Jakarta, CNBC Indonesia – The Tanah Abang market used to be successful. Built since the Dutch East Indies era on August 30, 1735, this market was once called the largest textile and fashion center in Southeast Asia.
However, the situation is now reversed. The center’s popularity has recently faded to the point of being quiet due to intense competition with e-commerce.
Research by the CNBC Indonesia Research team at the end of 2023 found several facts regarding the problems that occurred at the Tanah Abang market, which made buyers give up and run away. Here’s the search.
Unhealthy E-commerce Competition, Thin Margins
CNBC Indonesia Research found that the majority of shops in Tanah Abang already have e-commerce and social media accounts such as Shopee, Tokopedia, Instagram, Tiktok, and others. This shows that sellers in Tanah Abang, although it was widely heard that they wanted to close e-commerce, are in fact following developments and selling online.
However, there are a number of problems that are difficult to face, namely the risk of price competition with e-commerce which is considered unreasonable. Some sellers regret that e-commerce prices are very cheap, even though their production alone is on average more expensive than that.
For example, there are brocade kebayas and batik skirts which are sold for Rp. 160,000 per set, then you will be given a discount of Rp. 145,000 if you want to buy at least three. It turns out that after searching on e-commerce with the same model, there are ones being sold for IDR 130.00 or even cheaper.
Others, there are plisket skirts priced at Rp20,000 for a minimum purchase of 6 pcs in Tanah Abang, but in e-commerce there are many that sell below that price and you can buy from 1 pcs only.
Consumers tend to be price sensitive, so it is not surprising that the first choice will fall on buying online, because it is cheaper, there are often discounts on shipping costs, and it is also more flexible.
Extortion is rampant in Tanah Abang Parking Lot
The next problem that makes it quiet turns out to come from parking, which reportedly involves a lot of illegal fees by various individuals. CNBC Indonesia collected several comments from netizens on various social media platforms stating that parking prices are unreasonable, where the price for parking a car can be up to IDR 50 thousand and a motorbike IDR 20 thousand.
One account called Milestone
Another was Andreas Natawijaya who made a status on Facebook saying “Try to go to a place that is going viral (t*nah ab*ng market). When you first want to park, try to enter. The portal turns out there is a person inside who is pulling the parking lot (charged 35 thousand, no. Bargaining) even though you have already paid for the official parking, you also use a ticket.”
Apart from the problems of e-commerce and unreasonable prices, this parking problem should be the first to be resolved. The reason is that just parking makes it uncomfortable for consumers to go to Tanah Abang, of course this quiet problem will drag on for a long time.
Apart from that, cooperation between business actors and the management of the wholesale center is needed so that the facilities there can run more effectively and efficiently, which is hoped will bring convenience to customers shopping in Tanah Abang.
(fsd/fsd)
[Gambas:Video CNBC]
2024-01-20 15:00:01
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