From Ace to Azko: Firm bets big on its rebranding

Move is part of a wider trend in Indonesia, as more brands take the leap despite risks

- Arlina Arshad

JAKARTA - As the clock struck midnight on New Year's Eve, Jakarta was treated to more than just a countdown and a dazzling fireworks display. In a dramatic reveal, the skies above the capital's iconic Bundaran HI roundabout lit up with the bold announcement: "Ace has changed to Azko", marking the American retail giant's official rebranding.

Dressed in vibrant red Azko T-shirts, employees near the roundabout cheered. In the days that followed, more than 500 social media influencers posted news of the revamp, sparking a buzz online.

For 29 years, the US hardware chain had been a household name in Indonesia, with 246 stores and more than 14,000 employees across the South-east Asian country. But as the retail world rapidly evolved, its brand identity no longer reflected its current, more expansive product range, which included everything from bed linen and frying pans to bicycles and pet food.

The Indonesian retail conglomerate Kawan Lama Group - owned by tycoon Kuncoro Wibowo - decided to part ways with Ace Hardware when the second term of its 15-year licence agreement expired on Dec 31, 2024.

"If we were to renew the licence, it would be for another 15 years. Retail is a dynamic market, and looking at where we want to go, we needed a brand that could better represent us," Mr Gregory Sugyono Widjaja, managing director and chief financial officer of Aspirasi Hidup Indonesia, a subsidiary of Kawan Lama which manages Azko, said in an interview with The Straits Times on Feb 13.

By shedding the Ace identity, the company is no longer bound by non-compete clauses of its old licence agreement. Now, it can work with more brands and explore expansion in other countries. Azko, in short, means "A-Z product collections, comprehensive services and collaborative ideas", according to the company website.