Robert Go, Jakarta – The economic crisis, as much as fashion, is responsible for the current fad among Indonesians for wearing body-hugging, belly-button-baring clothes.

For giant retailer Ramayana, which caters to the low-to-middle-income crowd that makes up almost 90 per cent of Indonesia's population, literally downsizing its goods has helped it prosper in hard times. Since 1998, Ramayana has cut off a centimetre or two from its clothing patterns, reduced the number of buttons per shirt, and sold other products in smaller quantities to cut production costs and give consumers really low prices.

Mr Koh Boon Kim, the chain's business-development officer and senior adviser, said: "Our target market lost 50 per cent of its purchasing power in a very short time. "We asked our suppliers to provide us with the same, or similar, goods at cheaper prices. What does this mean? Using less material, or material of lower quality and fewer accessories."

Mr Richard Santosa, head of Ramayana's corporate division, said: "We have to provide customers with cheaper alternatives if we want to continue selling." The two executives explained that their target consumers, whose monthly take-home wages average around 400,000 rupiah (S$65), made purchasing decisions mostly based on cost, and less on quality or accessories.

Said Mr Koh, a Singaporean who has been involved in Indonesia's retailing scene for nearly two decades: "This doesn't mean we provide poor quality. We still give value for money. Our shirts are good for 20 washes."

The strategy helped Ramayana gross 2.4 trillion rupiah last year, nearly doubling 1998's 1.3 trillion rupiah. The department store has 400,000 sq m of retail space, shared by 73 outlets that include a food bazaar. Sales figures for this year are projected to total nearly 3 trillion rupiah. Added Mr Koh: "Many still can't believe we can sell to people who earn US$3 or less a day. How can we sell US$1 shirts?"

The benefit of the downsizing strategy for consumers may be even greater when it comes to non-textile staple items, such as powdered milk, sugar or rice. Given their low daily wages, most Indonesians prefer to buy smaller quantities of any particular item at lower prices. Street vendors still sell cigarettes by the stick, not by the pack.

And at Ramayana, instead of buying 800-g cartons of powdered milk at 13,000 rupiah each, housewives snatch up 400-g packs at 6,000 rupiah or 200-g packets at 3,000 rupiah. Shopper Puji Hadi said: "I look around for children's toys, milk that's appropriate for my kids. Prices here are comparable. Sometimes it's the cheapest."

But for those who are not yet worried about having enough for the next day's meals, Ramayana's clothing styles are the big draw. "The items are nice and cool, the store is modern, the overhead music is good, and the clothes are cheap and sexy. That's the most important thing," said teenage student Diah Ajeng.

Shopper Suparto agreed: "The clothes are stylish and good enough. They are also cheaper, more affordable. I don't mind that they feel smaller or thinner." The next time you see Indonesians in tight, sexy clothes, do not assume it is all about style. Simple economics and thrift may also be at play.