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OFFICIAL LAUNCH ISSUE

Malaysia’s 1st Business Improvement Magazine For The Traditional Retail Trade

Retracing theevolution ofMalaysia’s Retail Industry

A MOMENTOUS EVENTJoin us in commemorating thelaunch of Runcit MalaysiaOfficiated by

YB Datuk Hj Mohd Shafie bin Hj ApdalMinister of Domestic Trade & Consumer Affairs Malaysia

Ministry of Domestic Trade &Consumer Affairs Malaysia

Endorsed by

�

Foreword

A Momentous

Ministry of Domestic Tradeand Consumer Affairs Malaysia

Endorsed by:

In collaboration with:

Malaysia Milk Sdn Bhd

Publisher

Infovantage Sdn Bhd (47�599-M)

Suite 1�.01, 1�th Floor, Menara Merais,No 1, Jalan 19/3, 46300 Petaling Jaya,

Selangor Darul Ehsan.

Corporate OfficeTel: +603 7957 1718

Fax: +603 7956 5109

Editorial Office Tel: +603 51�� 5385

Fax: +603 51�1 5��6

runcitmalaysia@runcit.com.my

PP 14167/6/2006

Editorial Team

AdvisorChow Nyuk Loong

Manager, Editorial ServicesDarius Chan

EditorsStephen Tan, Alan De Souza

Creative DirectorJohn Wong

WritersAdeline Wong,

Sherin Almashor, Phill Teoh

Graphic DesignKinson Tham

PrintingAtlas Cetak Sdn Bhd

ADVERTISING SALES

Elenie TanHead of Client Service

Runcit Media Sdn Bhd (15535�-V)Tel: +603 7957 1718Fax: +603 7956 5109

elenie.tan@runcit.com.my

Runcit Malaysia is an educational magazine published by Infovantage Sdn Bhd. The contents of this magazine are the copyright of Infovantage Sdn Bhd. No part of this publication may be reproduced in any manner or form without written permission from Infovantage Sdn Bhd. All contributions whether solicited or unsolicited, and if selected for publication, will be subjected to editing of style and content at the discretion of the Editorial Team. Unsolicited materials are sent in at the owners’ risk. All care is given to ensure that information in the magazine is correct at the time of printing. However, Infovantage and its representatives accept no liability for loss or damage. Runcit Malaysia magazine is a professional trade magazine distributed on a complimentary basis to retailers in the traditional trade.

Copyright © Infovantage Sdn Bhd 2006

With this strong endorsement from the Ministry, Runcit Malaysia Magazine and its partners hope to champion

the transformation of the traditional trade into a modern and more efficient business entity, one which can stand up to the challenges posed by much larger retail outlets.

With more collaboration from all parties involved in the magazine, we are confident we will be better placed to advise traditional retailers on best business practices and trends and to provide insights to strengthen your business in this fast-changing environment. On your part, you can help us by providing feedback on your own experiences and problems.

We learned a lot while putting together the last three issues, especially in analysing the data we obtained from our surveys of traditional retailers. This valuable information will be used to further improve the magazine, whose main objective remains the same: to cater to your specific needs.

Subsequent to issue 4, some changes will be incorporated to enhance our education programme. For a start, Runcit Malaysia Magazine will be published on a quarterly basis, effective from issue 5. This is in line with our customer ‘call cycles’ as the magazine is distributed by hand to retailers. This face-to- face distribution method will encourage more feedback from retailers, besides adding that personal touch.

In conjunction with the official launch of the magazine, we will also be introducing our official website – www.runcit.com.my. The website is targeted at our secondary audience (marketers)

and will contain the English version of the magazine.

To commemorate this launch issue, we pooled all our resources to put together an ambitious article called ‘Retracing the Evolution of Malaysia’s Retail Industry’. It tracks the evolution of the retail industry over the last four decades and looks at the many challenges which have led to a decrease in traditional retail outlets and growth potential.

