Ardian Arifin
IPMI International Business School
Amelia Naim Indrajaya
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Different than other retail business, which is only owned by wealthy people, this economic sharing and partnership-retail business makes it so that everyone can own and run a retail business. Not only service, this business model also gives training to people to run a retail business. It gives the chance to middle to low economic people to increase their prosperity.
The business model which is run by Hydro is about retail business. This business model is originated by Mr Syahru Ariansyah ("Mr. Ryan") and 4 others in 2005. They run and had many lessons learned. In 2015, the business model finally launched.
The most common model of the business is bringing together the store-building owner and the fund's investor. Fund investor can be more than 1 person, usually more than 10 persons, and even can reach 200 persons. Then they make a contract and make another agreement with Hydro. Hydro will do most of the things. Sets up the store, trains the store employee, and most important is giving guidance and training to both store-building owner and fund investor on how to run the retail business. There are no franchise fee, management fee, and royalty fee set by Hydro. Why? Because they want to grow more entrepreneur that can succeed. So they can increase their welfare.
Hydro will help partners (Mitra) to run the daily operations until Mitra can run it by themselves. Hydro will also provides all the goods that will be sold in the store. Interesting part is, Hydro also gives spaces for small medium enterprise products to be sold in the store without incriminating cost. So basically Mitra will have knowledge on how to run retail business by themselves. Another interesting thing is some of the profit of the store will be donated to the needy people in the surrounding environment. So the prosperity will also come to the surrounding environment.
The other thing is if the Mitra has already made a contract between them and suddenly a new investor would like to join, the new investor are not prohibited to join Mitra, because the spirit is to bring more prosperity to others.
As a summary, this business model can grow another entrepreneur and also create prosperity to both Mitra, Hydro, and surrounding.
The Leader are tired of the economic condition of Indonesia, where capitalist and the rich people are dominating the economy, gap of the rich and middle and low income people become larger and larger. So with the spirit to change the middle to low income people from being object of economy to become the subject of economy.
By running this kind of business model, a lot of job opportunity will be available. A lot of retail stores can accommodate many stores' employees. While we shop we also give alms to othes because some profit came from our shop will be donated to low-economic people surrounding the stores.
For a long term effect, if this business model applicable everywhere, it can support the economic growth of the nation, because there will be a lot of entrepreneurs as well as Small Medium Enterprise.
Because this kind of business model is already spread across Indonesia, many good things have happened. Revenue of Hydro due to its business to supply goods to retail stores is increasing. Because the revenue is increasing, so Hydro also grows and absorbs more employees. Since the retail stores are open widely across Indonesia, Hydro can open new market in the place where the retail store will be opened. And it also give Hydro the chance to develop distribution center business in the place where the retail store will be located.
Hydro did not charge management fee, royalty fee, and management fee, and also gave training to Mitra to run retail business. Thus a lot of good things have happened. Many communities had their own store and became sustainable by themselves. A lot of needy people located around the store received the donation so they can fulfilled their needs.
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There are three types of models for this business. First, converting traditional store to modern store. Second, building retail store owned by individual. Third, building retail store owned by group of people or communities. Partners will be given added service which are the guidance and training on how to run retail businesses on their own. And some of the store's' profit will be given to the surrounding environment. This business model creates prosperity.
