JAKARTA, INDONESIA ? A makeover for local 7-Eleven stores from corner stores into trendy hangouts has enabled the company to carve a niche in the competitive Indonesian market, the Financial Times reports.
The stores? tables are packed at night with young locals, who gab over the pulsing beat of techno music, drinking imported beer and texting with the help of a Wi-Fi network. All of this is even more surprising, noting the city has the world?s largest Muslim population.
7-Eleven?s Indonesia stores sell alcohol and hot meals that include rice and chicken. Add in free Internet and sidewalk seating, and the draw is significant for the young crowd.
?It?s the new Indonesian lifestyle of 24-hour convenience, fast food, Twitter and Facebook. The growing middle class is demanding such services,? said Henri Honoris, president director of PT Modern Putra Indonesia, 7-Eleven?s Indonesian franchisee.
?Rather than go to the street vendors ? the warung ? or traditional markets, they are now getting used to the idea of these modern, convenience services,? Honoris said.
7-Eleven?s makeover began last year when several stores opened under a franchise deal with PT Modern Putra Indonesia, 7-Eleven?s first new markets in the country in 16 years.
At first, 20 stores began operating, selling Slurpees and Big Gulps, which led to sales of $15.6 million in the first half of this year, and which are expected to reach $37 million for the entire year.
As a result, the franchisee said it would open an additional 57 outlets this year, and 117 in 2012.
The majority of the area?s 7-Eleven clients are students and young professionals who are eager to try something new, Honoris said. The stores stock similar food items as in the company?s American stores, with Big Bite hot dogs and coffee, along with local specialties. And the success has caught the attention of 7-Eleven executives.
?Modern Putra?s first wave of openings has surpassed both ours and their expectations?, said Chris Tanco, vice-president for 7-Eleven Inc. They ?are very popular among the millennial crowd [16-35-year-olds], and they especially enjoy Slurpee drinks.?
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