Malaysia Retailer|Vol 6|No 3|2018|Maxis

Vol 6 No 3 2018

A suite of digital solutions to help grow your retail business.

BUY

mPOS

eComme

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SALE W

WM RM9 / EM RM11

Cloud POS

NE PRODUCTS

eSMS

PROMO

Malaysia’s Look East 2.0 Policy MRCA Council Installation Night 2018

CONTENTS / VOL. 6 NO. 3

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Maxis Helps Retailers Embrace Digital Technology & e-Commerce

EVENT

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31 Spreading Hari Raya Cheer

Retail Industry Embraces Digital Transformation

DEPARTMENTS 32 MRCA President’s Selected Activities Monthly Meeting / Member Updates

37 Calendar

41 MRCA in the News

ON THE COVER

BUY

eCommerc e

SALE Cloud POS

Embrace Digital Technology & e-Commerce

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mPOS

COVER STORY

4 Maxis Helps Retailers

NEW PRODUCTS

eSMS

PROMO

Malaysia Retailer Vol 4 No 1

Maxis ONERetail is the exciting new suite of digital solutions from Maxis, designed to help retailers digitalise their business operations and start selling online.

FEATURES 7 Retail Industry Embraces Digital Transformation 10 MRCA Council Installation Night 2018 12 Malaysia’s Look East 2.0 Policy 14 Alibaba Group Opens Office in Malaysia 16 Reimagining the Digital Era 18 International Shopping Experience in Amazon Shopping App

19 Commerce.Asia Partners with

Thailand Technology Enablers to Boost Cross-border e-Commerce 20 Standing Tall in a Crowded Market 22 Making Price & Promotion Work Harder 23 Retail Day at Facebook Malaysia 24 Malaysia’s The Picha Project wins Global ‘Allianz Future Generations Award’ 25 Millennials’ Confidence in Business & Loyalty to Employers Take a Downturn 26 Bridging the Gen X and Gen Y Gap 28 Achieving Personal Excellence 30 AmInvestment Bank wins Project Finance House of the Year Award 38 Sephora Goes Small 39 Store on Wheels

Cover Story

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Maxis Helps Retailers Embrace Digital Technology & e-Commerce First telco in Malaysia to offer a complete suite of digital solutions for the retail industry.

Maxis ONERetail is the exciting new suite of digital solutions from Maxis, designed to help retailers digitalise their business operations and start selling online.

By Sharmila Valli Narayanan

n a survey 1 done in 2016, 91% of Malaysians have a smartphone, 7 million Malaysians shop online per month, 51% would like to purchase online from more retailers and a whopping 83% conduct online research before purchasing goods and services! Yes! Malaysians are into online shopping.

But are retailers, especially SMEs, ready to take that leap into e-Commerce?

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“Increasingly, technology is becoming the central enabler for any business.

But despite its widespread availability, 70% of retail businesses still don’t have an online presence.� ~ Shanti Jusnita Johari, Maxis Head of Enterprise

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Solutions under Maxis ONERetail include: BUY

BUY

mPOS

mPOS

eCommer ce

eCommer ce

e-Commerce

mPOS

BUY

mPOS is a secure mobile card payment solution that allows you to accept credit or debit card payments mPOS on-the-spot, anytime and anywhere your customers Cloud are whether it is in-store or POS at conferences, exhibitions, foodtrucks and pop-up stores. Retailers can also view real-time sales transactions and enjoy low card transaction fees.

BUY

mPOS eCommer ce

SALE Cloud POS eSMS

PROMO

With Maxis CloudPOS, businesses can view real-time sales & inventory reports from a single online platform, develop sales & customer analytics. The cloud platform enables them to access all this data anytime and from anywhere. Free, zero-downtime software upgrades are also included. It is the only Cloud POS in the country that can be used with the retailer’s existing hardware.

NEW PRODUCTS

SALE

eSMS

PROMO

NEW PRODUCTS

eSMS

Cloud POS

In Malaysia the answer is no.

“Increasingly, technology is becoming the central enabler for any business.

But despite its widespread availability, almost 70% 2 of SMEs still don’t have an online presence,” says Shanti Jusnita Johari, Maxis Head of Enterprise.

With Malaysia’sCloud e-Commerce market POSUSD 1.3 billion estimated to be worth in 2018, according to statista.com, why haven’t more local SMEs embraced e-Commerce? E-commerce or electronic commerce is defined “as any type of business or commercial transaction that involves the transfer of information across the Internet”.

One of the reasons is that the pace

NEW PRODUCTS

Cloud POS

Cloud POS

mPOS

eCommer ce

Maxis eCommerce provides webstore customisation by a dedicated team of digital experts, sales performance insights & analytics dashboards, SALE NEW digital marketing services PRODUCTS to boost online presence PROMO eSMS and advisory services. Maxis is the first telco in Malaysia to offer this complete, endto-end eCommerce solution.

SALE

PROMO

BUY

eSMS eSMS is a cost-effective marketing campaign solution that lets you stay eCom merce connected with your customers.

Businesses can reach out to thousands of their best customers with promotions, discounts and invitations in one click and bring them back to their store.

at which technology is changing and the choice of solutions available in the market can be overwhelming for SMEs. Therefore, deciding which partner and which solution is best for their business can slow down the process of digitalising a business.

HELPING SMES EMBRACE DIGITAL TECHNOLOGY AND E-COMMERCE Maxis has come up with a suite of digital solutions called Maxis ONERetail to help Malaysian SMEs embrace digital technology and in the process, help their businesses grow. Shanti sums it up as thus: “Maxis ONERetail was created with the intention to narrow this gap by

enabling business owners to maximise the potential of technology to improve their operational efficiency and stay relevant to their customers.”

Retail businesses now have access E to a complete suite to ALsolutions Sof NEW fully digitalise their business.

Maxis PRODUCTS ONERetail has partnered with the best-in-class technology MO PROproviders eSMS to offer retailers a complete suite of digital solutions comprising cloudbased point-of-sales, eCommerce and SMS Marketing which complements the existing mobile and fixed Internet solutions. Maxis ONERetail removes the hassle of adopting piecemeal solutions from multiple providers, through a

Malaysia Retailer Vol 6 No 3

Cover Story

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single point-of-contact approach. In doing so, Maxis becomes the first telco in Malaysia to offer a complete suite of digital solutions for the retail industry.

In an internal study of Malaysian SMEs, Maxis discovered that many retailers face similar challenges.

Among them were: • Spending too much time on manual sales & inventory tracking • Store expansion and the rising cost of operations and manpower • Not knowing what customers actually wanted in order to plan better • Wanting to sell online, but not knowing where to start • Not knowing how to bring more customers in-store With these insights, Maxis curated a suite of digital solutions to address retailers’ main challenges.

CASE STUDY OF TWO RETAILERS: XIXILI AND HARUKA BAKERY XIXILI Intima Sdn Bhd and Haruka Bakery are two retailers that embraced Maxis ONERetail solutions and have seen their businesses improve as a result.

When Ms Tara Tan, Chief Marketing Officer of XIXILI wanted to grow their business, increase and diversify their sales channel to find new markets, she knew that the only way to do it was with eCommerce. Since she didn’t have an in-house IT and digital marketing team, she needed a partner who could deliver a one-stop solution.

“Maxis ONERetail offered the most complete solution, from designing a customised web store, to online marketing strategies, and analytics that would help with onward planning.

“Maxis did the scoping with us and development like the back-end programming and coding. They also assisted us on digital marketing, where they helped us to reach out to online customers through digial advertising and worked closely wuth us on our marketing plans,” says Tara As XIXILI does not have a loyalty programme at its boutiques, the company was not able to gauge its customers’ behaviour well enough.

Here’s where Maxis’ insights and analytics tools came in handy.

“When you go online, you get a lot more data on your sales, customers and consumer behaviour, everything that you can’t possibly do offline. Maxis

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helped us mine that data, analyse it and then project it on to our forward marketing and promotional strategies.” added Tara.

She encourages other retailers to bring their business online. “With the right vision and support from the right partners, now is the best time for retail businesses to add an online channel to complement their brick and mortar stores,” says Tara.

XIXILI is one of Maxis’ earliest e-Commerce solution customers, who has seen an average of 40% increase in online sales every month since the launch of their e-Commerce webstore.

Haruka Bakery started in 2016 and has since expanded to two branches in Puchong, Selangor and Muar, Johor. The founders, Tan Shin Ngee and Lee Kok Chiang, were scaling their business and in the process found that their biggest problem was their point-of-sales (POS) system which would crash whenever more than a few items were rung up at a time. This resulted in long queues and unhappy customers.

They were looking for a solution and they found it in Maxis Cloud Point-ofSales (POS) system. This system is a cloud-based retail solution that gives visibility of POS transactions, tracks inventory levels and generates a wide range of real-time in-depth reports for multiple stores. By using the Cloud POS system, the owners were able to significantly improve on customer waiting times, resource efficiency and kitchen management.

The activities of each store were monitored by the owners without them being physically present in the location.

Maxis Cloud POS system is also preintegrated with Maxis mPOS, a credit or debit card payment collection solution that allows business owners to accept card payments from anywhere, using a mobile app. Since many Malaysians use a credit or debit card these days, even traditional cash-only businesses like bakeries can start accepting card payments in-store or upon delivery.

Tan is able to check on the current sales for the day for each store just by logging onto the Maxis CloudPOS portal from her phone. The comprehensive reporting function of the system gives her vital information such as which are the fast moving and popular items in the store, which items are sold most during weekends, compared to the weekdays,

and what are the least popular items.

“We can then decide which products to double down on the next few months, while phasing out less popular products.

This function has really helped us keep our costs down and reduce unnecessary waste,” says Tan. So far, Shin Ngee was positive about the Maxis Cloud POS solution. “With a customised sales register system that’s so easy to use, employees are now able to serve customers in half the time. New products and promotions and GST are also easily updated,” says Shin Ngee.

DON’T FEAR GOING ONLINE One of the biggest fears for business owners that prevent them from going online is that this move will affect their offline business (physical stores). The Maxis eCommerce team has seen from its experience that this is not the case.

Senthil Danabalan, Maxis’ Head of Business Development, explains that,“Many of these brands have world class products and services as well as attractive pricing. It is our ambition to help them realise their eCommerce potential and we want to support them to go beyond Malaysia.”

Malaysia is expected to see a boom in eCommerce in the next few years. At present, the eCommerce market in Malaysia is valued at USD1.3 billion 3 and is expected to grow two to three times larger in the next five years. “SMEs need an online presence to stay relevant to hyper-connected consumers and integrate it with their physical presence to ultimately drive a successful omni-channel strategy. We have an experienced team and solutions at attractive pricing levels for SMEs to help them realise their eCommerce potential,”said Senthil.

1. (source: https://webforms.ey.com/... malaysian.../EY-decoding-the-malaysiandigital-dna-smart) 2. (source: http://www.smecorp.gov.my/ images/SMEAR/5_Chapter2.pdf) 3. (source: https://www.statista. com/outlook/243/122/ecommerce/ malaysia#marketStudy) For more information on Maxis ONERetail, call 1700-81-8881 , visit maxis.com.my/ ONERetail or visit our ONERetail showcase at selected Maxis Centres to find out more: Maxis Centre KLCC l Taman Tun Dr. Ismail l The Gardens l Sunway Pyramid l Queensbay Mall Penang.

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Retail Industry Embraces Digital Transformation In today’s world data drives businesses and such businesses are particularly successful when owners reap clever insights from them.

Group photo of participants and presenters at the event hosted by Microsoft.

his is especially true in retail.

In early July at a breakfast event hosted by Microsoft Malaysia, retailers learned how digital technology and the cloud were transforming the retail landscape in Malaysia, and how they can use data to grow their productivity and increase profit margins.

“Digital transformation in retail can help the industry empower frontline workers and employees, optimise store and operation effectiveness, engage contractors and customers, and transform processes and products,” said Michal Golebiewski, Chief Marketing and Operations Officer, Microsoft Malaysia.

