Indonesians, especially the younger generation, are becoming very fond of sweet pastries like donuts. To benefit from this shift towards more leisure and going out with friends, local and foreign companies are rushing to grab their share of the new “café culture” in the country’s large young population.
Donuts and coffee entrepreneurship
The company J.CO‘s was founded in Jakarta in 2005 by the Indonesian entrepreneur Johnny Andrean. Initially named after him, the company’s opening created a massive enthusiasm from Indonesians who queued all day long to get their donuts.
J.CO’s success is largely due to its pioneering offer of the classic American snack through a localized approach to the Indonesian market. The Indonesian donuts franchise takes advantages of the changing habits of the young Indonesian population and their taste for sweet and fried food.
Thanks to its knowledge of the local market, people and culture and having the proper connections, J.CO has been able to successfully compete against large international brands, such as Krispy Kreme and Dunkin Donuts. They now provide sweet pastries, coffee and frozen yogurt to young customers who come to hang out together in J.CO restaurants.
Changing consumption habits in Indonesia
Economic development foments the rise of a large middle class in Indonesia. With a very young population, estimated to be 60% under thirty years old that is to say about 150 million young Indonesians, it is currently a great time to invest in the country and benefit from new trends in the changing Indonesian population.
With a rising income and more eagerness to spend time out with friends, the emerging “café culture” is one manifestation of the new lifestyle and habits of consumption of the Indonesian youth, and the broader ASEAN region.
Likewise, these emerging habits already spur the development of food franchises, retail outlets or modern entertainment venues, especially for companies that can localize globally successful businesses in their approach of the Indonesian market.
CNN video from February 2016