The article gives retailers an account of the changes that have taken place since the 1960s, why they occurred and their impact. It looks at the major structural shifts the traditional trade has experienced: economic, infrastructural, product distribution and consumer preferences. We also spoke to manufactures about how their brand strategies and marketing programmes have evolved. The article ends with a glimpse of the future by focusing on the business models and store formats that have emerged in other markets.

Lastly, we again call on all parties to come forward to participate (directly or indirectly) in this noble programme to help modernise and transform the traditional trade into a dynamic business sector.

Happy selling!

WILLIAM KHOOExecutive Director,

Infovantage Sdn Bhdwilliam.khoo@runcit.com.myRuncit Media Sdn Bhd

(formerly known as Rural Reach Sdn Bhd)

OccasionWe are proud to announce that this, the 4th issue of Runcit Malaysia Magazine, will be officially launched by the Minister of Domestic Trade & Consumer Affairs, YB Datuk Hj Mohd Shafie bin Hj Apdal, on March 28.

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Terima Kasih!On behalf of all traditional retailers in Malaysia,

we express our most heartfelt thanks to

for graciously officiating

The Momentous Launch of

Malaysia’s 1st Business Improvement Magazine forthe Traditional Retail Trade

Endorsed by

From the Management & Staff ofRuncit Media Sdn Bhd

YB DATUK HJ MOHD SHAFIE BIN HJ APDALMinister of Domestic Trade & Consumer Affairs Malaysia

Ministry of Domestic Trade &Consumer Affairs Malaysia

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EVOLUTION OF MALAYSIA’S

RETAIL INDUSTRY

In the conjunction with the launch of Runcit Malaysia magazine, we walk down memory lane to take stock of the changes that have shaped our diverse and dynamic retail landscape.

I have fond childhood memories of shopping with my mother at the wet market and provision shop in our neighbourhood. It was also with her that I later discovered modern shopping

when our town’s first departmental store and supermarket opened. That wasn’t too long ago so I’m sure many other people would have experienced the same changes as I did. We thought nothing of them at the time. As consumers, we always welcomed changes; it was fun having new things to buy and new places to buy them. Now that I’m working with the retail industry, I have come to understand that many of those changes had profound and long-lasting effects on manufacturers, distributors, wholesalers, retailers and even consumers, like me. I thought it would be interesting to revisit the last 50 years and take stock of what we all went through.

Socio-economic change

There is every cause to celebrate Malaysia’s progress since Independence. We are the world’s largest palm oil supplier with well-developed upstream and downstream activities, we manufacture our own cars and motorcycles, we have a multimedia super corridor, our national petroleum company is represented in F1, and our twin towers stand proud as one of the world’s most impressive monuments to national achievement. Let’s not forget that we have also become a shopping centre, attesting to the sophistication of our retail industry which had developed in tandem with our economic leaps forward.

Our retail evolution really began in the 1960s when the Government accelerated the process of transforming our then-largely agrarian economy into one with thriving manufacturing and services sectors. Our infrastructure had to be upgraded in order to support our new economic activities. Roads, ports, airports were improved and new ones were built. Industrial

zones were designated and developed in most states (eg Ayer Keroh in Melaka, Pasir Gudang in Johor and Kulim in Kedah).

With the country needing an unprecedented level of connectivity, highways began to criss-cross the map. Some small towns were literally bypassed and many of their shops ‘died’ from a lack of traffic. This, plus the demand for labour in the towns and cities, spurred a tide of urban migration from the ‘kampung’. This was especially evident in the Klang Valley where all the action seemed to happen. The bustle of Kuala Lumpur overflowed into satellite areas (like Petaling Jaya and Shah Alam). But it wasn’t enough; cities soon became too congested for comfort and for the last 10 years or so, people have been moving out to live in suburban townships.

As a result of these shifts, Malaysia’s population had become more urban. People had settled down where they found work (so much so that with the passing of years, fewer people are now making the obligatory ‘balik kampung’ trip for festivities). With the majority of consumers concentrated in these large population catchment areas, the challenge of meeting their demand for goods and services presented enormous opportunities to

the retail industry. As for those still residing in rural areas (approximately 38% of the population today) provision shops and wet markets continue to be the only outlets for grocery purchases.

