This information was recently announced by The Gioi Dien May (World of Electronics) to celebrate the opening of its 50th store in Indonesia with partner Erajaya Digital. This shows that in just the last three months, the Erablue electronics chain has opened 34 new stores and expanded its coverage beyond Jakarta to neighboring provinces such as Bogor, Depok, Tangerang, and Bekasi, as well as expanding its online sales.
According to The Gioi Dien Dong (Mobile World ), the chain is achieving considerable success, having reached the break-even point at the store level (revenue sufficient to cover store expenses such as staff, electricity, water, and inventory) after only 15 months of operation. Each Erablue store with an area of 250-300 m2 generates an average revenue of 4.5 billion VND per month, while stores of 180-200 m2 generate 2.5 billion VND per month. It is projected that this year, the chain will increase the number of stores to 75 and reach the break-even point at the company level (revenue sufficient to cover store expenses and have surplus to pay the chain's operating department).
"With what's happening, we believe Erablue will soon achieve its goals. There is still huge room for Erablue to grow, and Erablue will soon become the largest retailer in Indonesia," said Mr. Doan Van Hieu Em, CEO of Mobile World Corporation.
At the 2023 annual meeting, Mr. Nguyen Duc Tai, Chairman of The Gioi Dien Dong, stated that the new service is the biggest differentiator that helped Erablue win the hearts of customers and is also what the company is confident will help it beat its competitors in Indonesia.
Before Erablue was launched, Indonesia only had a model of in-store consultation and product demonstration, along with shipping and installation, resulting in a lengthy process that took several days. However, since The Gioi Dien Thoai (Mobile World) brought its successful model from Vietnam to Indonesia, customers can place orders in the morning and have someone come to install the product in the afternoon.
In the long-term plan, Mr. Tai expects that within the next five years, the Erablue chain will have 500 stores in Indonesia, capturing 20-40% of the market share and generating $2-4 billion in revenue annually, similar to the roadmap achieved by Dien May Xanh in Vietnam. In addition, he stated that The Gioi Dien May will also consider the possibility of an IPO (initial public offering) for Erablue in Indonesia.
Previously, to focus its efforts on Erablue, Mobile World Group closed its Bluetronics chain in Cambodia. At the time, the company's leadership stated that two obstacles prevented the chain from expanding in Cambodia: the small market size and complex tax policies.
According to statistics, the mobile phone and electronics market in Indonesia is worth approximately $14 billion. This figure is much larger than Cambodia and even double that of Vietnam.
Erablue opened its first store in November 2022. Despite challenges in finding suitable locations, the chain has grown rapidly, reaching 50 stores within 15 months.
Thi Ha
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