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Why 7-Eleven Failed In Indonesia

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Indonesia's first 7-Eleven opened in 2009 and became a popular hangout spot for consumers. At their peak in the Southeast Asian country, they numbered 190 stores, offering free Wi-Fi and a seating area for guests while selling fresh local meals and traditional 7-Eleven snacks like the Slurpee. Despite the chain's popularity, the franchisee, PT Modern Internasional, shuttered all remaining 161 stores there in 2017. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #7Eleven 7-Eleven Was Popular In Indonesia — But That Didn't Save It From Total Failure
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Text Comments (5295)
Dots! (11 hours ago)
I mean I miss going there drinking a slurpie after school and I’m always there alone even the staff members knew me
diplomat mild (19 hours ago)
haha dgn kata lain cuma beli minuman segelas nongkrongnya 3 jam.
notjovito colin (21 hours ago)
Dats not how you pronounce Indomaret
Delbert Tube (1 day ago)
1:30 why is the guy giving u.s. dollars
Delbert Tube (1 day ago)
I live in indonesia and where ever there is indomaret,there will be alfamart near it
Sony XA1u (1 day ago)
YESSS I love indomart and Alfamart
TenArts (2 days ago)
the alfamart openings were kinda disappointing here in the Philippines, kinda hoped that Indomaret was the one setup their franchises here instead of alfamart.
Aziz Aza (5 days ago)
Klah sma Toko kelontong .tiap gang menjamurr....😁😁
Bayu Wirandana (5 days ago)
7 eleven: Kita ancurin tuh yg ada mart mart nye... Alfamart&indomart: sa ae lu kartu remi.
wenaldy (6 days ago)
Gw kangen sevel di cikini, samping hotel whiz. Soalnya gw dulu tiap minggu shuttle jkt-bdg dan kebetulan shuttlenya di samping sevel. Tiap nunggu jam keberangkatan gw pasti beli kopi dan makan RTE nya.
Cypir (6 days ago)
The 7-11 at my apartment complex closed down a bit before Idul Fitri and said that it was temporarily closed to celebrate Idul Fitri. It never opened again :'(
Dhonz Nine (8 days ago)
Welcome to Indonesia, where cheap and free things is always be our priority.
Lucky Heryanto (9 days ago)
I'm like to say sevel i very nice to watching big match of football
SUKA SUKA SAYA (10 days ago)
Hahaha..fuck off 7 eleven!
Aqulila DarkSoul (10 days ago)
Kadang malah mending beli di Mall Giant, Carrefour gitu kayaknya drpd di 7 Eleven, kadang jg dapet lebih murah dari Alfa+Indo.,.
Ryan Ellharen (10 days ago)
Hai I am from Indonesia, nice to meet you.
Zaid Donnes (11 days ago)
7 - eleven: I'm gonna control the world Indomart: hold up bro
Indirwan (11 days ago)
AlfaMart+IndoMart: "7-eleven omae mo shindeiru"
THE HAIR (12 days ago)
We have alfamart in philippines . But its rare .
Joanna (13 days ago)
That Indomaret pronounciation is 👍👍
Coach Gaida Physical Performance (14 days ago)
Becos you said indomereeeetttt its make my ears hurt
Black HeartTM (15 days ago)
Why 7-11 not failed in Thailand
hkcestudents (15 days ago)
Because this place is poor
J W (16 days ago)
Kan orang indonesia mencintai ploduk ploduk indonesia...
Muhammad Nizar Rafif (16 days ago)
Indonesia already has indomaret & alfamart :))) doesn't need 7/11
Link Wild (17 days ago)
Btw nearly 80 persent indonesian people attacking the comment
Link Wild (17 days ago)
Next:why Nintendo does not sell amiibo in indonesia
Link Wild (17 days ago)
I dont know because maybe there is the rival of 7-eleven like alfamart and indomart
Campur Sarung (19 days ago)
I live in indonesia
ana pudding32 (20 days ago)
unlike japan and korea, indonesian are not used to eat convenience store frozen foods. people doubt it a lot and not sure if the foods taste good. i tried some and it is actually not bad. they need to step up their frozen foods game if they want to survive and maybe bring the famous snacks from japan and korea that others don't sell.