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Manufacturing steps up

Encouraged by the Government’s favourable industrialisation and pro-foreign investment policies, many fast-moving consumer goods companies started setting up manufacturing

facilities in Malaysia with the intention of catering to both the local and export markets. The wheels of industry pretty much chugged along until the �000s when the ASEAN Free Trade Agreement (AFTA) was implemented. In line with the World

Trade Organisation’s principle of market liberalisation, some manufacturers decided to centralise the manufacturing of certain products in our neighbouring countries. This provided them with greater economies of scale which, in turn, translated into better cost-efficiency. As such, consumers were not affected much, other than the fact that they were now using products manufactured elsewhere. Local manufacturers without overseas operations had to work harder to stay competitive. Those that had progressively upgraded their facilities, automated their production processes and adhered to international quality standards were obviously in better stead than the laggards who were clearly at risk of falling out of the race.

Getting products to the people

The modern trade

Some 50 years ago, provision shops, wet markets and single-lot main-street shops used to be the main places to buy anything. When the Weld opened in 1963, it inspired the opening of similar supermarkets/departmental stores like the Emporiums, the Yuyis, the Yaohans, Kimisawa and a host of locally-owned establishments as well. But things were still simple then – consumers’ shopping choices boiled down to either the provision shop or the supermarket/departmental store. No one is really sure when the modern trade really came into being. Perhaps it was when organised, chain stores with structured campaigns, uniformed offerings and even their own house brands (like 7-Eleven and pharmacies) started coming to the fore. The coming of the hypermarkets (beginning with Carrefour in 1993) firmly entrenched the modern trade as an integral part of Malaysia’s distributive system. When giants jostle for space, new territory will inevitably be claimed. By the 1990s, these modern stores had also found their way into the suburban townships.

Mindful of the power of the modern trade, the Government restricted foreign participation in the distributive trade services sector. But while only a handful of multinational modern retailers operate here, there are now a total of 451 supermarkets, 35 hypermarkets and 8 cash-and-carry stores in Peninsular Malaysia alone. They are enough to pose serious competition to the �5,586 provision stores, �,894 sundry toiletry stores and 1,988 Chinese medical halls that operate in their vicinity (statistics courtesy of ACNielsen �004 Retail Store Universe Report).

Made in Malaysia or somewhere else, products had to reach the consumers in the most efficient manner. While cities were relatively easy to handle, there were also thousands of towns, pekan and kampongs to service as well. So, manufacturers started to modernise their distributive services. Various types of central distribution centres were established by manufacturers, wholesalers, and a few foreign companies that specialised in central warehousing, central distribution, and even specialist handling of refrigerated products. The central distribution centres were all supported by high-tech supply chain systems, like ERP and SAP to ensure efficiency and minimise downtime. Some other manufacturers also began to review and upgrade their distribution network by adopting key wholesalers to focus on their businesses. A number of manufacturers even went to the extent of modernising their distributors whom they consider long-term partners. The desired result of all these activities was to ensure that the right products in the right SKU could get to consumers at the right time, in the right quantity and to the right types of outlets.

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Media fragmentation

Marketers, too, came under pressure. They needed to effectively position and promote their brands so that consumers would pick them over their competitors. Advertising was seen as the logical

solution. Radio had been with us for a while but in the 1960s, television came along. Appearing first in black and white, TVs eventually burst into full, living colour in the 80s. TV’s ability to bring brands and products onto the screen right inside the home dramatically changed the way companies did business. But there were two problems. The first was that the number of brands was growing and many of them could get on TV, too!

