The Existence Of Retail Business

The existence of markets, particularly traditional market, is the most tangible indicator of economic activities viable in an area. The Government should be more focused and care about the existence of the traditional market as one means the public with cheap cost that support the economic activities of the community. Not just a traditional market where traders and buyers transaction of buying and selling, but also supports a smooth agricultural production, distribution, and small industries that absorb much manpower.

Changing times, changing lifestyles, and quality means carried by some modern commercial retail so great so as to make the existence of the traditional market became a little sink.

This condition is contradictory, given that traditional market sector that actually has the potential and the capacity is big enough, it is also facing competition from product quality means and the development of modern retail sector. The traditional market is the existence of a lifting action is very important, given the activities of the modern market, buying and selling activities occurred between people who want quality and economical product. This should be intensified to speed in innovating the marketing in order to attract consumers who are the keys to success in the retail sector, which should also be implemented on a traditional market to the value of existence that does not fade.

Revitalizing traditional markets are rated very strategically to increase the competitiveness of traditional market amid competition with modern retail and shopping centers are increasingly in various urban areas.

Therefore, the Government is conducting revitalization to stir up and moves back to its existence, as well as traditional market with the concept of one-stop shopping for safe, comfortable, clean and economical for the buyer or the seller.

From traditional market revitalization indication above, are expected to raise the quality of the facilities and management of the market, both in terms of cleanliness, comfort and regularity. If the positive trend of revitalizing traditional markets continue to be maintained, then the existence of the traditional market was able to beat even the existence of modern retailing.

Retail Market Opportunity

The potential of the retail market
A retail industry saw its market potential, or it could be this was how to find a location for the retail industry and factors what are yg became a benchmark of retail players.

There are eight main factors which we need to see and learn it well. We are directly on the potential-potential market that we have to pay attention.


The population of this character is the most important thing, which should be seen as a first step of market potential. See in detail from the existing population in the area, in terms of population development, facilities that support the retail industry that, both in the industrial sector to another but who had a multiplier effect with our retail businesses, such as the service industry or industry social factors in that area, such as hospitals, schools etc.

The population of characters must be viewed with detail, both in terms of its human begins, its age, their educational background, occupation, race, tribe and also the development of an existing industry market. Often once the survey only looked at data from population growth or population density, but not from the character of the population going on, it’s a lot different.

Development of a population of just development of the assumption number of potential customer, but we see the character of the population from all perspectives that make a character who becomes a measure of the strength of the existing market potential.


Another thing that really makes a potential market in analyzing the market there is a step we see and get to know the behavior (behavior) the character of the market of BUYERS.

For example, in one of the areas which will open a supermarket, habits and characteristics of the inhabitants of those areas in shopping is bringing his son, then it’s obvious if you want to open a supermarket there, the first thing that becomes the reference of the habit (behavior) buyers/residents with grocery shopping with his son is a place where their children can play.

Then if we open a supermarket without regard to these habits do not be surprised if the patrons a little although the selling price is attractive/cheap because the supermarket we no matter who makes a habit of characters they met.

It seems simple, but many retail players have not learned habits of buyers with good character, so the potential market there is not tergarap to the fullest.

Dat-Data character habits this buyer could not be seen only from the data population growth but it can be excavated from tim Sales Promotion Girls (SPG) that already exist in the market area and already know the buyer’s character habits there.


The power of the average family income in the area is also made whether the area is a potentially lucrative market for our Retail industry, because if the family income is not distributed properly, then its market is unstable, and also map the potential market we don’t draw.

An area with a high income family income, but not distributed properly, the meaning of the word patron happened unevenly will make a different shopping phenomenon if the average income of families in the area are all comparable or equal.


Age and category of family, a company based around the market potential we will snap also became a great influence. A market potential in the area of population with growing population with young age will make the market potential of affected his lifestyle (lifestyle).


The composition of this very influential family with market potential. See if there young family and turned into the composition of the family and have children, then the composition of spending their shift from consumer to consumer lifestyle needs of families, and automated shopping spending style became different.

That is why, the retail industry should always look at the development of the composition of the family after the year after year because of their regional character evolves according to the age of the buyer and the market potential is being shifted direction.


the market potential is continuous to grow because this is being quick and indirectly giving potential opportunity a good market for the foreseeable future and are passionate about their investments.


The population density was able to annotation with the number of people per square foot than the existing market potential since it was made patron of the strength of the existing buyers.

The greater the density of the population, then we should prepare the vast store that corresponds to its market potential. See the market potential in the new housing with a family that only 2 people will vary with families with an average of 4 to 5 people.


If the potential market that is filled with the style of the buyer or its mobility is high, then it’s clear they are the potential market moving so instead of reference to always come to our existing retail locations near them, because they are the buyers who move.

