Mobile World, an Electronic Retailer, Reports Revenue Growth in Indonesia
Erablue, the electronics retail chain operated by The Gioi Di Dong (Mobile World) in Indonesia, has experienced a significant increase in monthly sales. From the latter part of 2022, Erablue’s monthly sales have risen from VND17.5 billion to VND30 billion (equivalent to US$0.7 million). The first half of this year saw monthly revenues of VND25 billion ($1.05 million) across its five stores. Notably, these sales figures surpass those achieved by Erablue’s counterpart in Vietnam, according to Doan Van Hieu Em, the CEO of The Gioi Di Dong and Dien May Xanh, two prominent electronics retailers in Vietnam. Although the sales per store amount to only 0.5% of a Dien May Xanh store’s sales, it is sufficient to generate positive EBITDA (earnings before interest, tax, depreciation, and amortization).
Erablue is a joint venture between The Gioi Di Dong and Erafone Artha Retailindo, a subsidiary of Indonesia’s largest technology product retailer. It initially opened its first store in Jakarta and expanded to Tangerang, an emerging economic hub. This month, Erablue launched its sixth store and aims to add 25 more by the end of this year, despite halving its initial expansion plan. Em mentioned the challenges of finding suitable showroom-sized properties in Indonesia, requiring the joint venture to rent and connect multiple adjacent buildings to accommodate an Erablue store. Nevertheless, Em emphasized that Indonesia’s electronics market potential is twice or even thrice that of Vietnam.
The Vietnamese electronics retailer has identified sales and after-sales services, particularly delivery and installation, as key strengths for Erablue stores in Indonesia.