The Conquest of Indonesia: EraBlue’s Triumph in 2024

On August 2, 2024, representatives of the EraBlue joint venture between Mobile World Investment Corporation (stock code MWG) and Erajaya met to discuss the business performance of the EraBlue chain.

Notably, both parties agreed on the target of turning a profit at the company level before the fourth quarter of 2024, just two years after its formation. Thus, following Bach Hoa Xanh, EraBlue will be the next venture to expand The Gioi Di Dong’s development horizons.

According to the plan, EraBlue aims to expand its scale to nearly 100 stores by the end of 2024 and 500 stores by 2027. The company expects to build EraBlue into a leading electronics and appliance retailer in Indonesia, akin to Dien May Xanh in Vietnam.

EraBlue, a new overseas venture for MWG since 2022, primarily operates in the retail of mobile devices, electronics, home appliances, and other equipment and machinery in Indonesia. It is a joint venture established by a Vietnamese company and PT Erafone Artha Retailindo (Erafone), a subsidiary of the Erajaya Group.

EraBlue is modeled after Dien May Xanh in Vietnam, focusing on consumer electronics retail. It is steadily realizing its ambition to become Indonesia’s leading electronics and appliance retailer.

Image: EraBlue aims to turn a profit at the company level before the fourth quarter of 2024, just two years after its launch.

According to the company, in less than two years, EraBlue has become the largest modern retail chain in Indonesia. As of July 2024, the chain boasts 65 stores in satellite areas of Jakarta, including 37 mini-sized stores (size M, approximately 280-320 square meters) and 28 supermini-sized stores (size S, 180-220 square meters).

“Notably, EraBlue stores generate nearly double the revenue of a similarly-sized Dien May Xanh store in Vietnam. Specifically, the monthly revenue of size M stores is VND 4 billion, while size S stores bring in VND 2.2 billion. The EraBlue team has fully inherited the lessons and experiences from Vietnam, ranging from site selection, lease negotiation, store construction processes, display arrangements, IT systems, after-sales services, and even the service culture. The previous operations in Cambodia also provided valuable insights to build an optimized model that has yielded better-than-expected results,” said a representative of The Gioi Di Dong.

The company representative also emphasized several reasons for their optimism about EraBlue’s future prospects:

First, the electronics and appliance retail market in Indonesia remains fragmented, with the largest chain operating around 60 stores, while the demand is substantial.

Second, despite Indonesia’s similar traffic conditions to Vietnam, with customers predominantly traveling by motorbike, all modern retail chains are located within shopping malls. In contrast, the EraBlue model is more accessible, with stores situated along busy roads, making it convenient for customers to spot and access them anywhere.

Third, delivery and installation services for electronic devices in Indonesia are relatively rudimentary. Buying a washing machine, for instance, entails a 7-10 day wait for delivery and installation, whereas EraBlue provides the same within four hours. The dedicated service culture, a strength of The Gioi Di Dong, has won over Indonesian customers when applied by EraBlue.

Last but not least, EraBlue offers competitive pricing. Despite providing modern-standard services, its price range is comparable to that of traditional models.

Speaking at the event, Mr. Nguyen Duc Tai expressed his delight at finding a like-minded partner in Indonesia and his confidence in EraBlue’s future success.