According to Golebiewski, come 2021 up to 45% of Malaysia’s total GDP will

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be derived from digital products and services. This makes for an additional 0.6% CAGR for the GDP per annum.

However, he also noted that lack of skills and resources, cybersecurity and lack of knowledge on how to drive transformation process are the top challenges for digital technology in Malaysia.

“Businesses must update their infrastructure and how they do things.

They must have the right people, and create new positions and roles in companies to spearhead digital transformation,” he said.

Karen Peck, Product Marketing Modern Workplace, Microsoft Asia Pacific, quoting industry leaders, said building the organisation of the future

was the most important challenge for 2017.

“For retailers, this means exceeding expectations online and in store, creating actionable insights for intelligent operations, empowering employees to deliver, and competing with innovation in a global marketplace,” she said.

Some of the top solutions retailers use to raise their game are advanced planning, inventory optimisation, customers experience management and personalisation.

Meanwhile Datuk Seri Garry Chua, President, Malaysia Retail Chain Association, welcomed the use of technology in the retail sector adding that it is important for the sector to

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The Price Factor The cloud has made it affordable for retailers to digitally transform their businesses. Gone are the days when companies have to install bulky servers. In fact the digital sphere is so lean, there is even no need for companies to purchase expensive softwares and pay huge annual fees.

Products and solutions are tailormade to the business. Clients pay according to the size of the business, the number of outlets and stores.

“Instead of buying softwares, you can now subscribe to the services you want,” said Ooi Boon Sheng, CEO, Web Bytes Sdn Bhd. The company’s star product is xilnex, a cloud-based software services provider suited for the retail and supply-chain businesses.

The 10-year-old company has developed and provided solutions for CRM, eCoupons, self-ordering using tablets and kiosks, online order and delivery, and analytics and machine learning for well-known retail brands in Malaysia. The company also has a strong footprint in Southeast Asia and Australia.

“xilnex sets a lot of triggers in its system. It is live so if you suspect a fraud you can act at once, and not pore over reports at the end of the month and then spot a fraud. It may be too late,” he said.

Its loyalty program tracks the purchasing behaviour and needs of the customer. This is important as a customer may not necessarily displays a preference for a product when he or she is in the store.

With ordering kiosks and tablets, meanwhile, customers can take their time to place their orders.

“Just by having a digital menu, such as a tablet, customers order more,” he said.

Web Bytes has also helped a beverage retailer to reduce wastage by estimating and even predicting the next day’s sales.

“This way, even a day-old staff is empowered with knowledge of a staff who has years of experience,” he said.

With these solutions and more, Ooi said customers can move to the cloud with confidence.

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find employees with the right skill-sets and the know-how to execute digital technology.

“We need good partners to drive digital technology in the retail sector.

Especially beneficial would be partners who can deliver solutions that suit the retailers’ needs. MRCA has a vision to adopt digital technology in tandem with the changing landscape. It will do more to generate awareness among members. Companies like Microsoft can provide retailers with the right tools,” he said.

In his presentation, he gave a brief background on the association and how it has grown in strength over the years with members from well-known retail chain brands from various industries.

He said one of his major roles as chief of the association was to form a digital retail committee to develop its members’ capabilities in this area of retailing. The association will also play its role by organising training sessions, seminars and education programmes in order to enhance mobile and digital marketing.

“Retail Group Malaysia projected Malaysia’s retail sector to grow 4.7% over the next six months of the year compared to 2% last year,” he said.

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“Digital transformation in retail can help the industry empower frontline workers and employees, optimise store and operation effectiveness, engage contractors and customers, and transform processes and products.”

“For retailers, this means exceeding expectations online and in store, creating actionable insights for intelligent operations, empowering employees to deliver, and competing with innovation in a global marketplace.”

~ Michal Golebiewski, Chief Marketing and Operations Officer, Microsoft Malaysia.

~ Karen Peck, Product Marketing Modern Workplace, Microsoft Asia Pacific, quoting industry leaders,

Casandra Seng, Business Group Lead, Modern Workplace, Microsoft Malaysia, gave participants an introduction to the technologies available to practitioners in the retail industry. As a follow up to the event, she invited the participants to schedule a Value Discovery Workshop/Customer Immersion Experience for an in-depth look at the value of Microsoft 365 for their businesses.

“The workshop is a consultative business workshop that identifies and prioritises your business needs,” she said. It will also assess a company’s readiness to implement new capabilities and analyse the financial impact of Microsoft 365 the business.

The Customers Immersion Experience, meanwhile is a hands-on facilitated technology experience that will help users to navigate the apps, their functionality, and to visualise how Microsoft 365 can improve retailers improve their processes and capabilities.

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“We need good partners to drive digital technology in the retail sector. Especially beneficial would be partners who can deliver solutions that suit the retailers’ needs. MRCA has a vision to adopt digital technology in tandem with the changing landscape.” ~ Datuk Seri Garry Chua, President, Malaysia Retail Chain Association

Embrace Disruption

Karen Peck, Product Marketing Modern Workplace, Microsoft Asia Pacific, suggests embracing disruption to survive in today’s market. Five ways to do this: 1. Engage your Customers □ Predict what customers want. □ Bridge the gap between in-store and digital experience. □ Deliver meaningful engagement across all touch points. □ Optimise interaction through social and digital channels. □ Capitalise on artificial intelligent.

2. Empower your Employees □ Equip teams to delight customers with engaging expertise. □ Foster cross-organisation communication to speed market response. □ Connect workers with digital tools and resources. □ Share actionable intelligence through advanced analytics.

3. Optimise your Operations □ Evolve to proactive forecasting. □ Deliver a unified commerce platform. □ Advance a connected supply. □ Secure data and devices against threats. □ Harness the power of your data.

4. Transform your Products □ Deliver engaging experiences. □ Innovate products for competitive advantage. □ Create new service-based revenue streams. □ Explore technologies that will delight your customers.

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MRCA Council Installation Night 2018 Themed ‘An Evening at the Musicals’, the event will be held at One World Hotel RCA President Datuk Seri Garry Chua who was reelected for a second term together with the new lineup of council members will be formally installed at the event to be held on 20th July at the Imperial Ballroom of One World Hotel.

As the installation Night is one a big events on the association’s social calendar, it will be a gala gathering of VVIPs, VIPs, top industry players from various industries and celebrities. The dress code for the evening is tuxedo for the men and evening gown for the ladies.

William Tang and Dato’ Bruce Lim, the two co-organising chairmen, at a press conference, said that the musicals are from The Greatest Showman, Mamma Mia and Phantom of the Opera.

“You be assured that it will be a memorable evening,” said Dato’ Bruce.

They said that 100 tables are expected to be sold at RM3,600 for members and RM4,700 for nonmembers.

The Diamond Sponsor for the event is The Store Corporation while Top Glove and UMR are the Gold Sponsors. The Silver sponsor is Skills Johor.

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From L-R: Dato’ Dr Edmund Lee (Council Member), William Tang (Co-Organising Chairperson), Dato’ Bruce Lim (Co-Organising Chairperson), Datuk Seri Garry Chua (President), Dato’ Vincent Choo (Deputy President), Ken Phua (Secretary General) and Dato’ Winnie Lim (Deputy Treasurer General).

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2016 Installation flashback.

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Malaysia’s Look East 2.0 Policy Prime Minister Tun Dr Mahathir Mohamad revives the policy after a meeting with Japan leaders. n June, Malaysian Prime Minister Tun Dr Mahathir Mohamad announced that he wanted to revive the Look East policy that he introduced in the 1981 when he was then the Prime Minister. Before his trip to Japan recently, he told the Malaysian press: “Since I will be there and I am the new PM, I will meet PM Abe (Shinzo Abe) who has invited me. We are not talking about anything substantial. We are just strengthening our relationship with Japan, and I will speak a bit more of the Look East policy.”

He was in Japan on 11th and 12th June to attend the 24th International Conference on the Future of Asia that was organised by Nikkei Inc’s flagship publication Nihon Keizai Shinbun. It was Tun Dr Mahathir’s first foreign engagement since taking office again following the 14th general election.

He also said he hoped his trip would further strengthen bilateral ties between Malaysia and Japan.

Meanwhile, the Japan Ambassador to Malaysia H.E. Makio Miyagawa welcomed the idea and said it would entail collaborations that benefit both countries. He told Free Malaysia Today the visit would present a good opportunity for the Japanese government to learn about Malaysia’s outlook after the recent general election.

Soon after his meeting with Shinzo Abe, Tun Dr Mahathir expressed confidence that Japan would invest more in Malaysia. “They will look into it. And they will invest more in Malaysia. We have spelt out to them what we want by way of investment.”

Prime Minister Abe explained that Japan is Malaysia’s biggest investor country. There are 1,400 Japanese companies doing businesses in Malaysia that provide jobs for 340,000 people.

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WHAT IS THE LOOK EAST POLICY? When Tun Dr Mahathir was the prime minister from 1981 to 2003, he introduced the Look East policy in hopes

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Tun Dr Mahathir and delegation at a meeting with Japanese Prime Minister Shinzo Abe and his team.

of pushing Malaysia to emulate the economic performance and work culture of Asian countries, especially Japan, and to shake off Western dominance.

It was also implemented after Malaysia’s trade dispute with Britain.

The Look East policy also included South Korea and China.

He had wanted Malaysia to follow the example of Japan Inc. and later created Malaysia Inc., where the government of the two countries and the private sector worked together to achieved common economic goals.

In addition, Tun Dr Mahathir wanted Malaysians to emulate East Asians’ diligence, hardwork, loyalty, communal spirit, and perseverance. The Malaysian government initiated a programme of sending students and workers to Japan and South Korea to learn those values.

There were several contracts awarded to Japanese and Korean firms.

The Dayabumi Complex was constructed by the Takenaka-Kumgai and Hyundai Engineering and Construction Company was awarded the contract to build the first Penang Bridge.

The Look East policy also saw the birth of the first national car Proton, a

result of a joint venture between Heavy Industry Corporation of Malaysia and Japanese carmaker Mitsubishi. Perodua also came from a joint venture with Daihatsu.

Japanese firms Kasumaza Suzuki and Keniche Omahe were part of an advisory team to industrialise Malaysia and later Keniche Omahe was involved in the Multimedia Super Corridor. The Look East policy brought in massive investments from Japan into Malaysia’s manufacturing industry.

WHAT IT MEANS FOR THE RETAIL INDUSTRY In recent years Japan ranked Malaysia as one of its largest trading partner with strengthened investment relations via the Malaysia-Japan Economic Partnership Agreement.

In 2017, Malaysia imported RM63.6 billion worth of goods from Japan, and exported RM74.9 billion – a total of RM138.5 billion in trading compared to 2016’s RM120.3 billion.

According a report by Japan External Trade Organisation, Japan in 2016, had an FDI stock of US$600 million in the wholesale and retail industry

in Malaysia. In comparison, Japan has invested US$1.829 billion in Malaysia’s finance and insurance industry.

The latest Malaysia-Japan involves the development of a RM1.6 billion mega mall Mitsui Shopping Park LaLaport KL by Mitsui Fudosan Co Ltd. Mitsui Fudosan also developed the Mitsui Outlet Park in Sepang in partnership with Malaysia Airports Holdings Bhd. The mega mall is part of the Bukit Bintang City Centre (BBCC) project that sits on the site of the old Pudu Jail. The Bukit Bintang project was first mooted several years ago and Phase One is expected to be completed in December 2020.

Phase One will have a retail mall, an entertainment hub, five blocks of serviced apartments, a four-star hotel, one strata office and two blocks of serviced apartments. The retail mall will be established, owned, managed and operated by joint-venture company MFBBCC. MFBBCC was established after BBCC entered into a joint venture with Mitsui Fudosan Asia in October 2016.

The agreement sees Mitsui Fudosan Asia owning half of the shares in the joint venture company with the remaining 50% owned by shareholders BBCC Development Sdn Bhd, UDA Holdings Berhad, Eco World Development Group Berhad and the Employees Provident Fund Board.

