These last few years when we observed in the vicinity of the more modern retail retail-emerging from places that become a community center to the residential-housing. The emergence of modern retail retail-profitable customers on one side faced with various options while on the other side raised concerns of traditional traders who feel threatened by the presence of these retail-modern retail.
These concerns appear largely due to feelings of lack of balance of power between traditional retailers with modern retail, so the emergence of modern retail business will turn off traditional retailers on average had already existed.
It should be understood that the market (market) will always be divided on several segments of both the geographic, demographic, psychological, psychographic, sociocultural, and even then develops also use-related segmentation, use-situation segmentation, benefit segmentation and hybrid segmentation. the higher the level of competition then the market will become more segmented. Foresight of market participants often bring new products and services from segments that are not thought about before (see Starbuck, Cirque du Soleil). Each customer segment has a pattern of behavior that differ from one another. Even though the products are still monopolized actually consists of several segments of customers, only because of the lack of choice then all buy the same products from the same provider.
As a manufacturer is not easy and requires huge resources to meet diverse customer needs and come from different segments.
The same thing applies to the retail industry, customers are divided into several different segments of retail, so retail-existing or newly emerging is not necessarily going to directly compete with each other (head to head) because it could be between them are on different markets. Between traditional and modern retailers are unlikely to compete on the same market segment, just head to head competition that might occur is alone among modern retailers.
The establishment of modern retail is geographically adjacent to the traditional markets in some cases it reduces the revenue from traditional retailers, but not exactly when it is said both are competing for what happened: First is the division of customer segments naturally. Why is that? In some areas in terms of customer revenue consists of different groups but because the market segments that are available only traditional markets, the customers of these different segments shop at the same place. Particular segment is not really satisfied with the service, access and choice of products available but because they have no other choice they were forced to shop at that place. When the modern retail segment that does not operate so happy this is going to switch to retail, thus, each according to his needs underserved segment. Second, some customers to switch to modern retail just wanted to try but this will not last long because they are the target market segment that is true of the traditional market.
The issue of competition between traditional and modern retail is actually also had (and still) happening in the U.S. along with the expansion of big players like Wal Mart, but not necessarily the case can be equated with the conditions in Indonesia. The funny thing is that not a few cases in foreign countries to use as a reference for the case in Indonesia. Once again, different consumers have different behaviors. Consumers in the U.S. have a different behavior with Indonesia, may be the presence of modern retailers in the U.S. really threaten traditional retail because of competing in a market that is almost the same but not so with Indonesia. Not a bit of modern retailing in Indonesia, which failed in its expansion because it is in the area is very minimal number of customer segments, most still shop at traditional markets and only occasionally to shop in modern retail.
Traditional markets still have potential and market share to be able to continue to operate even appear modern retail. What is still a traditional market forces? Indonesian Culture and consumer behavior, who liked to bargain is an important factor that can even be said to be a competitive advantage from the traditional market, because it is almost
not be applied by the retail-modern retail. Another advantage is the closeness between the seller and the buyer would normally have in a traditional retail is rare in modern retail though they often deal with a customer database but does not feel natural as the relationship built between the seller-buyer in the traditional market.
Customer perceptions about the traditional market price that is cheaper also be another factor, not to mention the traditional market customers can buy a suitable amount (minimum) required while in the modern retail is packed with standard measures. The bottom line of modern and traditional retail have different customer segments so it can not be said to compete with each other.
Even had the potential and market share but still there are some things that need to be done by traditional retailers to keep customers gain a place in their heart:
- Improved quality of customer service. Traditional retailers are often less friendly in serving customers or chatting with other traders.
- Creating a comfortable atmosphere for customers. This cozy atmosphere can be created among others by creating a place to trade a clean and odorless. Sometimes traditional merchants also quarreled with each other or the family in place to trade, this may cause inconvenience for the customer.
- Does not take advantage of a moment, there are times when traditional merchants agreed with fellow padagang take advantage of large amounts for certain items at certain times. The advantage of this kind of instantaneous customer loss and damage long-term relationships with customers.
- Options products better, note the condition of the product is still worthy of consumption or not.
Competition will always continue to increase from time to time, so entrepreneurs should always creative and innovative to face competition. Almost every type of business will feel the competition, not only the retail industry. In the transportation industry (land) occurs the same situation, the standard of customer service is very low but when it comes up a competitor that is able to better respond to consumer demands instead challenged other players in the industry.
Today we begin to enter the era of globalization, the ability to face competition indispensable precisely because anti-competitive attitude will eventually turn off the business that have been already running. Anti-competitive attitude led to the entrepreneur is not ready to face the competition itself. This can be seen by many companies (mainly SOEs) is distraught to face the competition being so complacent with the status of monopoly and do not use them to create competitive advantage. How to prepare for the competition? Source of funds (money capital) is now no longer the most important factor, smartness and intelligence (intellectual capital) in capturing market opportunities and to innovate in meeting customer needs more precisely determine.
On customer orientation and focus to fulfill her desire to be an absolute factor in the era of competition, they are able to understand and meet the needs of the customer who will continue to survive thus: Know your customer! (Satrio A. Wicaksono)
