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Jakarta Post

Brands take big bite from pop culture cred

Cruising along Jl

Primo Rizky & Daniel Surya (The Jakarta Post)
Sat, February 11, 2012

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Brands take big bite from pop culture cred

C

ruising along Jl. Bulungan to Jl. Mahakam on a Friday night led to a face-to-face encounter with one of the city’s typical post-rain traffic jams. However, the gridlock actually proved good for observing the neighborhood.

The medium-sized store near the corner of Jl. Mahakam was an attention getter, with its lively scene of teenagers hanging out and enjoying snacks at the establishment’s outdoor area. Another group was busy inside the store mixing drinks from the beverage machine. Even from the distance, the sounds of people chattering and laughing could be heard.

It’s a 7-Eleven, one of the more than 39,000 convenience stores the international chain maintains worldwide. It’s a recent addition to the Indonesian market, opening its first store here in 2009.

But looking at the crowd that night at its Mahakam location, it was clear how it has successful gained a successful public profile. Every day and night, youngsters flock to the stores.

It is the same scene everywhere: groups of teenagers hanging out with their friends, enjoying the foods and drinks in the store’s dining area until the late hours of the night.

These young people, mostly school and university students from middle-class families, form a part of Jakarta’s society we call “The 7-Eleven Generation”.

Before 7-Eleven’s arrival in Indonesia, this kind of lifestyle — hanging out with friends in convenience stores until late at night — was nowhere to be found. Now that this lifestyle has become more common, the 7-Eleven Generation has become an icon of Indonesia’s pop culture.

They are a new breed, a modern adoption of a local cultural society. Actually, hanging out and spending free time with friends is part of a culture that has been celebrated by Indonesians for a long time. It is quite similar with the siesta culture of Spain and Latin America, where the people appreciate a more relaxed lifestyle.

Previously, there was not space to accommodate their needs, or a place to call their own. They hung out at places such as housing complexes, youth parks, hawker food stalls or even at neighborhood security posts.

Now this generation has finally found a “platform” that can cater and accommodate their lifestyle with a more modern and international approach. This was the starting point of the 7-Eleven Generation as the latest movement in Indonesia’s pop culture.

Seventh heaven

Wondering who is responsible for this culture? Probably the answer is none other than the brand itself.

Historically, the store has its origins in 1927 in Dallas, Texas. It is the world’s largest operator, franchiser and licenser of convenience stores with more than 39,000 outlets in 16 countries. As a convenience store, 7-Eleven sells daily products including several private label products, such as Slurpee (a signature frozen soft drink), Big Gulp and Big Bites (hot food products).

In fact, the convenience store market in Indonesia is quite large. However, with many players already active in the market, competition among convenience stores is stiff.

It was brave enough to dive into the market. In its third year, youngsters are still coming to the stores and have created a culture of hanging out in convenience stores.

By dipping into the retail industry in Indonesia, 7-Eleven departed from its typical approach to the international market. In Indonesia it is more like a mini restaurant rather than convenience store. The
franchise has also increased the size of each store to provide consumers with in-store seating and dining areas to enjoy the products they have purchased.

In our opinion, the brand understood their market and created a paradigm shift in the convenience store industry. This is the
secret behind the creation of the 7-Eleven Generation. They specifically targeted young people as their main market, and through deep research they captured Indonesian youths’ true culture and lifestyle — hanging out.

The brand has moved beyond the functionality of a regular convenience store by providing consumers with what they need emotionally in terms of their lifestyle.

When a brand operates on a cultural level like this, it can become an icon. While it may not have reached the status of an iconic brand yet, it is paying close attention to important aspects of Indonesian culture. We will have to wait and see whether 7-Eleven and the 7-Eleven Generation is only a passing trend or a true icon of a new generation.

Primo Rizky is consultant at DM IDHOLLAND and Daniel Surya is chairman South East Asia.

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