The Mitsui Shopping Park LaLaport retail project will have a built-up area of 1.4 million sq ft when completed.

It will be the first LaLaport branded shopping mall in Southeast Asia and Mitsui Fudosan Asia’s flagship project in the region.

Early last year, BBCC Development Sdn Bhd also signed a deal with Japan’s Zepp Hall Network Inc to develop a RM100 million concert hall. The 70,000 square feet hall will be at the entertainment hub of the BBCC project.

Zepp Hall is a subsidiary of Sony Music Entertainment (Japan) Inc with five concert halls spread across Japan.

With the Look East 2.0 policy firmly in place, projects such as these that was started by the previous administration will continue to receive government support.

For many decades, Malaysia is home to several Japanese retail giants such as Aeon, Hankyu Jaya, Kiwisawa, Chujitsu and Yaohan since the start of the original Look East Policy.

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MRCA delegation led by its President Datuk Seri Garry Chua having dinner with Japanese Ambassador to Malaysia H.E. Makio Miyagawa.

Japanese Ambassador to Malaysia, H.E. Makio Miyagawa (7th from left) receiving a token of appreciation from MRCA President Datuk Seri Garry Chua.

The 1990s Sogo and Isetan entered the fray. Although Sogo was later sold to a Malaysian company, Isetan now has four outlets in Kuala Lumpur and a high-end concept brand, The Japan Store opened in 2016.

Sogo recently announcement an agreement to bring the Seibu departmental store to the Tun Razak Exchange’s Lifestyle Quarter.

Fashion brands such as Uniqlo and Muji, alongside household retailer Daiso, have gained momentum in Malaysia. In eight years, Uniqlo opened nearly 50 stores in Malaysia and even featured Malaysian singer Yuna for an advertising campaign. Daiso has 57 stores in Malaysia, selling household items at RM5 each. Muji now has seven outlets in Malaysia. Recently, QL Resources Bhd’s FamilyMart has

been gaining traction and is expected to break even sooner than the initial forecast of five years. FamilyMart is a Japanese convenience store, the world’s second largest after 7-Eleven.

QL Resources which is one of the leading poultry company in Malaysia, has to pay a fixed royalty fee of 1% of its total sales to FamilyMart annually.

It has been indicated that it will have 40 to 50 stores in the Klang Valley by 2019.

With the implementation of the new Look East policy, we can expect Malaysia to move up the ranking of countries that Japan is focused on.

Meanwhile, an MRCA delegation led by its President Datuk Seri Garry Chua, attended a private dinner with the Japanese Ambassador to Malaysia, H.E. Makio Miyagawa, at the embassy.

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Alibaba Group Opens Office In Malaysia The office marks a new chapter in the company’s strategic cooperation with Malaysia. It is the first eWTP hub outside of China. ocated at The Vertical Bangsar South in Kuala Lumpur, the new office signifies Alibaba Group’s continued endeavour to bolster the technology capability of Malaysian SMEs and young entrepreneurs, provide support and platforms to assist them to drive exports, as well as offer extensive training programs to help them take advantage of digital innovations and trade opportunities.

“Alibaba’s focus is on three areas when we partner with Malaysia as well as other countries – to digitise our local partners and empower small businesses and young people to go global. Over the past 30 years, only large corporations have benefited from globalisation.

Imagine if we can support 60 million small business around the world; this is Alibaba’s vision of an inclusive and sustainable economy,” said Jack Ma, Founder and Executive Chairman of

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Alibaba Group, at the official opening ceremony of the office recently.

“Working closely with the Malaysian government, we will support and empower as many small businesses and young people as possible to use technology to become local kings and benefit from globalisation. This is the beginning of our story in Malaysia and I think Alibaba’s story will be long and we will make this story together,” he added.

Serving as a one-stop solution centre for local businesses, the country office is designed to engage with existing local partners, help Malaysian businesses identify global cross-border trade opportunities, as well as to support the country’s technology innovation through cloud computing services.

“I would like to congratulate Alibaba for the opening of its national office in Malaysia. We consider this a shining symbol of China-Malaysia friendship that is based on mutual respect and

benefits that augurs well for the cooperation on the part of governments, businesses and people from both countries. We look forward to the opportunities this partnership will bring to Malaysian SMEs and I am confident that the eWTP together with the Digital Free Trade Zone (DFTZ), will encourage more Malaysian SMEs to participate in ecommerce and increase their exports to other countries in Asia and beyond,” said Minister of Finance Lim Guan Eng, at the ceremony.

China’s Ambassador to Malaysia, H.E. Bai Tian who was at the launch, said that China and Malaysia have enjoyed a profound friendship and flourishing trade over the centuries.” The robust numbers we see about our bilateral trade proves the strength of our economic relations.

The launch of Alibaba’s Malaysia office is yet another step to boost a mutually beneficial cooperation between China and Malaysia.”

L-R: H.E. Bai Tian, China Ambassador to Malaysia, Jack Ma, Executive Chairman and Founder of Alibaba Group, Lim Guan Eng, Finance Minister and Gobind Singh Deo, Minister of Communication & Multimedia, officiating the opening of Alibaba Group’s office in Kuala Lumpur.

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Angel Zhao, President of Alibaba Global Business Group (right), and Dato’ Yasmin Mahmood, CEO of MDEC (left), announced the launch of Malaysia Week.

In November last year, Alibaba successfully launched its first international eHub in Malaysia under the eWTP initiative, with an emphasis on facilitating exports for Malaysian SMEs and creating the infrastructure to support global trade with services encompassing e-commerce, logistics, cloud computing, mobile payment and talent training.

Since then, various initiatives have been undertaken by Alibaba Group in Malaysia in order to build inclusive and innovative global trading technology infrastructure for local SMEs, including the establishment of Alibaba’s first regional e-fulfilment hub in the KLIA Aeropolis DFTZ Park and the establishment of Alibaba Cloud’s internet data centre in Malaysia – Malaysia’s first global public cloud platform.

Thumbs up from the VIPs.

LAUNCH OF ‘MALAYSIA WEEK’ IN CHINA During the opening ceremony, the Alibaba also announced the launch of ‘Malaysia Week’, a special online promotion initiative that seeks to attract Chinese consumers to buy all-things Malaysian from July 6 to 12.

The Malaysia Week campaign is set to showcase an array of ‘Must-see’, ‘Musteat’, and ‘Must-experience’ Malaysian products and tourism across Alibaba’s platforms.

“Malaysia Week is the first time Alibaba has promoted one country for

an entire week. This symbolises our commitment to introduce and promote Malaysian products, services, culture and tourism in China. We hope to continue to host promotional activities such as this in the long term to enable local Malaysian businesses expand their international exports in China and the rest of the world,” said Jack Ma. More than 50 Malaysian brands, featuring a wide range of product categories will be showcased in addition to a host of exciting promotional activities to be launched during the period.

‘Malaysia week’ is the result of fruitful discussions between Alibaba Group and Malaysia since the launch of eWTP. Other milestones in the development of Alibaba Group’s support for Malaysia’s digital economy are: LOGISTICS

TRAINING

Commenced construction of a smart e-fulfilment hub in Kuala Lumpur under a Cainiao-MAHB joint venture to enable speedy storage, fulfilment, customs clearance and warehousing operations.

Trained thousands of individuals, entrepreneurs and cloud computing professionals under various programs in conjunction with leading Malaysian universities and government agencies to support Malaysia’s sustainable e-commerce development.

CLOUD COMPUTING Opened a local internet data centre to provide Malaysian enterprises a local choice to build their businesses and run their applications on powerful, reliable and secure worldclass global cloud platform.

E-COMMERCE

• Launched Malaysia Pavilion on Alibaba.com to

promote quality Malaysian products to global buyers.

• Established a one-stop platform to provide export facilitation with services ranging from marketing and customs clearance, to streamlined permit application procedures and tax declaration and more.

• Hosted March Expo with MDEC and MATRADE to connect Malaysian wholesalers with global sales opportunities.

• Held “Access to China Consumers” seminar to help Malaysian exporters enter the China market with participation of more than 500 Malaysian merchants.

• Launched Malaysia Week in July 2018 to promote a broad range of Malaysian products and services to China’s consumers.

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Reimagining The Digital Era The Asian-Oceanian Computing Industry Organization (ASOCIO) recently launched its inaugural research report on the state of the digital adoption in the Asia Pacific Region. The report was unveiled at the concurrent World ICT Congress on IT (WCIT) and the ASOCIO Summit in Taipei, Taiwan. This initiative was in collaboration with its research partner World Information Technology & Services Alliance (WITSA). ntitled, Reimagining the Digital Era: Digital Transformation Agendas & Initiatives Within The Asia Pacific Economies, the report covers 12 economies – Australia, Bangladesh, India, Japan, Korea, Malaysia, New Zealand, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.

The objectives of the research paper are to: a) Recognise the significance of digital transformation in some of the countries in Asia Pacific region b) Learn and leverage from each other’s success c) Propose affirmative actions and initiatives towards a truly digital region The research focuses on a number of core areas in the ICT industry which comprises of IT services and software; Hardware; Telecommunications; e-Commerce and Fintech.

The report also outlines the countries’ strategy, roadmap and key initiatives in their digitalization agenda including the accompanying challenges and hurdles.

Some of the common challenges cited include digital infrastructure, digital security and human resources.

After providing an understanding of the landscape of the digital transformations of these 12 economies in the region, deep-dive analyses was done on these data collectively; and endeavors to draw some parallels and synergies amongst these countries in their journey towards a digitized world.

Learning from success and avoiding ‘pitfalls’ are the guiding principle of this analysis. As a result, eight key proposals were developed for considerations which are reflected in the final section

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of the report. In essence it is fair to note that the value-propositions of this inaugural research are entrenched in these eight propositions.

countries that can provide the necessary leaderships and impetus to this drive to be a global player in the digital world in the Asia Pacific region.

DIGITAL TRANSFORMATION IN ASIA PACIFIC

Specifically On Ecommerce, These Were The Findings In The Report: • Australia’s eCommerce market was the ten largest in the world in 2015 due to its robust infrastructure, strong economy and large spending power. About 49 per cent of Australian businesses sold their products online in 2015.

• Taiwan’s eCommerce penetration rate is among the highest in the world, with about 62 per cent of residents purchasing products online. Singapore too, is considered to be a dream market for e-commerce businesses as the average annual spending per user in 2016 was S$1,375 (about RM4,260).

• Korea has the sixth largest eCommerce market in the world and second highest digital buyer percentage in the Asia Pacific region. Their fulfillment rate is among the fastest in the region due to the size of the country and high population density.

At a population of over 4.5 billion people, Asia Pacific is home to about 60 per cent of the world’s population. It has some of the fastest growing economies in the world and the ICT sector in APAC is expected to register phenomenal growth in years to come. With a strong vibrant economy, favorable demographics, ongoing ASEAN integration and collaborations, there are certainly opportunities for the region to “leap-frog” and become the global leader in the digital economy.

To realize this goal, barriers will need to be addressed and removed and some of these include building out broadband, regulations inhibiting innovations in mobile financial services, cross border regulations affecting ecommerce activities, lack of a single digital market and a weak local digital ecosystems are perhaps some of the immediate ones.

Despite these challenges, it is imperative for APAC countries to continually embrace this digital age leveraging on the leaders in this region such as Australia, Taiwan, Singapore and Korea.

They are amongst the developed

REPRODUCTION FROM THE EXECUTIVE SUMMARY OF THE RESEARCH REPORT Digital transformation is essential for economies to attain a sustainable growth.

The Eight Objectives Plus One And The Associated Action Steps Are: 1. DIGITAL INFRASTRUCTURE: Countries in Asia Pacific must work towards providing ‘high-speed internet for all’ in today’s digital era. For this, establishment of a strategic national broadband roadmap including defined targets with measurable goals is critical in achieving this goal.

2. HUMAN RESOURCE DEVELOPMENT: APAC countries should facilitate cross-border ICT learning through graduate exchange programs by enabling graduates to work in other Asian countries. To facilitate digital learning among Asian countries, focus should be on developing collaborative projects between educational institutes and companies.

