Saturday, 04 December 2021 | 12:06 WIB

Thomas Lembong: Shifting of Consumer Behavior Affects Retail Industry

Thomas Lembong, Head of BKPM (twitter/tomlembong)

JAKARTA, NNC - The phenomenon of the closing of a number of retail industry outlets have brought up the attention of Thomas Lembong, Head of Indonesia Investment Coordinating Board (BKPM).

Thomas assesses that the retail business world is turning upside down as a result of the transformation of consumption style.

"I personally believe the retail world is in the process of turning upside down, not just here, but also in the United States, Europe, Asia and the rest of the world. The retail world is in shambles and in a traumatic transformation process, "Thomas said.

The rise of the closure of shopping centers in the US has occurred since some time ago.

The former Minister of Trade viewed that the phenomenon of rampant closure of retail stores could not be seen from one side only.

"I feel there is a shift from offline [shopping] to online [shopping], although some say the online portion is very small. However, the impact can be multiplied, even if the portion is small,” he continued.

The shifting style of consumption, Thomas said, is also rife happening today. He assessed that people are no longer obsessed with luxury or branded goods, but prefer to go somewhere just to take pictures and uploaded them to social media.

It also happens in the telecom sector where we people prefer to take an adventure in cyberspace.

"As stated by the President, what is considered as prestigious these days are selfies and wefies in a great tourist place. Some have even criticized that many millenials only visit cultural heritage sites only for taking selfies," he said.

A number of retail stores have closed their outlets and stores this year, including 7-11 Eleven, Matahari Department Store at Pasaraya Manggarai and Blok M, Lotus Department Store in Thamrin and Debenhams retail stores across Indonesia.