Be Different !

Last week, I met one of Marketing Guru's in a workshop. I ask him about war in Retail Industry, especially in between hypermarket. When Carrefour came to Indonesia end of 90s, they lead the market alone. Wal Mart withdraw its all the business from Indonesia. Giant and Hypermart enter into the market in 2002-2004. Meanwhile Makro and Alfa, both which were old players in Retail Market started left by customer. So, Carrefour became a leader. Strong financial back up, Trading Term, Good Location.

What his comment? The important thing is be different. If all player follow the leader (Carrefour), what differentiation that offered to customer?. They should think what differentiaton that they has. He give an example, Ranch Market [RM] has only 4 outlet, but they still exist and can compete in the market. Why? Because their customer coming from high end market. People that has strong purchasing power. Not disturbing with crisis in whole country. RM offered different product, such as Organic Vegetable, Imported product.

Another example is Macan Yaohan Syariah. A retail store which owned by Chinese that convert to muslim. This store targeting in muslim market that dominant in Indonesia. Eventhough has only 1 outlet, they can compete and beat another retailers.

So, a lesson from above story is differentiation not only bring customer into high end market [upper price segment]. It could be based on location [guerrilla strategy], or how to offered product to customer.