The second problem was that the mass media itself was fragmenting. The New Straits Times is the oldest newspaper but there are now no less than �0 newspapers, not to mention countless magazines. In the 60s and 70s, everyone had only two TV channels to watch. That was a fantastic time to build a brand through TV commercials. Who doesn’t remember “Maggi mee, cepat dimasak, sedap dimakan”? But things started getting more complicated from the 1990s. We now have about 30 to 40 radio stations. With TV1 & TV�, NTV7, TV3, ASTRO, TV8 and, a marketer can’t reach more than 3 million people in a single TV programme.

As a result, some marketers are turning to email and dedicated websites to promote their brands as part of customer relationship management, a relatively new marketing approach that is normally associated with loyalty programmes that build touch points and enable direct interaction with consumers.

Very few products can resist evolving every now and t h e n b e c a u s e c o n s u m e r s general ly want new var iants, new packaging and new SKU t o s u i t t h e i r e v e r - c h a n g i n g l i f e s t y l e s . Convenience and, to some extent, health- and environment-consciousness, are the most important factors that influence consumer choice. Marketers know this and have not stopped inventing new ways to get people to consume their products. Hence, many food products now come “ready-to-eat”, “ready-to-drink”, “microwaveable”, “enriched”, “fortified”, “low-fat”, “high-fibre”, “low-sugar” ... the choices go on. Even water, which used to be almost free, has become one of the fastest growing commodities and is flying off the shelves in all kinds of SKU!

Non-food items are also evolving. Bath soap works just fine in bars but, in liquid form, it somehow turns the act of cleansing one’s body into a luxurious experience in the minds of consumers. Laundry detergents are also not spared. Originating as copra-based bars a long time ago, they now appear in the form of synthetic bar soap, detergent powder, compact powder and liquid laundry for washing machines. When it comes to laundry, floor and dishwashing detergents as a total category, bio-degradability is almost expected. Germicidal and antiseptic formulations are also available for the health-conscious.

All these lifestyle-related values have to be captured not only on the labels but, in some cases, by the packaging concepts as well. This has brought about unprecedented packaging revolutions. Once, there were only tins, glass bottles, plastic bags and cardboard boxes lining the shelf. Now, there’s also highly versatile PET bottles and Tetra Pak aseptic carton packaging.

Products galore!

On a more widespread basis, marketers are turning their attention to the stores themselves. They are prepared to compete with retail media at the point of entry and purchase, in the aisles and on the shelves. In-store point of purchase media has proven to increase brand and retailer performance. According to surveys by the US-based In-Store Marketing Institute, mailers and in-store signages are the main reference points for purchase decisions. Above the line advertising has a much lesser influence. Clearly, Malaysian marketers are also responding to this insight as many have increased their investments in-store point of purchase media. With the mass media being as fragmented as it is and consumers having too little time to ponder their choices, the shopping aisles and shelves are the marketers’ last line of defence and the place where victories are won.

Sale time!

From what I hear, there was no such thing as a “sale” in the old days. It was a practice introduced by the modern trade. The famous “Parkson Sale”, “Metrojaya Sale” and “Isetan Preview Sale” were highlights in the KL calendar. Competing hard for the retail ringgit, hypermarkets, supermarkets and some pharmacy chains started implementing perpetual sales concepts, such as “loss-leader sales”, “everyday low price”, “gift with purchase”, “purchase with purchase” and so on. Catalogues and direct mailers, although expensive, became an indispensable tool to lure consumers with the promise of price cuts. The modern trade continues to use all these promotional tactics but it is interesting to see that the practices are catching on among some of the more progressive retailers in the traditional trade, too.

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Provision shops

Mini-markets

Supermarkets

Hypermarkets

Night markets

Wet markets

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Different trips

“Our omnibus study revealed that most consumers make their “stock up trips” at hypermarkets and supermarkets. Consumers are prepared to spend more time shopping.

“On the other hand, provision shops – because of their proximity and convenience – dominate when it comes to “fuel up trips” and “quick trips”. When time is limited, such small format shops are clearly the winners! The fact that the Malaysian population is mainly concentrated in suburbs and rural communities works in favour of wet markets and provision shops. This is reflect by the fact that consumers still visit these outlets at least twice a week – that’s a lot more frequently than they visit the modern trade.”

