Watson Indonesia launches expansion plan
In this article (5)
Watson Indonesia plans to open up to 20 new stores this year.
Duta Intidaya, the local Watson’s rights-holder since 2006, will use about 65 per cent of the US$6.49 million raised in its recent IPO to fund the new stores, with the balance of the cash going to repay bank debt.
While there are more than 100 Watson stores in Singapore and more than 400 in the Philippines, the brand is under-represented in Indonesia, where to date just 47 have opened.
Duta Intidaya says the new stores will open predominantly in shopping malls, with one high street store planned for tourist resort Bali. Three new stores have already started trading in Jakarta this year.
Hong Kong-based AS Watson is keen to see the brand catch up its rivals by store network numbers: Century has more than 200 stores and rival Hong Kong chain Guardian has more than 100.
“We are still small, so we need more funds to expand and the IPO is the most proper decision at this time. We want to build a stronger brand,” Duta Intidaya director Sukarnen Suwanto told a press conference.
Duta Intidaya plans to continue growing at a rate of 15 to 20 stores annually, and will launch online in 2017.
Questions & Answers
Q.What is the primary objective of Watson Indonesia's expansion this year?
What is the primary objective of Watson Indonesia's expansion this year?
The main goal is to significantly increase the number of stores, aiming to open up to 20 new locations. This is to help the brand catch up with rivals in Indonesia, where it is currently under-represented.
Q.How will Duta Intidaya fund the new store openings?
How will Duta Intidaya fund the new store openings?
Duta Intidaya will use approximately 65 per cent of the US$6.49 million raised in its recent IPO to fund the new stores. The remaining cash from the IPO will be used to repay existing bank debt.
Q.Where will the new Watson stores primarily be located?
Where will the new Watson stores primarily be located?
The new stores are predominantly planned for shopping malls across Indonesia. Also, one high street store is specifically intended for the tourist resort of Bali, broadening the brand's presence.
Q.When does Duta Intidaya plan to launch an online presence for Watson Indonesia?
When does Duta Intidaya plan to launch an online presence for Watson Indonesia?
Duta Intidaya has plans to launch an online platform for Watson in Indonesia during 2017. This will complement their physical store expansion and contribute to their overall growth strategy.