3. CYBER SECURITY: The countries should formulate strategies to address the regional cyber security needs by establishing a nodal cyber security agency in each of the APAC economies. Co-operation in areas of cyber security and training corporates in deploying best practices in cyber security will also be helpful in achieving desired results.

4. START-UP ECOSYSTEM: A robust digital ecosystem for start-ups and SMEs is needed through a common platform to nurture talent and encourage regional digital innovation. Developing an APAC Start-up Map to identify different entities in the ecosystem will enable better co-ordination between accelerators, incubators, investors, corporations, universities and public administrations.

5. CROSS BORDER INVESTMENT AND DIGITAL TRADE: Expanding the present ASOCIO AEC E-Commerce Alliance to the digital Asia market through Asian economies participation will boost cross border trade. An APAC cross-border trade promotion initiative is also needed to frame standard regulations & policies. Similarly, an ICT Working Committee to discuss cross-border digital trade regulatory issues will be helpful.

6. SMART CITY DEVELOPMENT: Collaboration with successful economies is critical to identify and establish adequate standards necessary for smart city development. Also, country level standards and benchmarks need to be suggested for faster planning and implementation in other cities. A Smart City Alliance at the regional level is needed to monitor the progress of implemented smart city initiatives and suggest best practices.

7. NEW AND EMERGING TECHNOLOGIES: For digital transformation, countries need to adopt and integrate new technologies into the existing ICT infrastructure.

Fintech needs to be considered as one of the key national digital growth agendas to increase financial inclusion. IoT Alliance established at APAC level will support the creation of an industry-driven IoT ecosystem.

8. ICT to enhance social welfare: Countries should leverage digital technologies to solve social public issues and online delivery of government services. Similarly, to promote use of ICT in education, an online platform can be developed for disseminating educational e-resources. Agro industry can benefit from an APAC digital agriculture trading platform to bridge the gap between producer and direct buyer.

Index, maturity modeling, certification, etc. should be implemented as well to help track and measure the impact of major ICT initiatives in different economies at the APAC level. This initiative will also be useful to develop and maintain an annual progress report for digitization at a regional level.

All the economies in the Asia Pacific region are making considerable efforts to overcome these challenges. However, the goal becoming a truly digital region can be realized for Asia Pacific region only if these efforts are focused and consistent for all the stakeholders at a regional level.

To read the full version of the report, please visit https://www.asocio.org/ wp-content/uploads/2017/09/ASOCIO%20Research%20Paper%20(for%20printing).pdf Malaysia Retailer Vol 6 No 3

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This can be observed in many APAC economies who have witnessed robust economic growth in recent years due to rapid adoption of internet and mobile technologies. Digital transformation in APAC is driven by a growing middle class, rising levels of urbanisation, technological innovation and government support for the digital economy.

Most countries in Asia Pacific are continuing on their own journey towards a digital future, Several Asian countries are clearly seen as global leaders in different aspects of digitalization, yet if one measures the overall progress, there is still a great deal of uncertainty. Countries in the Asia Pacific region are increasingly plagued by the rising incidents of cyber security and associated threats. Also, adequate digital infrastructure is not in place in many countries, which is considered to be the backbone of digital transformation.

The other most common challenge observed in Asia Pacific economies is the lack of availability of skilled ICT human resources.

In addition, the other major hindrances for the growth of ICT in the region include lack of a robust ecosystem for start-ups, low usage of new and emerging technologies such as fintech, IoT, AI, etc., less than expected success with regards to smart city development, lower cross-border trade and investments compared to the real potential, among others.

Countries in Asia should co-operate and take advantage of each country’s inherent strengths in ICT or digital landscape to effectively collaborate.

The ideal way ahead should be to corroborate successful policies/ frameworks of one country by other countries in the region.

Lastly, it is imperative to establish a monitoring mechanism to overlook the implementation of various regional initiatives by standardizing measurement metrics across all countries in the region. This will result in effective benchmarking, developing targeted policies and prioritizing reforms. Regional Digital Transformation

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International Shopping Experience in Shopping App Customers worldwide can browse and ship over 45 million products to their country through International Shopping experience apps available on iOS and Android mobile devices. mazon recently launched the ‘International Shopping’ experience within its Shopping App to enable customers worldwide to browse and shop from over 45 million eligible items that can be shipped to their country from the United States.

This experience is available on mobile browser and mobile app within the Amazon Shopping App for both iOS and Android mobile devices. The International Shopping experience offers shopping in 5 languages – English, Spanish, Simplified Chinese, German, and Brazilian Portuguese – and it supports 25 different currencies. This makes it easier for customers to shop using their local currency. They can choose from different shipping options and delivery speeds, depending on how quickly they want their package to arrive.

“We are making the shopping experience on mobile devices even

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better and more convenient for our customers who live outside the US,” said Samir Kumar, VP of Amazon Exports and Expansion.

“Customers have been asking for a way to easily find and shop only for products available to be shipped to them. The International Shopping experience solves this customer need and makes it simple to browse, shop and ship more than 45 million products to over a hundred countries around the world.”

By downloading the free Amazon Shopping App from the Apple App Store or Google Play Store, customers will automatically be placed into the International Shopping experience.

Those who already have the Amazon Shopping App simply need to go into their settings within the app, choose the ‘Country & Language’ option and select ‘International Shopping’ in the country picker. They can then set their language and currency of preference to enjoy a

customised shopping experience, and can change their location at any time to automatically see products that are eligible to be shipped to their selected delivery location.

The International Shopping experience displays clear pricing, shipping costs, and import duty estimates, with Amazon coordinating with courier services for customs clearance on behalf of the customer so there are no surprises at the time of purchase or delivery. Customers will be able to browse and shop for products across categories including Electronics, Books, Clothing, Shoes and Toys, among others.

The Malaysian commerce technology venture builder enters joint venture with Thailand based Shippop to operate delivery platform in Malaysia and Invests with Siam Outlet in Malaysian-based Letmestore to provide warehousing solutions.

he event, held at Menara MITI recently, also saw the participation of more than 400 SMEs to hear presentations by Pawoot Pongvitayapanu, CEO of Tarad.com, Ganesh Kumar Bangah, Founder and Executive Chairman of Commerce.

Asia, Song Hock Koon, Director of eCommerce, Malaysia Digital Economy Corporation (MDEC) and Patcha Wupitan, Minister Counsellor (Commercial), Thailand Ministry of Commerce.

Commerce.Asia had entered into a collaboration with MDEC under the Digital Free Trade Zone (DFTZ) B2C Export program that aims to promote and drive export by Malaysian SMEs outside of Malaysia. Under the program, Thailand was identified as the first cross border country that Commerce.

Asia would be targeting. Through this partnership, Commerce.Asia will onboard Malaysian merchants to sell products to Thailand consumers.

Ganesh Kumar Bangah, the Executive Chairman and founder of Commerce.Asia said, “We are honoured to partner with MDEC in their drive to push Malaysia SMEs across international borders. Thailand is a significant market for us to target. The e-commerce market in Thailand was valued at USD2.9 billion in 2017 (statistics from Eshopworld. com). On average a user spent USD243 per person last year (there are 12.1 million registered e-commerce users in Thailand). By 2021, average user spending is expected to increase to USD382 as revenue is targeted to increase to USD5.3 billion.”

He said that logistics and warehousing are the two most important aspects that hinder

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(L-R): Pimthada Sahachatiraklap, CEO of Siam Outlet, Fadhli Tahar, Founder & CEO of Letmestore, Pawoot Pongvitayapanu, CEO & Founder of Tarad.com, Patcha Wutipan, Minister Counsellor (Commercial), Thailand Ministry of Commerce, Song Hock Koon, Director of eCommerce Division of the Malaysian Digital Economy Corporation (MDEC) and Ganesh Kumar Bangah, Founder and Executive Chairman of Commerce.Asia.

e-commerce, especially cross border e-commerce. “It is not so easy to handle the logistics of delivering orders to another country in a short time.

Timing is a crucial success indicator as customers will be hesitant to use your services again if it takes too long to arrive. eCommerce customers want things fast, undamaged and cost effective which is why we have identified and partnered with Shippop to provide delivery support for companies both Malaysian and global who wish to expand their market reach to Malaysia and Thailand.”

The partnership between Siam Outlet and Malaysia-based Letmestore Sdn Bhd will help merchants manage the packing and storing of their products in a cost effective way. Siam Outlet and Letmestore will both use the same proprietary Intelligent Fulfilment Platform developed by Siam Outlet.

To solidify the relationship, both

Commerce.Asia and Siam Outlet will be investing in Letmestore.

“Both these significant tech enablers will be integrated into our Commerce.

Asia Enterprise platform, enabling vendors who have subscribed to our platform to easily tap into these valuable resources to enter the Thai market,” added Ganesh.

Commerce.Asia Enterprise enables Malaysian SMEs to quickly move their business online and manage all aspects of the online business for them. Various packages targeting both SMEs and micro SMEs have been created to enable them to take the next step in expanding their business.

“It is time for Malaysian SMEs to think beyond the borders of Malaysia and reach out to new markets via these e-commerce technology enablers.

Malaysians have much to offer and its time we equip ourselves to reach out to a wider audience,” stated Ganesh.

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Commerce.Asia Partners with Thailand Technology Enablers to Boost Cross-border e-Commerce

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Standing Tall In A Crowded Market How grocers can outperform in Vietnam.

sian emerging economies are growing two to three times faster than advanced economies, attracting companies in various industries. The prospects in Vietnam look especially bright. Wealth, urbanisation and sophistication are rising quickly among the nation’s more than 93 million people, driving real GDP growth of about 6% in 2017.

Modern trade ranks among the most promising industries, as the market has yet to bloom: traditional grocers still dominate, but millions of consumers with more disposable income, less time for shopping, and new concerns about food safety will increasingly turn to modern formats.

Retail spending per capita is still low and GDP per capita projections show that modern trade will take its share from traditional trade as people migrate from the countryside to urban areas.

The industry is therefore likely to grow faster than GDP per capita in the coming years as young, urban and affluent shoppers swell the ranks of

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the emerging middle class. Indeed, the overall grocery market has grown at more than 15% annually since.

Six major players now operate about 250 large supermarkets and hypermarkets among the approximately 2,000 modern retail points of sale in the country. Despite the intense competition, aggressive new players have arrived or accelerated in the past two to three years, including VinMart – boosted by the acquisition of Ocean Mart – and AEON, Asia’s largest retailer.

They have gained share at the expense of the two incumbent competitors, Co.opmart and Big C. Despite highly publicised plans, major players have made few investments beyond top cities; about 240 of the country’s roughly 300 large supermarkets and hypermarkets are concentrated in greater Hanoi, greater Ho Chi Minh City, the Mekong Delta, and the Red River Delta.

It is expected big players will look for expansion opportunities further from major cities in densely populated areas, such as in Can Tho and Hai Phong, or in

tier-two areas, such as Da Nang, Hue, Khanh Hoa, and Da Lat. So far, the low-price model has dominated. Some incumbents such as Big C and Co.opmart attract shoppers with a promise of low prices and a wide assortment aligned with their refill needs. Most of these stores have atmospheres designed to be familiar to consumers accustomed to the traditional “wet markets”.

Major grocer AEON has entered the marketplace with well-designed stores, professional service, and high-quality products, such as prized Japanese goods. A fragmented group of niche players (such as Annam Gourmet Market and BioGarten) are also investing in this segment with highend urban offerings. In those stores, shoppers seem to accept that the superior experience and assortments come with higher prices, but the model does not seem scalable beyond few shopping centres designed for wealthy consumers.

A newcomer, Vinmart, is trying a “winner take all” expansion approach,

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Vinmart is trying a “winner take all” expansion approach, quickly building a wide network with acquisitions and rapid opening of new stores by building on years of real-estate experience.

quickly building a wide network with acquisitions and rapid opening of new stores by building on years of realestate experience. It is supporting an “affordable, fresh quality” value proposition by vertical integration in fresh food and its private label.

