Digital Adaptation of Traditional Market Traders to E-Commerce: Evidence from Central Bolu Market, North Toraja Regency

Abstract

The growth of e-commerce has caused a decline in offline sales for traditional market traders, necessitating digital adaptation strategies for business survival. This study analyzes the effectiveness of digital adaptation strategies implemented by fashion traders at Bolu Central Market, North Toraja Regency, in facing e-commerce competition, and identifies the challenges encountered. Using a descriptive qualitative method with in-depth interviews of six fashion traders, one market manager, and three consumers, findings show that only two of six traders have adopted digital strategies through social media (Instagram and Facebook), while four others rely on conventional methods. Traders who adopted digital strategies demonstrated better sales resilience with lower estimated decline. Notably, a Toraja traditional clothing trader combining digital strategy with local culture-based product differentiation experienced only a 15% decline, significantly lower than conventional traders at 20-35%. Key challenges include limited digital literacy, lack of mentoring, minimal digital infrastructure at the market, and trader concerns about online fraud risks. The study recommends integrated MSME digitalization programs combined with strengthening local Toraja cultural products.