Consumer Preferences Shift Towards Asian Brands, Boosting Erajaya Subsidiary's Performance by 34.1 Per Cent

JAKARTA — Shifts in consumer tastes increasingly favouring Asian brands are driving performance among domestic retailers, including PT Sinar Eka Selaras Tbk (ERAL), which recorded significant sales growth.

Based on audited financial statements submitted to the Indonesia Stock Exchange, ERAL booked net sales of Rp 6.49 trillion for the 2025 fiscal year, up 34.1 per cent from Rp 4.84 trillion in 2024.

“This strategy has been quite successful in diversifying Erajaya’s business beyond the smartphone line that has dominated so far,” said Wawan Hendrayana, Director of Infovesta Utama and stock market analyst.

“With a more diverse brand portfolio, the company has opportunities to capture growth in the expanding lifestyle segment.”

According to Wawan, the expansion of Asian brand portfolios by PT Erajaya Swasembada Tbk (IDX: ERAA) is a strategic move to broaden the company’s business base. Hitherto, Erajaya has been known as a dominant player in smartphone distribution and retail.

The company’s entry into lifestyle, fashion, and food and beverage segments is seen as opening new growth sources not entirely dependent on the mobile device industry cycle.

This expansion step reflects the group’s efforts to capture changing consumption trends increasingly influenced by Asian brands across various categories.

According to Wawan, ERAL’s success in recording sales growth indicates that the brands it carries have good acceptance in the Indonesian market. The adaptive nature of Asian brands to regional trends is considered an advantage in attracting consumers, especially young generations in urban areas.

Nevertheless, he cautioned that the expansion phase is usually accompanied by increased operational costs, particularly for opening new stores, strengthening distribution networks, and marketing activities.

“In the short term, sales growth serves as a positive catalyst,” he said.

“However, after this expansion phase, investors will typically start looking at how the company improves operational efficiency and enhances margins.”

“China is Indonesia’s main trading partner, followed by Japan, and now technology from Singapore and South Korea is also growing stronger,” said Nailul Huda, Director of Digital Economy at CELIOS and retail expert.

“This means society is becoming more familiar with brands from those regions.”

According to Nailul, this change is related to trade structures as well as market proximity in the Asian region. Indonesian consumers are seen as increasingly familiar with brands from China, Japan, South Korea, and Singapore that are actively entering the domestic market.

In addition to trade factors, similarities in market characteristics also make it easier for Asian brands to adapt their products to Indonesian consumers. Brands from this region tend to be more aggressive in conducting market research and modifying products according to local needs, thus able to move quickly in following lifestyle trend changes.

This shift in tastes ultimately drives retailers to adjust their business strategies, including through diversification of brand portfolios that are more relevant to market needs.