“ Our widespread local network of partners obliges us to assist our SME partners by equipping them with knowledge on financing, product packaging and design, product marketing, business operations as well as information on export activities. ”
Sarinah is the first retail department store in Indonesia hence we are fortunate in the sense that we have an in-depth understanding of the retail system and the industry. When I was appointed as the President Director, I wanted to create a strategy to better introduce Sarinah to the younger generation of Indonesians particularly to re-introduce Sarinah’s original purpose. As such, I decided to rejuvenate the face of Sarinah by changing its brand image as well as its brand positioning. In a sense, this is the rebirth of Sarinah as a company under my leadership. In order to implement our plans, we have had to restructure the business model and its management, improve our business processes, and corporate rebranding.
With this plan in mind, I introduced Sarinah’s new tagline of “The Window of Indonesia”. Given Sarinah’s original purpose as stated by Indonesia’s first president, Ir. Soekarno was to promote as well as elevate locally-manufactured products made by small and medium enterprises (SMEs), we are looking to strengthen our role in this regard. Hence we have joined hands with the Indonesian government in order to stabilise the market price of our products. We understand that there are challenges on the horizon as we forge ahead with our mission, but we are confident that we can take on our original role as a modern retailer. It is our aim that Sarinah becomes a flag carrier of a carrier system in Indonesia.
Sarinah is striving to become a distinct marketplace for our SME partners and thus it is up to us to support our partners by increasing product exports. We have over 400 SME partners across Indonesia who are producing clothing, handicraft, furniture, home décor, and food & beverages. Today, our partners have exported to Hong Kong, Malaysia, Taiwan and we are looking to widen our international presence in the coming future.
Our widespread local network of partners obliges us to assist our SME partners by equipping them with knowledge on financing, product packaging and design, product marketing, business operations as well as information on export activities; essentially, we are here to guide SMEs from start to finish. I believe that this will be an effective measure in boosting national exports especially because SMEs contribute 56% to Indonesia’s GDP. We have begun cooperating with the Ministry of Trade, Ministry of Industry, and the Ministry of State-Owned Enterprises in order for us to improve upon our current export network.
Because the target market is Indonesian youth, it is important for Sarinah to cater to their needs namely in retail services. One of the measures which we have implemented is rearranging the Sarinah Thamrin Department Store’s floor layout and improved our product display. Moreover, we are looking to establish a co-working space that will be made available to young entrepreneurs looking to operate a start-up business which utilises the products that are available in our stores. The underlying goal of this effort is to essentially encourage Indonesia’s younger generation to have a greater appreciation of locally-produced goods.
We have also initiated a range of public events which adopts a proactive approach by inviting young talents to partake in our activities such as fashion shows and photo competitions. We are hosting a similar type of event for our upcoming anniversary event. Sarinah understands the important role of social media in the lives of today’s youth thus we have made rampant efforts to increase our online presence as well as improve upon our communications channels. In order to fulfil the demands of our loyal customers, we are looking to setup a business lounge in our store. This is not only a way for us to deliver on guest experience but also provide an open space where our guests can relax with their family and friends. Overall, we would like to be known for premium quality traditional products and branded products here in Indonesia. With our strategic location in the heart of Jakarta, we are certain that there remain immense opportunities that have not been maximised within our business operations.
In addition, Sarinah is focusing on the development of an e-commerce platform which we are planning to launch by August 2017 which is also in keeping with our rebranding strategy. Among other upgrades to our information technology infrastructure, we are in the midst of developing a mobile app that is targeted to offer customer convenience. These two measures combined demonstrate our ability to adjust to the needs of Indonesia’s young generation.
The AEC offers Sarinah more opportunities to catapult our business by opening up greater international market access to export our products. SMEs, which are the anchor to Indonesia’s national economy, will also gain access to this regional network. Certainly, this would require SMEs to improve upon their product quality so that it meets international standards. We believe that the AEC boasts a positive impact from a business perspective for both Sarinah and our SME partners.
We would like to strengthen our international presence in targeted markets including Europe, Hong Kong, Japan, Taiwan, and China. We recently had the opportunity to discuss concrete plans of opening a Sarinah outlet in Mecca, Saudi Arabia through a local partner which we are expected to open in the near future. Going forward, we are looking to establish a greater number of Sarinah outlets and stores overseas through joint operations. It is important for us to establish an international standard for Sarinah stores in overseas markets hence we have to maintain a strong good corporate governance.
Sarinah has also garnered immense support from the Coordinating Ministry for Economic Affairs, Ministry of Industry, and Ministry of State-Owned Enterprises and thus, we will initiate greater synergies with other state-owned enterprises across Indonesia.
We would like Sarinah to be remembered as “The Window of Indonesia”. Through our brand new tagline, we believe that we can become the largest marketplace for SMEs in Indonesia in addition to better attract a larger number of local and international visitors who are interested in finding truly Indonesian products. We believe that you have not visited Indonesia if you have not visited Sarinah.