E-COMMERCE PLATFORMS, SOCIAL COMMERCE ON DECREASING VISITS TO THE TRADITIONAL MARKET OF CIREBON WHOLESALE CENTER

This study uses quantitative research methods to analyze the effect of e-commerce and social commerce platforms on the decline in visits to the Cirebon Wholesale Center Traditional Market, with a focus on the Tiktok Shop case study. The sampling technique used by researchers is non-probability sampling with purposive sampling technique and the data analysis used in this researcher is validity test, reliability test, determination coefficient test, hypothesis testing. Therefore it is important for the government to take more concrete steps to help them deal with this situation, namely by helping to create promotional efforts that can build a positive image for traditional markets, conventional business owners want traditional markets to be known as unique shopping places with quality local products and the friendliness of traders who are the main attraction. with the existence of e-commerce, social commerce and tiktok shop has a significant effect on the decline in interest in visiting the Cirebon Wholesale Center traditional market. As we know in today's modern era, consumer interest in online shopping has a major influence on the marketing management of a company's products and services. Services in e-commerce and social commerce are an alternative for the millennial generation to increase sales turnover compared to offline stores.


INTRODUCTION
Traditional markets, which used to be the heart of the Indonesian economy, are now starting to experience a decline in visitors.This phenomenon is clearly seen in various regions, where crowds that usually color traditional markets are now starting to be replaced by a quiet atmosphere caused by technological advances with the emergence of e-commerce and online shop platforms providing alternative shopping options that are easier and more diverse for the community.One of them is PGC Cirebon Traditional Market, formerly known as one of the busiest markets in the city of Cirebon, which used to have 200 stalls now has experienced a significant decrease in the number of visits reaching only 85 stalls open.Formerly a Cirebon shopping center, PGC Cirebon has experienced a decline in the number of visitors in recent years.The mall, which was once crowded, filled with shoppers and full of energy, is now struggling to maintain its appeal.Formerly a Cirebon shopping center, PGC Cirebon has experienced a decline in the number of visitors in recent years.The mall, once crowded, packed with shoppers and full of energy, is now struggling to maintain its appeal.
E-commerce in Indonesia has experienced rapid growth in recent years.This is accompanied by changes in people's shopping patterns that are increasingly switching to online platforms.E-commerce encompasses various activities such as online shopping, content delivery, fund transfers, share trading, auctions, design collaboration, online sourcing, public procurement, direct consumer marketing, and after-sales services, encompassing traditional and new activities like health and education (Bass, 2018;Heinemann, 2023;Santos et al., 2022;Yudowati & Handiatmoko, 2021).
Social commerce is a mix of social media and e-commerce, where commerce activities, such as selling and purchasing products, occur through social platforms such as Facebook, Instagram, and Twitter (Attar et al., 2021(Attar et al., , 2022;;Kala Kamdjoug, 2023;Liao et al., 2021;Sohn & Kim, 2020).Social commerce is increasingly predicted as the future of online shopping (Akram et al., 2021;Busalim et al., 2021;Dabbous et al., 2020;Nadeem et al., 2020).Research from IBM shows social commerce experienced a decline in 2012.However, recent data shows a significant increase.The "Social Commerce Today" report says platforms like TikTok Shop are experiencing rapid growth, attracting businesses.
