Paris Baguette to Enter Indonesia by Establishing a Joint Venture with Local Partner
– 7th overseas destination for Paris Baguette to serve as a foothold for Southeast Asian market expansion and Middle East market entry
– Erajaya, the local partner, is a leading Indonesian company specializing in mobile device retail and food & beverage franchise business
– To open first store in Jakarta in November while accelerating forays into other Southeast Asian markets and planning for construction of the Malaysian plant
SPC Group said on October 18 that it would establish a joint venture with the Indonesian partner Erajaya Group and enter the Indonesian market in earnest.
Indonesia, the seventh overseas destination of Paris Baguette, is a country with the largest land area and population in Southeast Asia. The country will serve as a foothold for the Southeast Asian market expansion as well as the Middle East market entry.
Paris Baguette Singapore Ltd., which oversees Paris Baguette’s Southeast Asian business, created PT Era Boga Patiserindo jointly with Erajaya Group’s affiliate Erajaya Food & Nourishment (EFN).
Erajaya Group, well known locally for reliability and influence, is a business group that engages in retail businesses such as markets, restaurants, and cosmetics stores with a focus on the import of mobile devices such as Apple and Samsung smartphones. It is also running the Korean cosmetic brand ‘The Face Shop’ in the country.
SPC Group and Erajaya Group will open their first store in the capital city of Jakarta in November this year through the joint venture, followed by locations in major cities such as Bali, Surabaya, and Medan.
EFN’s CEO Gabrielle Halim said, “We are delighted to introduce Paris Baguette, a world-class bakery brand, to Indonesia. By combining Paris Baguette’s quality and brand recognition with Erajaya Group’s infrastructure and operational know-how, we will grow into Indonesia’s best bakery brand.”
SPC Group’s head of Global BU Hur Jin-soo said, “Indonesia is the largest market in Southeast Asia, and its restaurant and bakery markets are growing rapidly with consumers’ rising income. The country’s growth potential is very high. We will accelerate our move into the Southeast Asian market including ones we have already entered such as Singapore, Vietnam, and Cambodia while stepping up the construction of a local plant in Malaysia.”
Meanwhile, SPC Group is actively expanding its business in Southeast Asia by establishing a joint venture with a Cambodian company HSC Group in September last year and opening the first Paris Baguette Cambodia store in Phnom Penh in the first half of this year. In total, it operates 430 overseas stores across the United States, France, China, Singapore, and Vietnam.