Retail Franchise Review

Tips on choosing a good and profitable Franchise. Maybe all this time you thought that buying a franchise it is always profitable. Because in the system of franchise or franchise, the risk has been minimized by such that the franchise (called franchiser). Such thoughts did have a point, though it is not always true in practice and reality. Why buy a franchise business failure risk is smaller than opening their own business? This is because if a starting a business with its own method of “Trial and error”, the possibility of failure is enormous, let alone no associates or relatives who guide him in a new venture from it. As if buying a franchise, the risk of failure can be minimized, because the company’s franchisees (franchiser) already provides everything to support investors (franchisees), including surveys, methods of marketing and promotion, licensing, raw material, management, labor/SOP standard, interior design and more.

According to John Naisbit in his book entitled Weblogs inc, said that franchising is a marketing concept that is most successful in the history of mankind. According to him, in the USA, every 8 minutes, born one oulet franchise. This new concept has become a hot topic among the corporate world and the media business. As a result, more and more people are attracted to named the money by buying a franchise or just business license or at least know more detail how a franchise system that actually, it can be seen from the ‘ sweetness ‘ bestselling books that explore issues of franchise or franchise and the high interest of visitors in the exhibition event of the franchise.

Why local franchise many have nurtured? Failure in a franchise business can be a factor of his franchiser or franchisee of his (investors) or factor accumulation from both sides. For the franchiser, sometimes because the business that he offer unproven benefit, but it’s been dared to offer a franchise concept to potential investors. Just look in print, an awful lot of advertisements offering the concept of cooperation in the form of “franchise”, but not necessarily its businesses can already found as “franchising/franchise”, it could be just in the form of “Partnership/Business Opportunity (BO)” or just simply the use of a brand name or license.

From news stories circulating, did in fact much success by buying a franchise franchise business, meaning that it purchased goes according to expectations, where the sales targets until the Break Event Point (BEP) and ROI (Return On Investment) aka “turnover” can be exceeded, and finally the business like money tree, just reap the benefits of the initial investment.

However, it turns out not least also the investors who bought the franchise suffered losses in his business. Indeed the loss of franchise news is seldom published in the media. If you are observant, in newspapers or magazines, it has often been a franchisees put ads to sell all the equipment and its franchise system, for various reasons. Come to think logically, a business that’s like a money tree for the owner (if profitable course), if a business is sold, there is definitely a “why-why” so sold. Most likely the business is a franchise system that sold it didn’t turn a profit or business franchise purchased “not selling sweet” and did not achieve the sales target, so that the franchisee solely in the operation of its business.

The example above, perhaps only one, we may often see a franchise whose outlets were closed, does that do business in areas such as restaurants, salons, the tavern burger, book store, laundry, retail, to educational institutions, from small to large scale, from being able to survive in a couple of years until that operates only within a matter of months. But like the sound of this franchise business, the proverbial broken grow missing switch, franchiser and franchisee always appear new.

Several factors cause the failure of most major franchise is the failure of adequate sales target achieved, this is usually due to a less convenient place of business. Other factors include the lack of support from the seller to the franchisees franchise for example in support of the promotion, management and others so impressed franchisees running alone, and there was also a rise in the price say because raw materials and inflation imposes weak purchasing power of society in General. In addition, factors that are not less important is the “mindset” franchisee/buyers who thought that buying a franchise franchise that means living and fortunately received “too expects” the franchiser works, or hopefully on a system that works. The franchisees when it should also work hard to promote and monitor the system, the store is already going well or not. Moreover, if the business that entered is a food item basis a lot and really need to set up management logistical, considering food only hold a few days before it was damaged. So don’t get wasted.

Currently, the most crowded in the business-franchise is in the food business, it’s known, because food is the most basic human needs, and all human beings need to eat.

Thus emerging franchise engaged in these foods, as derived from abroad include: McDonnald, KFC, Dunkin Donuts, and others. While that from local, among others: RedCrispy, Andrew Crepes and others. In addition to the franchise whose products include food, there is also a franchise whose products include non-food and services, for example in the field of education, the delivery of the goods, hair salons, clothing and more.

A few things to be aware of before you buy a franchise:

Whether the franchise is indeed fit for you? every year more and more people who dream of coming out of the routine 8 a.m. – 5 p.m. and has an own business system (either self or self-employed business owner). However his name to build a business can be a daunting process. Building a business can be said to be a thing that requires concentration, focus and persistence are high.

Franchises are often seen as a smaller business risks. Franchising gives You the opportunity to open your own business with the support and back up from franchiser. But the franchise is not always suitable for everyone.

