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Welcome to our first edition in 2014! We hope you enjoyed brisk business during the recent Chinese New Year celebrations.

To kick off the issue, in Rencana Runcit we interviewed several retailers to find out why they set up their own businesses. From wanting to strike out on their own to inheriting the business, we hope the experiences shared will help you take your business a step further.

We also explore a growing trend for ready-to-drink tea in this issue’s Kategori Runcit, and offer tips on how to manage unethical behaviour among shoppers in our Pak Runcit column. There are also some handy tips on how to manage angry shoppers and what you need to do in the event of a break-in in Peruncit Praktikal.

Here’s to a prosperous year ahead!

LEARNING FROM OTHER RETAILERS

EDITORIAL TEAM

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Managing a retail business and cultivating loyal shoppers is never easy. However for some, this challenge is a motivation and they continue to provide a service that is outstanding and one that put them ahead of the competition.

We asked some of these retailers to share their experiences in hope that it will inspire and motivate you to grow your business further.

WHY I BECAME A RETAILER?We focus on retailers who beat the odds and today,

manage successful businesses

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Why did I become a retailer?“I have always wanted to open a store. It is in my blood.”

Mr Ahmad opened Pasar Mini Puchong Maju by saving his his hard-earned salary as a restaurant worker for several years. His interest in starting his own business was cultivated through his family. As a young boy he learned the trade while working in retail shops owned by his relatives. These relatives still run their businesses and continue to inspire him.

Understanding his shoppers’ daily expenditure (which range from between RM5-RM10 per visit), he primarily stocks smaller pack sizes. To supplement his business, he sells meat and fish which he buys from the nearby Pudu Market. As a registered Bank Simpanan Nasional agent, he also offers bill payment services. Every now and then, he offers special promotions recommended by his suppliers.

“Don’t open a business if you have no interest or time to manage it. Do it because you really want to because it is hard work.”

AhmadPasar Mini Puchong MajuCheras, Wilayah Persekutuan

Why did I become a retailer?“I wanted to be independent and to be able to earn my own income.”

Mr Yap Wan Koi established Pasar Mini Heng Tai nine years ago. Before this, he owned a book rental store. but business didn't take off as well as he had hoped. Driven by a strong desire to be an entrepreneur, Yap decided to open his mini mart and has never looked back since.

While the recent price hikes and increased competition have become a challenge, he has adapted by selling his items at lower, competitive prices, as well as selling fresh produce which he purchases every morning from a wholesale market in town. He also takes advantage of the festive season. For example, during Chinese New Year, he sells hampers, cookies and mandarin oranges.

“You need to be able to bear the stress and constantly adapt to challenges. Do not expect short-term returns. Be patient and fruits of your labour will bring good returns.”

Yap Wan KoiPasar Mini Heng TaiKajang, Selangor

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Why did I become a retailer?“I wanted a more stable income. Plus, I love meeting new people”

Mrs Vasanthi’s KBBC Mini Mart was the first to open its doors in Villa Wangsamas Condominium’s commercial space. Her husband, Mr Ravi, was in the construction business and helped her start up the retail store. His experience proved valuable as he helped in money management, hiring of workers and merchandising.

To cater to the largely expatriate Middle Eastern residents of the condominium, she sells several provisions such as milk, juices, and canned food from the Middle East. There are about 10 different types of Middle Eastern breads for sale as well. As the condominium’s only provision store, she makes it a point to have a good rapport with her shoppers. Her value added services includes advertising room rentals or taxi services at no extra charge.

“This is a very service oriented business and you have to make an effort to understand your shoppers’ needs. If you are unfriendly or unhelpful, no one will visit your store.“

VasanthiKBBC Mini MartWangsa Maju, Kuala Lumpur

Why did I become a retailer?“I wanted to continue my father’s business”

Mr Sashi’s father retired from the army 15 years ago and opened a retail store in his hometown. From his younger days, Mr Sashi helped out in the store, learning the ropes of the business. Even after he obtained a degree in computer science, he continued to work in the store. He felt like he had found his true calling. So, when his father fell ill he was happy to run the business full-time.

The shop is well stocked with essentials and necessities of every type. This includes many varieties of vegetables, household hardware and stationary. Despite having many competitors in the same neighbourhood, the shop enjoys a steady stream of shoppers. He attributes this to providing his shoppers the best service, being friendly and extra helpful.

“If you can't offer the best price, offer the best service. Even if my prices are slightly higher, good service keeps my shoppers coming back.”

