RMM48 ENGLISH 1 RMM48 ENGLISH STAYING ON TOP OF RISING PRICES 2016 has brought some ups and downs. However, one thing that we hope to not go up was prices. Recent events and policy changes have seen the prices of a number of goods and services rise. With this, many consumers and businesses begin to respond by taking precautionary steps. In this issue, we share with you 7 tips you can practice to stay on top of rising prices. As challenging as it may seem, there are still positive steps you can take to seize opportunities and improve your business. Also in this issue, we share the importance of having a simple duty roster in ‘Operasi’ to help you schedule your cleaning duties. We speak to Segi Fresh about their e-commerce portal and wholesalers, Lim Soon Huat about moving forward with their business. Over at ‘Wira’, we meet a retailer in Bagan Datuk whose risk-taking has paid off. What else is in Bagan Datuk? Turn over to ‘Jalan-Jalan’ to find out more. To all our readers, happy reading! EDITORIAL TEAM 2 RMM48 ENGLISH 3 7 TIPS TO STAY ON TOP OF RISING PRICES Time flies quickly. It is 2017, Chinese New Year has just passed and the GST has already been implemented for nearly two years. While we can look forward to preparing for the coming Hari Raya Puasa, there certainly have been events and policy changes in recent years that affected many businesses. For instance, there were subsidy removals for utilities, transportation, sugar, and most recently, cooking oil. Petrol prices may have gone up and down, but generally, everything else have stayed up! It is no wonder that our Rakyat feels that the cost of living is rising. However, this doesn’t mean you should operate like ‘business-as-usual’ and hope that everything will turn better. There are always positive steps you can take to mitigate the situation. Here are seven business tips you can practice to help you stay on top of rising prices: 1. Focus on fast-selling products When consumers spend more cautiously, products that are of high value and come in smaller packs generally sell faster. You should stock more of these items, but at the same time, be open to carrying new products as they may bring new opportunities. Talk to your distributor and find out more about the brand before making your decision. 2. Make a good first and lasting impression Having the right assortment of products and prices do not always guarantee good traffic. Uplift your store. Remove old posters and consider installing an attractive signboard for a fresh new look. Ensure your shelves are clean and well merchandised. Project a bright, clean and enticing image. Even though a customer may not buy anything, she will leave with a positive impression. 3. Be open to all possible promotions Many distributors offer promotions in the form of free gifts (mugs, bowls, etc). As consumers are more cautious with spending, value packs (with extra quantities) and twin packs are popular. Be open to many types of promotions as they are designed to help drive sales. Brand owners would have done research and know what works during a slower economy. 3 RMM48 ENGLISH 4 4. Negotiate win-win deals with suppliers Both you and your supplier want your stocks to move. After all, you don’t want to incur extra storage and your supplier wants to minimise returns. For example, trade marketing support in the form of POSMs and smaller orders with longer payment terms. Suppliers want to help you help them. A good deal is a win for both parties. 5. Convert your space into advertising opportunities If you have a high traffic space in your store, consider renting it out to brand owners for some advertising opportunity. The brand owners will setup a structural media to showcase their brand. Generally, these arrangements suit high volume and fast-moving products. If you have the space and want to explore this opportunity, contact Runcit Media to help you liaise with the brand owners. 6. Sell alternative brands When prices are rising, consumers are more open to alternative, economical brands that can give the same, if not, more value. This includes food items (example: condensed milk, cordials, etc) and functional products (example: dishwashing liquid, bleach, floor cleaners, etc). Although they are loyal to some brands, most consumers don’t mind switching as long as they can do the job. 7. Take note of your surroundings If you pay closer attention to your surroundings, you may discover new opportunities. For example, if there are burger stalls nearby, you should stock burger buns, ketchups and wrapping papers. Similarly, if there are food outlets nearby, consider stocking takeaway containers, plastic cutleries and sauces. Other businesses can create business for you! There you have it, seven tips that can help you stay on top when prices are rising. If we work smart, be observant and operate with some discretion, there are always opportunities even when times are challenging. Note: These tips are written with consultation and research. It is not intended to replace sound business practices and experience. You should always with run your store with good judgment, ethics and discretion that suit your environment. 