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Financial

"The Impact of The Modern Market on The Surrounding Environment"

4 Juli 2018   10:16 Diperbarui: 4 Juli 2018   10:22 807
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Finansial. Sumber ilustrasi: PEXELS/Stevepb

In Indonesia, there is a problem of the construction of new supermarkets in a densely populated settlement. Many disagree with the development, most residents who refuse are grocery sellers, but many also agree with it.  Most of them are citizens who do not have a business in the area. There is considerable literature on two major areas of the retail sector in developing countries that are affected by supermarkets: supply chains and traditional retailers (Suryadarma, et al, 2007). 

Initially, the retail sector was dominated by traditional markets consisting of small-scale traders with small-scale business and buying and selling process of merchandise through bargaining with its main function is to serve the needs of the community both in villages, sub-districts, and others (Sinaga, 2008 ). Until now, although traditional markets provide a variety of community needs at low prices, they are still synonymous with inadequate environments and poor management systems (Malano, 2011). This is the weakness of traditional markets that make modern markets win over the traditional ones. 

The impact that occurs if a modern market is built in a densely populated environment is very influential for traders around the modern market. Many grocery traders object to modern market building in the area because it will greatly affect their profit. If there is a modern market in the area, the competitiveness among grocery stores will be manipulated by the modern market due to several factors. There are some impacts of the modern market on the surrounding environment.

The influence of the modern market on traditional markets is so strong that there is always pros and cons between modern retailers.  It is undeniable that the existence of modern markets in a region or city is expected to be able to absorb a lot of manpower, in this case, is the youth and adolescents who just graduate from high school that is high school or equivalent. 

The existence of a modern market in Indonesia will grow from year to year. This rapid development may continue to depress the existence of traditional markets. Modern markets that are in fact owned by foreign retailers and local conglomerates will replace the traditional market role that majority owned by small communities and previously controlled retail business in Indonesia.    

In addition, the presence of modern markets is very influential in the state of the road in an area. If there is a construction of a modern market in a certain area, there will be traffic jam, because many vehicles passing by and park their vehicles in the parking lot of the modern market. Thus, it makes the level of congestion will increase.

There are a few reasons why consumers are interested in modern markets. First, modern markets provide varied products, so consumers have many choices. In addition, the products are more hygienic because the place is cleaner than traditional markets. A few food and drink products are also healthier because checking the expired dates is always done regularly. 

The service provided by modern market makes consumers comfortable because they have a certain procedure, such as welcoming the visiting consumers and saying thank you when a transaction is done.

Based on the explanation above, we can conclude that modern markets can kill off the small markets. In other words, small people's economy will be hampered. This is due to lack of people's desire to shop in traditional market. Despite the many weaknesses of traditional markets, there are also advantages that we cannot deny, one of which is cheaper and negotiable price. 

To anticipate the modern market to take full control of the economy, there is a need for concrete steps from market traders in order to retain customers and the existence of their business. Traders in traditional markets must develop strategies and develop plans that meet the needs and demands of consumers as modern markets do. If not, then the majority of traditional markets in Indonesia and their occupants will only be a history that is stored in the memories of the retail industry in Indonesia in a relatively short time. 

The fierce battle between traditional traders and giant retailers is a common phenomenon of the globalization era. So, the government should monitor by fostering the two to be synergetic. A regulation should be made to enforce the zoning for the issuance of a modern business license to protect traditional traders. It has been mandated in Presidential Decree (Perpres) no. 112/2007 on traditional markets and modern shopping centers. In the regulation, the government also gives zoning authority to the local government so there is no standard limit on the distance of the traditional and modern market.

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