Sashi s/o ParamariePasar Mini SashaTaman Ampangan, Seremban

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ConclusionWe hope all our readers are inspired by the experiences shared by our successful entrepreneurs and can use some of this knowledge when setting up and building businesses. Success doesn’t come easy, but with hard work and commitment your business is bound to grow. 

We have all had those days when a shopper loses control of their temper, throws a tantrum and distracts other shoppers. Your worst nightmare, come true. It could be over a price increase, poor service or perhaps a discrepancy in pricing.

Although your natural and immediate response may be to get angry, you know better. Every shopper is valuable and if allowed to leave dissatisfied could have a negative impact on your business.

Here are some of the common complaints that you may face and what you can do to tackle them:

1. Price increaseWith the recent price increases in essentials like fuel and electricity you may be forced to increase the prices of products in your shop. Talk to your regulars about this inevitability. Post a notice at a proper location like the entrance or payment counter informing all shoppers to expect higher prices and apologise for any inconvenience caused.

2. Rude ServiceGood service is essential to the success of any business. Train your staff to be polite and helpful to shoppers. You can even provide uniforms to your staff so that shoppers can easily identify them when seeking help. Staff can also wear t-shirts with wordings “Ask me for help!” at the back and Thank you for shopping, please come again” in front.

MANAGING ANGRY SHOPPERS

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3. Goods returnedSometimes shoppers are likely to bring back something they bought. Have a clear policy on return of perishables and non-perishables. This could be conveyed through signs which are ideally placed next to the goods as well as at the payment counter.

4. Price inconsistencyWhen tagging goods, make sure that all products carry the correct pricing. If a shopper finds something with an old price which happens to be cheaper, it is not wise to penalise them. You can apologise for the mistake so that they are aware and prepared for a difference in pricing on their next visit.

But what should you do to calm an already angry shopper so that others can resume and enjoy their shopping? These are some of the ways:

1. Act FastWhen an incident unfolds, take a deep breath and approach the shopper quickly and in a friendly manner. If convenient, sit the shopper down and offer a drink. This helps to diffuse a potentially explosive situation and also allows you time to calm down and prepare a positive response.

2. Apologise and listenBe polite and keep your voice low even if the shopper raises their tone.. Apologise even if it is not your fault. Do not blame someone else or find excuses as this may worsen the problem. When you apologise, the tension eases and it is natural for both parties to feel less angry.

3. Be Sincere, offer a solutionShow you care by being sympathetic. Express empathy towards their frustrations. Give accurate information about the problem so that the shopper is assured that they are in good hands.. Once you have gathered the facts give the shopper some options. The solution should be fair and justifiable to both parties.

Don’t pass the buckIt is best that you manage the unhappy shopper personally so the shopper knows you are giving their issue priority. This could also make the shopper feel they are important.

Just like other insurance, robbery and burglary insurance compensates you for the loss resulting from these unfortunate events. Here is some information about this type of protection.

What does it cover? Usual coverage includes•Theft upon actual, forcible and violent entry into or exit from the premise •Damage to insured property or premise as a result of theft or similar attempt

How much is the monthly premium?Your sum insured can be based on: Full Value: insure all assets and / or property most susceptible to loss or damage First Loss: insure an estimate of the maximum possible loss in theft or similar attempt (usually minimum of 20% of total asset value)

How do I claim?•Notify your insurance company within 30 days, preferably right after making

police report.•Complete claims form with your agent & provide copy of police report and

supporting documents (such as CCTV recording, photographs of crime scene, receipts to prove purchases of lost assets).

•Make temporary repairs so you can resume business but review your policy to ensure what’s covered and save repair receipts. Don’t start permanent, major repairs until claim is complete and compensation is confirmed.

UNDERSTANDING ROBBERY & BURGLARY INSURANCE

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Be reachable and ready to talk with your agent after filing a claim to speed up the process.

THE SHELF VIOLATORIntroducing an effective way to showcase YOUR product

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Once your product reaches the shelf of a store, it has only a few short seconds to attract potential customers before they move on to another brand. Thisis why it is essential that you optimise the visibility of your product on the shelf.

That’s where the Shelf Violator from Runcit Media Sdn Bhd (RMSB) comes in. A two-sided medium that is installed at shelves where products are merchandised, it has been proven effective in improving your brand visibility and driving better sales.

WHO IS THIS FOR?• For any brand who wants to stand

out from the competition. Get shoppers to quickly notice your product, and compel them to pick your brand!

HOW DOES IT HELP MY BRAND?• “In your face” branding helps your

product stand out by highlighting your brand message over your competitors’ in a cluttered environment.

• Reinforces branding and holding power at the shelf without taking up precious shelf space.

• Stops shoppers in their tracks and directs them to the shelf where the advertised product is located.

