7-Eleven Goes Native in Indonesia

The convenience store chain has found a loyal clientele by embracing the Indonesian culture.

May 30, 2012

JAKARTA, Indonesia - Blend small grocery store fare with cheap ready-to-eat food and add a dash of seating. Mix with a little Wi-Fi and you have the makings of a popular night spot in Indonesia, 7-Eleven-style, The New York Times reports.

Move over warung, street food stalls that used to attract the younger crowd for a good gossip. Now, 7-Eleven has become a hotspot for hanging out with friends. "People still like to talk about their lives, they like to gossip," said Henri Honoris, president director of Modern Putra, the chain??s Indonesian franchisee. "Now we give them an alternative. It??s a warung with better quality."

Sixty-five percent of 7-Eleven customers are under 30. The franchise reaches its young demographic via Twitter and Facebook. Many of those customers spend hours online at 7-Eleven, which is open 24/7. The store also hosts live musical groups.

Honoris sees great potential for the growth of these 7-Eleven stores. "Before you had a dirty, sweaty little street shop [warungs], and that??s all there was," said Debnath Guharoy, Asia director for Roy Morgan Research. "Now you can go to a clean, air-conditioned shop and it??s a better experience."

7-Eleven revamped its strategy in order to appeal to Indonesians. Ready-made fried rice is sold alongside donuts and Slurpees. Meals are priced below McDonald??s. Best-sellers include Big Bite hot dogs, cappuccino and coffee.

Currently, 7-Eleven has 69 outlets in the country, with plans to expand quickly. Last year alone, the franchise opened 36 locations.

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