Did you know that Indonesia has the most expensive coffee in the world? Priced at $600 per pound (0.4 kg), this is equivalent to 9,832,800 Rupiah. When you talk about coffee, you cannot separate Indonesia from the conversation. Indonesia plays a significant role in the global coffee economy. Besides having the most expensive type of coffee, Luwak coffee, Indonesia was also the third-largest coffee exporter in 2023. Additionally, Indonesia is among the countries with high coffee consumption.
According to the data we obtained, nearly 80% of Indonesians are coffee consumers. This means that approximately 223 million people from Indonesia’s coffee market population. As a result, many investors are willing to invest their money to profit from the coffee consumers in Indonesia.
One such investor is Tomoro Coffee. Tomoro Coffee, a Chinese coffee company established in 2022, already has more than 200 outlets across Indonesia as of early 2024. In this article, Youthlab will thoroughly discuss how Tomoro Coffee strategizes its business with Indonesian youth. Does it align with our research on Indonesian youth, or does it miss the mark entirely?
The Journey of Coffee as a Popular Trend on the Youth
Before Tomoro Coffee in Indonesia, the coffee trend had been growing since 2008, experiencing several waves of changes related to youth trends.
The First Wave of Coffee Culture Among Youth
The first wave of coffee culture among the youth began around 2008-2009. During this time, hanging out at malls was becoming mainstream. This trend is supported by the findings of Anshori’s 2009 journal, “Consumerism and the Emergence of a New Middle Class in Globalizing Indonesia,” which states that there was an increase in the middle class of young Indonesians, many of whom spent their money hanging out in malls.
Young people felt cooler and trendier if they spent time at places to eat and drink in malls, including Starbucks. Starbucks managed to create a luxurious atmosphere in each of its outlets, making young people proud to hang out and happy to spend hours there. This era had not yet embraced the barista culture, as instant coffee was still predominant.
During this period, Facebook made its debut in Indonesia, influencing the social habits of young Indonesians. They became fond of documenting their social activities, including their visits to Starbucks, on Facebook. Young people were willing to go to Starbucks to update their Facebook profiles, showcasing their presence at this trendy location.
Because there was little understanding or concern for the taste and characteristics of different coffee beans, young people did not place much importance on the taste of coffee. Ultimately, a comfortable and elegant place to hang out was enough for them.
Artisan Coffee: The Trend Among Youth Culture
The second wave of coffee culture in Indonesia began in 2013. Young people started to develop an interest in becoming baristas and learning more about coffee, from the characteristics of the coffee beans to the methods of preparation. A significant milestone in this movement was Indonesia’s successful participation in the World Barista Championship for the first time. This event, which began in 2000, saw Indonesian representatives compete after 13 years of anticipation.
During this period, the concept of being “cool” among young people evolved. It was no longer just about hanging out in fancy places or trendy places like Starbucks; true coolness was about understanding the coffee you drank. Each young person sought out their own unique coffee experience and favored specific coffee shops and brews.
This era was marked by the emergence of artisan coffee shops that began educating customers about the unique characteristics of different coffee beans through their knowledgeable baristas. Young coffee enthusiasts started to prefer unsweetened coffee, allowing them to fully appreciate the distinct flavors of each bean.
The second wave also saw a surge in young people aspiring to become baristas. Many students took up part-time jobs as baristas, further fueling the growth of this vibrant coffee culture.
Sweetened Coffee: Redefining the Coffee Experience
The third wave of coffee culture arrived in 2018, bringing significant changes in youth behavior and preferences. During this era, young people began to prefer hanging out at home, whether at a friend’s house or their own, thanks to the convenience of online motorcycle delivery services.
This period introduced the trend of sweetened coffee with various additions such as sugar, milk, boba, syrups, and more, resulting in an increasingly diverse menu. Coffee shops adapted to this shift by offering not only signature coffee drinks but also a variety of non-coffee beverages with unique menu variations.
The availability of delivery services allowed young people to enjoy their favorite drinks in the comfort of their homes. This convenience fostered a new coffee culture where socializing and relaxing no longer required a trip to a coffee shop. Instead, youth could indulge in high-quality, customized beverages while spending time with friends in a more personal and relaxed setting.
This shift in behavior highlighted the growing importance of convenience and personalization in the coffee industry, redefining the coffee experience for a new generation.
POST – PANDEMIC COVID COFFEE
Tomoro Coffee emerged after the COVID-19 pandemic, during a time when coffee sales became increasingly diverse and creative to attract young people. For example, youth who had become accustomed to staying home during the pandemic were now offered coffee delivered directly to their homes via mobile carts, as seen with brands like Jago and Sejuta Jiwa.
Additionally, coffee shops began offering music to entice young people to dance and enjoy themselves, as Bajawa Kopi did. Since the pandemic had confined young people to their homes, they longed for fun places to hang out.
During this increasingly strong and tight competition, Tomoro Coffee faces a significant challenge in capturing the hearts of the youth.
During this increasingly strong and tight competition, Tomoro Coffee will face a significant challenge in capturing the hearts of the youth. We see one of Tomoro Coffee’s creative marketing strategies aimed at young people is embracing ‘cuteness.’ Is this enough to attract young people? Let’s read our review.
Adopt cuteness as a strategy for Marketing
Tomoro incorporates the element of Youth Marketing, specifically Cuteness. This element, represented by the use of a cat in their logo, helps them appeal to and be accepted by young consumers in Indonesia. Although it does not have a direct correlation with coffee, the cat element in the logo is a positive attribute because it resonates well with the younger generation (Gen Z). We already write comprehensive special articles about cuteness here.
