Malls and Traditional Markets are Increasingly Rare The Buyers (What's the Solution?)

Note: Tulisan ini adalah terjemahan Basa Enggres bebas dari artikel ini

The idea of ​​writing this article was triggered by the incident a few days ago.

After all this time I have never visited Graha Cijantung Mall (one of the malls located in the city of East Jakarta), for some reason, I intended to go there on Sunday.

I've rarely gone there. Whereas in the past (the era before 2010), Cijantung Mall was one of the favorite places I would always go to every weekend.

I am a person who is very fond of reading. So, the only location I went to visit in the mall was only one, namely: Bookstore! ☺

Flashback for a moment (about my reading hobby story).

Yes! I am very fond of reading since childhood. When I was a child, my hobby was to dismantle my father and mother's bookcase. What am I looking? Yes, it is clear, the book! In childhood, I was most happy to read books about encyclopedia and general science.

When I was in school, my passion was to visit the school library. I have read almost all the books in the library. Ranging from books about lessons, to classic novels by well-known Indonesian writers.

Now (after adult), my favorite is reading at bookstores the malls and shopping centers. Hehe :)

About 15 to 10 years ago, the shopping center that I visited most often was the Cijantung Mall. 

Inside the mall, there is a bookshop that is quite large and a complete collection of books, named "Bookstore Charisma."

In the bookstore Charisma, everyone is allowed to read all of his books for free, provided they read it while standing. So, if you can read from morning to evening in a standing position, then read it all the books you want in that store. hehe ☺

A question might arise from you: "Mr. Izal, why do you prefer to read for free? Can't you buy the book, then read it at home so that your feet won't get sore from standing too long?"

Well, listen to my honest confession: "I had to do it (read while standing) because at that time I did not have much money to buy books. hehe ☺

Now we will focus back on the topic.

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Unexpected, when last Sunday I returned there (with my wife), it turned out that the Charisma bookstore had closed. According to information from the security guard, the large book store located on the third floor of the Cijantung Mall has the closed for a year.

When I ask; What's the cause, sir? Why close?

"I don't know for sure, sir, but since the past three years, the bookstore's less frequent visitors. Maybe a contributing factor is because the shop owner can't afford the rent, "said the security guard.

After that, I went around every corner of the Mall. Starting from the ground floor until to the top level. I see as a whole; a condition it's very lonely. The uppermost part, namely the cinema 21 is also quiet. Only a few people seen there. Very contrast with cinema 21 in the past (2000s era). That time the top floor was very noisy and full of young people.

Yeah! Seeing the condition of the Graha Cijantung Mall at this time the situation is very much different when compared to the period of 15 or 20 years ago.

Formerly, the Mall is the belle place of all people to relax and shop. Now, on average, most malls are deserted. Some of them are almost like graves because the occupants are only security guards, shopkeepers, and counter waiters. 😕

Likewise, with traditional markets around Jakarta. Such as the Pasar Rebo, Cisalak, Kramat Jati, Cibubur, and most other conventional markets, the conditions are almost the same.

There are very rarely buyers.

The most crowded is only once a year, which is the moment of the fasting month and Eid Fitri.

I still remember, when I was a teenager in the 90s, all the traditional markets that I mentioned above, always busy with various buying and selling transactions every day.

But why are all the malls and traditional markets now very quiet and look different from the era of the 90s?

This situation is not without reason, according to my observation there are several causes.

Includes:

#1. In the 90s all trading activities were concentrated in traditional markets or large malls. Such as Pondok Indah Mall, Blok M, Sarinah, and others.

Because the location of a shopping center in one area, so the type of goods sold is available complete.

Completeness is what attracts everyone, to come shopping at the Mall at that time.

What about the current conditions?

Minimarkets such as Alfa mart, Indomaret, Alfamidi, and others are everywhere. Plus, now many impromptu night markets are on every side of the open and crowded streets. This night market usually sells a product an average price that is quite sloping.

With more and more the number of minimarkets and impromptu night markets, result in the concentration of buyers becomes divided. Shopping places no longer centered in the Mall area or traditional markets such as the 90s. This is one of the factors that make malls and traditional markets more and more empty of visitors.

#2. Now there also new phenomena in Indonesia. Namely that many people open clothing business, food, mobile, and other shops in alternative, busy, and strategic street areas. 

For example, as in a new road junction, KP. Rambutan, and around of my toy shop (location in the East Jakarta area). Also, there are many more elsewhere. Usually, these new businesses have sprung up in densely populated areas and crowded alternative road areas.

So, now are a lot of trends the people opening businesses. They have not centered on malls and traditional markets anymore. Many people who want to open a store, prefer locations in crowded streets. 

Why do people prefer to set up a business on an alternative road (that is crowded), and leaves the Mall/traditional markets? 

There are two possible causes, namely: 

• Rental prices for shops in malls and traditional markets are usually relatively expensive.
• In addition to the high price of the rent, in general, today people are reluctant to shop at malls and traditional markets. Worse, mall managers and traditional markets are less responsive to the loneliness of visitors. They still set high store rental prices. Yes, of course, making the malls and traditional market more and more abandoned by traders.

