How to Set Up a Retail Outlet Business in Indonesia Made Easy
In the endlessly exciting world of the business industry, retail outlets are no exception. In Indonesia, the retail market holds a phenomenal potential, given the size of the vast archipelago with more than 267 million people, calling it home. With more and more cashless technology being utilised, the Indonesian retail market has catapulted to an astronomical growth and is expected to continue booming in the coming years. Learn how to set up a retail outlet business in Indonesia the right way, and soon you will be enjoying its fruition too!
Retail Businesses in Indonesia
Being one of the fastest-growing businesses in the country, Indonesian retail markets have sprouted all over the country in a short matter of time. But what do the locals truly sought after? Let’s find out.
- Beauty products
With the rapid growth of cosmetics, it’s no surprise that beauty products lead the most bought items in Indonesia. Both local and foreign products are welcomed and well-received in the Indonesian market.
Canned food, vegetables, dairy and meat all experienced notable growth in sales, especially during the outbreak earlier this year. The sales of groceries have continued to increase, specifically on digital retail platforms.
Who Gets to Open a Retail Store in Indonesia?
In Indonesia, anyone can set up a retail market, whether they are local or from overseas, under certain prerequisites. When opening an outlet here, be wary of the minimum share capital that must be deposited to Indonesia’s Investment Coordinating Board; as for foreigners, they are required to invest at least US $4000 as minimum share capital. Then, the business needs to be registered under the Business Register in Indonesia.
What Are the Steps Involved in Setting Up a Retail Outlet?
Retail outlets come in many forms, usually medium to big. However, it is worth mentioning that there are many small retail marketers all over the country, supplying to outside city limit residents. When you start your business, carefully take the time to decide on what size you want your company to be. Before that, be sure to create a business within your capabilities.
Among the things that should be taken into consideration when you begin on your retail venture are:
1. Setting Up a Business Plan
A business plan is much like a game plan; a strategy that is carefully curated and studied before the actual commencement. Having a well thought out business plan will help you to understand what is necessary and what is not. With this, you can determine your costs, expenditures, market, audience type, and so much more. Also, remember to make your business plan flexible. As you learn throughout this process, you will be making many adjustments which should reflect in your plan. That said, be sure to make the imperative changes.
2. Legal Advice
Make no mistake in overlooking legal advice. When you start your company, there plenty of laws and regulations that as an entrepreneur, you will need to comprehend and be well versed in. Law touches many aspects of a business, from trademarks and patents to obligatory taxes; you need to a lawyer to provide advice on important matters and to help you avoid legal red tapes that may setback your business.
Marketing is one of the most, if not the most crucial elements in a successful business. Your audience needs to know that you are in the retail market scene. Aside from helping you establish your own unique identity, branding also gives your retail outlet a reputation to showcase an excellent image to your prospective clients. Not only that, but branding also allows you to distinguish your brand from competitors, leaves a strong impression on your audience (if done correctly), creates brand credibility and so on.
What Are You Waiting for?
Although setting up a retail outlet business in Indonesia has great potential to yield revenue, it is essential to understand the risk that it entails. However, one thing that is within your control is the ability to reduce those risks. Be smart and conduct in-depth research on retail businesses in Indonesia and the relevant specs before beginning your exciting venture.