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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!

STAYING ON TOP OF RISING PRICES

EDITORIAL TEAM

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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.

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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.

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FRESH CLICKS

Bringing the wholesale ‘fresh market’ online

Segi Fresh was looking at ways to provide more

services for their trade customers. “This group of

business people are very busy with little resources”,

said Fong Leong, Head of Business Unit, Segi Fresh.

“The online sales portal is our solution to reach out

to them”, Fong continued.

Segi Fresh formed a new sales and marketing team

to promote their portal. However, they still utilised

their current resources for some functions such as

picking, packing and delivery.

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

very own online portal,

SegiFresh2u.com.

Knowing their customers

An initial challenge for Segi Fresh was

determining the needs of their online

customers. “It was all about

understanding their buying patterns and

preferences”, said Fong. While other

players targeted consumers, Segi Fresh

focused on trade customers who form

90% of the portal’s customer base. Also,

SegiFresh2u.com delivers free-of-

charge.

Segi Fresh is positive of about online

shopping. “Try it out”, said Fong. “We

are confident you will realise the

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

Selangor Menteri Bear, Dato’ Seri

Mohamad Azmin in May 2015.

Segi Fresh’s Head of Business Unit, Fong Leong (centre), and Chia Ah Keong, Director (left), at a press conference for the launch of online portal, SegiFresh2u.com

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Taking Lim Soon Huat To The Next Level

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.

Father and son team of Lim Han Kong (L) and Lim Ming Fei (R)

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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.

5. Is the general trade still important to you? What advise do you have for the general trade?

LMF: The general trade will always be important to us. Over time, lifestyles change and people

start looking for different things. It is important for retailers to progress along with the market. We

try to encourage retailers to embrace change such as emphasising on their customer services and

giving consumers a total shopping experience.

6. What are your principles for success?

LHK: In this business, we believe in two important things – be honest and sincere and always give

good service. We must not take advantage of others nor should we let others take advantage of us.

And accept that we have to make small sacrifices along the way.

House brands:

Among other distributed brands:

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Rustic Charm Of Bagan Datuk Towns

Quaint fishing village

Bagan Pasir Laut is a traditional fishing village located near Sungai Bernam, which runs along the borders of Perak and Selangor. This Chinese village is home to a predominant Hokkien community, but the locals also speak Mandarin and Hock Chew.

Stroll along the narrow streets, you will find a well-known specialty here that can hardly be missed. Baked prawn noodles are commonly found in Bagan Pasir Laut. Freshly caught prawns are used to make the noodles, before being baked, sliced into strips, and finally left out to dry under the sun. Although many households produce prawn noodles, it is not widely distributed –

Novelty dishes

A trip to a fishing village is not complete without savouring some of its popular eats. Kedai Kopi Lee Teng Hou is a coffee shop that serves prawn noodle dishes, a novelty to many out-of-towners. Owner and village head, Mr Lee Teng Hoh tells us that the prawn noodles can be cooked as soup noodles, or stir-fried in a dark, fragrant sauce, much like the KL-style Hokkien Mee. Other dishes to try include “ham jian” (fresh cockles omelette) and prawn omelette.

Sree Rama Temple is a Hindu shrine located in the Kuala Perak Estate. This area is also famous for its rich ethnic heritage that is mainly Rama devotees. If you are in the area, drop by for a visit!

Travelling along Jalan Bagan Datuk (Route 69), palm oil and coconut plantations are common agricultural views. The area is also home to several riverine villages in the newly formed district of Bagan Datuk. For many of the residents here, fishing continues to be the main economic activity.

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A BOLD MOVE After his father passed away in 1990, Mr Suppiah took over his retail business. Determined to grow the business in his father’s honour, he took a risk and later on invested to rebuild his shop to a much bigger one. Today, it is one of the most successful businesses in Hutan Melintang, Perak. Here is his story.

RMM: You run your business in this big building that you own. Can you tell us more about this?

