Slipi Market: A Jakarta Landmark Fights for Survival
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Slipi market, a once-thriving commercial center in West Jakarta, Indonesia, now stands as a stark reminder of the challenges facing traditional retail in the digital age. Years of declining foot traffic, exacerbated by the COVID-19 pandemic, have left the market largely deserted, with many vendors forced to close their doors.
Erizon, one of the few remaining vendors, selling shoes and bags, paints a grim picture. He’s witnessed the market’s decline firsthand, having operated there since 1988. “Before Covid, market conditions were actually starting to quiet down, but after Covid it got worse,” he shared.
The impact of the pandemic,coupled with the rise of e-commerce,has dealt a devastating blow. Erizon describes the current state of the market as eerily quiet, even during peak seasons like holidays. “Now everyday life is quiet. Weather it’s the end of the year or Eid, it’s quiet.how many years has Eid been quiet,” he added.
The competition from online retailers has been especially fierce. Erizon’s sales have plummeted by over 60% as the pandemic began. “(Turnover) has fallen by 60%, maybe more,” he confirmed.
A lifeline for Erizon’s business comes during the back-to-school season. His shop accepts payments via the Jakarta Smart Card (KJP), a government-funded program that cannot be used for online purchases. “It’s best when you want to go to school, as you can pay using KJP, swipe your card. It’s really intended for buying school needs, right. (So now the average buyer is only KJP recipient?) Yes, that’s the case, mostly,” he explained.
Despite this seasonal boost, the daily reality is harsh. Erizon struggles to cover his expenses, including rent, utilities, and other overhead costs. “Yes,this would be biting if there wasn’t another business behind it to support it. If not,this would have moved on. Every day it eats my shoes, eats my bag and sandals,” he lamented. he admits that his shop is currently operating at a loss. “So, if you do the calculations, this shop is actually making a loss, not a profit, but a loss. Every time my people make a profit, they only need to pay their dues,” he stated.
Erizon’s struggles are not unique. He estimates that nearly half of Slipi Market’s vendors have either closed shop or are facing bankruptcy. “Previously, before the pandemic, only 10-15% of the shops that were closed were selling. Now, at most 45% of the shops are still open,” he noted.
Slipi Market’s plight serves as a microcosm of the broader challenges facing small businesses globally as they navigate the evolving landscape of e-commerce and economic uncertainty. The story highlights the need for innovative solutions to support traditional markets and help them adapt to the digital age.
slipi Market Vendors Face Crushing Economic Headwinds
For decades, Slipi Market in Jakarta has been a bustling hub of commerce. But today, the vibrant energy of the past is fading, replaced by a struggle for survival among its long-standing vendors. The story of these small business owners reflects a broader economic challenge facing many communities worldwide, a struggle amplified by the rise of e-commerce and shifting demographics.
Uyus, a clothing vendor who has operated in the market since the late 1990s, paints a stark picture. “Turnover has dropped so much, it can’t be said,” he explains, “it’s already difficult to make daily snacks. Simply put, if we trade, it’s just like giving pocket money to children. If you sell it, it’s finished for a week, and then it’s difficult to sell it.”
The daily grind is a constant battle. “There’s not necessarily a sale in a day,” Uyus continues, his voice heavy with weariness. “Just now someone came, I asked for a profit of IDR 5,000 but didn’t want it, he promptly left. I sold these two trousers for IDR 70,000, he asked for IDR 60,000, that was my capital price, in the end I offered IDR 65,000 to make a profit of IDR 5,000. I didn’t want to take it.”
The challenges extend beyond slow sales. The rise of online retail has considerably impacted foot traffic. uyus notes the changing neighborhood demographics as another factor. “A lot of people around here have had their land sold, there are no natives living here anymore. There are so many boarding house people, it’s impractical for boarding people to shop, they don’t shop at the market here, right,” he observes.
Fortunately, Uyus owns his shop, reducing his overhead to market fees. However, he relies on additional income from tailoring and alterations to make ends meet. “If there’s no need for patching from outside, that’s it, we market people can’t survive. If I don’t except sewing work or if someone asks for sequins, it won’t be possible to cover it,” he admits.
The struggles are widespread. Uyus notes the closure of many businesses, both large and small. “Now people can’t afford to pay for shops, pay the CMS (market fees). Never mind the small ones, the big ones have just dissolved,” he says, reflecting the broader economic pressures impacting small businesses in indonesia and beyond.
The plight of Slipi Market vendors serves as a microcosm of the challenges faced by small businesses globally. The rise of e-commerce, shifting demographics, and economic uncertainty create a perfect storm, forcing many to adapt or face closure. Their stories highlight the need for support and innovative solutions to help small businesses thrive in an increasingly competitive landscape.
Slipi Market: A Jakarta Landmark Fights for Survival in the Age of E-Commerce
As customary markets across the globe grapple with the rise of online shopping, Slipi Market in Jakarta, Indonesia, stands as a poignant symbol of this struggle. Once a bustling hub of commerce, Slipi Market now faces a dwindling customer base and an uncertain future. To understand the complexities of this situation, we spoke with Dr. Dian kartikawati, a retail and economic growth expert at the Institute of Southeast Asian Studies.
The Decline of Slipi Market
Dr. Kartikawati aptly summarizes the current situation at Slipi Market, noting: “The market’s decline is a confluence of factors. While online shopping certainly plays a significant role, it’s crucial to consider the broader context, including shifting demographics and the economic climate.”
Dr. Kartikawati points out that Slipi Market, like many similar locales, relied heavily on foot traffic and local residents. “The changing demographics of the surrounding neighborhoods, with many long-time residents moving or being displaced, have undoubtedly impacted the market’s customer base,” she explains.
The Impact of COVID-19
The COVID-19 pandemic exacerbated existing challenges, severely impacting small businesses like those in Slipi Market.
“Lockdowns and restrictions on movement dealt a devastating blow to retail businesses reliant on in-person shopping,” says Dr. Kartikawati. “Reduced consumer spending due to economic uncertainty added to their woes.”
E-Commerce: A Double-Edged Sword
While e-commerce provides convenience and greater access to products, it has undoubtedly presented a challenge for traditional markets.Dr. Kartikawati emphasizes the need for adaptation. “Traditional markets need to explore ways to leverage the benefits of online platforms while preserving their unique character and community value,” she suggests.
Government Support and Innovative Solutions
dr.Kartikawati highlights the importance of government support for small businesses. “Initiatives to support digital literacy among vendors, promote online marketplaces that integrate with physical markets, and provide financial assistance can play a crucial role in helping these businesses thrive.”
The Future of Slipi Market and Similar Markets globally
Dr. Kartikawati believes that the future of Slipi Market, and other traditional markets, depends on their ability to adapt and evolve.
“These markets hold immense social and economic value. By embracing innovation, fostering community engagement, and receiving appropriate support, they can navigate these challenges and continue to be vibrant hubs of commerce,” she concludes, offering a message of hope and resilience.
