned consequences, whether positive or negative, on beneficiaries. Effective impact evaluation should therefore be able to assess precisely the mechanisms by which beneficiaries are responding to the intervention (Khandker, 2009). Furthermore Impact evaluation can be conducted by qualitative and quantitative methods. Combining quantitative and qualitative methods is the ideal because it will provide the quantifiable impact of a project as well as an explanation of the processes and interventions that yielded these outcomes (Baker, 2000). Qualitative analysis, as compared with the quantitative approach, seeks to gauge potential impacts that the program may generate the mechanisms of such impacts, and the extent of benefits to recipients from in-depth and group-based interviews. Whereas quantitative results can be
generalizable, the qualitative results may not be. Nonetheless, qualitative methods generate information that may be critical for understanding the mechanisms through which the program helps beneficiaries. On the basis of the above background, this study combines quantitative and qualitative methods. There are two quantitative methods that are commonly used in impact evaluation, based on baker 2000 there are difference-in-difference (DiD) and use econometric models. The qualitative method on impact evaluation conducted in-depth interviews with key informants. This study used a questionnaire to the consumer, to
23
the traders and a guide to the key informant interviews as research instruments. The questionnaire of consumer contains questions about the opinion of the consumer (consumer preference) and the question of trader contains about the business and the impact of minimarkets, and also the facts regarding the traders activities.
3.1
Analitical Framework There are three tentative conclusions can be drawn from the first
impressions of retailing in developing countries (Paddison ,2005). First, the study of retailing systems in developing countries encompasses a wide range of environments, related principally to the importance of local, often culturally embedded factors. Second, the study requires a dynamic framework which is capable of capturing the interaction between world economic influences and the place-specific forms of the retailing environment. Third, whilst there are strong conservative forces which ensure a degree of continuity in the retailing systems of developing countries, there are equally rapid changes taking place resulting mainly from the so-called modernization of retailing through the import of western retail institutions and western types of consumer behavior. In all economic systems the retail distribution of goods and services is a vital link in the distribution channel from production to consumption. This shows how important the retailing in the economy. Regardless of how big the role of retailing in terms of trading volume transacted, retail is important in all societies as a distribution mechanism as the economic and social institutions. In developing countries this is mainly because of the role of retail and marketing play a wider distribution system of basic needs' (mainly food, but also other essential goods such as clothing). Traditional retailers in developing countries occupy a strategic role in economic development. For example, in Indonesia, most of the retail players are in traditional merchants ranging from the trader in traditional markets, kiosks / shops and street vendors.
24
Saat ini, di Indonesia, muncul format yang masih dianggap baru oleh sebagian orang, yaitu Minimarket. Minimarkat walaupun dianggap sebagai salah satu format ritel modern yang masih baru, dan masih dimainkan oleh pamain lokal, namun format minimarket di Indonesia mengalami perkembangan yang sangat pesat dalam 10 tahun terahir. Sebelum muncul format minimarket, para konsunem membelanjakan sebagian besar uangnya di ritel tradisional (termasuk pasar tradisional), lihat gambar berikut:.Ritel tradisional mempunyai karakteristik: a. Bukan sistem swalayan b. Pilihan barang terbatas, c. Kualitas barang terkadang rendah (sudah terlalu lama di toko) d. Pelayanan kurang ramah
Trad Retail 1
Trad Retail 2
Trad Retail 3
Trad Retail 4
25
Gambar tersebut menggambarkan kondisi ritel tradisional sebelum kehadiran minimarket. Secara umum consumen sudah terbiasa
membelanjakan uangnya pada toko tertentu yang menjadi prioritas/ langganan mereka. Dan itu biasanya sudah berlangsung lama. Ketika tidak ada barang yang dibutuhkan pada toko langganannya, maka ia akan ke toko lainnya, dan itu hal yang biasa terjadi.
