CHUYÊN TRANG QUAN HỆ CỔ ĐÔNG

On August 2, 2024, Mobile World Group (HoSE: MWG) and Erajaya Group held an event to share the results and development direction of the EraBlue chain in Indonesia.

EraBlue is a joint venture between Mobile World Group and PT Erajaya Swasembada Tbk (Erafone) - a subsidiary of Erajaya Group in Indonesia. The first store was opened at the end of November 2022.

During the press conference, MWG representatives presented impressive business results of EraBlue.

As of July 2024, the chain had 65 stores in satellite areas around Jakarta, including 37 medium-sized stores (size M, approximately 280 - 320m2) and 28 small-sized stores (size S, ranging from 180 - 220m2).

“Particularly noteworthy is that EraBlue stores generate nearly double the revenue of a similarly sized Dien May Xanh store in Vietnam. Specifically, monthly revenues for Mini size are 4 billion VND, while Supermini size stores bring in 2.2 billion VND. It can be said that the EraBlue team has fully applied lessons learned in Vietnam, from site selection, lease negotiation, store construction processes, display shelf arrangements, IT operational systems, post-sales services to service culture. Even experiences from operations in Cambodia have provided valuable lessons for building an optimized model that has exceeded expectations.” - MWG representatives shared with the press.

Significantly, both sides agreed on the goal of achieving profitability at the company level by the end of Q4 2024, just under 2 years since its establishment.

MWG stated that following Bach Hoa Xanh, EraBlue would be the next driver of business development. The two groups aim to have 100 EraBlue stores in Indonesia by the end of this year and 500 stores by 2027. During the period from 2025 to 2027, they plan to open at least 10 EraBlue stores per month. Upon reaching 500 stores, both sides indicated “the possibility of listing on the Indonesian stock exchange after 2027.”

According to MWG representatives, there are several reasons underlying confidence in EraBlue’s future:

Firstly, the electronic and home appliance retail market in Indonesia remains fragmented, with the largest retail chains having around 60 stores, despite significant demand.

Secondly, despite similarities in transportation habits with Vietnam where customers mainly use motorcycles, modern retail chains in Indonesia are typically located in shopping malls. In contrast, the EraBlue model, situated on busy thoroughfares, is customer-friendly and easily accessible everywhere.

Thirdly, delivery and installation services for electronic devices are underdeveloped in Indonesia. While customers typically wait 7-10 days for delivery and installation of a washing machine, EraBlue offers these services within 4 hours. The service-oriented and dedicated approach, a strength of Mobile World Group, applied at EraBlue has garnered great favor among Indonesian customers.

Last but not least is pricing. Despite offering service quality equivalent to modern models, EraBlue’s prices are comparable to traditional models.

Speaking at the event, Mr. Nguyen Duc Tai - Chairman expressed his delight in finding a partner similar to MWG in Indonesia, thus believing EraBlue’s plans will succeed.

Mr. Doan Van Hieu Em, CEO of Mobile World Joint Stock Company, stated: “Despite a brief period of less than 2 years, we have made significant strides, and EraBlue has promising prospects ahead. We believe EraBlue will help MWG establish its presence on the regional retail map and be a source of pride for Vietnam as we expand into international markets.”