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Localized: Why some Indonesian F&B brands stick to a city
Business owners believe a local name can increase their sustainability, but an expert says it is a time- and capital-consuming way of building a brand.
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Bakpia Kukus Tugu Jogja (Agrinesia Raya/-)
I
ndonesian manufacturers differ widely in how they deal with local heritage in marketing their products. Some stick with Indonesian wording for their brands, even for international offerings, as in instant noodles Indomie and herbal syrup Tolak Angin.
Others opt for words that sound more familiar to a global audience and that may help them expand overseas. Eiger outdoor equipment, Terry Palmer towels and Silver Queen chocolate bars are examples of this category.
Yet others prefer to use names that connect their products to a certain city or region of Indonesia, and none do that more than PT Agrinesia Raya, producer of food brands Lapis Bogor Sangkuriang, Bolu Susu Lembang, Bakpia Kukus Tugu Jogja and Bolu Malang Singosari.
The founder of the company is convinced that this strategy increases the sustainability of the business in each of the cities its brands are associated with.
However, a brand expert counters that it could be a needlessly laborious effort to create new brands as the company expands its business scope.
Established by a husband-and-wife couple in 2011, Agrinesia has grown from a home industry into a prominent business. It built its first factory in Sentul, West Java, five years after the inception and now has four factories, 47 outlets and more than 300 resellers in seven cities.
All of its products are marketed as oleh-oleh, or gifts Indonesians bring back with them when they return from a vacation or business trip.
