KCG eyes expansion beyond Java

The fashion retailer seeks to expand in Sumatra and Borneo.

Indonesian retailer PT Kurnia Ciptamoda Gemilang (KCG) plans to open as many as 20 branches this year, targeting key markets outside Java.

KCG, which sells luxury and fast-fashion brands such as Pedro, Pomelo, E47 Emporio Armani, Charles & Keith, and Armani Exchange, seeks to add 10 to 20 outlets to its more than 90 stores in 20 Indonesian cities, said Haryanto Pratantara, KCG director of business and operations.

“We aim to enter more major cities outside Java, given their significant market potential, by increasing our presence in Medan and Palembang and expanding to Lampung in Sumatra and Pontianak in Borneo,” he told Retail Asia.

The company is also adapting to changing retail consumer trends that demand convenience and speed. Aside from offering flexible return policies, including through a minimarket network, KCG is also preparing innovative payment solutions.

“With these solutions, customers won’t need to queue and pay at the cashier in some of our stores,” Haryanto said.

Beyond expansion, the company places workplace safety, quality management, and information security at the core of its operations to ensure its business remains sustainable, he said. “The implementation of an optimized integrated management system has been the key to the company’s success in navigating increasingly fierce competition.”

The Indonesian retailer passed international standards (ISO) on occupational health and safety last year. It has also passed similar standards on quality management and information security.

“These certifications are invaluable in helping us maintain consistent quality over the long term, ensuring that the same high standards are upheld,” Haryanto said.

“Processes refined through certification yield better outputs. Conversely, without improvements, the results will be suboptimal and require rework. Moreover, without proper documentation and standards, errors could recur when team members change,” he added.

He also said documentation ensures that standards are upheld regardless of which worker does the job.

By adhering to international standards, errors are minimized, resulting in faster processes. “Productivity has increased by 30% to 40% by eliminating inefficient processes,” said Awing Tjho, Strategic Support & Technology senior general manager at KCG.

He noted that compliance with these standards are subject to external audits, adding that  they are not a one-time achievement but must be renewed through recertification to ensure the company is aligned with the latest developments.

“This is a rare milestone, even for major retail companies,” Haryanto said. “Why is building a reputation in Asia important? Because we manage international brands, and principals trust us to market their products.”