JJ Ryan (21 days ago)
Got the story COMPLETELY wrong. Those two minimarkets were already VERY well established when 7-11 came along, but the former have no hot food or drinks and generally close at 10pm. 7-Eleven opened near schools and were busy because school kids had no hangout and are not allowed in shopping centers when in uniform. It was NEVER a university student drinking hangout (in the photo used no one is even drinking alcohol) but was open late and provided seats and wifi, which others never offered. The company strayed from the formula by borrowing money to expand in locations not near schools and debt burden overwhelmed it. Classic error of using debt to finance overexpansion.
mercy aditya (21 days ago)
Indomart has join the chat
mercy aditya (21 days ago)
Beli nya 10.000,nongkrong nya 3 jam. Dat indon ppl do in every place 👌
Muhammad Haekal Sutrisna (19 days ago)
mercy aditya thnk u
อี ห่า (21 days ago)
I love Indonesia
jjj kkk lll (21 days ago)
Because in this developing country, there's more place to hangout (plus has cheaper foods&drinks than 7eleven)
Chronic Famo (21 days ago)
I'm indonesian but I like 711 better than alfamart and indomaret
Erwin Agung Prasetyo (22 days ago)
Do you think Indonesia like alcohol? Wrong, Indonesia is like love buy micin / MSG every day 😂🤣😂
Aprylle Dee (22 days ago)
Hala! Indonesian pala yung alfamart?? Alfamart is now eating the Philippines. But 7/11 is still famous tho
SHINee Onew (22 days ago)
Now we have family mart too as rival
Awfighan (22 days ago)
Salah satu produk indonesia yang dicintai indomaret alfamart indomie.. udh wkwk...yg mau nambahin silakan 😂😂👇👇
a c o r n (22 days ago)
Syahri Ramdan (23 days ago)
Remember Kelp Shake in Spongebob? Well thats Indomaret and alfamart in Indonesia. Its very close to each other.
Rendi Kharis Nurdiansyah (23 days ago)
Masyarakat sudah terlalu akrab dengan Alfamart dan Indomaret, apalagi dengan inovasi alfamart sekarang, juga indomaret, indomaret plus dan pointnya. Dan Ini product lokal, jelas menjadi pilihan utama untuk jajan dan belanja bulanan.
Adit Saputra (23 days ago)
Warteg lebih gud 👍😅
kensync (23 days ago)
2009 is too late...i was born in 1983 and 711 has been in the philippines as far i can remember.
sulung darmawan (23 days ago)
Simple man, 7 eleven just on Jakarta ... Alfamart and Indomaret? arround this country
Andrew Farmkid (23 days ago)
fake news
Mister Febrian (24 days ago)
Krn dipersekusi ga boleh jual miras
komang eddy awan (24 days ago)
i dont know i have to proud or not to become an indonesian lol.
KHAIRI Dzaky (24 days ago)
There is no Indomaret nor Alfamart in Papua east of Indonesia
oxygala (24 days ago)
It failed in Turkey as well.
Hey hey (24 days ago)
How come 7 eleven's competitor is alfamart when 7elevens a convenient store while alfamart is a grocery store?????
binaraga binaraga (24 days ago)
What is 7eleven?..LOL,,
Daffa Saviero (24 days ago)
Im indonesian and i usally walk abt 0.7 km from school just to buy some slurpee and and a hot dog w so muchh chesseeee and since 7 eleven closed mai life is sad :'(
What The (25 days ago)
Poor people are so funny, living in 3rd world slums and they crush a tonne of alcohol worth a lot of money with a steam-roller to try and make a point. Then they look around and blame white people for their slums... Next week they're doing something else that's ridiculously stupid lol
Muhammad Haekal Sutrisna (19 days ago)
What The lol poor u friend
Fredy's Project (25 days ago)
Yg bikin bangkrut nya ga boleh jual minuman alkohol
Potoo (25 days ago)
yo, this is so true! there's like 2 indomaret and one alfamart in my area.
bonex234 (25 days ago)
tambah lagi saingan sama SRC retail
Eyang Subur (25 days ago)
i am the type of guy who buy 1 drink, and stay 6 hours with 10 friends of mine . it is what it is
Aiai Zahar (25 days ago)
price like**** .
Alex Deep (25 days ago)
The problem is 711 did not has research enough for indonesian habit! 1. We are a big population market with wide varian segmen. lowest- middle is the 1st rank. 2. If 711 target is low-middle segment, they only do spending what is cheapest not the reasonable one. 3. If 711 target is middle+ to up, 711 should just focus on the store ambience and filter the crowds, price is doesnt matter as long its reasonable. 4. In a fact 711 indonesia failed because they have proper store in strategic location with many fasillities but they took market target in low-middle.. its mean 711 produce high cost with low income.
