Launching iPhone 5 at 7 Eleven might not be such a bad idea after all

Indonesia’s third iPhone carrier plans to launch iPhone 5 at two 7 Eleven outlets in Jakarta. The absurdity of the idea probably hides the genius behind this launch strategy by Indosat. Unlike in many other countries, Indonesia’s 7 Eleven outlets are set up as more than just a mini mart. They are actually quite large, about the size of regular Apple Stores (seriously, no kidding), they have seating areas, many have a second floor dining area and a balcony, free wireless Internet, and highly popular among teens, youngsters, the middle class.

Hamid Muhamad argues that Indosat’s unorthodox strategy is quite brilliant. People can buy drinks, food, and smoke, at 7 Eleven while they wait in line, but the primary reason he says, 7 Eleven provides Indosat with a completely different market segment from what malls offer and by targeting that specific segment, Indosat does not have to compete directly with the other carriers for customers. As he says, teens who frequent 7 Eleven are the kind who can not only afford DSLR cameras but use them casually on a daily basis. These kids have (their parents’) money to burn and they want the latest and coolest gadgets.

All the carriers are aiming for the middle class but by virtue of their corporate image, their voice and data plans, their choices of launch venues, they are already aiming at different markets within the middle class segment and by steering clear of the malls, Indosat may be on its way to carve its own iPhone market.

Telkomsel may grab the parents, business executives, corporate types, the loyal, long term Telkomsel customers, XL Axiata appeals to the young upstarts, the hip, the digitally aware and the value seekers, while Indosat is aiming at the teens and young adults with money to burn.

On top of that, launching at 7 Eleven got people talking about it on Twitter. It even got me writing about it. It’s genius.

*note: Indosat picked two 7 Elevens to launch iPhone 5, one is at Teluk Betung and another at Bintaro. The 7 Eleven at Teluk Betung is located directly at the entrance to Grand Indonesia, one of the most prestigious malls in Jakarta right in the middle of the city with high foot and car traffic and it’s within walking distance from a bus stop. I’m not familiar with the one at Bintaro unfortunately.

Launching iPhone 5 at 7 Eleven might not be such a bad idea after all