The future in convenience

Watt stresses that retailers cannot afford to ignore the fact that it matters how convenient it is for consumers to get to a store and how close to home it is.

Watt says: “As the country developed, consumers’ lifestyles also changed. You can see it most clearly today. Malaysians are more educated, more women are participating in the workforce, more couples are working and, in some cases, you also see people getting married and having families later in life. Malaysians are busier than ever with their careers and, for those on the fast-track, shopping convenience is highly important.”

With so many shopping outlets to choose, less time on their hands and being averse to traffic jams, consumers simply had to choose where to buy what. This led them to define the shopping trips they intended to make. According to ACNielsen’s Managing Director, Stephen Watt, there are three types of shopping trips that people make. He explains: “The first type are the “stock up trips”. You spend the most money on these trips that usually happen at the beginning and end of the month when you get your pay. The second type are “fuel up trips” which are made weekly, mostly to buy fresh produce. The third type are “quick trips” for items like cigarettes, canned drinks, confectionery and small household items that you urgently need.

Changing consumer lifestyles

In the old days when “needs were simple and wants were few”, marketers and retailers used to have a relatively easy time catering to consumers. After all, consumers were defined by demographic factors, like age, race, income levels, and urban or rural location. But consumers were becoming more educated, affluent and exposed through the mass media, they became spoilt for choice. Armed with cash,

credit cards, debit cards and charge cards, they now had the means and the facilities to buy whatever they wanted, wherever they wanted. With mobile phones and internet-ready personal computers, they could even shop from home!

Marketers had no option but to try and predict how consumers would behave towards their brands and products. Marketers are starting to take note of the growing rise of the middle-income Malay community which is showing signs of becoming the new most important consumer segment. Consumer research is being commissioned through organisations like ACNielsen and TNS. Today’s consumers have been defined by terms like “Yuppies” and more recently, “Mr Hip” and “Ms Fashionista”. It’s not just how much they earn that matters but how they live and think. Suddenly, consumers are not all the same. There are the “kiasu”, “bargain seekers”, “free-gift seekers”, “IT-savvy” and other denominators to contend with.

Hypermarkets

Supermarkets

Provision shops

Mini-markets

Wet markets

Dept stores

Provision shops

Mini-markets

Supermarkets

Convenience stores

Hypermarkets

Wet markets

Stock Up Trips Fill Up Trips Quick Trips

Source: ACNielsen

Shopping Trips by Trade Channels

Wet marketsHypermarkets Traditional grocery

Supermarkets Convenience stores in gas

stations

Personal care stores

Provision outlets, convenience stores & wet markets are getting the most number of visits per month

Trade sector average number of visits per monthSource: ACNielsen

Convenient to get to

Close to home

Food & groceries are good value for money

Always what I want in stockAttractive & interesting promotions

A place where it’s easy to quickly find what I need

Low prices for most items

Modern & comfortable store

Good range of fresh productsEverything I need in one store

Own brands are good alternatives to main brands

Better selection of high quality brands & productsWell-presented display of products

Staff provide good serviceSpacious

Efficient check-out countersWide product range & variety

Clean & hygienic store

Ease of parking

How shoppers decide where to shopImage associations: What is relevant to shoppers

Source: ACNielsen

Stephen Watt, Managing Director,ACNielsen (Malaysia) Sdn Bhd

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READERS’ POLL

Do you agree that your business will get better as the Malaysian economy improves?

r Yes r No r Not sure

Do you know whether the products you stock are manufactured in Malaysia or elsewhere?

r I know where ALL my products are manufactured

r I know where SOME of my products are manufactured

r I do not know where ANY of my products are manufactured

Do you know who are the distributors for the products you sell?

r Yes, for all products

r Yes but for some products only

r I am not sure who are the distributors for the products I sell

Do you think that shop signages and in-store point-of-purchase media improves your sales?

r Yes r No r Not sure

Do you agree that marketers launch many products and SKUs to get bigger market share?

