Mobile World Investment Corporation (MWG) is on a roll. After the success of Bach Hoa Xanh, another one of their ventures is hitting its stride.
According to a recent Facebook post by MWG board member, Doan Van Hieu Em, the company’s Indonesian electronics chain, EraBlue, has reached a historic milestone: turning a profit.
While it’s unclear if this refers to store-level or system-level profitability, it’s undoubtedly good news for this joint venture by The Gioi Di Dong.
Source: Facebook page of Doan Van Hieu Em, MWG board member
At a recent investor meeting in early May 2024, Hieu Em predicted that EraBlue would break even and turn profitable by Q4 of this year.
MWG’s chairman, Nguyen Duc Tai, echoed this sentiment, stating that EraBlue is exceeding expectations and that the company remains on track to reach break-even point by Q4 at the latest.
EraBlue, a joint venture between MWG and PT Erafone Artha Retailindo (a subsidiary of the Erajaya Group), is on an ambitious journey to become Indonesia’s leading electronics retailer. With MWG holding a 45% stake, the chain mirrors the Dien May Xanh model in Vietnam, focusing on consumer electronics retail.
As of Q1 2024, EraBlue boasts 55 stores. The mini model generates an impressive $4.5 billion VND per store, while the supermini model brings in $2.5 billion VND. As of March 31, 2024, MWG’s investment in EraBlue was valued at over VND 266 billion.
Source: MWG’s Consolidated Financial Statements for Q1 2024
EraBlue has significant growth potential, as the Indonesian market is twice to thrice the size of Vietnam’s, yet the consumer electronics retail sector is still in its infancy. The two largest systems account for fewer than 200 stores, with most sales coming from traditional small-scale stores.
EraBlue offers competitive pricing and differentiated services, including a comprehensive package that covers everything from product selection to after-sales support. Customers can browse a diverse range of products, receive dedicated advice from staff, and enjoy same-day delivery and installation, along with a quick warranty service and a 30-day return policy.
For 2024, EraBlue plans to continue its expansion, aiming for a maximum of 100 stores. The chain will then shift into high gear in 2025, working towards its goal of 500 stores by 2027.