This approach may presage the intensification and diversification of mid-market competition.

Modern grocers face many challenges in Vietnam, including rising real-estate costs, a centuries-old tradition of buying fresh food in open-air markets, and a fragmented and shifting supplier base. Since disposable incomes are likely to rise fastest among young people in urban areas who may not own cars, the old European and North American recipes for modern retail success (in particular, the hypermarket model) will not apply.

For most retailers, mastering this equation is a multiyear journey that will require a shift in focus from network expansion in saturated urban areas to targeted programmes aimed at improving productivity and profitability.

This Winning Formula Will Require Distinctive Performance On Six Dimensions:

• A Clear Value Proposition That Works Economically.

The winners will offer a focused value proposition and have a clear plan to recruit consumers from wet markets and competitors to drive traffic and basket size.

• Rigorous Productivity Management To Maintain 20 To 30% Gross Margins.

Nearly all modern trade players in Vietnam focus on value for money.

To compete and remain profitable, retailers need discipline in managing margins across categories, improving promotion return on investment, and tailoring membership benefits, while communicating their value proposition consistently.

• Championing Quality Where It Matters Most.

Modern grocers should manage categories to enhance the perception that they are better than wet markets for basic fresh items both on assortment breadth and on quality for highly visible items such as beef, crab, and tomatoes.

• Investments In Data And Analytics To Improve Pricing Effectiveness, Promotional Roi, Space Management, And Personalization As Well As Drive Down Costs.

As Vietnam is not yet a sophisticated, data-driven modern retail scene, the first players to deploy advanced analytics will reap significant competitive advantages, including wiser resource allocation.

• Careful Management Of Size Per Store And Footprint Expansion.

Build a dense network of smaller stores, accessible without a car and tailored for medium-size baskets. Expand to create a high-performing and consistent format tailored to the developing market. For supermarkets, for example, this will mean mid-size stores tailored to urban locations, with high visibility for categories prized by wet-market shoppers, including fresh vegetables, meat, and fish, and a consistent visual identity.

• Preparing For More Intense Competition.

In the years ahead, new pure-food, non-food, or food-service players will disrupt the market with online-to-offline propositions, raising the bar for store economics and capabilities. Now is still the time for established players to build a reliable and flexible food ecosystem, including e-commerce.

This report was adapted from McKinsey.

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Making Price And Promotion Work Harder Can smarter pricing and promotion reduce the emphasis on discounting? onsumer products (CP) companies spend vast amounts of money on trade promotion. If they could direct this spend better, they would achieve a more profitable mix of promotion and pricing, without sacrificing revenue.

The most effective strategies tend to be those that consider pricing and promotion together. Success is more likely when manufacturers and retailers work in partnership.

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STEPS TO IMPROVE PRICING AND PROMOTION

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Optimise Everyday Prices Standard discounts and general promotions seldom work. In fact, nearly 70% of such promotions lose money.

A data-informed view of price elasticity – the effect of price changes on demand – results in better pricing strategies. Companies are better able to spot opportunities to drive margin, volume and revenue. They can also clarify whether it is better to go with an “everyday low price” strategy, or to take a more standard “hi-lo” route, where a product is offered at a high price and then heavily discounted.

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Use Smaller Discounts Nearly, 40% of the promoted product groups (PPGs) and retailer combinations we analysed could make their promotion events more profitable by offering smaller discounts, as heavily discounted events largely lead to negative ROIs CP manufacturers often use temporary price reductions in isolation, even though promotions do not succeed by price alone. These events are more likely to increase revenue and profit when they are combined with merchandizing, such as in-store, visual shelf or aisle PPG promotions.

If there is no merchandising, discount levels of 20% or below deliver better results. So,

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manufacturers should only use deep discounting as a bargaining chip to gain access to merchandising.

3

Rethink Duration, Timing, Shopper Marketing And Co-Promotions Most promotions are too short. Four to five weeks is the duration that gives most companies optimal ROI – the average promotion only runs for around a third of that time.

Timing makes a big difference: If a PPG is not heavily seasonal, promotions outside of core holidays are often more effective as they avoid competition with seasonal products on promotion.

4

Question Shopper Marketing Shopper marketing promotions cost more and result in significantly lower ROI, but they do generate higher revenue.

Single-product promotions can beat co-promotions: Companies that combined multiple PPGs in one copromotion risk cannibalizing their own sales. In some cases, companies could have increased revenues by 30% and profits by 33% if they had run separate promotions on each product.

5

Create Promotion Strategies At The Retailer And Ppg Level Manufacturers can improve performance across categories and channels by sharpening the focus of their promotion tactics at a granular level.

Both manufacturers and retailers

will find it harder to meet their financial goals if they use high-level promotional strategies that are not tailored to influence the consumers’ purchase decisions. Not all retailers in a channel are alike – they require different strategies and tactics.

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Build Profits For Both The Retailer And The Manufacturer Manufacturers need to build more collaborative relationships with retailers.

Too often they see pricing and promotion as a zero-sum game, where a win for one side implies a loss for the other.

There are untapped opportunities for both sides to improve their business performance. Over a third of promotion events were “win-win” – defined as having positive incremental profit for both manufacturers and retailers.

GETTING TO THE PRIZE Companies can use data analysis to dismantle and understand the performance of their promotion events and to model future events. The results will help them to fine-tune their future strategies with laser precision.

KEY STEPS INCLUDE: Set clear Priorities: Effective pricing and promotion strategies target the right balance between volume and profit.

Embrace Analytics: Decision-makers need access to powerful, relevant data analytics. Move beyond piloting tools and embed analytics into the fabric of the business.

Work together: Create a collaborative mindset where people work together, both across internal functions and with retail or manufacturer partners.

Build capabilities: Find the right balance between shortterm actions that lead to better pricing and promotion strategies, while building the capabilities that will sustain long-term success.

This article is adapted from EY Malaysia.

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Retail Day at Facebook Malaysia Facebook Malaysia recently hosted Retail Day for 150 local retailer clients and partners aimed at sharing industry mobile-first strategies that will help them tap into opportunities to reach the 22 million Malaysians already on the social media platform. ttendees of the event gained insights into tapping into the power of Facebook tools and solution strategies to drive business growth and to create effective online campaigns. The event also featured industry best practices from Senheng Malaysia and StoreHub Malaysia, in addition to workshops and insights shared by the Facebook team.

Mobile commerce sales in AsiaPacific totalled US$1.027 trillion in 2017, a 41.9% increase over 2016, accounting

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for 76.1% of retail e-commerce sales.

As for Malaysia, the retail sector’s total sales were projected to grow by 4.7% or RM104.4 billion this year, with e-commerce penetration at 5% compared to 2017.

Retail Day is just one of the initiatives

by Facebook Malaysia to educate retailers and businesses in the country on the challenges and solutions in implementing digital strategies to embrace a mobile future.

Facebook Malaysia country director,

Nicole Tan said: “With more than 22 million people in Malaysia on Facebook each month on mobile, retailers here should be moving fast to tap into the power of mobile to unlock growth and drive their businesses.

“We’re seeing momentum with retailers using Facebook to better connect with consumers, and our team is committed to helping them achieve real business results on mobile by providing industry insights through workshops, training, and events like Retail Day.”

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Malaysia’s The Picha Project wins Global ‘Allianz Future Generations Award’ The Picha Project, a social enterprise based in Kuala Lumpur which empowers refugee families in the country through a sustainable food catering and delivery business, won the award worth 40,000 Euro. he Picha Project is one nine participants of the Investment Ready Program ‘Encouraging Future Generations’ by the Allianz and Impact Hub which enhances purpose driven entrepreneurs who foster the social inclusion of children and young adults in Brazil, Germany, Malaysia and Turkey.

Its aim is to enable the founders to develop a validated growth plan and attract investments.

The finalists from the four countries presented a broad range of business models – football safehubs for underprivileged boys and girls, low cost glasses for school children and a clothing brand that raises awareness of refugees. The Encouraging Future Generations Award benefits the company’s corporate responsibility strategy to increase social inclusion for children and youth and will be extended to three new countries in 2019.

The teams pitched to a fivemember jury represented by experts of the not-for-profit and youth organisations Rock4 Life, Phineo, Impact Hub and Allianz,

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Kim Lim, the co-founder of The Picha Project receives the mock check for 40,000 Euros.

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as well as to a broader audience at the insurer’s headquarters in Munich.

“Allianz Malaysia is thrilled that our very own home-grown social enterprise, The Picha Project, has won Allianz’s inaugural ‘Encouraging Future Generations Award’. The Picha team showed a lot of tenacity, drive and their desire to make a change in the world was pure. The win marks a huge milestone for them and is truly well deserved,” said Joseph Gross, Chief Executive Officer of Allianz Life Insurance Malaysia Berhad.

Kim Lim, the co-founder of The Picha Project said, “Our hearts are so full

because this win means we can have more families involved in The Picha Project. And to be globally recognised for a cause we are fighting for is just incredible. It just proves that it is possible to do good in a sustainable way,” explained The Picha Project was set up by Kim Lim, Lee Swee Lin and Suzanne Ling in January 2016 to provide job opportunities to families from marginalised groups by creating a platform for them to cater food to the public, utilising their existing cooking skills and equipping them further with professional guidance.

“Allianz Malaysia is thrilled that our very own home-grown social enterprise, The Picha Project, has won Allianz’s inaugural ‘Encouraging Future Generations Award’.” ~ Joseph Gross, CEO of Allianz Life Insurance Malaysia Berhad.

The Deloitte Millennial Survey 2018 found that respondents yearn for leaders whose decisions might benefit the world and their careers.

ollowing a troubling year, where geopolitical and social concerns gave rise to a new wave of business activism, millennials and Gen Z are sounding the alarm, according to Deloitte’s seventh annual Millennial Survey.

Millennials’ opinions about business’ motivations and ethics, which had trended up the past two years, retreated dramatically this year, as did their sense of loyalty. Both the millennials and Gen Z are not particularly optimistic about their readiness for Industry 4.0.

Their concerns suggest this is an ideal time for business leaders to prove themselves as agents of positive change.

The findings are based on the views of more than 10,000 millennials questioned across 36 countries and more than 1,800 Gen Z respondents questioned in six countries. The survey was conducted on 24 November 2017 until 15 January 2018.

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PERCEPTIONS OF BUSINESS ARE DECLINING This year’s survey shows a clear, negative shift in millennials’ feelings about business’ motivations and ethics.

Today, only a minority of millennials believe businesses behave ethically (48% vs 65% in 2017) and that business leaders are committed to helping improve society (47% vs 62% in 2017).

There continues to be a stark mismatch between what millennials believe responsible businesses should achieve and what they perceive businesses’ actual priorities to be – but where matches exist, the perception is that those companies are more successful, have more stimulating work environments and do a better job of developing talent.

DIVERSITY AND FLEXIBILITY ARE KEY TO LOYALTY Forty-three per cent of millennials envision leaving their jobs within two years; only 28% seek to stay beyond

five years. The 15-point gap is up from seven points last year. Employed Gen Z respondents express even less loyalty, with 61% saying they would leave within two years if given the choice.

Attracting and retaining millennials and Gen Z respondents begins with financial rewards and workplace culture; it is enhanced when businesses and their senior management teams are diverse, and when the workplace offers higher degrees of flexibility. Those who are less than satisfied with their pay and work flexibility are increasingly attracted to the gig economy, especially in emerging markets.

YOUNG WORKERS ARE NOT READY FOR INDUSTRY 4.0 Millennials and Gen Z recognise the current and future importance of Industry 4.0, yet many feel unprepared for the changes it will bring. Fewer than four in 10 millennials (36%) and three in 10 Gen Z currently in work (29%) believe they have the skills and knowledge they’ll need to thrive.

While technical skills are always necessary, respondents are especially interested in building interpersonal skills, confidence and ethical behaviour – all of which they consider essential for a business to be successful. They would like business to take a lead role in readying people for Industry 4.0.

