The month of Ramadan is a moment that many people look forward to, including Micro, Small and Medium Enterprises (MSMEs). Ramadan can be the best time for MSME players to increase their sales, especially online.
This is supported by a recent survey from The Trade Desk which shows that 67 percent of Indonesians plan to allocate at least a quarter of their THR to celebrate Ramadan 2024. In addition, 48 percent of consumers reported an increase in spending driven by optimism about improving economic conditions. In the online space, SIRCLO’s internal data shows that during the month of Ramadhan 2021-2023, there is an average growth in the number of online shopping transactions of 62.5 percent and the number of consumers shopping online increased by 36.5 percent. By looking at these various opportunities, MSME players can prepare a special strategy to get maximum profit. So, what are the tips that can be done by MSME players so that their businesses sell even better this Ramadan? Check out the explanation in the following article.
Looking at MSME Business Opportunities in Ramadan
Entering the month of Ramadan, it is predicted that there will be an increase in the prices of various basic necessities. This has made many businesses anxious as it is feared that public interest in shopping will decrease during the month of Ramadan. However, recent data from The Trade Desk shows that one in three Indonesians (32 percent) will spend more during Ramadan 2024. This underscores that rising consumer optimism will drive an increase in their spending. Seeing an increase in spending in Ramadan 2024, businesses can use it to support business marketing campaigns. Based on this data, MSMEs can market their business precisely, optimally, and with more accurate measurements. This also makes the month of Ramadan a strategic moment for MSME players to get new consumers. Where the majority of Indonesians (85 percent) are open to trying new brands, and seven out of ten consider themselves as “category explorers”. This means that most consumers are willing to learn about new brands even if they have not decided on a specific brand for the product they want to buy.
Then, what can MSME players do to make their businesses sell well in the month of Ramadan?
Seeing the high public interest, here we share tips for MSME players to increase their sales in the month of Ramadan:
Find out what kind of products consumers are looking for
The first tip that MSME players need to do is to read market demand. MSME players can conduct research to see what types of products are most in demand by the public during the month of Ramadan. Judging from last year’s Ramadhan, SIRCLO’s internal data shows the top five categories most in demand by consumers, namely beauty & personal care, healthcare, home living, food & beverages, and fashion. This is driven by Ramadan traditions such as preparing hampers, maintaining health during fasting, and buying new clothes for Eid al-Fitr.
Joining the Ramadan Bazaar
Participating in Ramadan bazaars will increase your chances of getting more profit. This is because people who come to the bazaar aim to buy the products in that place. The task of MSME players is to ensure that visitors visit your stand. Attract the attention of potential customers with appropriate prices and portions, attractive packaging, and so on. However, when selling at a bazaar, MSME players must increase the selling price of their products from usual because they have to pay for stand rental fees. With the increased price, MSME players can consider making product adjustments. For example, making the product look more luxurious or increasing portions.
More than just discounts, take advantage of other promotions
Product promotion in the month of Ramadan is important for MSME players, because it can influence consumer shopping decisions. There are various promotional strategies that can be implemented by MSME players, such as:
- Bundles and gifts for products such as food & beverages and beauty & personal care, arena can increase the perceived value of products, encourage product trials, and open up cross-selling opportunities.
- Buy xx Get xx for the healthcare product category, as it accommodates consumers who focus on practicality in their family’s daily needs.
- Buy more, save more for the home living category that seeks convenience and cost savings.
- Voucher giveaways can be targeted to the fashion category, appealing to consumers who care about style and the latest fashion trends.
Reach Tech-Savvy Moms
The role of women in the family, as mothers and wives, is crucial in making shopping decisions, including during the month of Ramadan. Where according to SIRCLO data, around 40.1 percent of mothers seek information related to products through micro-influencers. While in terms of shopping behavior, one in three mothers shop online.
READ ALSO: Opportunity!
This shows the importance of their role in shaping purchasing decisions. This behavioral pattern opens up great opportunities for MSMEs to expand market share, such as collaborating with micro-influencers, especially mom-influencers, to reach digitally connected millennial mothers.
Extend Store Operating Hours
For MSMEs that market their products online either through social media or e-commerce, it seems necessary to extend the store’s operational time. This is because during the Ramadan period, the prime time for online shopping is spread into several times, namely at dawn (04.00-05.00 WIB), after breaking the fast (19.00-21.00), and exactly at midnight (00.00 WIB). MSME players can also use the live feature to present more interactive product demonstrations to consumers during these prime time periods. Make no mistake, the live feature has an increasing interest across age groups.
KH Contact
That is a series of tips that can be done by MSME players so that their business is increasingly in demand in the month of Ramadan. If the methods above have been successfully mastered, then don’t forget to fulfill business legality documents properly so that the Ramadan business continues to run. The business legality documents in question include NPWP, NIB, business license, and trademark registration to DJKI. If the business has increased rapidly, there is nothing wrong with establishing a PT business entity. Besides being able to have an official and legally protected business entity, it will also further help build a wider and higher quality business network, and even facilitate access to funding assistance from the government. So, for MSME players who are currently running a Ramadhan business, but still do not know what and how the process should be done in building a business network, including taking care of legal documents, do not hesitate to consult with Kontrak Hukum.
ALSO READ: 10 Minimal Capital Online Business Ideas for Eid 2023
No need to worry, because KH pals can conduct free consultations regarding legality and all your data and information are guaranteed to be safe and protected. For more information about free consultation on Legal Contract, please visit KH Services – Starting a Business page. If you have further questions about other business needs, you can also contact us at Tanya KH, or send a Direct Message (DM) to Kontrak Hukum’s Instagram social media account @kontrakhukum.
