Strategies of Traditional Traders in Facing the Development of E-Commerce at Plaza Ratahan Market

Abstract

Traditional markets have long served as the backbone of Indonesia's grassroots economy, yet the rapid expansion of e-commerce now poses a serious structural challenge to their continued existence. This study examines the impact of e-commerce development on traditional traders, the adaptation strategies they employ, and the obstacles they encounter in adjusting to trade digitalization at Plaza Ratahan Market, Southeast Minahasa Regency. A qualitative descriptive approach was used, framed as a single case study of the market. Primary data were collected through semi-structured interviews with twelve purposively selected informants, comprising traders, market management, and customers, supplemented by non-participant observation and documentation, while secondary data were drawn from market management records and relevant statistical reports. Data were analyzed using the interactive model of Miles, Huberman, and Saldaña, involving data condensation, data display, and conclusion drawing/verification. The findings show that e-commerce development has intensified business competition, altered consumer purchasing behavior, reduced the number of customers, decreased traders' income, and weakened social interaction between traders and customers. In response, traders have adopted several adaptation strategies, including improving service quality, maintaining product quality, using social media for promotion, sustaining personal relationships with customers, and adjusting prices competitively. However, this adaptation process remains constrained by low digital literacy, limited capital, restricted access to technology, and low trust in online transactions. The study concludes that traditional traders at Plaza Ratahan Market continue to actively adapt to e-commerce, relying on accumulated social capital and rational, context-sensitive decision-making, even as structural barriers to full digital transformation persist