WNAM MONITORING: Indonesia’s Ministry of Trade emphasized that businesses, particularly those in the retail sector, need to innovate and adapt to address changing consumer consumption patterns.
The ministry’s Director General of Domestic Trade Iqbal Shoffan Shofwan acknowledged a shift in consumer behavior.
“If they do not innovate, they will be pushed aside by the changes,” he remarked when contacted by ANTARA here on Saturday.
Shofwan explained that changes in consumer behavior have been evident since the COVID-19 era, when consumers began visiting shopping centers primarily to purchase only the items they needed.
In addition, consumer behavior regarding monthly groceries has shifted to buying only goods that they need at that time, not for future use.
The government also supports retailers’ transformation, including collaborating with retail and shopping associations to create discount campaigns on certain days to encourage consumer spending.
He noted that those campaigns have been held on Christmas and Eid al-Fitr holidays, among others.
Meanwhile, Dzulfian Syafrian, an Institute for Development of Economics and Finance (Indef) economist, noted that innovation by small retail businesses or convenience stores is a form of adaptation to maintain sales.
He pointed out that several convenience stores now offer not just goods and services but also spaces for social interactions, such as coffee shops. He stated that this innovation can help boost declining sales.
“With large stores and wide distribution networks, the prices could be reduced. They provide a comfortable and affordable place to hang out,” he stated.
