Retail in Asia

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Cellphone distributor Erajaya upbeat about sales despite sluggish economy

Publicly listed cellphone distributor and retailer Erajaya Swasembada is upbeat on achieving its sales target of IDR15 trillion (USD1.05 billion) this year, backed by a wave of budget smartphones from Taiwan and China pouring into Southeast Asia’s largest economy.

According to Djatmiko, the flood of budget smartphones like China’s Lenovo and Xiaomi – which typically price at around IDR1.5 million and lower – have allowed Erajaya to maintain its sales volume in the face of tighter purchasing power among Indonesia’s consumers, quickly gaining a double-digit market share in Erajaya’s portfolio.

Two years ago, the average selling price of Erajaya stood at about IDR3.4 million, Djatmiko said. However, that figure is seeing a slow downward trend, declining to IDR3 million last year and reaching some IDR2.7 million so far this year, he added.

(Source: Jakarta Globe )