The Indonesian Ministry of Trade (Ministry of Trade) is evaluating regulations related to social commerce, this aims to ensure consumer protection and a healthy business climate Social commerce is now not just selling on social media.Business people are required to be creative in utilizing existing features and trends (Bilton & Cummings, 2010;Li, 2020;Neirotti et al., 2014;Wirtz et al., 2010).Social commerce is not only about selling products on social media but also building communities, building relationships with customers, and creating unique and personalized shopping experiences, social commerce is still growing and has enormous potential (Sheikh et al., 2019;C. Wang & Zhang, 2012;Zhou et al., 2013).In the future, social commerce is expected to become the main way people shop online.
Online stores are available 24 hours a day, have more consumers who access via the internet anytime and anywhere, save more fuel oil and time.One of the online stores is TikTok Shop.TikTok Shop's presence in Indonesia on April 17, 2021, after TikTok obtained official permission from the government to run a business in the field of social media and online stores.As for the TikTok application, it has first entered Indonesia in June 2018.Although it was blocked by the Ministry of Communication and Information (Kemenkominfo) on July 3 -July 10, 2018, TikTok survived in Indonesia and in the first 2 years, its users have reached 30.7 million people.(Magdalene Dian) In a short time, TikTok Shop became one of the popular ecommerce platforms in Indonesia.However, on October 4, 2023, TikTok Shop officially closed in Indonesia.This closure is caused by the Regulation of the Minister of Trade (Permendag) Number 31 of 2023 concerning Provisions for Export and Import of Goods Traded Through Electronic Systems (Permendag) stipulates that ecommerce platforms that facilitate buying and selling transactions of goods must have a trading business license.
The closure of TikTok Shop will certainly have an impact on product sales, both for sellers and consumers.The impact can be positive or negative.The Minister of Cooperatives and Small and Medium Enterprises (MenkopUKM) emphasized that banning social media as well as e-commerce, such as TikTok Shop, would not harm business actors, especially MSMEs, who use the platform.While in Indonesia, the majority of income in e-commerce in Indonesia amounting to 56 percent is enjoyed by foreigners, domestic only 44 percent.Then the digital media economy in Indonesia has also been 65 percent taken by global platforms because the government is late in regulating it.Previously, TikTok Indonesia representatives regretted the government's decision through Permendag No. 31 of 2023 which will have a direct impact on 6 million TikTok Shop sellers and nearly 7 million content creators or affiliates.
After being closed on October 4 due to regulatory issues, finally on December 12, 2023, TikTok Shop reopened.The re-operation of this online shopping platform in Indonesia is warmly welcomed by affiliates and TikTok users.However, there are some differences from the new TikTok Shop, To be able to operate in Indonesia, TikTok has an exclusive partnership with Tokopedia which is under the auspices of the GoTo Group.In this collaboration, Tokopedia received an investment of $ 1.5 billion from TikTok.This also makes TikTok have a controlling stake in PT Tokopedia with a stake of 75.01%.all features of TikTok in-app shopping services in Indonesia will be operated and managed by Tokopedia.This strategic partnership begins with a trial period carried out with consultation and supervision from relevant ministries and institutions.
This study aims to analyze the effect of e-commerce and social commerce platforms on the decline in visits to the Cirebon Wholesale Center Traditional Market, with a focus on the Tiktok Shop case study.The research is expected to give more insight into the topic discussed and become a reference for future research on e-commerce, especially in Indonesia.

