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Jakarta Post

Shoppers reluctant to switch stores: Survey

Many Indonesians are reluctant to switch to new supermarkets despite growth in the number of modern retail markets, a survey shows

The Jakarta Post
Jakarta
Fri, July 27, 2012

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Shoppers reluctant to switch stores: Survey

M

any Indonesians are reluctant to switch to new supermarkets despite growth in the number of modern retail markets, a survey shows.

According to a Nielsen 2012 Shopper Trends survey, the percentage of respondents who said they would check a newly opened store in their area decreased to 37 percent in 2011 from 55 percent a year before.

Meanwhile, as much as 69 percent of those interviewed said they went to the same store all the time. The figure was an increase from 57 percent in 2010.

“The lack of innovation and creativity among retailers has made people less excited when they go shopping. So they just opt for stores they are already familiar with,” Nielsen executive director Karmelia Nurdjalim said in Jakarta on Thursday.

Nielsen surveyed 2,356 people in six locations – 400 in Bandung, 560 in Greater Jakarta, 352 in Makassar, 336 in Medan, 327 in Semarang and 381 in Surabaya – from November 2011 to January 2012.

According to the survey, even though people were less willing to switch to new stores, they had become more interested in looking for promotional offers while shopping at their regular stores.

Discounts were the most sought promotion among shoppers, followed by instant prizes and special prices for additional purchases.

Modern retailers must provide as much convenience as possible to customers by offering extraordinary programs and services, which would help them attract new customers and beat the competition, she said.

“Can they offer something new? If they can, it’s better to start as soon as possible. It takes time to change the behavior of consumers. The key is to get closer to them,” Karmelia added.

The survey shows that on average, a household spent Rp 1.1 million (US$115.98) on fast moving consumer goods (FMCG), with more than half allocated for fresh food.

Total sales of FMCG reached Rp 165.95 trillion in 2011, growing 9.6 percent from the previous year, according to the Nielsen Retail Index.

The Nielsen 2012 Shopper Trends survey reveals that mobile vegetable vendors, traditional markets and wet markets topped the list of the most visited shopping channels per month. Supermarkets and hypermarkets, on the other hand, recorded the lowest visits.

“Consumers feel that the mobile vegetable vendors are the most convenient because the vendors deliver the products right to their doorstep,” Karmelia said.

Wet markets were also important because they were the consumers’ main shopping destination to purchase fresh meat, fish and fruits, she added.

According to the Indonesian Retailers Association (Aprindo) deputy head Tutum Rahanta, there are more than 17,000 modern markets across Indonesia at the moment.

“The modern market sector enjoys annual growth of between 10 and 15 percent,” he said. (tas)

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