Ministry Of Trade: Retail Innovation Needs To Mitigate Changes In Consumption Patterns

SOUTH TANGERANG, BANTEN - Ministry of Trade (Kemendag) said innovation and adaptation need to be done in the business world, especially the retail sector, so as not to be evicted by changes in consumption patterns.

Director General of Domestic Trade of the Ministry of Trade Iqbal Shoffan Shofwan said there had been a shift or change in consumer behavior, especially in the retail sector, from what was originally just for shopping, now starting to be modified.

"They have to innovate, because if they don't innovate they will be evicted by changes," Iqbal said when contacted by ANTARA in South Tangerang, Banten, Saturday.

Changes in consumer behavior, said Iqbal, have been seen since the COVID-19 period, where consumers come to shopping locations just to find the materials needed.

In addition, consumer habits for monthly shopping also shifted, to what was needed at that time.

The government also provides support for the transformation carried out by retailers, one of which is by collaborating with retail and shopping associations to create discounted discount campaigns on certain days, in order to encourage public consumption.

"Nataru (Christmas and New Year) yesterday, then in Lebaran, tomorrow in the second quarter, maybe there will also be back to school discounts. That's the point of driving the economy from the aspect and in terms of consumption," he said.

Meanwhile, Institute for Development of Economics and Finance (Indef) Economist Dzulfian Syafrian said innovations carried out by small retailers or minimarkets are a form of adaptation to maintain sales, when consumers start reducing spending on durable goods such as cars, motorbikes, and others.

According to Dzulfian, many consumers are now moving to small retailers such as Alfamart and Indomaret, which provide goods/services as well as places for social interaction.

"The more these small retailers provide goods/services for coffee shops also because they are supported by their infrastructure, large shops, large distribution networks so that they can reduce prices. They provide comfortable and affordable hangout places," explained Dzulfian.

Furthermore, he said this innovation could maintain sales whose trend was falling, thus requiring alternative income.