r Yes r No r Not sure

In your opinion, has the recent petrol price hike adversely affected sales in your shop?

r Sales are not affected at all

r Sales are affected slightly

r Sales are affected significantly

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The evolution continues

Much has changed in just 40 or 50 years and, as a consumer, I must admit to the joy of having so much diversity in terms of the brands, products and outlets in our retail industry. I am also happy to see that the traditional trade is co-existing with the modern trade to serve the majority of people, like me, who shop in both types of outlets. Like most Malaysians, I like a mix of the modern and the traditional, the sophisticated and the simple. This probably explains why I’m equally comfortable in a posh restaurant and a mamak store.

But the main thing about evolution is that one needs to be fit to survive. It’s not just the traditional trade that has suffered over the years. We have also seen many modern trade outlets come and go. So, it’s time for all retailers, especially those in the traditional trade, to put into practice the principles of retail survival. Know your consumers. Understand their lifestyles. Stock only the goods they require from you. Make it convenient and pleasant for them to do business with you. Finally, take advantage of the fact that they decide when and what to buy from you. See this as an opportunity and grow.

Runcit Malaysia thanks Nestle Products, Lam Soon Edible Oils, BOH Plantations, ACNielsen, Tetra Pak for the information and pictures published in this article.

He goes on to suggest that, if provision shops could transform into convenience stores, they would have a strong future, indeed. “Even in the developed nations, well-managed small format convenience stores are thriving side by side with the superstores.”

He adds that, in the US, small-format “dollar stores” are doing very well, in spite of the dominance of Wal-mart superstores. In Europe, the “hard discounters” convenience shops are booming, so much so that big manufacturers, like Coca-Cola and Nestle, are studying them. In China, small convenience stores are very much an established part of the retail landscape

“In fact, you don’t have to look that far,” Watt quips. “The CP Pokhphan chain of convenience stores is the second or third largest retailer in Thailand. In Taiwan, 7-Eleven is the second largest chain. But if you look at Malaysia, the share of convenience stores is small. There is room for more!”

Watt adds that the process of becoming a convenience store may lead to a phenomenon called “channel blurring”. He mentions a few examples. “Chinese medical halls not only carry herbs but also grocery items. Some modern drugstores are also doing the same. News agents, too, are now almost as good as convenience stores. “Increasingly, you will find more retailers becoming more responsive to consumer needs and they will modify their forms to suit the situation.”

We in Runcit Malaysia hope that you enjoyed reading this article and would like to find out how you feel about some of the issues that were raised. So, we’d appreciate if you could complete this questionnaire and return it to your

Runcit Media Field Service Supervisor or mail/fax it toRuncit Media Sdn Bhd, Suite 12.01, 12th Floor, Menara Merais, No 1, Jalan 19/3, 46300 Petaling Jaya,

Selangor Darul Ehsan. Tel: +603-7957 1718; Fax: +603-7956 5109

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Ganesan says: “Unlike many other companies, we went all out to cover as many trade outlets as possible. The further we moved away from Klang Valley, the stronger our penetration. In order to do this, we worked closely with distributors, whom we consider as long-term partners, to modernise our overall distribution system.”

Ganesan relates how, in the old days, many of Nestle’s distributors used to be located in double-storey shop houses. They couldn’t carry a lot of stock, arrange goods neatly, rotate stocks, and would sometimes run out of stock. So, to help them out, Nestle moved the distributors into modern warehouses with racking facilities to store full pallet loads of products. IT facilities and mini ERP systems were

MILO in Malaysia

Not a dairy-based chocolate drink, MILO has practically defined a whole product category unto itself.MILO used to be imported from Australia until it began to be produced in Malaysia in the 1960s.There are now two MILO factories in Malaysia, making us the biggest regional manufacturing centre for MILO in the world.Other than incorporating sporting figures onto the pack, the MILO brand identity has hardly changed over the years.MILO has expanded in terms of SKU to cater to consumers’ lifestyle changes and the demand for greater convenience.