Whether the franchise is an option appealing to you? Franchising is a business an attractive option for the beginner, because franchise allows you to infuse money into a system that is already well established, has been tried and tested, and proven success. But for businessmen who are already poor transverse in the entrepreneurial world, it might not have been a franchise bid so attractive anymore.

The franchise is not a guarantee of success. As mentioned at the top, especially in Indonesia, the franchise failure rate is still quite high, however, as an investor franchisee you will get help from the franchisees. However You still need to motivate yourself, have movement and commitment to hard work to build a successful business. The franchise is not a guarantee of success. Although a degree of success has been achieved, the legwork is required in order to maintain profitability.

If you decide directly jumped into the business, prepare mentally and mature, because there is a difference between the atmosphere of “uncertainty” in the business world and the ‘ comfort zone ‘ in the world of employee with a monthly salary and routine.

Various levels of investment in the franchising world wide. Customize your options with your financial ability, do not exceed the capacity. Usually the franchiser will provide information about the performance of other franchisees as the image. However, of course this is not a guarantee for success. You need to examine the potential business itself around you and when you need to seek professional help in making financial projections. If you can talk to other franchisees who bought the franchise, how his system, supporter, its financial projections, its potential, etc.

Some considerations in choosing/buying a franchise or franchises include:

The brand is already well known and has a positive image in the market. Therefore, buying a franchise is not just buying the system, but the brand. If the brand has not been well known, it is difficult for us to obtain the maximum turnover as the market has not been aware of the franchise brand. In addition to the brand, as well as products and systems. What is the product of “qualified”, if its product in the form of food, are delicious, if unique, is easily created or not, whether there are secret recipes so difficult in resembled competitors.

Who is behind the scenes. Well we need to also find out, who is the developer behind the franchise’s name in selling the latter. It is like we are buying a House/apartment, of course we also have to look at the credibility of the developer of the housing sold. Likewise, by purchasing a franchise, if necessary also search for information about the owner/developer of the franchise. Whether the franchiser that we are interested in is a successful company and Franchiser is obligated to provide strong, the financial statements have been audited by a public accountant to prospective buyers of its franchise rights. The report can be given the company’s financial state information for a period of 3 years.

Place. Place of business we choose an absolute must strategist, lively and accessible from anywhere, the parking lot should be broad. If you look at the business place McDonald, mostly located in the most strategic location in any parts of the world, junction road, anyway the most strategic place. Totally wrong if some people say that their business is not a burger, but the property.

Do research in General about the franchise on seek. Make sure you see the opportunities in business that will run. Find out as much information about the franchise of interest. For example, figuring out how the level of sales, support, system weaknesses and advantages the franchise from other franchisees who have first purchased and run the franchise. make sure that the franchise has a sustainable brand management guidance, quality control, administration, guidance staffing management and other technical instructions. Please attend a franchise seminar and exhibition in to get as much information and comparisons of the best.

Please choose a franchise that suits your interests and passions, and you are sure the franchise will benefit in the long run. Avoid selecting a franchise because of the factor of “trend” solely.

Please choose a franchise that suits your capital. Some franchise businesses there is a failure in the middle of the road because of lack of capital. Therefore, to increase the chances of success, it is better to have more capital than required franchiser. It is recommended to have a backup of the Working Capital Fund for 6 months to 1 year to the next.
You may need to seek advice from professionals (franchise consultant) to accompany you.


Franchising is a business arrangement whereby a company (franchiser)grant on the independent party (franchisee) to sell a product or service the company is with the regulations established by the franchiser. Franchisees use the name, goodwill, its products and services, procedures, marketing expertise, operational procedures, systems and ancillary facilities of the franchiser company. In return the franchisee pays an initial fee and royalties (cost of service management) on the franchiser company as set forth in the agreement franchise. A good franchise package is capable of making the right person can operate a business successfully, even without any prior knowledge about the business.

The franchise is described as a fusion of “big business” and “small”, i.e. blend of energy and commitment of individual resources and buck up a big company. A franchise is a great option for entrepreneurship and expansion with very small risks. In general the franchise an alternative way out of relatively safe for:

-people to plunge owning your own business.
-for companies expanding or opening
the branch effectively without eliciting a high overhead and
management complexity is usually related to the establishment of a
-companies to change the system of branch or agency into the machine
marketing a sleek and tough.

To describe how to developing franchise business delivered the following. Franchising initially started from the success of the business from the owner of a brand or franchiser. Via business format franchising, the franchiser will transmit his business success-e.g. restaurant ready to eat with its own-to the franchisee. Franchiser has previously been conducted and create a standard formulation for success according to his experience.
Simply put similarly like a tailor makes patterns for making clothes that are similar. This process is done through research and concept development, promotion, marketing activities, as well as build a a good reputation and image which is known. After successfully testing the concept could walk and can be reproduced in one location, then the franchiser’s franchise offering to prospective franchisees.