RESEARCH METHOD
This study examines the impact of e-commerce and social commerce platforms on the decline in visits to the Cirebon Wholesale Center Traditional Market, specifically the Tiktok Shop.The researchers used quantitative research methods, including non-probability sampling with purposive sampling techniques, and conducted validity tests, reliability tests, determination coefficient tests, and hypothesis tests.The sample consisted of 183 traders and Tiktok Shop users in Cirebon, with traders selling textile products and active social media users.The study used Structural Equation Model (SEM) software based on Partial Least Square (PLS) for data processing.Data collection involved asking questions or written statements to respondents, who were then asked to fill out questionnaires using Google Forms.To assess the validity of the indicator, use the outer loading value.An outer loading value of more than 0.7 indicates that the indicator can be used.Further, loading factors ranging from 0.5 to 0.6 can be considered acceptable in models that are still in the development stage (Ghozali, 2014).But factors with a charge below 0.5 should be removed (Chin, 1988).Table 1 shows that the loading factor value exceeds 0.5, indicating that all indicators are suitable and valid for inclusion in further analysis.Therefore, it can be concluded that all indicators in the study are valid.The structural model is shown in the following figure:

Reliability Test Results
The reliability of the indicator block measuring the construct is determined by subsequent testing.In this study, the composite reliability value was used to determine reliability, with an acceptance rate of >0.7.In addition, the value of the construct variable can indicate reliability through Cronbach's alpha of the indicator block (Sarstedt et al., 2017).A construct is considered reliable if Cronbach's alpha value is above 0.7.AVE values above 0.5 are considered acceptable for reflective constructs.If the AVE value is less than 0.4, it must be excluded from the model.This is important to ensure the validity of variables (Hair et al., 2014).Table 2 shows that the AVE value for each variable tested was greater than 0.5, indicating that all variables in this study met the discriminant validity criterion.Based on these criteria, it is proven that all variables in this study meet the construct reliability criteria that have been described.

R-Square Inner Model
The R-square value is a value that indicates the ability of exogenous variables to construct endogenous variables.According to Chin et al. (2008), there are three categories of R-square values, where if the value of R-square means the relationship between exogenous variables in forming a weak endogenous variable, if 0.33 means the relationship is moderate, and if the value is 0.67 means the relationship is strong.The relationship is strong.While Sarwono (2016) states that if the R-square value is more than 0.67 then the relationship between endogenous and exogenous variables is very strong.The table below confirms that the model significantly contributes to explaining the factors that influence the variable of visitor interest.

The influence of E-Commerce on the Decline in interest in visiting the traditional market of Cirebon wholesale center
Based on the results of this study, hypothesis one shows a significant influence.E-Commerce has a significant effect on decreasing interest in visiting the traditional market of the Cirebon wholesale center.This is supported by the T-table value of the influence of E-Commerce on the decrease in visit interest of 5.260 greater than 1.96 and the p-value of 0.000 less than 0.05.It can be concluded that with the existence of e-commerce, it can affect the decline in interest in visiting the traditional market of the Cirebon wholesale center, because consumers prefer to shop online with their smartphones and very easy payment methods, therefore traditional market traders must prepare themselves to face the era of digitalization.The explanation is in line with the study (Fani & Safira, 2024;Sudaryono et al., 2020).
The more users of information technology as a means of business, the narrower the market opportunities for offline or manual business people who only rely on an existing building as a means of buying and selling transactions.E-Commerce can help businesses in operating efficiently and also effectively in reaching customers who are thousands of miles away within minutes, most business processes can be done easily through it, launching new products worldwide at low cost at the same time is possible through it (Divya, 2019).E-Commerce has so far helped many traditional retailers to grow their business, at the same time it also has a negative impact on retailers in other traditional markets, which will ultimately have an impact on decreasing consumer interest in visiting traditional markets.In addition, research conducted by Vikström (2019) indicates that an increase in online shopping will result in a decrease in the number of traditional offline retail establishments.Therefore, sellers and marketplace retailers must be able to innovate to maintain their competitive advantage.E-commerce and offline retail (Traditional Market) are two important in the retail industry.The two are interrelated and interdependent, shaping the development of the retail sector together (T.Wang, 2023).On the one hand, e-commerce has brought challenges to the offline retail industry by offering lower prices, a wider selection of products, and a more convenient shopping experience.As a result, traditional market physical stores face pressure to adapt and innovate.On the other hand, e-commerce also brings opportunities for offline retailers.By integrating online and offline operations and leveraging the advantages of both channels, retailers can create a better customer experience.

