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Circle K has already moved into number
three position in this booming market and
has its sights on moving up this list. “The
challenge is how to expand your company in
a sustainable way,” Cahyadi says. “Doing
business in Asia has become more and more
expensive. In retail, we have median company
costs, rent, employment and utility costs,
which are increasing all the time. That is the
basic challenge for retail.
“Because of these increasing costs, it is
very important we have a cost leadership
mentality in the company. We need to always
review how to improve and how to add to
our efficiency, now and in the future. There
is always a sharp focus on the consumer.”
Cahyadi explains that Circle K “is
basically the convenience store for on-the-
go shoppers. That focus makes us very
different to our competitors. Our sales
proposition is how we offer value to
demographics like tourists, travellers –
those kinds of consumers.”
In Indonesia, many young people
congregate at convenience stores, using the
venues as meeting points in the same way
that people may gather at cafés or bars in
other countries. “The stores are a very big
deal for teenagers,” Cahyadi confirms. Part
of Circle K’s success has been embracing
this use of the store, instead of solely focusing
on transient consumers.
This appeal to the youth market has
included an embrace of social media
platforms like Facebook and Instagram,
Cahyadi says. “We also offer products aimed
at youngsters like a frozen drink that we call
the Froster. That’s our signature product. Then
we have cappuccinos, which are 40 per cent
cheaper than Starbucks. People can sit with
their friends, hang around, have a drink.”
Such nuances of the convenience store
scene may have been new to Cahyadi when
he switched to Circle K, but he has been a
hands-on manager, explaining he spends only
half of his time in the office, with 40 per
cent spent in the market and the remainder
used to meet with industry colleagues.
One thing Cahyadi has always been
comfortable with is finding his way around
a balance sheet. He has worked across
accounting, finance and commercial
operations before progressing into an
executive management position at dairy
food company Frisian Flag.
His diverse experiences have also instilled
in him the importance of getting recruitment
and retention right. “That is always one of
the primary challenges, and our philosophy
is to grow internally. We have a talent pool
that is always preparing for the next phase.
We invest a lot in staff development, in
passing on knowledge, and giving them
enrichment and enhancements that will
add to their experience.”
Convenience stores may be synonymous
with fast food and quick service, but when
he is asked what advice he would offer other
leaders, Cahyadi says patience is a virtue in
this business. “That is the most important
thing. And you also need to have a lot of
discipline. You must be consistent in your
thought process and also very focused.
“Retail for us is an extremely dynamic
market. To succeed in retail, you need to have
a lot of patience and get your people to buy
into the same vision and mission. This is very
challenging. We need to offer excellent
execution of what we are doing with our
stores. This is what we need to have
sustainable growth.”“ You need to have a lot of
patience and get your people
to buy into the same vision
and mission.”
INVEST | Interview