While young workers believe that business should consider stakeholder interests as well as profits, their experience is of employers prioritising the bottom line above workers, society, and the environment. Only a minority of respondents now believe corporations behave ethically (48% vs 65% last year) and business leaders are committed to helping improve society (47% vs 62%).

Three-quarters of respondents now see businesses around the world focusing on their own agendas rather than considering the wider society (compared with 59% a year ago), and nearly two-

thirds say companies have no ambition beyond wanting to make money, up from 50%. Four in 10 respondents actually say business leaders are having a negative impact on the world.

These attitudes can have a direct impact on an employer’s future and its bottom line. As seen in previous surveys, companies and senior management teams that are most aligned with millennials in terms of purpose, culture, and professional development are likely to attract and retain the best young talent and, in turn, potentially achieve better financial performance.

Loyalty must be earned, and the vast majority of millennials are prepared to move, and move quickly, for a better workplace experience.

None of this suggests general hostility toward employers; indeed, in last year’s survey report, the report characterised millennials as “probusiness” – they just simply expected more from leaders and corporations.

It is noteworthy that in spite of their reservations, millennials see business leaders as making a more positive impact on the world than leaders in other areas.

They are eager for businesses to more aggressively commit to making a tangible impact on the society while preparing their organizations and employees for the changes that Industry 4.0 is effecting.

There an opportunity for leaders to fill what younger workers regard as a stark leadership void. Respondents feel business could be particularly effective in the areas of education, skills and training, economic stability, and cybersecurity.

Younger workers clearly are open to being convinced that employers are committed to ethics, diversity, and Industry 4.0 training but they’re not yet convinced. The timing is ideal for leaders to step up and take actions that benefit all of their stakeholders.

Malaysia Retailer Vol 6 No 3

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Millennials’ Confidence In Business & Loyalty To Employers Take A Downturn

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Bridging The Gen X and Gen Y Gap How do you explain the vast chasm in the office between the Gen X bosses and their Gen Y workers?

Blame it on parenting! Here’s how to improve the situation. am a corporate trainer and in my line of job, I get to hear many interesting stories about what’s happening in the corporate world. In the last few years I have come across a new situation that has not been encountered before: the huge gap that exists in the workforce between Gen X and Gen Y. Wikipedia defines Gen X as those born between 1964 and 1980 and Gen Y as those born between 1980 and 2000. Preceding Gen X is the famous Baby Boomers whom we all have heard so much about. This generation refers to those born post World War II (1946 to 1964).

Gen Y entered the working world in the beginning of the 21st century and it seems that their bosses, most of whom are from Gen X got a culture shock working with this new batch of millennial workers.

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HERE ARE SOME OF THE MOST COMMON COMPLAINTS I HAVE HEARD FROM GEN X BOSSES ABOUT GEN Y: “Why is Gen Y so difficult to manage?

Why are they so lazy? They assume it is ok to act like buddies – I am their boss, for God’s sake! If I do anything nice, they act as if I owe it to them! I have always been a people pleaser but I think they have cured me!”

GEN Y HAVE THEIR OWN GROUSES ABOUT WORKING FOR THEIR GEN X BOSSES: “Why does my Gen X manager use so many outdated methods to do things?

Why do they insist on meeting face to face? Haven’t they heard of messaging via WhatsApp? And don’t call me on the phone unnecessarily – most things can be solved via text! Why are they so picky on me being in the office all the time? I work equally as well, if not

better, from home or the cafe next door!

My manager has trust issues. I just want him to give me direction and then get out of my way! I will deliver.”

BLAME IT ON THE PARENTS In order for both Gen X and Gen Y to understand each other better, it’s best to look at their upbringing. To understand each generation, it is important to find out why they think and act the way they do. This stems largely from the values that they were brought up with. It is a universal truth that each generation wants its children, that is, the next generation, to have a better life than them. This has a huge effect on the values they pass on to their children.

Gen X’s parents were the Baby Boomers. They were growing up post World War II and in Asia, most of them had a very hard life. Job was scarce, education opportunities were hard to

in a good company, preferably an MNC, work very hard and climb up the corporate ladder as high as possible.

If this meant sacrificing their time with the family, so be it. They were doing this for the betterment of the family, or so they believed.

But as Gen X grew older (and wiser one suspects) they felt the beginnings of a burnout. Suddenly, they realised that all the money and career advancement did not bring the necessary happiness in life. Their job did not bring them joy; they did it as a means to provide for their family. They longed to balance their hectic work life with some family time and other things. It was in the 1990s that the phrase “work life balance” first began to emerge.

GEN X PARENTS CREATED GEN Y

come by, families were large and older siblings were supposed to go out and work to support the family.

Those without much education had low paying jobs. Others who went into business worked very hard, learning from mistakes as they had no one to guide them. These people saw that those with better education (and they were generally from well-off families who could afford to educate their children) had good paying jobs and led a comfortable life. The goal for many Baby Boomers was to have a secure job that guaranteed a consistent income.

Being children of Baby Boomers, Gen X was brought up to believe that they had to study very hard, obtain a degree and focus on their career and in their pursuit to make as much money as possible for a comfortable life.

They were still taught to be financially responsible to help out their family.

Their aim in life was to get employed

When Gen X became parents (we are looking at you Gen Y!), they wanted their children to have the freedom to explore the choices Gen X never had. So they taught Gen Y to discover themselves, go after their dreams while still young.

Education was still very important, but they as parents were determined to expose them to many things in life. Gen Y is brought up in prosperity compared to their parents. So Gen Y never faced the pressure to be financially secure because they were already coming from a financially secure background. Money is not the most important goal for Gen Y, personal satisfaction is.

Gen X parents will do all their best to ensure their children get what they want. But in the process some of them end up being ‘Helicopter Parents’ – hovering over their children and rushing in to fix whatever problem the children face. This behaviour continues even when the children become young adults, resulting in some negative traits in some Gen Y such as a sense of entitlement or becoming too dependent on parents to the point they lose self-esteem and confidence and lack life skills.

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COPING WITH A GEN X BOSS Now that as Gen Y you have some insights into your Gen X boss, here are some tips on how to deal with them:

• Respect is important to Gen

X. They have sacrificed a lot in their life to be where they are today and it is important for them that they are shown respect. They never went around telling their bosses what to do when they were starting out in their career and they expect you to do the same.

• If you really want to tell

them how to do things, do it professionally. Call for a meeting or have lunch with them. Provide plenty of facts, data and figures to prove that your method works and most importantly, how it will help the company in its Return On Investment (ROI). Gen X grew up with a belief that there was a set formula for success. You need to convince them that your way is the new formula for success.

• Words never to tell your Gen X boss: “It makes sense” and “We’ll figure it out along the way”. This generation needs processes and structure to be able to see the big picture.

Show them how your plan will be executed and implemented instead of telling them, “We’ll see how it goes from there.”

• Like you, Gen X too values

work/life balance. But unlike you, they may not think it is a ‘cool’ to work a couple of 23 hours a day and then crash out for a few days. If your ideas disrupt that work/life balance, Gen X boss will not go for it.

Instead, show that your plan will increase efficiency and support their work/life balance.

By Daryl Wong

Malaysia Retailer Vol 6 No 3

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Achieving Personal Excellence In the first of 2-part series on Achieving Personal Excellence, Dr Victor S.L.Tan wrote about five aspects of personal excellence – Awareness, Attitude, Action, Ability and Aim. In this last instalment, he discusses the remaining five aspects of personal excellence.

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ADAPTABILITY

Excellence is a moving target. Thus, there can be no personal excellence if one does not have a sense of adaptability. In fact, in the animal kingdom, the survival of a species is determined by the degree of adaptability to its environment. Those who cannot adapt to the changes in the environment become extinct.

Likewise, to achieve personal excellence one must continuously anticipate, prepare and respond to changes in the environment. Thus, individuals have to adapt to the new management style when a new leader replaces an old leader. When a company is taken over or merged, the staff will need to adapt to the new corporate culture in order to survive.

With introduction of new information technology system, the staff will have to learn to use the new system to do their work. With increasing competition and customer sophistication, individuals in organisations will need to develop new knowledge, skills and experience to keep up with the increasing expectations of stakeholders.

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AFFABILITY

Affability is the way of being pleasant and having a friendly disposition. The image of an organisation is often created by the affability of its staff. If the staff are unfriendly and discourteous, customers will shun from dealing with the company. Often a company spends millions of dollars to build its brand name only to have their staff tarnish it because they are rude to customers.

Companies that take time to develop affability among their staff will see their efforts handsomely rewarded with happier and more satisfied customers. Courteous staff who serve customers well play a big part in customer retention. The characteristics of affability are not born; they can be cultivated to achieve personal excellence as part of a person’s development. Thus, as part of their own growth, individuals should not just attend product training or technical training, they should also attend training on soft skills such as interpersonal skills and customer service excellence.

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ACHIEVEMENT

One of the greatest satisfactions that one can derive from the workplace is the sense of achievement. Achievement is a great hallmark of personal excellence. Henry Ford said, “One cannot build a reputation based on what one intends to do.” An individual can only build a reputation of personal excellence through achievements that he or she chalks up.

The best way to increase one’s value is through the constant process of achieving set goals and targets.

This is also a good way to stay away from “company politics”. People who continuously achieve and produce results do not have to worry about what others think of them. It is difficult to argue with clear and consistent achievements that are aligned with organisational goals.

Stop indulging in unproductive “political manoeuvres” to “look good” or claim credit for something one did not do.

Instead, embrace this aspect of personal excellence through one’s achievement as it will certainly speak more convincingly and loudly than all the manipulative moves one makes in the workplace.

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ACCOUNTABILITY

Let me share a classic story to illustrate the importance of accountability. There was a work unit with four members named Everybody, Somebody, Nobody and Anybody.

An important project needed to be done, and Everybody was sure that Somebody would do it. Anybody could have done it but Nobody did it. Somebody got angry about that because it was Everybody’s job. Everybody thought Anybody could do it, but Noboby realised that Everybody wouldn’t do it. It ended up with Everybody blaming Somebody when Nobody did what Anybody could have done.

The real cause for non-performance in work is that there is no clear ownership with regards to accountability. The common excuse is, “I thought someone was supposed to do that”. Each individual who has been assigned specific tasks must hold himself or herself accountable for producing the desired results. It is all too easy to explain away non-performance.

One can blame the system, the policy, the technology or process for non-performance, however, it is only by holding ourselves accountable for the tasks assigned to us can we make a difference in the organisation. An individual who holds himself accountable will do whatever it takes to eliminate the barriers or constraints in the workplace. Some of the greatest achievements in the workplace are created by individuals who embrace personal excellence in the way they hold themselves accountable for things that are not done properly in the workplace. They take the initiative to change things for the better.

APPRECIATION

One great aspect of human character is the ability to appreciate others and things around us. Thus, one should appreciate the opportunity of working in an organisation.

To show one’s appreciation, one can focus on one’s job and excel in it. Likewise, one should appreciate customers, for without them a company has no revenue to pay the salaries of employees. In one of our training programmes on Changing Mindsets, we have a session where participants undertake an Appreciation Exercise.

The participants are required to list at least three things they appreciate about their work, their company and their country. They are then asked to list the things they can do in return to show their appreciation. I believe this is a good exercise for every individual to undertake in organisations.

The truth is that, we cannot move on to do greater things if we do not first appreciate what we already have.

People are fond of asking for more without stopping to think of what they already have. What we do not appreciate, depreciates. In fact, many executives do not even fully utilise the existing resources and yet they are ask for more. For a start, they can make the best use of what they already have and start clocking up some achievements.

It is time, individuals in organisations understand this universal truth: before you can get more of what you ask, you have to first truly appreciate what you already have. This requires the person to start achieving the desired results with whatever resources he or she has. It is only when one achieves successful results despite the lack of resources can one have the credibility and influence to bargain for more resources. As the saying goes, it is difficult to argue with success. And that is personal excellence at work.

