Welcoming Starbucks’s New Store in Sukabumi and Tasikmalaya

From having a good cup of coffee to starting a day until meeting your business partner, Starbucks accompanies us in our daily activities. Since Starbucks began the store in 2002, there have been 490 stores operating across Indonesia. Nowadays, they seem to have started to look at new cities to open the stores. “Starbucks is proud to open our new stores in Sukabumi and Tasikmalaya, our firsts in those cities,” said Anthony McEvoy, CEO of PT. Sari Coffee Indonesia (Starbucks Indonesia). These two cities are located quite far from Jabodetabek and the metropolitan area, also known as Tier-2 cities.

Starbucks Sukabumi and Tasikmalaya are located 114 km and 260 from DKI Jakarta. Why do we need to be concerned about those cities? According to Alpha JWC Venture & Kearny 2021, Tier-2 and Tier-3 cities to become more critical and grow their share of the national GDP by 3-5 percent ($46 billion to $77 billion) by 2030. Also, when it comes to digital adoption, 72% of 21 million new digital users are growing in the non-metropolitan area (E-conomy SEA, 2021). Tasikmalaya and Sukabumi are categorized as Rising Urbanites, the cities with a growing number of middle-class consumers. Having tier-2 and tier-3 in your business expansion plan could be the new potential market for the next 3-5 years.

As the competition reaches its peak, you may find Jabodetabek and other big cities becoming the red ocean. On the other hand, you may doubt the potential cities beyond metropolitan. There are 76 cities categorized into the Rising Urbanites based on Alpha JWC & Kearny. Choosing which of the top 3 cities fits your target market could be challenging without reliable data and the correct measurement.

The next question is how you embodied your business parameter to find the location for the new store in the cities beyond the metropolitan area? Let’s discuss!