Perry Tristrianto is credited for the epic transformation of Bandung into a shopping haven. Dozen of his factory outlets attract millions of visitors, from Jakarta, Bali and as far afield as Malaysia.
Over the past three years, Perry has expanded his business into new restaurants - All About Strawberry, Rumah Sosis, The Range, Gallery Barbie and a floating market at the Jatiluhur Purwakarta Dam, West Java with two upcoming projects to add to his business empire.
GlobeAsia estimates that his business turnover last year exceeded Rp1.44 trillion ($157 million).
As a businessman, Perry is an open and welcoming figure, especially to reporters. “I was brought up with the news and media, those who gave positive as well as negative reviews. For me, bad or good reviews only make readers more interested in my business, and visit. Once they visit they might as well shop,” says Perry.
Perry's business philosophy centers on public curiosity, and he uses the media as his promotion agents to gain more customers.
“I always think about what is reported by the media. My idea to open Rumah Sosis (Sausage House) came from a friend who manufactures good sausages but whose revenue fell in 2005. I offered to sell his sausages in front of my stores.
"It turns out many people liked it and so I started the Sausage House. Today, we can sell seven tons of sausages every month even though only two tons is required to run the factory. I don't really want to make sausages, I'm more in the habit of selling,” he says.
Perry also recalls how he opened his horse riding attraction north of Bandung, gathering a number of horsemen who taught horseback riding to children One ride costs Rp5,000. “I made a horseback riding package by adding some cowboy costumes and a Texas setting. I then increased the cost of one ride to Rp15,000 - of which Rp10,000 was for me, and the rest for the horsemen. After all, I'm helping them.”
Inspired by the floating market in Bangkok, Perry gathered local vendors operating around the Jatiluhur Dam to sell in the floating buildings he built. He also opened a factory clothing outlet on water.
Currently, Perry is planning to open another factory outlet in Masjid Kubah Emas area in Depok, West Java.
His principle: “Don't enter the market that is already available, but create a new one instead. Selling is dancing: find an empty room!”
Be nice to staff
Perry adds that if a business unit has been running well, the next step is to show appreciation to employees because these people are making the money.
In order to keep his employees motivated, Perry rotates them to handle different jobs. “What causes an employee to decrease his synergy is the boredom factor. So, if there was an employee who works to fold the clothes, after a few months I'd move him to the sausage house and have him manage sausages or the horses. If previously assigned at the clothing store, now he's moved to work in the mountains.
"With a new challenge, the employee cannot be bored,” he explains.
Perry's customers come from all socio-economic backgrounds, but he says the lower class is more loyal.
“Well, it's those who drive Kijangs. They like recreation and spending a certain amount of budget. For the upper class group, you sell one item, expensive but more laborious - like you're dealing with foreigners. The upper class group is more demanding,” he explains.
Undeniably, Perry targets Jakarta residents, who generally discover his stores in the mass media. Perry says the glory days of factory outlets are over and now it's a matter of understanding the market.
Jakarta people used to come to Bandung to shop at factory outlets and while shopping, they would discover Bandung's specialty foods. Now things have turned the other way around: they visit Bandung for the food.
Perry is now opening more food outlets in front of his clothing outlets. “Once they eat, they'll walk into the store and shop. It's up to us to outsmart the situation.”
Perry's genius for understanding sales is acknowledged by marketing expert Kafi Kurnia who says business triumphs have been based on Perry's speed in reading the market. “He's capable of being creative with references from reading the market,” Kafi says, opening businesses when the time is right and being quick to close when profit is no longer viable.
Foreign flights
Visitors to factory outlets in Bandung are again increasing with two direct flights from Bandung to Kuala Lumpur. Perry says Malaysians are shopping in increasing numbers.
“I've asked a few Malaysians why they shop in Indonesia, especially with bad news (riots and terrorism) about Indonesia circulating in the international world. They say Malaysians and Indonesians are the same people - different from Singaporeans who have to think twice before coming here.”
Perry expects more Malaysians to come to Bandung with a proposed direct flight to Bandung from Bandar Seri Begawan. He adds however that If more international tourists are coming, the local government needs to respond by improving public facilities.
In the meantime Perry selects his outlets based on the way customers shop, with outlets in Jagorawi and Cikampek and two at a gas station in Kebon Jeruk, Jakarta, to catch impulse buyers.
Perry says 40% of the clothes sold in his factory outlets are domestic products while the rest are imported from China, India, Korea and Vietnam. According to Perry, commodities from China are more popular because they tend to be more innovative, but he agrees that most brand name products from China are fakes.
If Indonesia produced the same products he would buy local, he says. “If China manufactures fake products and we manufacture fake products, why would I shop in China? The clothing industry here is not brave, and maybe doesn't have the knowledge of labelled clothing and the latest trends," he says.
"If brand A is popular, then manufacture that brand as long as the owner of the brand hasn't said anything. Once they say something, then stop. That's what China is doing. They don't care what people say,” he adds.
Ade Sudrajat, head of the Indonesia Textile Association (DPD) for West Java, says there are many factory outlets selling Indonesian manufactured goods. About 50% of clothing products sold in factory outlets is made locally.
Ade says most large scale textile companies and national producers make their product for the export market, looking for higher profits. Meanwhile the domestic market is based on small- to medium-scale enterprises.
