Retail industry
Modern retail in indonesia is low
in its penetration compared to other countries in south east asia. Two
indicators that show the low penetration are percentage of modern retail to
total retail. It is only 17 % of total retail sales, in Philippines, Malaysia,
Thailand and Singapore, percentage of modern retail to total retail sales are
higher than indonesia. Then, the second indicator, the retail space in
indonesia is smaller which is only 11,000 square meters per million people in
2015. In Philippines and Thailand, the retail spaces are 22,000 square meters
per million people and 34,000 square meters per million people, respectively.
Conclusion, the modern retail
industry in indonesia is possibly still under its potential demand.
Company analysis
In 2015, Matahari department
store increased its stores from 131 stores in 2014 to 142 stores. Its total
store area in 2015 became 931,700 square metres at 66 cities across indonesia.
Matahari department store is affiliated with Matahari putra prima Tbk. Its
ultimate shareholder is Multipolar that has 20.48 % shares. Another share
holder is Asia Color Company Ltd with 2 % shares.
the expansion was done because
indonesia has good potential for retail growth. Based on euromonitor, indonesia
is one of five emerging markets with best middle income potential. Indonesia
has fourth largest middle income segment
As a market leader in department
store segment, the company attained 42.8 % of total market share in indonesia
in 2015. At the same year it got 3,2 million active member of MCC (matahari
club card). MCC is its customer loyalty program, the company endeavors to
engage its customer in purpose to advance customer spending in purchasing
stuffs at its store.
In 2015, in order to increase its
revenue, the company signed agreement with Matahari Mall, its affiliated
company, in selling product through internet. At further step, the company has
purchased share option at 10 % of total share of Global Ecommerce Indonesia
(GEI) which is a parent company of Matahari Mall. This strategy was in line
with the recent trend, customer start to purchase product through internet.
The company was able to increase
net revenue 13.6 % up at 2015 in comparison with net revenue in 2014. More than
64 % of total sales in 2015 was contributed by consignment segment. It argues
that the exclusive brand was as the key success factor to get high growth in
revenue. Besides, it was able to improve its profit margin from 17.91 % n 2014
to 19.7 % in 2015. Therefore, its ROA increased in 2015.
No comments:
Post a Comment