In the last three years, there has been an interesting phenomenon in the consumption patterns of Indonesian society. Public consumption is down, but the Indonesian economy is slowly increasing. The reduction in visitors to retail outlets in Indonesia, ranging from the conventional to the modern indicates that the consumption of Indonesian mass is decreasing. Conventional retail outlets in the Glodok, Tanah Abang, Mangga Dua, Thamrin City and modern retail outlets such as Ramayana, Matahari and Giant are no longer experiencing the glory period experienced a few years ago. Then, where does the Indonesian people's money run to?
The Illusion of E-Commerce in Consumer Product
Many argue that the lack of retail outlets is caused by the proliferation of e-commerce in Indonesia, especially in big cities that provide complete and easy access to technology and information. The emergence of e-commerce in Indonesia, which sells a variety of household goods, such as Bukalapak, Tokopedia, Shopee, Lazada to those who specifically sell certain items such as Zalora and Jakmall are considered as the main reasons for the decline in visitors to conventional and modern retail outlets. A conclusion that makes sense if we do not see deeper data. Based on data from the Central Bureau Statistics, sales through e-commerce only account for less than three percent of total retail sales in Indonesia. So, if it's not e-commerce, why?
Shifting Consumption Patterns
Today, Indonesia is experiencing a transition of the work generation. Generation Y is heading to the peak of his career and is slowly replacing Gen X who is retiring. This condition is supported by generation Z who also entered the job market. Actually, the transition of generations is not special, which is quite significant from the characteristics of generation X and generation Y. Generation X has been considered obsessed with work-life balance while generation Y is considered to prioritize freedom and flexibility in their lifestyle.
This has caused the consumption patterns of the people in Indonesia, which are currently dominated by generation Y and generation Z, to also change, thus prioritizing things that are leisure economy. Now the productive age community prefers buying food and drinks in cafes or restaurants, staying in villas or hotels, enjoying nature recreation, watching movies and music concerts, taking care of skin health, or enjoying holidays with family at home while ordering food and drinks through GOFOOD or GRABFOOD. This consumption pattern, which is then called the leisure economy.
Changes like this can be observed in plain view that the reduction in visits to retail outlets either conventional or modern, due to the mushrooming of places that carry the concept of leisure economy. Previously, retail outlets could only be enjoyed by upper or middle economic circles, now the lower middle class could enjoy the place because it could set aside its income so that it could enjoy entertainment. This condition is also accompanied by the fact that leisure economy goods and services are now increasingly affordable for all groups. We can easily find a variety of promotions for places to eat and drink, hotels, travel tickets to beauty treatments.
Here Comes the Leisure Economy
This shift in consumption patterns is an opportunity for the government to increase the growth of small and medium industries that are in tourist destinations to support the concept of leisure economy in Indonesia. From the growth of this industry, other sectors will follow suit and have a good impact on the welfare of the surrounding community. Efforts to open access to tourist destination areas in Indonesia have a positive impact on the economy.
High public interest in the leisure economy is a great opportunity to open new businesses. The potential tax from this industry will emerge as new state revenue. This leisure economy phenomenon presents its own challenges for the retail and manufacturing industries which affect sales. The retail industry is demanded to be more creative and innovative and be able to bring an element of leisure economy and lifestyle in their business packaging. This will be answered if it continues to see the development of shopping centers in big cities in Indonesia. As the Indonesian Retail Association said that they are optimistic that retail sales this year will be able to grow to reach 9-10 percent.
Other Perspectives
Another thing that can be debated about the leisure economy is the readiness of the central and regional governments and the people of Indonesia in welcoming this phenomenon. In developed countries, shifts in consumption to the service sector and then to the leisure economy usually occur after the manufacturing industry reaches the peak of its life cycle and is already difficult to grow.
This condition is in contrast to Indonesia, where the manufacturing industry is still in its infancy and still has great potential to be utilized to spur economic growth in Indonesia. Another thing that is feared is the rate of growth of the manufacturing industry dead in the middle of the road so it is forced to reach the peak of its life cycle faster with a lot of potential failure to be exploited.
Seeing the various challenges and opportunities presented by the leisure economy in Indonesia, the government and business people must be able to develop strategies to deal with them. As good citizens, we of course also have to address the leisure economy to open new perspectives wisely.
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