Even young people on social media have their own nicknames for cats based on their fur. For example, ‘Si Oyen’ is an orange cat, then ‘Si Uteh’ is a white cat.
Indonesian youth’s liking for cuteness has also been proven by the victory of Prabowo and Gibran in the 2024 presidential election, who campaigned using narratives and forms of cuteness in the voices of young people.
The cat logo of Tomoro also has an association with characters from Studio Ghibli films. The cat logo of Tomoro also bears a resemblance to a scene from My Neighbor Totoro, a popular and beloved character from Studio Ghibli films. The collective memory of anime lovers will have a strong association, even from the name Totoro to Tomoro. Although Totoro is a forest spirit, his character is inherently adorable.
This serves as an additional positive attribute because his character tends to be liked across generations. It will also be recognized by the anime lovers’ community.
According to research from Youthlab, from a survey we conducted, young people today really like everything that has an element of ‘Cuteness’ in the things they consume. This even triggers them to be impulsive about something they don’t need but because it’s ‘funny’ they are willing to buy. (Youthlab Whitepaper 3rd Edition, 2024).
But unfortunately just embracing cuteness is not enough. There are several other aspects that must be done to win the hearts of young Indonesians. Below we detail what Tomoro Coffee can improve
Tomoro should understand more in the culture of hanging out ‘Nongkrong’ at coffee shops
Hanging out (‘nongkrong’) is a cultural behavior for Indonesian youth. It represents an archetype of their behavior. However, if Tomoro adopts a ‘to go’ business model, prioritizing quick purchases where customers buy and then leave, Tomoro may lose out on a significant momentum from Indonesia’s youth culture that enjoys hanging out. In some of Tomoro’s kiosks, we feel there’s still room for improvement to provide facilities that make young people comfortable to linger and spend time with their friends.
An archetype is a concept that explains the collective subconscious drive within a particular generation, where one generation exhibits uniform behavior and thinking patterns due to sharing the same subconscious patterns or archetypes.
Our research in June 2024 revealed that young people frequent coffee shops not just for the coffee, but also to enjoy the ambiance and social experience associated with hanging out (‘nongkrong’).
In Dr. Muhammad Faisal’s book, ‘Generasi Kembali ke Akar’ it is explained in detail that hanging out (‘nongkrong’) serves to assert the youth’s self-existence, position, role, and identity within a community. The second function of hanging out is to discuss and review current issues surrounding the lives of young people.
Moreover, since the emergence of social media, especially Gen Z, likes to gather and create social media content together. And now we have entered the era of FOMO. If you see other people doing something interesting, for example hanging out at Tomoro Coffee, if Tomoro Coffee has facilitated this need to hang out well. So it can provoke a sense of FOMO in other people to end up hanging out there.
Using technology does not mean you can win the hearts of young people
While Tomoro Coffee’s investment in technology is commendable, it does not guarantee sustained success in capturing the Indonesian youth market in the long term. Many startups in Indonesia heavily rely on technological advancements to develop seamless applications, but they often struggle to maintain relevance and appeal among Indonesian youth. This raises critical questions about longevity and ongoing relevance.
Flash Coffee, a competitor in the coffee industry alongside Tomoro, is also encountering challenges, with Bisnis.com reporting potential closures of its outlets in Indonesia following similar actions in Singapore.
Returning to the concept of FOMO (Fear of Missing Out), Tomoro Coffee has observed that many young people have installed and actively use the Tomoro Coffee application, likely driven by FOMO due to frequent promotions offered through the app.
However, young Indonesians can easily uninstall the Tomoro application if they perceive it as no longer relevant. Obviously Tomoro Coffee doesn’t want that to happen. Therefore, apart from understanding the culture of hanging out with young people, Tomoro Coffee must also pay attention to other very important aspects of young people, namely ‘youth activity & community’.
Less barrier with youth activity & community
Tomoro should strive to get closer to specific youth communities and movements that are trending and align with their target audience. Youthlab’s research indicates that young people are more loyal to brands that closely engage with their communities.
Tomoro needs to strive to build closer connections with specific youth communities and movements, not just the trending ones, but also those that align with their target audience. Direct engagement with young people cannot be solely represented by icons like brand ambassadors, as these only serve as intermediaries. There must be genuine, unmediated interactions to make a real impact.
For example, Redbull’s involvement with sub-stream youth communities like breaking (formerly known as break dancing) has successfully established Redbull as a youth-centric brand. Tomoro Coffee could benefit from adopting a similar strategy to strengthen its connection with young people
This year 2024, for the first time, the international break dance competition ‘BC One’ is present in Indonesia and in collaboration with Red Bull. This is an effort to interact directly with young people without intermediaries which is very well done by Redbull.
Tomoro Coffee Must See Young Indonesians Beyond a Target Market
So, is Tomoro a youth coffee brand? Yes if they see young Indonesians people beyond a target market. In the method that we explained previously. Regarding understanding the culture of hanging out with young people, then if Tomoro coffee just relying on technology alone is not enough, and embracing youth activity & community
As an additional insight, Indonesian young people, Gen Z and Neo Alpha, did not experience the good times of drinking coffee in the second phase described above. Bringing this atmosphere could open up the opportunity to reopen the crowds of coffee shop hangouts. Because the coffee period in the second phase was quite successful in winning the hearts of young people, who at that time hung out almost all the time in coffee shops. So far there have been no new coffee shops emerging with this narrative.