Apple retailer iBox to focus on regional markets

iBox, one of Indonesia’s largest resellers of Apple products, plans to open six more retail stores by the end of 2015, mostly focusing on regional areas that are potential markets for Apple products.

Cities on the retailer’s sights include Yogyakarta, Balikpapan and Manado, showing its effort to try and capture markets outside of major cities, particularly in Java.

Herman Wong, director of iBox in Indonesia, elaborated that the retailer would increase the number of its nationwide retail stores to 48, from the current number of 42 to extend its reach within regional markets.

He described the relative market for Apple products in Indonesia as still very segmented within the upper middle- to high-income bracket demographic, adding that a lack of proper awareness on the usage and capabilities of Apple’s hardware and software is what kept the giant US brand from settling in that segment.

“For upper middle-income people in regional cities, their purchasing power would be slightly better than those of larger cities due to the lower costs of living and of goods in general,” he told on Tuesday.

Herman also said that because Apple’s principal products, such as the iPhone and the iPad, were majorly based on data and Internet usage, and with many parts of Indonesia lacking adequate data infrastructure, Apple’ s national penetration remained very minimal.

“Many Apple users in Indonesia are still concentrated within Java, particularly in major cities, where data infrastructure is more developed than in other areas. One way to expand awareness about Apple products is to also open training centers and provide training sessions on how to use the software and hardware,” he added.

iBox distributes up to 40 to 45 percent of all Apple products in Indonesia. PT Data Citra Mandiri, a subsidiary of publicly listed cellphone distributor PT Erajaya Swasembada, is responsible for operating and supplying iBox stores.

Regarding the availability of newer Apple products in Indonesia, Herman mentioned that the Apple Watch smartwatch, which was released in April, may be available in iBox stores by December. However, he could not confirm the release dates for the recently announced iPad Pro or iPhone 6S.

Erajaya Swasembada marketing and communications manager Djatmiko Wardoyo said the strong US dollar and weak domestic economic conditions had not significantly impacted sales owing to the fact that the market for Apple products remained segmented into the upper middle- to higher-income bracket buying for the “brand” value.