The influence of Social Commerce on the decline in interest in visiting the traditional market of the Cirebon wholesale center
Based on the results of this study, hypothesis two showed a significant influence.Social Commerce is significant to the decrease in interest in visiting the traditional market of the Cirebon wholesale center.This is supported by the T-table value of the influence of Social Commerce on the decrease in visit interest of 1.977 greater than 1.96 and the p-value of 0.049 smaller than 0.05.It can be concluded that with the existence of social commerce, it can affect the decrease in interest in visiting the traditional market of the Cirebon wholesale center.Because Social commerce allows customers to make purchases using social media without having to come to traditional markets.This makes the shopping process easier and more convenient and makes consumers obtain faster and complete information (Hewei & Youngsook, 2022).The explanation is in line with previous research conducted by Uly (2022).
There are two main reasons why social commerce is superior to traditional markets, namely convenience and low prices.Social Commerce can provide a very wide reach, sharing buyers from all over the country can transact on stores or websites.There is no time limit in shopping, consumers can shop anytime at the time they want without having to go out of the house and spend money on the road.According to Nathalia Telly (2023), the solution for offline stores or traditional markets is to add facilities to improve the pleasant shopping experience, facilitate the processing of permits to hold interesting events in the market, or bring order to illegal traders, will create a lively environment so that it will attract more people to shop offline.Social commerce is a solution to real-world problems faced by traditional local small sellers by matching them with local affiliates who can help drive traffic to their online stores (Pandamsari, 2023).

The influence of Tiktok Shop on the decline in interest in visiting the traditional market of the Cirebon wholesale center
Based on the results of this study, hypothesis three shows a significant influence.Tiktok Shop is significant for the decrease in interest in visiting the traditional market of the Cirebon wholesale center.This is supported by the T-table value of Tiktok Shop's influence on the decrease in visit interest of 7.746 greater than 1.96 and the p-value of 0.000 is less than 0.05.It can be concluded that Tiktok shop as an online shopping application has an effect on the development of sales in the traditional market of the Cirebon wholesale center, since the existence of the tiktok shop market traders have difficulty competing, because the goods sold in the market with the tiktok shop experience a far price comparison.This explanation is in line with some other research (Nadia Ulva Febrianti et al., 2023;Reyhan et al., 2024) Conventional traders, in traditional markets or MSMEs are currently switching from offline business models such as physical stores or door-to-door sales to online business models.This is influenced by the impact of tiktok shops that force business owners to adapt themselves.TikTok continues to innovate and evolve by presenting various types of promotions and attractive product offers that are well packaged and promoted through creative content (Priyono & Sari, 2023).In addition, compared to tiktok shops, in traditional markets, business owners often face higher costs because product and service prices of products and services must cover offline business operational costs, such as business premises rent, employee salaries, and other costs (Murni, 2023).This can make some products in offline businesses seem more expensive compared to equivalent prices on digital platforms like TikTok.Therefore, it will have a negative impact on business owners in the traditional market.Research conducted by Chintya & Nasution (2024) states that consumers have the potential to lose the physical or face-to-face shopping experience.Conventional shops and shopping centers may face a decline in visitor numbers, leading to a decline in the local economy and social interaction in the community.Therefore it is important for the government to take more concrete steps to help them deal with this situation, namely by helping to create promotional efforts that can build a positive image for traditional markets, conventional business owners want traditional markets to be known as unique shopping places with quality local products and merchant hospitality that is the main attraction.

CONCLUSION
The presence of e-commerce, social commerce, and tiktok shops has significantly decreased interest in visiting the traditional market of Cirebon Wholesale Center.The rise of e-commerce in Indonesia began in 1999 and reached its peak in Asia in 2015.These services are a popular alternative for the millennial generation to increase sales turnover compared to offline stores.The tiktokshop live feature is currently a hot topic due to the closure of tiktokshop due to illegal selling and the government's reopening with regulations.

Figure 1 .
Figure 1.Outer Model Test Results

Convergent Validity TestTable 1 .
Convergent Validity Test Result E

Table 2 .
Table 2 below shows the loading values for the constructs of research variables obtained from running the Smart PLS program Consctruct Reliability and Validity Cronbach

Table 3 .
Hair et al. (2014).(2014), the coefficient analysis of structural models is carried out to analyze a hypothesis by analyzing the relationship between which variables have a significant relationship.Hypothesis testing in this study was carried out by looking at T-statistical values and P-values.The hypothesis is accepted if the T-statistic is greater than 1.96 and the P-value is smaller than 0.05.The table below shows the results of Path Coefficients direct influence between variables.

Table 4 .
Direct Effect Test Results