us fa (25 days ago)
Indonesia keras lur, barangmu larang, tokomu bangkrut
Dark of the knight (25 days ago)
Lol 7eleven going to fail in Malaysia as well but not because of Malaysia rival. Is rival from japan, family mart although with higher price, family mart is killing literally every rival in Malaysia
David Ferlian L Tobing (25 days ago)
Alcohol, free Wi-Fi & min commercial
Nyukfa Ng (26 days ago)
It happened the one that already closed in my area was once had people sitting in and outside and talked loudly in foreign language maybe making people reluctant to shop
X Coupe (26 days ago)
Gimana gak gagal total?! Klo sy liat di.luar negeri ukuram toko 7elevem itu kecil - sedang . Sedangkan di Indo ukuran tokonya besar- besar. Pengeluaran lebih besar dibandingkan pemasukan
ami mardiani (26 days ago)
i want 7eleven back, i love a weird udon, katsu and nasi jago that they served. always buy it after leaving my work
ProMasonGuy Gaming (26 days ago)
0:00 ●━━━━━━─────── 4:47 ⇆ㅤㅤㅤㅤ◁ㅤㅤ❚❚ㅤㅤ▷ㅤㅤㅤㅤ↻
ProMasonGuy Gaming (26 days ago)
I don't see 7-Eleven in UK.
Person No. 17 (26 days ago)
Dat running over beverage bottles is savage
EconMan (27 days ago)
I miss Indonesia.... Lived there, speak the language, visit often, and I embrace the "beautiful chaos" that is life there. And I would pay $10 for one otak-otak right now. lol :)
Arksy (27 days ago)
idomaret and alfa mart have the same colours maybe thats why 7 eleven failed HHHHHHmmmmmmmmmmmmmmm (cuz 7 elev have green instead of blue)
GrandRiser (27 days ago)
7 eleven kemahalan buat org Indo. Buat anak senayan aja kemahalan. Makanya beli barang 1 biji 20k nongkrong 3 jam. Marketing strateginya kurang tepat. Indomaret jg dlu ikut. Akhirnya ga jadi bikin tempat nongkrong (Indomart point) krna rugi.
I STAN INFINITE (27 days ago)
Jadi, gue salah satu yg bikin sevel bangkrut di sini? 😂
Rizki Aprilia (27 days ago)
Ya beli lays, dikasih saos keju seabrek" + minta sendok tetep dikasih sih 🤣 ya gimana gak bangkrut. Pegawainya seharusnya dari luar negri juga aja biar lebih teges.
JNlynn Hu (27 days ago)
7/11 stuff just simply too expensive. How I define 7/11 is that same product other shop sell at $7, they sell at $11.
Zander Juga (27 days ago)
0:40 Alcohol is prohibited ini Indonesia, genius
the sun will rise (14 days ago)
You can still drink Alcohol in Indonesia and Turkey
Matos Alvarado (27 days ago)
Because we knew that slurpee is 70% ice 30% soda
Kriss (27 days ago)
Singapore 7 eleven sucks it use to have mash potato vending machine now they remove it
Parsiwi Paramaputri (27 days ago)
Hadeeehhh komen indo semua
AshleyAqilNation (27 days ago)
*why humanity failed*
Farouq Omaro (28 days ago)
So 7 Eleven stores depend om alcohol to survive. Darn, they should've just opened liquor stores.
Nicholas Tambunan (28 days ago)
His english is very bad. RRRRRR
EasyTechno (28 days ago)
pasti yg pada comment nya org indonesia wkwkwk
Coba 7/11 di indonesia dibikin kaya di jepang, korea , dan taiwan, disana makanannya enak enakkk
bila senja (28 days ago)
Zenon (29 days ago)
that's fine actually... Indonesians have patrionized their homegrown company.
el mariajin (30 days ago)
Mr Heru_san (1 month ago)
Lel... 7eleven sell overpriced snacks and get dusted off by indomaret/alfamart 🤣
Korup Terus (1 month ago)
Too many punk kids buy little and sitting for hours in the sitting area.
Valentina Heidy (1 month ago)
The way the narrator pronouns indomaret makes me cringe so hard
Ramzo Cendra (1 month ago)
No wonder i have never seen them anywhere now
NabzNub (1 month ago)
our country is low budget we nongkrong in 7eleven but didnt buy anything we just sat and sanskuy there
rayyan irfanshah (1 month ago)
this is because there was an achohol in the shop
poerba poerba (1 month ago)
Started when beer banned. Beer profit 50%
Ranga Rajan (1 month ago)
Everybody knows the answer. But nobody will tell
R Achmad (1 month ago)
The pronunciation of Indomaret killed me xD
jb hp (1 month ago)
CK coming soon
Al-zein Kusmantoro (1 month ago)
Luckily we don’t have those in New Zealand, we have something called 4 Square which is locally owned. And also we don’t have IKEA here either so our local equivalent is Briscoes.
में श्री विष्णुजी का भक्त हु (1 month ago)
Indonesia loves india India love more🙂🙏💕