• Two-way advertising means shoppers can see your brand from either side of the aisle.

• Shelf Violators are placed in high activity outlets in market centres, urban and suburban areas.

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IMPROVE YOUR BRAND VISIBILITY AND SALES!

SAFI FACIAL CLEANSERThe SAFI Shelf Violator allows the SAFI Facial Cleanser range to stand out amidst stiff on- shelf competition. They are installed in outlets currently carrying the SAFI Facial Cleanser range, which includes SAFI Facial Cleanser with Mangosteen Extract.

MARIGOLD UHT FRUIT DRINKThe MARIGOLD Shelf Violator is installed to support outlets currently selling at least four MARIGOLD UHT Fruit Drink SKUs. We also gather information on outlets that currently do not carry the product, but are interested to do in the future, for the MARIGOLD Sales Team to get in touch with them.

MAGGI GORENGThe MAGGI Goreng Shelf Violator aims to introduce and encourage trial among consumers. It is installed in outlets that carry MAGGI products, including the new MAGGI Kari Goreng flavour. It complements the advertised Horizontal Banner outside the shop to bring MAGGI brand’s presence from shop entry to shelf.

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A GROWING TREND FOR TEAGreen tea leads the way for the beverage category that shows no signs of

abating

Ready-to-drink (RTD) tea is a refreshing alternative beverage choice that is taking the consumer market by storm. With a 15% increase in sales globally in 2012, and 16% in 2013 (Nielsen), it is the fastest growing beverage category in the world.

Fuelling this category growth is the increased demand for a convenient healthy beverage. Nowadays, many consumers have adopted a change to healthier lifestyles, especially to their eating/drinking habits. They are looking for alternative refreshment option that is healthy, tastes good and suits their busy ‘on-the-go’ lifestyle.

In fact, RTD tea usually contains approximately 30% less sugar and calories than many carbonated soft drinks. Additionally, a bottle of RTD tea generally contains less than third caffeine than a standard cup of brewed coffee. Excess caffeine can trigger a fast heart rate, insomnia, anxiety and restlessness.

The biggest movement in the RTD tea category is green tea. An immensely popular drink in Asia, it is also gaining momentum on a global scale. It is the biggest contributor to overall sales of RTD tea – 9.5% of all RTD tea is green tea, compared with only 7.5% in 2007. (Nielsen). This is largely because green tea has many associated health benefits.

Your shoppers will love RTD tea, especially green tea, because not only is it affordable, but it is associated with many purported health benefits. As a retailer, there is a huge potential in the RTD tea category. Ask your supplier for promotions and POSMs related to their RTD teas.

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Extensive studies has shown green tea:*

•Lowers total cholesterol and raises HDL (“good”) cholesterol.•Has antioxidants which may play an important role in the prevention of cancer.•May boost metabolism and help burn fat•Is found to be effective in preventing dental caries or tooth decay•Has chemicals that may prevent symptoms of colds and influenza.

Modern production of RTD beverages, such as aseptic cold-fill processing, helps deliver beverages with higher nutritional value that also tastes fresher and natural, without preservatives.

Your shoppers will love RTD tea, especially green tea, because not only is it affordable, but it is associated with many purported health benefits. As a retailer, there is a huge potential in the RTD tea category. Ask your supplier for promotions and POSMs related to their RTD teas.

*Reference:http://www.thestar.com.my/story.aspx/?file=%2f2009%2f3%2f26%2fhealth%2f3541106&sec=health

SPONSORED DISPLAY & POSMI work with suppliers of ENFAGROW to put up various displays and point of sale materials (POSM). Not only do I get extra income from space rental and high sales of ENFAGROW, this has also increased sales of other growing up milk products because my shop is well known for offering the best prices for these products.

Jason ChuPasaraya CH Sg. LongKajang, SelangorPL: Lucas Kum

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PRAYER INCENSEWe are the only shop in this area that sells a wide selection of Hindu prayer incense. The incense ranges from regular to scented ones. This product is a real necessity because there are many Hindus in this area. And of course, they also buy other things when they come to buy incense.

BalaPasaraya BestKuala Selangor, SelangorPL: Lucas Kum

INDIAN GOODS GALORETo stand out from the stiff competition, I started to sell necessities that cater to the large Indian community in my neighbourhood. Some of the products I sell include prayer items, traditional clothes, cosmetics and traditional food my regulars love.

PravinPravin Mini MarketKuantan, PahangPL: David Teh

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BOOK RENTALI added a section for the purchase and rental of novels, comics and magazines not long after I opened this store. I had a supplier who was ready and willing to supply me with books, and just as well, as many of my shoppers are avid readers.