My father used to tell me that instead of just inheriting his small business, he wanted me to expand it, and that was what I did. I used almost all of my savings to build our own shop so we don’t have to pay rent anymore. I am also grateful to my late father’s friend who lent us a large sum for the expansion. With this big building, I can keep a lot of stocks and expand my offering. It was a bold move but the business has grown tremendously since then.

RMM: You are known to offer the lowest prices in this area. How do you manage to do that?

Having a big store allows me to buy in large quantities. I take shorter terms and pay cash for some items. I set higher margin for slow moving items and lower margin for popular products, especially perishables so they sell faster. I rent out some space for brand owners to do merchandising, then use the revenue to offset my cost and offer lower prices for certain items.

We are known through word of mouths. My customers come from as far as Sabak Bernam once they know how low our prices are. Our closest competitor is a hypermarket but even they can’t compete with our prices since they have a high rent to pay.

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RMM: Your shop can be considered a one-stop centre. Can you elaborate on this?

We want to provide convenience for villagers here. We open early at 7am so those who are going to school, work or need something for breakfast can shop here. We offer fresh produce that are kept properly in chillers and sell petrol since the nearest station is quite far away. We do delivery for big orders for weddings and ‘kenduri’. We also provide bill payment service at a fixed charge of 50 cent regardless of the bill amount. We even do it for free if the amount is very low.

Apart from that, we sell products and equipment that are used by local businesses such as fishing, plantations, animal farms and constructions. You can find anything from fertilisers, animal feed, to cement and plywood here. We also do wholesale trading which helps to move my stocks even faster.

RMM: What is your advice to other retailers?

Learn how everything is done so you can train your staff and ensure they cannot cut corners. It is very important to build trust with suppliers. One of the reasons I kept my father’s shop name was because it was already well known among suppliers. I call my customers ‘cikgu’, it is my way of being friendly with them. Avoid bad debts by making sure customers always pay in cash.

I believe that doing charity will bless you with success. From helping fire victims, sponsoring a football team, contributing to children with special needs and building temples, I try to help as many people in need as long as the donations go through the right channels.

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SHARE YOUR STORY With other retailers here! Contact Ms Chua Soah Sen at 03-7957 1718 or inform your Field Supervisor about it.

A Tender For Big Business In a time where competition in the retail business is on the rise, I applied for a tender to send grocery items to the institutions in Sungai Besar and Sabak Bernam. I successfully acquired the tender and with that, I have increased my profits and that allows me to compete with the other shops. Siti Zubaidah Bt Husni Sitaz Trading & Services Sabak Bernam, Selangor FS: Ery Azrul

Toys And Snacks For Kids In order to increase my sales, I started to sell items that are suitable for children. I offered various kinds of snacks and toys which they like. With this, the kids like to visit my shop and this has contributed to my profits. Mujibur Rahman Bin Haji Habeeb Muqaddam Mart Bukit Mentarjam, Pulau Pinang FS: Sam Lee

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Confidence And Patience That Brought Results When I started my retail business in 1997, I did not sell many items. I started by selling only kitchen essentials. However, with patience, confidence and a ‘never give up’ attitude, my business managed to grow and I then started to sell grocery items. I believe that a shop should be neat in order to attract customers to visit. Vijayakumar A/L Rajamorthi Kaas Thanaletchumy Stores Johor Bahru, Johor FS: Mohammad Amirul Bin Abd Malik

Selling The Essentials For College Students As my shop is located near to higher education institutes and student dormitories, I started to sell items which cater to their needs. Among the items that I sell are accessories and additional gadgets for mobile phones, laptops and tablets. By selling these items, my store has became an attraction spot in this area. Mohamed Ahasan Ullah Fadhilah Kadir Enterprise Seremban 2, Negeri Sembilan FS: Lucas Kum

New Shop, New Offerings Recently, I renovated my shop to renew it after opening for 8 years. I provide a clean and comfortable environment to attract customers. I also offer delivery services for gas and grocery items. My shop also provides bill payment services for electricity, water as well as Astro, and also sells mobile phone cards. My wife will operate this business. Vijayan A/L Chamoo Sajithra Enterprise Ipoh, Perak FS: Peter Lim

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