The Covid-19 outbreak has truly hit the trade sector, including micro, small and medium enterprises (MSMEs) in Surabaya, Indonesia’s second-largest city.
By
Iqbal Basyari & Agnes Swetta Pandia
·4 minutes read
Kompas/Bahana Patria Gupta
Mochammad Rofiq took the cake out of the oven at the Nastar House in Surabaya in Ketandan Village, Genteng District, Surabaya, East Java, on Wednesday (24/6/2020). He is increasingly creative in promoting his products in order to survive in the Covid-19 pandemic era.
The Covid-19 outbreak has truly hit the trade sector, including micro, small and medium enterprises (MSMEs) in Surabaya, Indonesia’s second-largest city. Refusing to surrender, local entrepreneurs persist in adapting and innovating.
Wearing her hijab, Diah Arfianti, the 41-year-old owner of Diah Cookies, did a virtual press conference on Facebook at Rumah Nastar on Wednesday (24/6/2020). “Hello? How is everyone? As usually, I will update my cookie stock for the day. We have Diah Cookies choco sticks. Everything is homemade,” she said.
She routinely promotes her cookies to potential customers on social media every day. Ever since the start of the Covid-19 pandemic three months ago, she has increased her promotions to ensure her business survive.
In the first three months of the Covid-19 outbreak in Surabaya, Diah had been worried that she would not be able to sell anything. Calls to stay at home and the large-scale social restrictions (PSBB) have led to a plummeting number of customers coming to her house.
Refusing to give up, the winner of the 2018 Economic Hero award in home industry category decided to focus on online sales. She boosted her social media campaign and increased her advertisement budget to Rp 1 million (US$70.47). To make it more interesting, she gives her customers free additional cookies.
Surprisingly, she has managed to sell thousands of cookie jars and was even forced to reject orders. Over the Idul Fitri holiday, she sold 12,000 jars of cookies. “I rejected orders for thousands more as I did not expect I would be that busy,” Diah said. Her sales turnover remained at Rp 2 million a day.
Ayen, 32, who owns cendol dessert drink business CenDa, also uses online sales as a strategy. In the first month of the outbreak, his sales turnover plummeted by 70 percent as culinary hubs were closed and events were canceled. “There are so many benefits from online sales. I can even do a free-delivery promotion,” he said.
Ayen has even been able to diversify his products. Other than cendol, he also now sells the dessert’s raw ingredients, cookies and snacks such as onde-onde and fried macaroni. His strategy is that customers who buy his cendol dessert will be attracted the other food in one order with cheaper delivery fee.
“Sellers need to adapt in line with today’s conditions and consumer demand. You cannot just stay put and surrender,” said Ayen, whose turnover has returned to Rp 8 million a month, the same as before the pandemic.
City administration’s support
In difficult times due to the pandemic, support from the Surabaya administration means so much for these entrepreneurs’ survival. Economic Hero program spokesman Agus Wahyudi said that the city administration had encouraged MSME owners to use online sales as an alternative since several years ago. “Since the beginning, MSME owners in Surabaya have been trained to adapt if offline sales plummet,” he said.
Kompas/Bahana Patria Gupta
Workers prepare cake ingredients at the Surabaya Nastar House in Ketandan Village, Genteng District, Surabaya, East Java, on Wednesday (24/6/2020).
During the outbreak, MSMEs receive training to seek markets of goods that consumers find attractive, including fruits and raw food. According to Agus, MSME owners must be able to read the market to ensure that the wheels of the economy keep on turning.
“We continue telling MSME owners to just stay at home and you will sell,” Agus said.
Surabaya mayor Tri Rismaharini has strived to find solutions to salvage the businesses and economy of Surabaya residents, especially those without fixed income. The people who work today for today’s meals are hit the hardest by the pandemic. As the Covid-19 infection hit the city with 3.3 million people, rescuing MSME owners were among her administration’s top priority.
During the pandemic, these groups were given training and encouraged to keep adhering to health protocols, including keeping a safe physical distance, wearing masks and implementing clean and healthy habits. Online sales training is given to boost business.
There are always opportunities, no matter how hard the situation may seem!
