A look into Erajaya’s four business vertical expansion

CONCEPT WATCH A look into Erajaya’s four business vertical expansion

It implements its growth strategy in its 1,300 outlets and 93 distribution points.

INDONESIA

When telecommunication device retailer, PT Erajaya Swasembada Tbk., introduced its four new business lines in 2021, the company wanted to strengthen its presence amongst two different types of consumers—the one that checks reviews online via YouTube and other social media platforms; and the other who wants to see and touch the item physically. Therefore, Erajaya combined online and offline shopping experiences by implementing an omnichannel strategy in its four business verticals.

The first business vertical is called Erajaya Digital. This easily connects its consumers’ lifestyle needs with telecommunication devices. Next is Erajaya Active Lifestyle, which focuses on offering products to complement the active lifestyle of users from Urban Republic, ASICS, and JD Sports. This is followed by Erajaya Beauty & Wellness, composed of Apotek Wellings and The Face Shop outlets, to cater to the health and beauty markets. Finally, Erajaya Food &

We hope that Eraspace can become the main destination for people to shop online

Joy Wahjudi

Nourishment offers food through the Paris Baguette brand and Grand Lucky supermarket.

“We have realised that we needed to expand our retail footprint to make it more accessible and implement several steps to ensure that customers get the best experience whilst shopping,” said Joy Wahjudi, CEO of Erajaya Digital to Retail Asia.

Omnichannel initiative

“As of December 2021, there are more than 1,300 Erajaya outlets in total along with 93 distribution points and we are very serious about expanding our retail footprint,” said Joy.

In the first semester of 2022, Erajaya opened 158 new outlets and spent a capital expenditure of US$14.08m (IDR 224b). Throughout 2022, we plan to increase the number to 400-500 points from various managed brands.

Erajaya wanted its consumers to be comfortable in reaching its outlets. To do this, it needed the support of customer service frontliners who will provide complete information and help them to decide on which product to choose.

Erajaya developed the "Click n Pickup" programme, which allows a customer to make transactions on the website, and he can choose to pick up his goods directly at an agreedupon outlet. There is also Mobile Selling where buyers can transact from the WhatsApp service. The Home Delivery Service ensures that the product arrives at the customer's hands within hours because it is delivered from the nearest outlet.

For its expansion, Erajaya introduced the Erafone Cloud Retail Partner programme that allows local investors to be involved in expansion in various regions. This is a partnership cooperation programme, not a franchise, which offers full support from design, official and guaranteed product inventory, national distribution network, trained salespeople, marketing programs and other support to ensure this collaboration achieves maximum results.

Eraspace as a lifestyle destination

Erajaya also developed its online channels such as the Eraspace.com e-commerce page and official stores on various e-commerce platforms in Indonesia. Eraspace is an e-commerce service that integrates thousands of offline retailers from Erajaya Group such as Erafone, iBox, Urban Republic, The Face Shop, and IT.

The first advantage of Eraspace is the complete product catalogue of brands managed by Erajaya that can be accessed in one place, as well as regular promotions, one of which is Eraversary which was held to commemorate the 26th anniversary of Erajaya.

Eraspace is a way for consumers to experience the omnichannel experience. Although Eraspace has only been operating since 2019, the average monthly visitor has reached 5 million visitors.

“We hope that Eraspace can become the main destination for people to shop online for electronic products, gadgets, and lifestyles. Eraspace's development is certainly in line with our retail expansion, in the omnichannel concept," concluded Joy.