Cat and Mouse in Retail Business
- Daniel & Richard
- Jun 23, 2016
- 3 min read
Alfamart, what's wrong with Indomaret?
Do you realize that Alfamart and Indomaret are always located beside ecah other? When we see Indomaret, there will usually be Alfamart. The two fo them seem to compete with each other. The minimarket’s business in the last few years is growing rapidly. Through the easy franchise system, it is not hard to open a branch from one of these retail stores. As a result, the brances of Indomaret and Alfamart are increasing in Indonesia. Both are equally engaged to provide the daily needs of society, such as food, household goods, clothes, and many others at competitive rates. In some cities in Indonesia, people often see the view, where Indomaret and Alfamart branches are located side by side or facing each other. With a business strategy that is not much different, both of them are increasing their competitiveness not only in prices but also in the number of their branches.
Alfamart and Indomaret, built next to each other.
Indomaret Vs Alfamart, which was born first?
PT Indomarco Prismatama was established in 1985 and four years later set up a booth Indomaret to provide the basic needs for employees. Since then, the company began to enter the retail industry in order to provide the stores with a complete selection of quality products, good atmosphere and competitive prices. Meanwhile, PT Sumber Alfaria Trijaya was established in 1989 and began to enter the retail sector in 1999. In 2002, the company began to expand by acquiring 141 Alfa Minimart store and renamed it Alfamart. Marketing Director of PT Indomarco Prismatama, Wiwiek Yusuf accused Alfamart as the company which was mimicking its business strategy. Even he acknowledged that the number of Indomaret’s employees were too much to be defeated by its competitors. According to him, Alfamart still had much to learn from Indomaret to manage the retail business. Until now, the competition between them is still heating up. Where there is Indomaret, there is Alfamart.
.Which one the largest outlet, Indomaret or Alfamart?
Until March 2014, Indomaret had successfully operated 9,096 branches in various parts of Indonesia. From that number, there were 60 percents of the branches that were managed by the franchisees.
So far, more than 9000 Indomaret’s branches had been operating on Java, Bali, Madura, Kalimantan, Sulawesi and Lombok. Each store provides more than 4,800 types of food and daily necessities.
Meanwhile, until the end of December, Alfamart only had 8557 branches throughout Indonesia. PT Sumber Alfaria Trijaya is targeting to add of 1,000 Alfamart branches this year.
Alfamart or Indomaret, which is more profitable?
Alfaria Trijaya Resources Tbk (AMRT), the owner of Alfamart store network recorded a net profit of Rp 538.35 billion in 2013. Earnings up 11.9% of the company's achievement in 2012 of Rp 480.95 billion.
While PT Indomarco Prismatama, the owner of Indomaret scored a profit of Rp 471.124 billion in 2013. On December last year, Indomarco had assets of Rp 10.87 trillion.
Alfamart and Indomaret, which one is better?
The differences between Alfamart and Indomaret based on the questionnaire which had been spread:
Prices of the goods in Alfamart are more expensive because the goods are bought from distributors while the prices in Indomaret are cheaper than Alfamart, because the goods which are sold in Indomaret are obtained directly from the manufacturer.
The buyers like to shop in Indomaret more, because the service is better than Alfamart.
Indomaret has ATM machines, so many people and students who want to take the money will go to Indomaret, While Alfamart has no ATM machines.
Alfamart has CCTV, while Indomaret doesn’t have CCTV, so the level of supervision in indomaret is less than Alfamart.
The Products between the two minimarkets are almost the same. Their Product are so many and varied. In Indomaret, there are lesser ice cream brands than Alfamart. 5. The Products between the two minimarkets are almost the same. Their Product are so many and varied. In Indomaret, there are lesser ice cream brands than Alfamart.
Alfamart is equipped with facilities such as a mirror, while Indomaret doesn’t have a mirror.
Indomaret has facilities such as television and music, while Alfamart only has music
In conclusion, Alfamart and Indomaret have their own weaknesses and strengths. The competition between these two retail stores won’t probably stop right now and maybe the next few years. Our choices to choose the best from the two of them will probably different. They are depending on our own perceptions.
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