Jakarta, 30 August 2024 — The transformation in consumption patterns of the middle class in Indonesia has had a significant impact on the retail sector. These changes bring major challenges for retail entrepreneurs who must adapt quickly to survive and thrive. This article will take an in-depth look at how consumption patterns have changed, the challenges faced by retail entrepreneurs, and how eCommerce, in particular Lariss eCommerce, can be an effective solution to overcome this problem.
Changes in Consumption Patterns: What's Happening?
According to the General Chair of the Association of Indonesian Retailers and Shopping Center Tenants, Budihardjo Iduansjah, there has been a significant change in the consumption patterns of middle class society. Middle class people who used to often buy goods in large quantities for monthly stock now prefer short and quick shopping in between their activities. This change was triggered by increasing busyness and the need for time efficiency.
Budihardjo Iduansjah said, "There is a significant difference in the middle class group who shop less. In fact, previously they often bought goods for monthly stock. There has been (a change), so the middle class doesn't have much time, now they are more quick and grab, when they buy They don't have time to play around with those things because they're busy working."
Impact on Retail Entrepreneurs
This change in consumption patterns has several significant impacts for retail entrepreneurs:
1. Decrease in Turnover: With smaller transactions, the turnover of retail entrepreneurs has decreased. Middle class consumers are now shopping more frequently but in smaller quantities forcing entrepreneurs to adjust their strategies.
2. Affected Stock Management: Changes in shopping patterns affect the way stock is managed. Retailers who previously relied on monthly stock had to change their strategy to accommodate more frequent purchases but in smaller volumes. This resulted in a reduction in warehouse size and adjustments in the supply of goods.
3. Limited Market Reach: Physical stores have limitations in terms of location and operating hours. With changes in shopping behavior, where consumers prefer the convenience of online shopping, retailers who depend on physical stores may face difficulties in reaching new customers.
Challenges that Threaten the Sustainability of Retail Business
Changes in consumption patterns give rise to several pain points or fundamental problems that require serious attention from retail entrepreneurs:
1. Decrease in Sales Volume: With smaller and more frequent purchases, entrepreneurs face a decrease in sales volume per transaction. This could result in pressure on profitability, especially if fixed costs are not reduced in proportion to the decline in sales volumes.
2. Inefficient Inventory Management: Managing inventory the old way becomes increasingly difficult as shopping patterns change. Entrepreneurs must monitor stock more closely and make quicker decisions regarding ordering and managing goods.
3. Difficulty in Reaching New Consumers: Physical stores are limited in terms of reach and operational hours. Retailers who do not take advantage of online platforms may miss opportunities to reach new consumers who prefer online shopping.
4. The Need for Innovation in Marketing: With changes in shopping patterns, entrepreneurs need to rethink their marketing strategies. Traditional marketing methods may no longer be effective, requiring new approaches that better suit today's shopping habits.
Digital Solutions: Why eCommerce Is an Urgent Need
In the face of these challenges, eCommerce has emerged as a solution that not only helps retail entrepreneurs to survive but also to thrive in the changing landscape. Lariss eCommerce is an eCommerce platform that offers a variety of features and benefits that can help retail entrepreneurs overcome the challenges they face. Here are some reasons why eCommerce, especially Lariss eCommerce, is a much-needed solution:
1. Ease of Access and Transactions
Lariss eCommerce provides a platform that makes it easy for customers to shop anytime and anywhere. This is very important considering the new shopping patterns of middle class people which prioritize efficiency and comfort. With Lariss eCommerce, retail entrepreneurs can expand their market reach and provide easy access for increasingly busy consumers.
Profit:
- Accessibility Improvements: Consumers can shop from home, work, or other locations that are convenient for them, without having to be bound by physical store operating hours.
- Ease of Transactions: The fast payment process and various payment options available make it easy for consumers to complete purchases easily.
2. Optimal Stock Management
Lariss eCommerce is equipped with advanced inventory management tools, which enable entrepreneurs to monitor stock in real-time and adjust supply of goods to fluctuating demand. This helps reduce the risk of overstocking or understocking, which can impact operations and customer satisfaction.
Profit:
- Real-Time Stock Monitoring: Entrepreneurs can view available stock directly, making it easier for them to manage and regulate the supply of goods.
- Order Optimization: With accurate data, entrepreneurs can better predict stock needs and make more informed ordering decisions.
3. More Effective Marketing Strategy
The soft selling feature of Lariss eCommerce helps entrepreneurs to promote products in a more personal and relevant way. This allows entrepreneurs to build stronger relationships with customers and increase their loyalty.
Profit:
- Personal Marketing: Entrepreneurs can customize marketing messages based on consumer preferences and behavior, increasing the effectiveness of marketing campaigns.
- Manageable Campaigns: The platform allows entrepreneurs to easily design and launch marketing campaigns, as well as monitor the results in real-time.
4. In-Depth Data and Analytics
Lariss eCommerce offers comprehensive analytical tools to provide deep insights into consumer behavior and shopping trends. This data is invaluable for entrepreneurs in making better strategic decisions and designing more effective marketing strategies.
Profit:
- Consumer Insights: Data analytics helps entrepreneurs understand consumer preferences and shopping habits, enabling them to adjust product offerings and marketing strategies.
- Strategic Planning: Data obtained from analysis helps in strategic planning and more informational decision making.
Conclusion
Changes in middle class consumption patterns pose serious challenges for retail entrepreneurs, from reduced turnover to difficulties in managing stock and reaching new consumers. To face these challenges, eCommerce is not just an option, but an urgent necessity. Lariss eCommerce offers effective solutions through ease of access, optimal stock management, better marketing strategies and in-depth data analysis.
By utilizing eCommerce, especially Lariss eCommerce, retail entrepreneurs can adapt to changing consumption patterns, increase operational efficiency, and achieve success in an ever-growing market. It is important for entrepreneurs to quickly adopt this technology to remain competitive and meet increasingly dynamic consumer needs.