Dr Victor SL Tan is an international change authority who undertakes change management consulting and seminars. He has written 10 management bestsellers including Changing Mindsets and Changing Your Corporate Culture. For comments, log on to www.klscc.com or email him at victorsltan@klscc.com

Malaysia Retailer Vol 6 No 3

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AmInvestment Bank wins Project Finance House of the Year Award for 4th Consecutive Year Bank also wins 5 other awards at The Asset Triple A’s Asia Infrastructure Awards 2018. mInvestment Bank Berhad (AmInvestment Bank) was a big winner in The Asset Triple A’s Asia Infrastructure Awards 2018, bagging six awards including the Project Finance House of the year award for the fourth time. The awards ceremony which was held in Hong Kong in June, was organised by The Asset, an integrated multi-media company serving the elite community of leading corporate and financial decision makers in Asia.

“We are extremely proud of our Capital Markets Group accomplishment.

The awards underscore our commitment to providing our clients with rigorous, timely and value-added investment banking solutions and services. We would like to share the

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honour with our esteemed clients, and thank them for their continuous support and confidence in our products and investment banking services,” said Raja Teh Maimunah Raja Abdul Aziz, Chief Executive Officer, AmInvestment Bank and Managing Director, Wholesale Banking, AmBank Group.

Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group, said it was an honour to be recognised through these prestigious awards. “They are a true testament to AmInvestment Bank’s capabilities in delivering quality results in all its deals. We pride ourselves on the unique services we offer to our clients and these awards are further indication that our efforts are being recognised in the industry.”

The Awards Won By AmInvestment Bank Are: 1. Project Finance House of the Year 2. Power Deal Of The Year Tenaga Nasional Berhad’s RM2.0 billion Sukuk issuance as a Joint Principal Adviser, Joint Lead Arranger and Joint Lead Manager/ Bookrunner.

3. Social Infrastructure Deal of the Year Perbadanan PR1MA Malaysia RM2.5 billion GG Sukuk issuance as a Joint Lead Arranger and Joint Lead Manager/Bookrunner.

4. Transport Deal Of The Year Project Lintasan Sungai Besi-Ulu Klang’s RM380.0 million Sukuk issuance as the Principal Adviser and a Joint Lead Arranger and Joint Lead Manager.

5. Transport Deal Of The Year (Highly Commended) DanaInfra Nasional Berhad’s RM10.18 billion GG Sukuk Issuance as a Joint Lead Arranger and Joint Lead Manager/Bookrunner.

6. Oil & Gas Deal Of The Year Pengerang Terminals (Two) Sdn Bhd’s USD1.25 billion Syndicated Term Loan as a Mandated Lead Arranger and Lender.

L-R: Seohan Soo, Executive Vice President, Capital Markets Group, AmInvestment Bank Berhad and Lewis Hans, Vice President, Capital Markets Group, AmInvestment Bank Berhad, at The Asset Triple A’s Asia Infrastructure Awards 2018 ceremony held in Hong Kong.

Malaysia Retailer Vol 6 No 2

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Spreading Hari Raya Cheer to 20 Underprivileged Orang Asli Students The Malaysia Retail Chain Association (MRCA) recently visited Sekolah Kebangsaan Ulu Beranang, Lenggeng in Negeri Sembilan as part of its festive visitation under its Branding Education Charity Foundation.

One of Foundation’s main objectives is to give back to the community and in conjunction with the Hari Raya celebration, a total of RM21,000 worth of cash, groceries, electrical items, ang pow and goodie bags were donated to 20 underprivileged Orang Asli Muslim students. The Foundation’s contribution was RM10,000 and additional donations were from MRCA members: • MRCA President Council – Cash RM3,000 • Hap Seng Star Sdn Bhd – Cash & Groceries worth RM3,000 • Perbadanan Nasional Berhad – School Supplies totalling RM3,000 • Transtel Technology Sdn Bhd – Goodie bags worth RM1,600 The school has 79 Orang Asli students and all are from poor families.

According to Encik Mustafa who is

the Guru Hal Ehwal Murid (teacher in charge of Student Affairs) of SK Ulu Beranang, the parents of these students generally earn minimally wage due to their lack of education. With the help of the school, 20 of these students were selected to receive the Hari Raya donation from the Foundation.

Through these donations the MRCA Branding Education Charity Foundation hopes to lighten the burden a little for these families as they look forward to the Hari Raya celebration. It is also through the visitation and donation that the Foundation hopes to promote awareness amongst the community about the existence of the less fortunate and be grateful for blessings.

Those who wish to extend any form of help to these underprivileged students or school may contact Encik Mustafa at 03-8761 0207.

Malaysia Retailer Vol 6 No 3

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President’s Activities and Officiating Members’ Events 1. Datuk Seri Garry Chua lead an MRCA delegation to Penang to boost the northern chapter. 2. At the Alibaba office.

3. Japanese Ambassador to Malaysia, H.E. Makio Miyagawa (7th from left) receiving a token ofappreciation from Datuk Seri Garry Chua.

4. At the Nordic Day reception with H.E. Maria Castillo Fernandez, Ambassador and Head of EU Delegation to Malaysia. 5. Datuk Seri Garry Chua at the official opening of BaliAyu Spa Sanctuary at Plaza Arkadia, Desa ParkCity. 6. Appreciation dinner from BaliAyu Spa Sanctuary.

Malaysia Retailer Vol 6 No 3

33 Monthly Meeting

MAY 2018 24th May 2018 Venue: MRCA Office Membership Update as at May 2018 Category Total Ordinary 229 Associate 200 Affiliate 16 Total 445 New Members in May 2018 Ordinary Members 1. Sangkaya (M) Sdn Bhd. 2. City Coin Laundry Sdn Bhd. 3. The Famous Amos Chocolate Chip Cookie Corporation (M) Sdn Bhd. 4. Bookxcess Sdn Bhd. Associate Members 1. Big Bad Wolf Books Sdn Bhd. 2. Focus Malaysia Sdn Bhd. 3. Axis REIT Managers Berhad.

4. Majubina Resources Sdn Bhd. 5. APB Media Sdn Bhd. 6. EcoFirst Hartz Sdn Bhd. Affiliate Member 1. Malaysia Budget Hotel Association

JUNE 2018 Date: 27th June 2018 Venue: Quill Automobiles Ground Floor, Quill 9, 112, Jalan Semangat, Petaling Jaya Membership Update as at June 2018 Category Total Ordinary 231 Associate 203 Affiliate 16 Total 450 New Members Admitted in June 2018 Ordinary Members 1. TEG Assets Sdn Bhd 2. Cuckoo International (Mal) Sdn Bhd Associate Members 1. GoodMorning Global Sdn Bhd 2. Orion Project Management Sdn Bhd 3. Pelangi Publishing Group Berhad

Malaysia Retailer Vol 6 No 3

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MRCA Donates to Save Malaysia Fund In a patriotic reciprocal effort to the Government’s call for donations into the Save Malaysia Fund, the Malaysia Retail Chain Association (MRCA) with its 450 strong retail chain members, recently pledged RM200,000 towards the Fund.

President of MRCA, Datuk Seri Garry Chua, in welcoming the new Government’s initiatives for business friendly approach towards the business community, also said that the abolishment of GST was a practical move to spur spending, especially with the upcoming Hari Raya festivity.

He also reiterated that every ringgit saved will be channelled back into practical spending which will have a multiplier effect on the economy as a whole.

Chief Executive Officer/Executive Director Ms. Leong Kit May, said that Axis-REIT recognised that MRCA is a premier organisation representing a wide spectrum of retailers who are involved in multi-faceted businesses. “We believe that this offers us a unique opportunity to network with members of MRCA to bring mutually beneficial opportunities to each other.”

SPECIALISED BUSINESS SPACE PROVIDER FOR BOTH COMMERCIAL AND INDUSTRIAL NEEDS Axis Real Estate Investment Trust (Axis-REIT) is Malaysia’s first and largest Islamic business space and industrial REIT. Axis-REIT is a specialised business space provider for both commercial and industrial needs.

Axis-REIT’s asset portfolio covers over 8.5 million square feet of space with 42 single tenant and multi-tenanted properties located in strategic commercial and industrial hubs across Selangor, Penang, Johor, Kedah, Negeri Sembilan and Pahang.

The spaces are suited for compact SME offices, large floor plates for corporate headquarters, built-to-suit facilities and multi-acre logistics distribution centres and manufacturing facilities.

It has over 100 local and MNC tenants from industries that include business process outsourcing, logistics, aerospace & aviation, IT, electronics and medical and pharmaceutical research.

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PURVEYOR OF FRESHLY BAKED COOKIES

Founded in Los Angeles by Wally Amos in 1975, Famous Amos was first brought to Malaysia in 1983. The first hot-baked store opened in Sungei Wang Plaza in November 1984 and was officiated by Wally Amos himself. Today, Famous Amos Malaysia operates over 85 hot-baked stores with a strong retail presence in prime shopping malls and airports across Malaysia.

Being a purveyor of freshly baked cookies, Famous Amos has been serving the nation’s favourite cookies for 35 years now and still counting. The ever-popular flavour among cookies fans is the Original Chocolate Chip cookies with other favourites such as Chocolate Chip Macadamia, Double Chocolate Chip and Chocolate Chip Pecan that are freshly baked throughout the day in each of their hot-baked stores.

By using the best and finest ingredients, like semi-sweet chocolate chips and flavorful nuts, these homemade tasting cookies became famous just by word of mouth.

CHURNING A UNIQUE DESSERT EXPERIENCE Sangkaya is a local-based coconut creamery which churns a unique dessert experience. Using coconut milk as the foundation for the ice creams, Sangkaya is well renowned for its ‘Signature Series’ where 4 scoops of premium coconut ice cream are served in a half coconut shell.

“As we go on to develop new products we will always stick to what we believe: that the coconut is a ‘Super Fruit’,” said Executive Chairman, Micheal Mok, in reference to the Sanskrit term “Kalpa Vriksha”, tree that gives all life’s necessities.

Sangkaya has its own manufacturing facility which employs modern technology to produce the desired products in conformity to international standards. “The products are Halal certified by JAKIM therefore allowing us to capture the huge Muslim market. Overtime, we also began to capture the hearts of the locals with our original, natural, pure and fresh ice cream.”

Today, Sangkaya has a few outlets in Malaysia. On joining the MRCA, Micheal Mok said that the organisation is one of the best platforms for networking and resource-sharing to promote the healthy expansion of Sangkaya’s business in Malaysia and abroad.

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Famous Amos has also extended its product offerings to a wide variety of chocolates, cookie gift packing and gift hampers which are well sought-after gifts for any occasion and social gathering. Alex Ooi, Director of Famous Amos Chocolate Chip Cookie Corporation said that by joining MRCA, the company would like to be a part of this progressive and forward thinking association which represents diverse members of well-known brands in the retail industry.

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BEYOND STANDARDS PRODUCTS AND SERVICES CUCKOO, established in 1978, is a well-known brand from South Korea where one water purifier is sold every minute while one rice cooker is sold every 10 seconds. Today, CUCKOO is successfully established in 30 countries across 5 continents, including Asia. CUCKOO Malaysia opened in October 2014.

In less than 4 years, CUCKOO Malaysia has garnered over

BOOKXCESS’S FIRST 24-HOUR & BIGGEST BOOKSTORE IN MALAYSIA

BookXcess recently launched the country’s first 24-hour bookstore at Tamarind Square, Cyberjaya. With 37,000 sq.ft. of space, BookXcess Tamarind Square is the largest bookstore in Malaysia, with more than 500,000 books on offer at 50% to 80% off normal price.

“The cost of books is a concern for many book lovers.

With the launch of the nation’s biggest bookstore and half a million books offered at attractive prices, we hope to reach a wider audience in Cyberjaya, the Klang Valley, Seremban, Putrajaya and more,” said Andrew Yap, Founder and Managing Director of BookXcess.

Nestled within a beautiful landscape of lush greens, BookXcess Tamarind Square is also one of the most aesthetically pleasing outlets in the chain of bookstores.