“However, not many of them know how to create a market. As a result, imported products
Over the past three years, Perry has expanded his business into new restaurants - All About Strawberry, Rumah Sosis, The Range, Gallery Barbie and a floating market at the Jatiluhur Purwakarta Dam, West Java with two upcoming projects to add to his business empire.
GlobeAsia estimates that his business turnover last year exceeded Rp1.44 trillion ($157 million).
As a businessman, Perry is an open and welcoming figure, especially to reporters. “I was brought up with the news and media, those who gave positive as well as negative reviews. For me, bad or good reviews only make readers more interested in my business, and visit. Once they visit they might as well shop,” says Perry.
Perry's business philosophy centers on public curiosity, and he uses the media as his promotion agents to gain more customers.
“I always think about what is reported by the media. My idea to open Rumah Sosis (Sausage House) came from a friend who manufactures good sausages but whose revenue fell in 2005. I offered to sell his sausages in front of my stores.
"It turns out many people liked it and so I started the Sausage House. Today, we can sell seven tons of sausages every month even though only two tons is required to run the factory. I don't really want to make sausages, I'm more in the habit of selling,” he says.
Perry also recalls how he opened his horse riding attraction north of Bandung, gathering a number of horsemen who taught horseback riding to children One ride costs Rp5,000. “I made a horseback riding package by adding some cowboy costumes and a Texas setting. I then increased the cost of one ride to Rp15,000 - of which Rp10,000 was for me, and the rest for the horsemen. After all, I'm helping them.”
Inspired by the floating market in Bangkok, Perry gathered local vendors operating around the Jatiluhur Dam to sell in the floating buildings he built. He also opened a factory clothing outlet on water.
Currently, Perry is planning to open another factory outlet in Masjid Kubah Emas area in Depok, West Java.
His principle: “Don't enter the market that is already available, but create a new one instead. Selling is dancing: find an empty room!”
Be nice to staff
Perry adds that if a business unit has been running well, the next step is to show appreciation to employees because these people are making the money.
In order to keep his employees motivated, Perry rotates them to handle different jobs. “What causes an employee to decrease his synergy is the boredom factor. So, if there was an employee who works to fold the clothes, after a few months I'd move him to the sausage house and have him manage sausages or the horses. If previously assigned at the clothing store, now he's moved to work in the mountains.
"With a new challenge, the employee cannot be bored,” he explains.
Perry's customers come from all socio-economic backgrounds, but he says the lower class is more loyal.
“Well, it's those who drive Kijangs. They like recreation and spending a certain amount of budget. For the upper class group, you sell one item, expensive but more laborious - like you're dealing with foreigners. The upper class group is more demanding,” he explains.
Undeniably, Perry targets Jakarta residents, who generally discover his stores in the mass media. Perry says the glory days of factory outlets are over and now it's a matter of understanding the market.
Jakarta people used to come to Bandung to shop at factory outlets and while shopping, they would discover Bandung's specialty foods. Now things have turned the other way around: they visit Bandung for the food.
Perry is now opening more food outlets in front of his clothing outlets. “Once they eat, they'll walk into the store and shop. It's up to us to outsmart the situation.”
Perry's genius for understanding sales is acknowledged by marketing expert Kafi Kurnia who says business triumphs have been based on Perry's speed in reading the market. “He's capable of being creative with references from reading the market,” Kafi says, opening businesses when the time is right and being quick to close when profit is no longer viable.
Foreign flights
Visitors to factory outlets in Bandung are again increasing with two direct flights from Bandung to Kuala Lumpur. Perry says Malaysians are shopping in increasing numbers.
“I've asked a few Malaysians why they shop in Indonesia, especially with bad news (riots and terrorism) about Indonesia circulating in the international world. They say Malaysians and Indonesians are the same people - different from Singaporeans who have to think twice before coming here.”
Perry expects more Malaysians to come to Bandung with a proposed direct flight to Bandung from Bandar Seri Begawan. He adds however that If more international tourists are coming, the local government needs to respond by improving public facilities.
In the meantime Perry selects his outlets based on the way customers shop, with outlets in Jagorawi and Cikampek and two at a gas station in Kebon Jeruk, Jakarta, to catch impulse buyers.
Perry says 40% of the clothes sold in his factory outlets are domestic products while the rest are imported from China, India, Korea and Vietnam. According to Perry, commodities from China are more popular because they tend to be more innovative, but he agrees that most brand name products from China are fakes.
If Indonesia produced the same products he would buy local, he says. “If China manufactures fake products and we manufacture fake products, why would I shop in China? The clothing industry here is not brave, and maybe doesn't have the knowledge of labelled clothing and the latest trends," he says.
"If brand A is popular, then manufacture that brand as long as the owner of the brand hasn't said anything. Once they say something, then stop. That's what China is doing. They don't care what people say,” he adds.
Ade Sudrajat, head of the Indonesia Textile Association (DPD) for West Java, says there are many factory outlets selling Indonesian manufactured goods. About 50% of clothing products sold in factory outlets is made locally.
Ade says most large scale textile companies and national producers make their product for the export market, looking for higher profits. Meanwhile the domestic market is based on small- to medium-scale enterprises.
“However, not many of them know how to create a market. As a result, imported products
source : Majalah Globe Asia, August 2008
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