"Electronics and Appliance Specialist Retailers in Indonesia" Published

Sales of electronics and appliances through specialist retailers continued to weaken as compared to the much stronger rise of sales from the internet retailing channel within the category during 2015. The continuous shift of Indonesian consumers to smartphones and tablets has made these products amongst the most popular product types purchased online. Manufacturers of electronics and appliances products have increasingly engaged with internet retailers to sell their products in order to grab sales opportunities in reaching a wider consumer base geographically. Store-based outlets are constrained by physical limitations and growing operating costs that make online retailing a lucrative alternative to many manufacturers and retailers of electronics and appliance products.

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Competitive Landscape

In terms of value sales, Erajaya Swasembada Tbk PT retained its leading share in electronics and appliance specialist retailers in 2015 thanks to its comprehensive brand offerings and products. More than 80% of the company’s total sales came from sales of mobile phones and tablets in 2015 sold through its distribution and retail networks. The company’s retail brands include Erafone, Erafone Megastore, iBox, Android Nation and other branded stores, such as BlackBerry, Samsung, LG and Nokia. Erafone and Erafone Megastore are multibrand outlets that mostly sell mobile phones and tablets whilst iBox is a premium reseller of Apple products in Indonesia. Its comprehensive collaboration with leading consumer electronics manufacturers continued to contribute to its leading sales and increasing share in this category during 2015. The company also joined internet retailing with its Erafone brand in 2012 and has gained increasing sales and share contribution ever since. In 2014, the company launched a new concept store, Eraplus, designated to sell accessories to complement its core product offerings (ie mobile phones and tablets). During 2014, the leading global smartphone brand from China, Xiaomi, has also collaborated with Erafone in selling their products offline (or through Erafone outlets), in contrast to Xiaomi’s core strategy in selling through the online channel.

Industry Prospects

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