Boots launches into new market, Indonesia

Date : 10 May 2021

Sabira Habib

Retail Analyst

Boots has opened its first three stores with PT Mitra Adiperkasa Tbk (MAP), a lifestyle retailer in Indonesia.

A quick store turnaround

Walgreens Boots Alliance (WBA) announced plans to expand into the Indonesian market in 2019, with Boots International signing an agreement to form a store development partnership with MAP.

The first set of store openings were expected to occur in the second half of 2020, but plans were delayed, with its first store opening on 21 April 2021 at Senayan City Mall, Indonesia. The store’s size is around 100 sq. m.

The second store, its flagship, launched on 28 April, located in Pondock Indah Mall, and is almost 250 sq. m, while the third store, which measures almost 100 sq. m, opened on 5 May in Kota Kasablanka.

Making healthy lifestyle more accessible for Indonesian consumers

The stores will focus on skincare, vitamins, health, and wellbeing and showcase Boots’s private label brands, including No7, Soap & Glory and Botanics. WBA said its research of the market showed ‘Indonesian consumers are committed to proactively creating a healthy lifestyle for themselves and their families’ even before the COVID-19 pandemic.

boots Indonesia in-store
Source: WBA and @boots_idn (Instagram)

Richard Thornhill, WBA’s head of retail partnership, commented on the collaboration with MAP that,

“MAP has a host of other well-known retail partners, such as Marks & Spencer and Starbucks, and how they deliver the brand in the market for the consumer really shows up well, with great brand execution. I believe that, together, we will deliver a great experience for the customer.”

Offering convenience

In Indonesia Boots is providing consumers with a more convenient way to shop by offering a Chat & Shop’ service. This allows customers to talk to a member of the Boots team on WhatsApp and order products for delivery, either on the same or next day. Alternatively, shoppers can buy online through MAP’s platform, MAPclub.com.

Implications

Expansion into new markets has been a key part of WBA’s strategy. It is aiming to unlock new opportunities to cater to more customers, offer a differentiated shopping experience and grow its presence globally.

It will, however, encounter strong competition from the region’s renowned health and beauty retailers, Watsons, and Guardian. Nonetheless, a franchise partnership with a well-established company will give Boots an advantage as it launches into a new market, with MAP helping to drive customer awareness.

In other news, WBA expanded its store network with 350 new stores in China under the Guo Da banner, continuing to hold its position as one of China’s leading pharmacy chains.

Check out our most recent reports:

  • Check out Walgreens Boots Alliance strategic outlook report here
  • Check out Walgreens Boots Alliance profile here

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