Creating Blue Ocean in Indonesia's Decorative Paint Industry: A Strategic Analysis of PT Avia Avian Tbk

Abstract

The Indonesian decorative paint industry has grown rapidly due to urbanization and infrastructure development, yet faces intense competition among global and local players, price pressures, and rising sustainability demands. PT Avia Avian Tbk (Avian Brands), the market leader with ~24% market share, has maintained its position through superior distribution, vertical integration, and innovation. This qualitative single-case study uses secondary data (financial reports 2025–2026, sustainability reports, industry publications) to analyze Avian's environment, competitive position, and Blue Ocean strategy. Findings show a strong internal position (IFE 3.24) with key strengths: 129 own distribution centers, >60,000 retail outlets, 66.67% internal raw materials, 40 Green Label products, 83% water-based portfolio, healthy financials (current ratio 5.15x), and PROPER Hijau 2022–2025. External opportunities (EFE 2.94) include market growth (CAGR 9.8%) and rising green demand; threats include import dependency (30–40% specialty chemicals) and price competition. The proposed Blue Ocean strategy based on ERRC and Six Paths, eliminates technical jargon, reduces import reliance, raises sustainability and customer education, and creates a digital ecosystem (AR + Disney) and a design partnership platform. The new strategy canvas shows a significant value leap with the tagline: "Visualize Imagination, Realize Design Solutions in an Instant.".