“ The government must also attract a greater number of small-hold coffee farmers by providing attractive incentives as well as providing the necessary tools and knowledge. ”
We were established in 1991 with the aim to find a solution that can bind coffee products with lifestyle trends together. As such, we created a café concept in order for customers to enjoy their time while also indulging in our coffee. Our main target market is the middle-class segment, however, we are looking to expand our market reach even further. In order to do so, we are gradually changing the concept of our cafés to meeting point venues. Furthermore, maintaining our quality control standards is an important aspect of our company and thus the Kapal Api Group heads Excelso’s quality control measures. Our Excelso cafés are also mandated to stringent hygiene standards, food freshness, and quality regulations.
Our company’s main strategy is to continue focusing on our customers through quality services and products. As part of the Kapal Api Group, Excelso’s coffee is our main product which comes from our own plantations in Kalosi and Toraja. We have not exported Excelso brand coffees although coffee products under the Kapal Api Group have reached export markets such as the Myanmar, Malaysia, China, and the Philippines. We are interested in tapping into the Chinese market to sell our Excelso products which we are still gathering further information on. We currently have 129 Excelso café locations in Indonesia with plans to add an additional 14 locations in 2017.
Innovation will continue to help differentiate Excelso from other coffee shops which are especially important during a time when we are adapting to consumer trends and preferences. Our company is constantly catering to any changes that impact our business such as the actions we took when the government forbade smoking at indoor venues. This trend motivated us to create an alternative solution that will still allow smoking at our cafés without violating any government laws. We have also changed the design of our cafés which we continue to carry out today. Moving forward, we are looking to cater to the middle to low market segment by offering high-quality, competitively-priced products.
I remain optimistic about the future growth of my industry, but nonetheless, we have felt an impact from the economic slowdown. Given this current condition, we have implemented numerous internal changes so as to reduce costs and improve efficiency. Our focus on fixing our internal system serves as a means to better prepare the company for the next five years. I am confident that the economy will begin to pick up in 2017.
We believe that the government should work towards reducing the number of policies that are deemed unnecessary such as the non-smoking policy at indoor venues because this has a significant impact on F&B industry players such as Excelso. We have also seen the tax amnesty programme create changes in spending habits for consumers in secondary cities such as Banjarmasin and Balikpapan.
The government must also attract a greater number of small-hold coffee farmers by providing attractive incentives as well as providing the necessary tools and knowledge. We have carried out this strategy which for us, the aim is to work together to achieve one goal which is to generate good quality coffee that is made available to the market.
We are utilising the AEC as a platform to promote Indonesian coffee to the international community given the limited number of coffee types that are recognised on a worldwide scale. There need to be better measures to educate in addition to promote to consumers about Indonesian coffee in order for locally-sourced coffee to earn the same level of market awareness as Brazilian as well as Vietnamese coffee. Our tagline is “the finest Indonesian coffee” which inexplicitly enables us to promote Indonesian coffee products to the market.
We are conducting a trial phase for product exports in which we recently opened an Excelso café in Shenzhen, China. We believe that this is a necessary measure if we are to operate a successful coffee shop and exporting business in the coming years. In the next two to three years, we are hoping to be able to catch up with other international coffee brands.
For Excelso, a company’s background is an important factor that we take into consideration before initiating any form of cooperation. We have been approached for joint venture opportunities however we are reluctant because we are not prepared in terms of the legal aspects and cultural knowledge of another country. We do realise the importance to be able to adapt to the needs of foreign investors within the next five years given the large volume of partnership requests that we receive particularly those from Saudi Arabia and Slovakia.
Excelso is highly-interested in technological advancements particularly regarding coffee machines because overseas companies tend to have better access to these more advanced forms of machinery. A mission that Excelso has is to have the capacity to manufacture coffee machines that can cater to the budget-conscious Indonesian consumer. In terms of export, we will utilise Kapal Api Group’s distribution channels in Myanmar, Malaysia, China, and the Philippines to support the growth of this business operations.
Excelso is a customer-oriented company that is committed to serving the utmost quality products and services to our customers at all our outlets. We believe that consistency in product quality and service standards will motivate consumers to return to our cafés.