Furthermore, an individual (or partnership or firm) see opportunities franchiser offered above and after the evaluate, decide that this lucrative franchise. He then purchased the franchise from the company by paying a fee known as the initial franchise fee or fee. In return he received the right to trade in the under the same name and systems, training, as well as numerous other benefits. Same thing with starting a business independently, the franchisee is responsible for all costs arising to it started his business. The difference is the possibility to spend money because the strength of the network owned by the franchiser.

If the franchisee has opened the restaurant on a regular basis he was obliged pay royalties, i.e. a percentage of their sales to the franchiser as the cost of a weekly, monthly or yearly. These fees are for services the continuing support given by the franchiser. The humble, between each other franchisee income, supporting the given service to the franchiser franchisee, franchiser and income earned from royalties is a factor that guarantee the franchise into an effective system–because every party want others to succeed. The failure of a party means difficulties for parties others. The author had worked in one master the # 1 franchise in their field. But brand and proven the best system, does not guarantee success the franchises in Indonesia. The failure in forming relationships harmony between master franchisee and franchisee of the brand makes his and best company failed.

At the level of the best franchise business format, very advantageous for both parties. Franchisees are at the forefront in order to think of ways maximize sales and profits in its own outlet, with continued continuously refine its business strategy and approach to fit the specific market needs. While the franchiser concentrate
keep the value of competitive products, and supports franchisees to focus its efforts effectively. To get to the form of such cooperation is the franchiser franchisee relations, requiring a total of acceptance: vision, mission and shared values, either by the franchiser, franchisee and their respective staffs; a sense of mutual trust and respect; rights and obligations are clearly defined; practice good communication at all levels; have a dedication on the long-term success; give each other support in times of good and bad; mutually maintaining standards and operating procedures are clearly defined; contributing to growth through feedback, research, and development and promotion continued.

Potential franchisee candidates will have to ask themselves whether that kind of relationship they want to construct with their franchiser. If you are don’t want to or don’t have the character to it, better stay away from business franchise. Because the business format franchises will be perceived rein creativity and your ego.

Retail Operation Method: Retail in Store Format

Retail Function

Retailing is the final stage of distribution process with doing pnjualan directly on the consumer end. Where retail business serves as an intermediary between the distributor with the end consumer, Retailer acted as penghimpun goods, retail store as a romantic place of reference. Ritail acts as a determinant of existence goods from manufacture in the market consumption.

1. Characteristics
– Small Enough Quantity (the small party, in amounts to taste for a certain period in the own consumption)
– Impulse buying (a condition that was created from the availability of goods in the amount and type of extremely variable giving rise to many choices for consumers)
– Store Condition (interior and environmental conditions in the store)

2. Type of Retail business retail Classification based on:

Ownership (Owner):
– Single-Store Retailer (the most abundant type of amount with a size store generally under 100 m²)
– A chain of Retail stores (retail stores with many branches and is owned by the company’s institution)
– Franchise Stores (stores that were built based on the contract of cooperation between the terwaralaba franchise with franchisees)

Merchandise Category:
– Specialty Stores/Specialty Shops (Selling one type of category items are relative little/narrow)
– Grocery Store/convenience store (selling groceries (daily))
– Department Store (sells mostly not Staples, fashionable, branded, with 80% of the pattern konyinyasi)
– Hyperstore (selling goods in the span of a very broad category of goods)

Spacious Sales Area:

– Small Store/kiosk (small kiosk which is generally a traditional retail store, operated as small businesses with sales of less than 100 m2)
– Minimarket (operated with a sales area of polygons between 100-1000 m2)
– Grocery store (operated by the sales area extents between 1000-5000 m²)
– Hypermarkets (operated with a sales area of between the extents of over 5000 m²)

Non-Store Retailer:

– Multi-level-Marketing (MLM): Model sale of goods directly with a sales Commission system ranks based on the status of membership in distribution lines
– Mail Order Phone & Retailer (store message transfer): companies that make sales-order by mail or phone
– Internet/Online Store (e-Commerce): Retail stores in cyberspace that are adopting the internet into the shape of online retailing.

To find a retail business patterns in e-commerce (Amir Hartman in her book “Net-Ready” (Hartman, 2000) in greater detail further define E-Commerce as “a kind of business electronically mechanism that focuses on individual-based business transactions using the internet as a medium of exchange of goods or services between two institutions (B-to-B) as well as between institutions and direct consumer (B-to-C)”.), must of course be studying the transformation of retail sales patterns physically.

The core problems in the retail trade has 4 elements

1. Get the right product,

2. the price is right,

3. the appropriate time

4. the right place