This outlet also has an in-store café for customers to grab

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370,000 customers and has opened over 400 CUCKOO branches in malls nationwide.

It is now the regional hub for Southeast Asia branches in Indonesia, Singapore and Brunei. The company’s mission is not only to create healthy homes, but to ensure homes stay healthy.

CUCKOO’s keen eye for technology has led to several breakthroughs such as the 6-stage water purifier filtration system and the 7-stage air purifier filtration system. The after-sales service, Natural Care Service, is conducted every 4 months to maintain the quality of the products through 15-point check and filter replacements, among other services.

On becoming a member of MRCA, CEO of CUCKOO International (M) Sdn Bhd, Mr. Hoe Kian Choon said,“Together with MRCA, we believe we can amplify our potential in delivering the best products for healthy homes that are Beyond Standards. It is a great platform for us to achieve our vision of becoming the number one home appliance brand in Asia.”

a drink and a snack at any time of the day. “We want to create a reading haven at BookXcess Tamarind Square where customers can take time away from the busy city and find inspiration among the green surroundings and our books.”

Customers of BookXcess Tamarind Square can also enjoy free WiFi and make use of common areas for study and work as well as event spaces to host small events and activities for all ages.

BookXcess opened its first outlet in Amcorp Mall in 2006, and has retail outlets at the Starling, fahrenheit88, as well as gift stores called BookXcess XS in 1 Utama, SS15 Courtyard and Centro Mall, Klang. The company also offers online shopping at bookxcessonline.com to meet the needs of customers outside the Klang Valley.

2018 EVENTS

CALENDAR 20 JULY

MRCA INSTALLATION NIGHT ONE WORLD HOTEL PETALING JAYA

26-28 JULY

18 AUGUST

MALAYSIA INTERNATIONAL RETAIL & FRANCHISE (MIRF)

MRCA ACADEMY: BIZ TALK

28 AUGUST CEO NIGHT HILTON KL

NANYANG AUDITORIUM

KLCC, HALL 5 & 6

2-4 SEPTEMBER RECRUITMENT DRIVE TO EAST MALAYSIA

28 SEPTEMBER RETAIL CONFERENCE

6 OCTOBER CHARITY GOLF TROPICANA GOLF

PLENARY HALL, KLCC

KUCHING

26 OCTOBER 26th ANNIVERSARY DINNER

2 NOVEMBER DEEPAVALI CHARITY VISITATION

4 NOVEMBER PING PONG TOURNAMENT (YOUTH)

18 NOVEMBER CHARITY RUN USJ ONE CITY

ST. REGIS KUALA LUMPUR

22 NOVEMBER MEDIA ENGAGEMENT

9 DECEMBER PRESIDENT CUP BADMINTON (YOUTH)

12 DECEMBER CHRISTMAS CHARITY VISITATION

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Sephora Goes Small The chain cosmetic store opens Sephora Studio, a bold new retail experiment for them.

Sephora Studio at Newbury Street, US.

ephora Americas, a division of giant French chain cosmetic store, have unveiled a new concept for their stores, called Sephora Studio.

The first of these stores was opened at Newbury Street, an upmarket shopping street in Boston, Massachusetts, in July.

With over 2,300 stores in operation worldwide, and of those more than 430 in the United States alone, Sephora is thriving despite a downturn in brick-and-mortar retail sales that has overtaken much of the country.

Many other brands which were once the regular feature of America’s multitude of malls have been facing hundreds of store closures in recent times due to a reduction of visitors to the malls.

Sephora is noticing a changing trend where their clients make more purchases online and have less time to

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visit shopping malls where most of its stores are located. Instead, many clients prefer to shop closer to home rather than travel out to the malls.

In response to these changes, Sephora is engaging in a bold new retail experimental departure from their previous format.

Due to the smaller size of outdoor street stores, the Sephora Studio stores boast less than half the floor space of a regular store, around 2,000 square feet.

The number of brands and products have been carefully reduced, being more focused on cosmetics but include some selection of perfume and skin care.

The emphasis is to, as Calvin McDonald, President and CEO of Sephora Americas said in a press release, “merge the best of an inclusive neighbourhood retail environment with best-in-class digital tools that enable our expert beauty advisors to customise

recommendations on an individual basis.”

The eight make-up stations in a Sephora Studio are designed for ondemand one-to-one sessions and are equipped with a variety of digital tools that provide easy access and self-help for the clients as well as assist the store’s beauty advisors tailor individual recommendations for their clients.

These recommendations as well as the results of products tested by the client can be uploaded and stored in the client’s online profile to be accessed through their phone apps for future reference and visits.

Other services include cashless only payment systems. In fact, there are no cash registers and clients will have to rely on the phone app to pay for their purchases.

Also clients will be able to order items from the Sephora.com website and pick them up at the Studio store on the very same day. In addition, orders made in the store itself can be eligible for free shipping to their client’s address.

The Newbury Street store in Boston will be the first of many Sephora Studios but by no means they will replace the larger store format, but in fact they are meant to complement the regular Sephora outlets, which are located in larger malls. There are plans to have as many as 80 stores around the US alone.

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Store On Wheels Moby Mart wants to bring the store to your doorstep, literally. ot too long ago in Malaysia, stores weren’t necessarily affixed onto the ground especially in rural areas where amenities were limited. As such, in those days, vans filled with a selection of dry produce and fresh food went from place to place to serve as a mobile market for the local community.

These sort of roving markets are, however, now rare. Supermarkets and 24-hour convenience stores have taken over.

But as technology progresses, and convenience becomes a primary consideration for busy consumers, there is now a move to revive this old idea of roving markets but with an ultra modern twist.

These new era mobile stores will be without staff or drivers, will manage itself, and can be summoned to your doorstep via an app. These Moby Marts, as they are dubbed, are already in testing stage in places such as Shanghai, China.

According to its website, Moby Marts can drive themselves around, and will have no staff to man the store.

It can travel to places where it detects a high demand, and perhaps even to the doorstep of the customer which summoned it. All customer processes will be handled by a smartphone app.

Customers will first be required to sign up for an app. This app will be used to unlock the door to the store, and also to scan the items that were bought.

No cash is needed as payment is made through the app which is linked to a customer’s bank account.

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This provides a level of security along with security cameras. The stores can also stock common items packed and ready to go, to be delivered by drones when it receives an order.

The stores can be equipped to track the items on the shelves, and when it’s low on key items, it will return for restocking. There are even plans to link up different Moby Marts to enable them to restock from each other.

On top of that, its roof can be fitted with solar panels to power the electric motor that drives it. It’s shopping made ultra convenient, and ultra modern.

A prototype has already been built. It hasn’t got all the features yet but going by the description on its website, the current Moby Mart can already operate without staff, with all processes handled by a smartphone app.

The Moby Mart concept was developed by Wheelys Inc in cooperation with Hefei University in China and retail systems company Himalafy. Wheelys, a Swedish company based in Stockholm, currently operates mobile coffee cafes powered by bicycles.

Based on this experience, Wheelys has leapfrogged ahead to create an

entire mobile store which it hopes can be replicated around the world at a lower cost than building a fixed store.

Its first Moby Mart was launched as a beta test in June in Shanghai. Given the legal and technological restrictions, the store is not driverless but aims to test out the idea of a roaming store.

In fact, some experts think that it will be quite some time before a fullfledged Moby Mart becomes reality. In an article in June, online tech publication Wired said the vehicle currently appears to be quite bulky and slow, and there’s little information on how its intriguing promise of a drone delivery service will be achieved.

It may, thus, be a while yet before we can summon a store to our home but the future holds a lot of promise for stores on wheels.

Malaysia Retailer Vol 6 No 3

ADVERTISE YOUR BUSINESS IN THE OFFICIAL PUBLICATION OF

Establishing a Southern Chapter & Realising Expansion Plans

MIRF 2016

STRENGTHENING RELATIONSHIPS

A Runaway Success

Improving ties with the media industry

FLYING IN A V-SHAPE FORMATION

ON TOP OF THE WORLD

Dato’ Garry Chua, New President of MRCA Shares His Aspirations For The Association

“No substitute for hard work”

BUILDING MORE THAN HOUSING

Tan Sri Dr. Lim Wee Chai, Chairman and Founder of Top Glove Group of Companies

FUTURE IN FAST FOOD

Vol 5 No 3 2017

How Consumer Trends Affect the Industry

CEO Night Teaser A Masterclass In Transformation

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Opportunities in Cambodia & Vietnam

Vol 6 No 1 2018

MRCA Celebrates Silver Jubilee with Elegance & Glamour

Turning 25 with Pomp & Grandeur

Bigger Expectations at MIRF 2018

Dato’ Goh Cheh Yak, Founder and Group Managing Director of

Eversendai’s Tan Sri AK Nathan Stars in CEO Night

MRCA’s Strong Foothold in Johor

MRCA Charity Annual Run 2017

SITTING AT THE HEAD OF THE TABLE

Dato’ Seri Ivan Teh, Founder and CEO of Fusionex

Vol 6 No 1 2018

Budget 2018: What’s In It For SMEs? m-Commerce to Lead Growth in 2018

TURNING PASSION INTO BUSINESS Annie Low, Founder & Managing Director of BaliAyu Spa Group Sdn Bhd

SMART PROTECTION FOR RETAIL BUSINESS WM RM9 / EM RM11

Turning 25 with Pomp & Grandeur

HRDF Dato’ Vignaesvaran Jeyandran, Chief Executive of HRDF

MK Curtain Berhad Founder and Group Managing Director Dato’ Calvin Khiu

Sunway Malls Celebrates 20th Anniversary

Awarding Excellence & Value Creators

MRCA Cover_Vick.indd 1

MRCA Turns 25

MAH SING’S BUSINESS INCENTIVE GRANT PROGRAMME

Learn From The Best at The MRCA Retail Conference 2017

MASTER OF DATA

ManagePay Systems Bhd Group Managing Director & CEO Dato’ Chew Chee Seng

TENACIOUS YOUNG GUN

Vol 5 No 4 2017

Exciting Week at MIRF 2017

PAVING THE WAY FOR INDUSTRY 4.0

Budget 2017’S SME Goodies

Vol 5 No 4 2017

HR Training & Development: A National Agenda

NEW MPAY-MRCA CASHBACK CARD A BOON FOR RETAILERS

MRCA-KPDNKK Charity Run 2016

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Tan Sri Dato’ Sri Leong Hoy Kum, Group Managing Director, Mah Sing Group Berhad

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“We Build A Lifestyle”

MRCA 24th Anniversary & Crown Awards Winners

Vol 5 No 3 2017

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ADVANCING DOWN SOUTH

Challenges of Globalisation & Technology and Impact On Businesses

Vol 5 No 2 2017

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RETAIL CONFERENCE

Vol 5 No 1 2017

Flexible and cost effective insurance tailor made for retail chain owners in Malaysia

Dato’ Winnie Lim, Founder, Solution Risk Group of Companies; Zakri Mohd Khir, CEO, Allianz Malaysia Berhad & Horst Habbig, Chief Sales Officer, Allianz General Insurance Company (Malaysia) Berhad

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Vol 4 No 2 2016

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Vol 4 No 1 2016

7/6/17 1:00 AM

The new and improved MALAYSIA RETAILER highlights, informs and introduces readers to trends and strategies within the retail, franchising and branding disciplines. The quarterly magazine also features a mix of articles, including personality and company profiles, success stories, and general reports relevant to the three disciplines.

TARGET MARKET Business community interested in the retail, franchising and branding industry.

DISTRIBUTION More than 450 Members Companies & Associates in Malaysian and abroad.

Top Management of companies.

Relevant Government Ministries & Agencies, including the Malaysian Overseas Trade Office.

Relevant Business Organisations & Major Shopping Malls.

MRCA Events.

Sold in all leading bookstores nationwide.

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MRCA NEWS THAT APPEARED IN THE MEDIA RECENTLY

Malaysia Retailer Vol 6 No 3

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Malaysia Retailer Vol 4 No1