Sunday, 23-08-26
O!Save Indonesia is a hard discount retail network from the Philippines that started operating in Indonesia in 2023. The company introduces a retail concept that focuses on operational efficiency, simple store formats, and affordable prices for everyday products.
The hard discount model focuses on reducing operational costs to offer lower prices to consumers. O!Save applies this approach through simple store designs, limited product selections, and efficient operations.
The company focuses on essential products, including staple foods, household needs, and personal care items. Products are selected based on daily consumer needs, with the company aiming to provide quality products at affordable prices.
The arrival of O!Save comes amid changing consumer spending behavior in Indonesia. NielsenIQ data cited in the article shows that 38% of consumers have moved to cheaper products, while 36% actively look for discounts to manage monthly expenses.
Although the Central Statistics Agency (BPS) recorded household consumption growth of 4.89% year-on-year in the first quarter of 2025, pressure on consumer purchasing power remains present.
O!Save’s Everyday Low Price Strategy
O!Save operates with the philosophy of “value over convenience.” The company prioritizes lower prices by removing elements that are considered unnecessary in traditional retail operations.
Its stores do not use expensive locations and avoid excessive store designs. Products are displayed directly using delivery boxes or wooden pallets instead of being arranged individually on shelves.
This operating model helps reduce costs that could increase selling prices. O!Save also does not rely on temporary promotional campaigns because the company applies an “Everyday Low Price” strategy by offering low prices every day.
Compared with conventional minimarkets, O!Save carries a more limited selection of products. Each store offers around 800–1,000 essential items, while conventional minimarkets can offer more than 2,000 products.
The company’s store format is also smaller, with store sizes ranging from around 100–150 square meters. O!Save focuses on providing essential goods rather than a wider variety of products and additional services.
O!Save Expands from Philippines to Indonesia
Before entering Indonesia, O!Save developed its business in the Philippines. The company was founded in 2021 as part of Robinsons Retail Holdings Inc. (RRHI), a retail company under JG Summit Holdings owned by the family of the late Philippine businessman John Gokongwei Jr.
Robinsons Retail Holdings has a portfolio covering various retail businesses, including supermarkets, department stores, drugstores, hardware stores, and minimarkets.
O!Save was developed as a hard discount retail format influenced by European retailers such as Aldi and Lidl. The model uses operational efficiency by selling products directly from boxes or pallets to reduce costs.
By the end of 2025, O!Save had expanded to around 750 stores across the Philippines. According to Robinsons Retail Holdings, O!Save represents the company’s participation in value-oriented retail through food and essential product businesses.
In Indonesia, O!Save operates through PT O!Save Indonesia. The company began expanding its stores in Jabodetabek and surrounding areas, including DKI Jakarta, northern Banten, and northern West Java.
O!Save Partners with Pos Properti Indonesia
O!Save’s expansion in Indonesia is supported through a strategic partnership with PT Pos Properti Indonesia, a subsidiary of PT Pos Indonesia (Persero).
Through this partnership, O!Save uses strategic commercial locations managed by Pos Properti. The collaboration started as part of an effort to transform company assets into productive spaces for business activities.
PT Pos Properti Indonesia manages more than 2,900 assets across Indonesia, including office buildings, commercial land, and historical properties.
Aldhita Prayudhiputra, Chief Commercial Officer of PT Pos Properti Indonesia, said the transformation of assets is not only about economic value but also about creating spaces that are relevant and beneficial for urban communities.
“With strategically located and accessible assets, Pos Properti transforms into an enabler for business partners that bring innovation and added value directly to society,” Aldhita said.
The first O!Save store in Indonesia is located on Jl. Teratai Putih, Duren Sawit, East Jakarta. The location is described as a commercial space designed to adapt to changing urban lifestyles.
O!Save Targets Indonesia’s Price-Conscious Consumers
O!Save targets consumers who are sensitive to prices, including workers and young families in urban areas. The company’s strategy focuses on providing affordable daily necessities through efficient operations.
The company uses direct sourcing from producers and purchases products in large quantities to maintain lower prices. O!Save products are claimed to be around 20–30% cheaper on average compared with many competitors.
O!Save’s expansion strategy avoids premium locations and direct competition with established retail players. Instead, the company focuses on locations that support operational efficiency.
The company targets opening 200 stores by 2026, with a focus on West Java.
Retail observer Yuswohady described O!Save as a “smart disruptor” that has the potential to introduce a new retail model in Indonesia if it can build customer loyalty over the long term.
However, O!Save faces challenges in building brand awareness among consumers who are already familiar with existing minimarket brands. The company also faces challenges related to logistics, cold storage for fresh products, and retail regulations.
This article is a summary of several original articles. The full versions can be read at the following links:
https://olenka.id/perjalanan-bisnis-osave-dari-startup-filipina-ke-pesaing-baru-ritel-indonesia/amp
PHOTO: ROBINSONS RETAIL HOLDINGS,INC
This article was created with AI assistance.
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