Trad Retail
Trad Retail
MINIMARKET
Trad Retail
Trad Retail
Kehadiran
ritel
modern
dengan
format
yang
baru
seperti
26
Positif mungkin bagi koncumen, tetapi mungkin bnegatif bagi peritel tradisional. Lihat gambar xx. Gambar tersebut memperlihatkan kehadiran minimrket di wilayah (milayah pada gambar x). Minimarket dengan karakteristik yang berbeda dengan peritel tradisional harga persaing, kualitas produk lebih baik, variasi produk lebih banyak, sistem swalayan, serta pilihan produk yang lebih banyak akan dengan mudah berkompetisi dengan peritel tradisional dan dengan mudah akan menguasai pasar di wilayah tersebut. Pada saat minimarket hadir di suatu kawasan, kemungkinan dampak positif yang timbul adalah bagi konsumen. Mengapa? Karena secara teori, konsumen akan memilih ke tampat belanja dengan harga lebih murah, dengan kualitas barang lebih bagus, dengan jumlah pilihan lebih banyak, dan berbelanja di tempat yang nyaman. Oleh karena itulah mengapa konsumen akan memilih berbelanja di Minimarket ketika barang yang ingin di di toko langganannya tidak ada atau tidak tersedia. Pada saat mereka berbelanja di Minimarket, pengalaman berbelanja yang dialami oleh konsumen akan sangat mempengaruhi preferensi konsumen untuk waktu belanja yang akan datang. Oleh karena itu, dapat diindikasikan bahwa jika pelanggan sudah merasa nyaman berbelanja di minimarket, maka mereka akan lebih memilih berbelanja di minimarket untuk waktu belanja yang akan datang (bulan berikutnya). Ini adalah dampak positif yang dialami konsumen. Kemudian apa dampak negatif dari kehadiran minimarket? Jika indikasi preferensi konsumen bahwa konsumen lebih memilih minimarket untuk berbelanja pada bulan-bulan berikutnya, maka ini akan menjadi dampak negatif terhadap pedagang tradisional (toko/ kios).Apa dampak negatif yang dialami peritel tradisional adalah penurunan jumah konsumen (pengunjung toko), panurunan nilai transaksi, penurunan stok barang, lebih lanjut adalah penurunan pendapatan dan penurunan keuntungan. Jika peritel tradisiona tak mau bersaing dengan Minimarket, maka ada indikasi jumlah peritel tradisional akan mengalami penurunan sebagai
27
akibat dari tutupnya beberapa toko karena dampak negatif minimarket tersebut. (lihat gambar XXX)
Trad Retail
Trad Retail
MINIMARKET
Trad Retail
Trad Retail
Gambar xxx menunjukan bahwa setelah kehadiran minimarket, jumlah konsumen pada beberapa peritel tradisional mengalami
penurunan. Sebagai akibat dari beralihnya tempat belanja konsumen ke minimarkat. Namun apakah dampak tersebut signifikan, itulah yang menjadi fokus utama dalam studi ini.
28
3.2
The difference-in-differences (DiD) estimator is one of the most popular tools for applied research in economics to evaluate the effects of public interventions and other treatments of interest on some relevant outcome variables (Abadie, 2005). This method was used by
Suryadharma (2007) to evaluate Impact of Supermarkets on Traditional Markets and Retailers in Indonesia's Urban Centers and used by INDEF (2007) to evaluate the Economic Impact of the presence of Hypermarket on Traditional Retailer/ Markets DID method require the recording of circumstances in the two time periods - before and after treatment (Abadie, 2005). In this study, the treatment is opening minimarkets. Furthermore, there must also a control groups (example: traditional traders/ shop/ kiosk without a minimarket in the vicinity), and characteristics of treatment groups and control groups should be similar. The Framework of DID method is shown in equation 1.
Impact = (T2 T1) (C2 C1) where : T1 (1)
: the condition of the traditional traders before the presence of a minimarkets near the traditional traders T2 : the condition of the traditional traders after the presence of a minimarkets near the traditional traders C1 : the condition of the traditional traders where there is no minimarket nearby for the same period as the treatment group (T1) C2 : the condition of the traditional traders where there is no minimarket nearby for the same period as the treatment group (T2) If the impact is significantly different from zero, then supermarket indeed impact traditional markets. In this study, the period of initial data (baseline) set in 2006. The
reasons underlying such determination is the presence of minimarket into the sub-districts in Malang is on it. In addition, the determination of year is also to ensure that traders are relatively still have good memories on the situation at that time.
29
3.3
Econometric Model Suryadrma (2007) states that the DiD method is only calculate
differences between control and treatment groups were statistically significant without controlling for other variables. Therefore, to look at other conditions, it uses econometric model for the econometric model to control other conditions that contributed to the results. According to him, the conditions measured include merchant education level, type of
commodities sold, and the location of the store / kiosk. Furthermore, to control the circumstances that are not observed, the location as dummies are also included in some specific variables. Suryadarma (2007) in his research using two forms of direct econometric model that directly can be estimated (reduced forms). The first one uses only the ex-ante (prior to the intervention condition) as control variables, while others use both ex-ante conditions and the changes. The model was used by Suryadarma is the model to be used in this study. General model used is shown in equation 2 and 3.
Ci = + Xi +Si +i
Ci = ` + `Xi +`Xi +`Si +i
(2) (3)
where : Ci : is the proportional change in performance indicators of trader i. The performance indicators that we use are profit, earnings, and number of employees. Xi : is the control variable,
30
3.4
obtained by using in-depth interviews. In-depth interviews will be conducted on the stakeholders in the retail sector: traders/ traditional retailers (owners of shops/ kiosks) which are selected; minimarket manager; relevant government officials in regional planning agencies, traditional traders association, district trade office, in the research location 3.5 Sampling Framework This research will be focus on the sub districts in Malang City with the highest levels of minimarket density. Traditional traders/ kiosk / shop that became the object of treatment were selected purposively according to the following conditions: there are minimarket within a radius of 3 kilometers from the store/ kiosk, mini market begins to operate between 2006 and 2009, or if there are several minimarket, it has operated on that period; for traditional traders in the control group, the traditional merchant must be located in the same the district/ area as in the minimarket; store location is more than 4 km from the minimarket, and traditional merchants have never renovate his shop since 2006.
31
REFERENCES