Erajaya aims to capture Indonesia’s growing active lifestyle market

CEO Djohan Sutanto makes sure EAL goes beyond retail to fostering communities and offering an immersive omnichannel shopping experience.

As Indonesia’s economy continues to show promising growth, with a projected 5.31% expansion in 2022 according to the BPS (Statistics Indonesia) report, big retailers like Erajaya view this as a positive signal. Leveraging its understanding of emerging trends and consumer demands, the company has introduced Erajaya Active Lifestyle (EAL) as a dedicated business vertical to support and promote an active lifestyle among Indonesians.

Erajaya believes in the potential for the active lifestyle market given the rising middle class, coupled with an increasing awareness of health and wellness. EAL CEO Djohan Sutanto sat down with Retail Asia to share EAL’s vision of capturing this growing market.

Strategic positioning

EAL, operating under the umbrella of the Erajaya Group, specialises in marketing, distributing, and establishing a robust retail network for active lifestyle products. Their diverse range of offerings includes Internet of Things (IoT) products and their ecosystems, lifestyle devices, smart home technologies, and fashionable activewear.

Whether it’s state-of-the-art fitness trackers, connected home devices, or trendy activewear, EAL is committed to curating a comprehensive range of high-quality and relevant products.

The product portfolio offered by EAL is divided into three categories; telecommunications equipment ecosystem, IoT, and sports equipment includes sports fashion outdoor where so far they are trusted by leading global brands such as Apple, DJI, GARMIN, Google, GoPro, JBL, Marshall, Nothing, Samsung, Segway, Shokz, Sony, Xiaomi and many more.

 At the same time, EAL is also developing a private label under the name IT (Immersive Tech) to present IoT and smart home devices.

EAL presents its active lifestyle products through the Urban Republic outlet network, GARMIN Brand Stores, DJI Experience Stores, JD Sports, ASICS, Urban Adventure and others where up to now there are 64 outlets operating throughout Indonesia.

“We want to provide the best experience for customers, such as placing outlets at strategic points such as shopping centers in big cities that have high visitor traffic, making EAL’s outlets easy to reach,” Djohan Sutanto told Retail Asia.

Understanding customer needs

Visitors of EAL stores will quickly notice that careful thought is put into the product layout to provide them with the best experience. They can also be assured that in these retail stores, they can fully interact with both the product and the product specialist.

“[Being] customer centric has indeed become a value that we espouse,” said Djohan, adding that EAL makes sure it understands what customers who lead an active lifestyle need.

In this sense, EAL not just offers a product but aims to tap into the aspirations and preferences of Indonesian consumers who seek products that enhance their active pursuits. “We can learn from them about emerging needs and can offer relevant products to answer them,” said Djohan.

The easing of pandemic handling policies, for example, sparked a growing desire to travel, creating a demand for devices like drones, action cams, 360⁰ cameras, and audio devices. EAL has responded to this trend by offering a range of products to meet these needs.

Furthermore, EAL recognises the rapidly growing trend of running and has expanded its product lineup to include smartwatches, audio products, and running equipment.

Another sport gaining popularity is golf, particularly among young players. Recently, EAL formed a partnership with MST Golf, a golf equipment retailer from Malaysia, to introduce their products to the Indonesian market.

Additionally, data and analytics play a crucial role in helping EAL understand phenomena and trends. By analyzing the activities and discussions of urban communities on social media, EAL gains valuable insights that inform their business strategy.

This information guides EAL in determining which products to introduce and which activities to undertake in order to meet the needs of the target audience.

Building a community

One crucial strategy realised by EAL is having to build a community of consumers with the same interests to make it easier to communicate with them the brands’ latest offerings. “That is why EAL is actively involved and building a sports or special interest community,” said Djohan. 

Recognising the significance of fostering a vibrant community centered around hobbies and sports interests, EAL often organises activities to coincide with the introduction of products offered by managed retail outlets such as Urban Republic.

Urban Republic Track Day is one example of a thoughtfully curated event catering to the running community. “There, we took advantage of the event to introduce products and build community,” said Djohan.

Periodically, EAL also organises the Urban Republic (UR) Festival in shopping centres with UR outlets. The event marks UR’s anniversary and allows visitors to explore the wide range of products available at UR. The festival serves as a testament to UR being a one-stop solution for lifestyle products that promote an active and productive lifestyle.

“We also regularly hold the UR Amazing Race, which offers an interesting competitive game while exercising. Great enthusiasm from the public has supported us to continue to hold this event regularly,” said Djohan.

Omnichannel experience

Acknowledging the pivotal role of technology in delivering optimal retail operations and customer satisfaction, EAL’s top executive highlighted the importance of a seamless omnichannel shopping experience.

“By leveraging both our retail and online infrastructure, we offer customers the best of both worlds, allowing them to enjoy the benefits of both online and offline shopping simultaneously,” explained Djohan.

He added that a number of services that can be enjoyed by customers such as “Click ‘n Pickup” can make it easier for customers to pick up goods at physical outlets after completing transactions online.

Products offered by EAL outlets are also available on the Eraspace.com e-commerce page so customers from various regions in Indonesia can buy and wait for goods to be delivered to their homes. “We are also present on leading online platforms with various Official Stores from various brands that we manage, so that we can be closer to our consumers,” Djohan said.

Reflecting on their achievements, Djohan emphasised the importance of measuring variables such as sales targets and the expansion of EAL’s retail network in Indonesia. He further highlighted the significance of engaging with consumers through various channels, including social media, where their comments, questions, and suggestions provide valuable insights.

Looking ahead, Djohan outlined their commitment to increasing the physical presence of EAL through retail outlets, ensuring customers have access to products that cater to their active lifestyle needs while enjoying a seamless omnichannel shopping experience.

“Furthermore, we will continue to expand our business by introducing more brands to urban consumers in Indonesia, offering a wider range of products that resonate with their aspirations and desires. We remain open to the possibility of bringing other renowned active lifestyle brands to the Indonesian market, as well as exploring opportunities for growth in other categories within the Active Lifestyle realm,” Djohan concluded