4 RMM48 ENGLISH FRESH CLICKS In our past Issue 47, we explored maximising technology for businesses. Now, we look at how one wholesale retail hypermarket, Segi Fresh, successfully started its Knowing their customers very own online portal, An initial challenge for Segi Fresh was SegiFresh2u.com. determining the needs of their online customers. “It was all about Bringing the wholesale ‘fresh market’ online understanding their buying patterns and Segi Fresh was looking at ways to provide more preferences”, said Fong. While other services for their trade customers. “This group of players targeted consumers, Segi Fresh business people are very busy with little resources”, focused on trade customers who form said Fong Leong, Head of Business Unit, Segi Fresh. 90% of the portal’s customer base. Also, “The online sales portal is our solution to reach out SegiFresh2u.com delivers free-of- to them”, Fong continued. charge. Segi Fresh formed a new sales and marketing team Segi Fresh is positive of about online to promote their portal. However, they still utilised shopping. “Try it out”, said Fong. “We their current resources for some functions such as are confident you will realise the picking, packing and delivery. benefit”. Fresh Facts! Segifresh2u.com took only less than 3 months to set up at an investment of less than RM50,000. It was launched by the Segi Fresh’s Head of Business Unit, Fong Leong Selangor Menteri Bear, Dato’ Seri (centre), and Chia Ah Keong, Director (left), at a press conference for the launch of online portal, Mohamad Azmin in May 2015. 5 SegiFresh2u.com 5 RMM48 ENGLISH Taking Lim Soon Huat To The Next Level Father and son team of Lim Han Kong (L) and Lim Ming Fei (R) Since the 1970s, Lim Soon Huat has been a well-known wholesaler and supplier among sundry retailers in Selangor and Kuala Lumpur territories. It was founded by Mr Lim Ngak Peow who started the Soon Huat grocery store in Pasar Baru, Pudu, Kuala Lumpur. The business has since expanded and moved to Taman Kepong, KL, where they have been operating for over 30 years. Today, the business is run Mr Lim’s son, Lim Han Kong, and grandson, Lim Ming Fei. Together they service key business partners such as Unilever, Wipro-Unza, L’Oreal, Fantés, Homefarm and Nutrihome. We caught up with Lim Han Kong and Lim Ming Fei, and how this father-and-son duo plans to take the family-run business to the next level. 1. How did Lim Soon Huat begin? LHK: Lim Soon Huat started in 1973 in Jalan Pasar, Pudu. There were over 20 grocery stores then. With my father’s foresight, we started to focus on wholesale and shifted from Pudu to Maluri. 2. How did Lim Soon Huat become a name that people remember from those days and even today? LHK: LSH approached retailers directly to take orders. We had good assortment, gave good service and did deliveries. Since everything was on a cash basis then, we were one of the few that gave credit terms. 6 6 RMM48 ENGLISH 3. Besides the general trade, what other channels do you service? LMF: We service mainly the general trade, but we do work with the modern trade as well. We work with the principals and expand along with them and go to whichever channel the products can sell. In the past, we service Chinese medical halls. Today we are starting to service independent pharmacies such as AA, Healthlane and Big. We also service some of strategic wholesalers in the rural-based communities. But our focus will still be on our direct channels like the independent pharmacies and provision stores. 4. You now have formed another subsidiary, Lim Soon Huat Agency. How did this come about? LMF: I first started working in marketing research, dealing with multinationals like GSK and Nestle. One day my dad told me that Unilever wanted to set up an independent operation – and I jumped in on the opportunity. So we formed LSH Agency to service Unilever. We aim to be more relevant to the trade as the market evolves. We want to be a service provider to retailers and not only a distributor who sells goods. Hence, we assist in merchandising and increasing product visibility in-store to help retailers be more competitive in their business.