Business Entrepreneurs Who Are Not Yet Strong Don’t Be Afraid of “Going Forward, Retreating, Hitting”. As I said on kompasiana.com, February 15, 2023, business actors engaged in monopoly and oligopoly markets seem difficult to fight, what we have lost, we must adapt, and we should make friends by partnering (cooperation), either we as business actors and we as consumers.
Now the above conditions are relevant to business actors who are not yet strong-facing strong business actors. Business actors who are not yet strong, even before the pandemic had already collapsed (closed). For example, in Palembang, there is a modern retail business unit that has joined the scene of modern retail but has disappeared or closed. One of them, 212 Mart, and several other Mart or Supermarket brands and including existing retail stores.
If we look at why this phenomenon occurs? The answer is, partly because they have to face the condition “Forward Hits Back Hits”. For example, the modern retail 212 Mart, Supermarket, and/or retail shops are not yet strong they are very dependent on wholesalers (distributors) who sell their goods for resale (wholesale), besides they have to compete with strong modern retailers, such as Indomaret, Alfamart, Super Indo, and strong modern retail locations around their place of business.
If we trace it, modern retail that is strong and familiar to the children of this country and already exists has networks that complement and support each other. For example, Indogrosir is a supermarket from PT. Inti Cakrawala, while Indomaret is a mini market from PT. Indomarco Prismatama.
The Indomaret group has 10 business sectors namely, Retail (Indomaret, Omi, Ceria Mart), Grocery (Indogrosir), IT Consultant (AGCI), Food and Beverages (Yummu Choice, Point Cafe), Shopping Plaza (BSD Plaza), Bakery (Mr., Donut, Mr. Bread, Prime Bread), Japenese Restaurant (Washoku Sato), E-Wallet (I-Saku), E-Commerce (Kilk Indomaret) and Expedition (Indo Paket). For more details, see Ecc.co.id)
Indomaret under the auspices of its subsidiary PT Indomarco Prismatama, Indogrosir itself has a vision of becoming a distribution channel to create and develop entrepreneurs in the retail sector with the motto “trusted business partner”.
Indomaret and Super Indo are shopping centers that already have many branches throughout Indonesia. Both of them belong to the Salim Group which was founded by Sudono Salim (detikfinane, 26 August 2022). Likewise, Alfamart is owned by Djoko Susanto (detikfinance, 25 September 2022). Alfamart whose outlets are always close to Indomaret is a strong modern retailer that is a competitor to modern retail, supermarkets, and shops owned by this country’s children.
Thus, only from the supply side are business actors who are not yet strong are very dependent on them, not to mention the price issue, the price of the goods they sell can be lower than the selling price of modern retail business actors, supermarkets, and shops owned by state children This.
If the business actors who are not yet strong want to “go forward/move forward” in the sense of wanting to just do a “price war”, they will lose, if the business actors who are not yet strong will retreat or exit the market, it will benefit their side, because market share they multiplied, as a result of our retreat.
Stop Forward Hit Back Hit.
What should we do to avoid getting caught in the “go forwards hit backward” trap, at least there are some steps we can take.
First, set reasonable margins only. The price that we set shouldn’t be too high for them, if possible it’s the same, because if it’s too high, then we can’t compete in terms of the price set by their group’s modern retail.
For that reason, we are the ones who arrange it as much as possible because we buy the goods or stock that we have from wholesalers belonging to their group. In other words, modern retail, supermarkets and retail stores that are not yet strong, belong to us, and modern retail, which belongs to their group, both buy goods at wholesale groups that belong to themselves, which incidentally, the purchase price of modern retail, supermarkets and retail stores that are not yet our strong brand will certainly be higher than the purchase price set by the wholesalers belonging to their group because they buy with their network business unit.
In this case, there’s nothing wrong if we adhere to the principle, “let’s make a little/small profit as long as the goods sell a lot or sell well”.
Second, monitor stock and prices of goods continuously. Usually, the stocks purchased by modern retailers, supermarkets, and shops that are not yet strongly owned by us are in large/large quantities. Well, sometimes we are lazy / forget / complacent to check the stock and price of the goods we have purchased. It could be that the price of the goods that we have purchased has changed (decreased or increased), because the price at the wholesaler belonging to the group where we bought the goods has changed (decreased or increased), while we have not adjusted (decreased or decreased). increase) the prices of goods in our modern retail, supermarkets, and shops.
If it’s like this, if the selling price at the modern retail belonging to their group goes up, we haven’t raised the price, then we will suffer a loss and when we are going to buy it back the purchase price will already be much higher/expensive and vice versa.
Third, Manage modern retail, supermarkets, and shops that are not yet strong with ours with professional management. I see that just from the vision, our modern retail, supermarkets, and shops have lost a step from the modern retail vision of their group, even sometimes our modern retail, supermarkets, and shops don’t even make/stipulate a vision at all, we don’t want to renew the vision -his. For this reason, immediately set a vision and or update the vision (for existing ones) and apply professional management.
Especially if there are modern retailers of ours that stand up, “emotional”, solely for the sake of existence and to be able to shift them. It’s okay, it’s legal if it’s in a condition that it’s time, but if it’s still new, we have to adapt, slowly, and be sure that one day we will be side by side and need each other. Now we need them, But at some point maybe we will need each other.
Fourth, government actions or policies must be balanced. If the government has stipulated regulations concerning the spacing of modern retail outlets belonging to their group, they must be implemented, it must be heeded. If the government has limited operating hours or opening and closing for modern retail business actors belonging to their group, then it should be upheld.
These distance and time restrictions are important, to allow consumers to shop at retail stores that are not yet strong, retail stores owned by this country’s children who are still struggling.
Fifth, try to unite modern retail, supermarkets, and shops that are not yet strong and form a network with others so that we can complement each other. This is important, with this network of cooperation, apart from creating strength, mutual tolerance will also be created and a strong sense of kinship will also be created.
Finally, create Pancasila industrial relations between business actors. Between one business actor and another, whatever the status, whatever the group, whatever the background, let’s support it, let’s help according to their respective capacities. I’m sure that the children of this country also want to become business actors who are advanced and developing and strong. Isn’t it that if they progress and develop they will have implications for this country, will absorb more workers, reduce unemployment, contribute to the economy, and create conducive conditions and provide opportunities for the children of this country to enjoy the economic resources that exist in their own country? Hopefully!!!!