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#3. When the era of the 90s, the internet was still rare. Now? Almost all buying and selling activities controlled by internet technology.

There used to be no Facebook, Instagram, Twitter and other social media. So that in the era of the 90s, Mall was one of the favorite places for young people to hang out, exist and express themselves. 

I still remember when the Graha Cijantung Mall had just opened in 97-98, every night so many young people visited there. Every day the atmosphere is similar to the moment of Eid and the new year. (Note: Mall Graha Cijantung is one of the biggest malls in the East Jakarta area at that time)

That Cijantung Mall is always full with the gathering of young people, even to the part of the park! (In the front of the mall there is a large park).

But how is the state of Cijantung Mall now?? 

Now in there is only occupied by shop employees and counter waiters. 

Young people now prefer to sit at home. Busy with the smartphone, dissolve with adventure in the gadget each.

#4. In the past not yet present online marketplace and e-commerce. Now? Very much!

Yup! In the era of the 90s, there were no Amazon, eBay, Alibaba. Or like e-commerce local in Indonesia; Bukalapak, Tokopedia, Lazada, and other. Now?? Is very much! And everyone immediately to open an online store there. How with the prices of sales? Oh my God! Don't ask anymore! They are competing against each other for price war!

Imagine the comparison: 

If usually a store on the Mall takes a 100% margin, and traditional market stores take a margin of 50 - 70%.

Well, in the online store, on average, a margin of only 10-20%. There is even an online store that 'crazy,' because just taking worth 5% margin only!

~R.I.P Mall and traditional market~ 

#5. Nowadays, people who shop online only sit at home. Then typing the smartphone button, transfer, then wait for the goods sent. 

The process is straightforward and fast.

How about the process of shopping at the mall? 

Is very contrast with the above condition. Yeah! If you are domiciled in a densely populated city, this process of shopping is very annoying. What is the cause? It's usually you annoyed because of the traffic jam. Plus, if the weather is very sweltering when during the day. And vice versa you hit by water if the weather is heavy rain. Not easy right?

Especially if you go shopping in traditional markets, if it is in the rainy season, of course, the market will be muddy, the fish smell is stinging, the atmosphere is stuffy, uncomfortable, and so on.

Well,... if the conditions are like the one above, which process is more chosen by people to shop for their needs?

Exactly your answer! That is, the online store!

#6. At this time, the changes a system shopping are caused to technological advances, information and the invasion of social media (the internet).

Can you imagine, how are the conditions (changes) at 10, 15 or 20 years to come? 

Now elementary school children are already familiar with the internet.

Everyone is getting familiar with the internet. Everyone has used the internet to fulfill their daily needs. Someday (in the next 10 or 20 years), maybe a tool for earplugs, toothpicks, and even a flea comb will be purchased by through the internet.

The twilight of the Mall and the end of the traditional market era seems to be getting closer.

#7. Yes, one day the trend will shift, almost everything will be purchased through online stores.

If in the past motorcycle taxi service were carried out by individuals, then there are now companies that have created/transformed their systems into online systems. So that the previous conventional motorcycle taxi services which were only managed by individuals have now been incorporated into a company with an online motorcycle taxi system. Online motorcycle taxi companies in Indonesia include Go-jek and Grab-bike.

#8. So for physical shop traders/offline stores, they must be able to respond quickly to this phenomenon.

We cannot run away from changing times. In the business, only for those who can adapt, who will survive. Yeah! The choice is only 2; keep survives, or sinking and die in the era that keeps rolling!

About way of adapting to business, I've have made an exclusive article. That article reviews it in full. If you have free time, please reading. Here's the article: Online Shop Massive Invasion, Should An Offline Store Die?

#9. Therefore, in addition to having a physical store/offline store, from now on we have to start pioneering online shops.

It's up to you, to open an online store on a personal website or in an online marketplace like Amazon, eBay, Alibaba, Bukalapak, Lazada, OLX, and others. You can also open an online store on social media accounts like Facebook, Twitter, Instagram.

The important thing is you have to start from now on! 

So when it arrives later in the 10th era, 15 or 20 years to come, you have ready! You already have two 'rounds of ammunition', namely having a physical store (offline) and also having an online store. 

So when your physical/offline store is quiet, you still have 'other ammunition' which is by relying on your online store. In this way God willing, you can adjust all the changes that exist. You will not sink into the changing times.

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#10. Yep! in the end, only those who can adapt, and those who are quick face change, who will be able to survive.

The business world is never static. Certainly will always be dynamic and change throughout the ages! And in each business, there is the ebb and flow. There is a heyday, and there are also times of difficulty. 

So what is the solution? 

There are only two choices, namely: 

Keep trying to survive while continuing to innovate,

or

Sink, surrender, and die in a change of time!

The choice is in our own hands.

I am thus sharing, that I can convey in this article. Hopefully, it can be useful, especially for fellow entrepreneurs. I hope that all of us can achieve success.

Regards.