Chin Choi MuiKedai Min FohTawau, SabahPL: Ng Chin Chai

COIN VENDING MACHINEMany of our wholesale customers are restaurant and food stall owners. Therefore, I’ve provided this coin vending machine so they can exchange money when they shop here. This service is very convenient and the fee is reasonable. For example, if you put RM10 in the machine, you will get RM9.50 in 50 cent coins.

Y.P. LooCS Brothers Sdn BhdCheras, SelangorPL: Lucas Kum

RIDING ON PERSEVERANCE AND HARD WORKLearning the trade from young helped build a strong foundation to a

successful business.

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Can you tell us more about Deen Mini Market?The shop was opened in 1981 and I helped in the day-to-day running of the shop. As I grew older, I managed the store – from supplier relations to hiring workers and managing the finances. Over the years, I ventured into my own business selling stationary. In 2002 I had saved enough to make an offer to take over Deen Mini Market from my father. I am indebted to him for the lessons he taught me from the early years. Working with him helped cultivate my business sense and gave me a strong foundation.

How did your father play a part in cultivating your passion for doing business?He taught me the ins and outs of retail business. The two business philosophies I learned from my father are to build and cultivate a relationship of trust with my suppliers, and to offer reasonable prices to my shoppers.

Jamalludin bin Abdul Jamal was 10 years old when he started helping his adopted father. At first they sold clothes in a night market, later his father opened a retail store selling household essentials in Kampung Cheras Baru. Today, his early initiation to the trade and wealth of experience have allowed him to successfully expand the retail store, Deen Mini Market, to the flourishing business it is today. We ask him to share some of his experiences and the secret behind his success.

How are you able to sell your products at reasonable prices?I always buy my products through trade offers from my suppliers. Additionally, about 70% of the products in my store are on cash terms, because I believe in settling my dues on time. This is how I build a strong relationship with my suppliers. With the recent price increases, I try to absorb the additional costs if possible. With seven other stores in the neighbourhood, it is important that I not only provide reasonable prices, but also offer essential, additional services to shoppers as well.

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What additional services do you provide?I deliver gas and groceries to households in the vicinity of my store. I also deliver water, bread and fruits to nearby schools, two to three times a week. Many shoppers here choose their store not based on price but rather, the extra services rendered. This has given me repeat and long time shoppers.

What advice from your father would you share with other retailers?My father believes that to be a successful businessman, you have to be honest, hardworking, patient and trustworthy. This will allow you to enjoy the fruits of your labour. If you cheat, you lose that trust and your business suffer and not grow.

While many shoppers are honest, there are a few with unethical habits that can bring about losses to your business.

Here are the most common unethical behaviours that can be a concern to many operators:

a. PilferingPilferers normally pocket expensive items that come in small packages. Don’t be surprised to find some women in maternity or loose clothing trying to steal milk powder. If your outlet is located near a school, beware of school children, who can come in large groups and steal small confectionary items.

To counter pilfering, you can install CCTV cameras and/or special mirrors at strategic locations. Susceptible items, such as milk, personal care, batteries and ‘OTC’ medication should be placed at the front of shop, closer to the cashier, or locked in a cabinet.

b. Product vandalism

There is no joy to see your fresh produce dented and unpresentable because some shoppers have a habit of pressing, feeling and poking to test for freshness. Similarly, toiletries and cosmetics are sometimes ‘unpacked’ by the shopper to inspect their contents. This makes such items become unpresentable and unsaleable.

Place ‘Ask for assistance’ signs to politely remind shoppers to ask for your help. You can also place ‘tester’ items for trial purposes.

c. Changing price tags or contents

If you use price tags and do not have a barcode system, some bold shoppers will swap the price tags and check-out dishonestly. Even if you have installed a barcode system on the outside of the packaging, these shoppers will sometimes change the contents.

Stay vigilant and be aware of prices of items when shoppers check-out.

WATCH OUT FOR UNETHICAL SHOPPERS

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Use sealer cables or binders for fruits and vegetables. Check that bottle caps are still sealed when shoppers pay for their detergents and fabric softeners.

d. Adding items after weighingThis form of cheating is usually found in the vegetable and fruit section. Shoppers discreetly add items into bags after they have been weighed and price-tagged. Some bolder shoppers even top-up liquid detergents and fabric softeners before checking-out.

While you cannot fully control the movements of your shoppers, you can train your staff to watch them closely. Be aware of shoppers who:

•Avoid eye contact•Appear nervous•Leave the store and return constantly•Constantly keep an eye on you and your employees.

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