Reflections Competition Hypermarkets and Traditional Markets

The development of modern markets in last few years is relatively very fast.Some sources state that it originated from the Presidential Decree. 96/2000 concerning

business fields closed and open for foreign investment. In regulation, the business of retail trade is one line of business that is open to parties foreign. For international wholesalers,the policy is clearly an opportunity very promising, because Indonesia has a potential market. By Therefore, after the policy was introduced, slowly but surely growing market modern large-scale increase. In the beginning development, the market did not occur market shows that concentrated on

a handful of players. In short, the market for retail sector oligopoly practices still occur.

However,in the last three years the pattern experienced a shift, where the market sector Indonesia became concentrated in the retail a handful of players. unfortunately, the process include acquisitions of domestic retail company by foreign multinational retail corporation.

Meanwhile, several other sources proclaim that these developments were can not be separated from policy minister Industry and Trade in 1998, in Where there is no clear definition between retailers, wholesalers, and wholesalers. On the opposite side, the business world guided by knowledge management continues to grow (by design franchise) causing wholesalers to enter be a retailer. Therefore, in addition to the rapid development of modern market scale large, retail in Indonesia is also characterized by mastery of retailers by players

large.

At first glance, this policy directlyraises consumer surplus,

because, for example-with different strategies discounts and purchase goods directly to producers, then the selling price of products on the market

modern be lower than in markets traditional. This fact is of course an impact on costs incurred by consumers when shopping at a large scale modern market more

lower than shopping at retailers traditional (both in traditional markets as well as in neighborhood community). But whether empirical data that happens is like this

or whether in fact there is another result? In addition, prognosis that there is a shift pattern consumers have also caused decrease in the existence of retailers

Traditionally, the start of the decline in business turnover, earnings, up to the lid of business retail trade, which ultimately affect incidence of unemployment in the former trader retail. But is this reality so really happening in Indonesia or even no Another result has not appeared to surface?

More than anything, also not reflected clearly how consumer preferences, so that they eventually turn away from the market traditional to modern markets. This identification very important, where not only aims rational reason for consumers to know that shopping orientation changed to the modern market, but also as part of a strategy to traditional market position in order to compete with modern markets in the future future. The reason is, when the traditional markets has provided a variety of things that become basis of rational choices of consumers, then the

The buyer would not hesitate to return shopping to retailers traditional.