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NESTLE PRODUCTS SDN BHD

FACT SHEET

Country of origin Switzerland

Incorporated 1866 (Started operations in Penang, Malaysia in 191�)

HQ address & contact details Nestle (Malaysia) Bhd, Nestle House, No 4, Lorong Persiaran Barat,46�00 Petaling Jaya, Selangor Darul Ehsan.Tel: +603 – 7965 6000 Fax: +603 – 7965 6767Consumer Careline: 1-800-88-3433

Key brands MILO, NESPRAY, NESCAFE, BONUS, MAGGI, BUITONI, KIT KAT, NESTLE OMEGA PLUS, NESTUM ALL FAMILY CEREAL

Route to the traditional trade Own sales force, complemented by long-term partner wholesalers

Website www.nestle.com.my

also incorporated to track the movement of stocks into the distribution warehouses and out. The data provided a better understanding of the distributors’ needs as well as their trade customers’ ordering patterns.

The efforts to work together for mutual benefit didn’t stop there. “We ‘adopted’ the distributors’ sales reps and gave them the same training as we give our own sales reps,” Ganesan says. “This approach, coupled with sales force automation, enabled us to cover the whole country.” Nestle now has about 300 sales representatives (including distributor salesmen) carrying handheld devices which record 6 months of transactions. This helps the salesman sell regularly while, at the same time, ensuring that retailers buy products that have a good track record of sales.

Ganesan says that modernising the distribution of Nestle products was mainly aimed at ultimately benefiting the traditional or general trade. He concludes: “They play a vital role for Nestle and, unlike the modern trade, were most in need of help.”

MODERNISING DISTRIBUTION

Nestle started operations in 191� in Beach Street, Penang. It’s maiden product was Milkmaid Sweetened Condensed Milk. Over the 94 years that followed, the company added numerous other products that soon became formidable market leaders, like Milo and Nescafe (both introduced in the 1960s) and Maggi noodles (1970s). In spite of its success, there is a certain humility about Nestle. Face-to-face with Ganesan Ampalavanar, Sales Director of Nestle Products Sdn Bhd, one begins to better understand the value of advancing together with one’s long-term partners.

Yong Soon and Thye Sun in the early days and now.

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BUILDING A HOME-GROWN BRAND

Malaysians love tea. It is consumed the most by the Malays although the Chinese and Indians are not to be left out. Caroline Russel, Chief Executive Officer of BOH Plantations doesn’t really know when the habit of tea drinking became firmly established in this country. After all, tea drinking has long been a part of Asian culture. Still, you can’t help thinking that BOH’s success as a home-grown brand has contributed to the popularity of the beverage today!

According to Russell, BOH was established in 19�9 but only began to focus on the domestic market after the �nd World War. She says: “In the early days, we operated like a plantation company. We grew and sold tea like a commodity.” Things have changed a lot since. “Today, we operate more like a marketing company.

We present BOH as the brand that stands for great value, in terms of quality and price. We offer an array of BOH products that consumers require. There’s no doubt that driving the BOH brand has contributed to our growth,” she adds.

In order to further s t r e n g t h e n i t s pos i t i on , BOH i s taking advantage of its vertical integration. Russell explains: “BOH Plantations is one of very few tea companies in the world that are involved in the growing, manufacturing and marketing of tea. We have invested in new technology. Our packing operation is already ISO 9001-certified but we are also working towards a brand new ISO ��00 standard for safety. Simply put, we know everything there is to know about tea. This is one of our core strengths that gives consumers confidence in our products.”

BOH studies the market keenly. Russell says: “About 60% of our business comes from the packet tea or tea leaves market. While maintaining this emphasis, we are also keeping up with the increasing market shift towards tea bags and instant products, in line with consumers’ demand for greater convenience. We are also moving with the growing health-consciousness among Malaysians. Tea is a natural product with healthful antioxidants. We want to make sure that everyone knows it.”

Another focus area is the distribution of BOH products to the traditional trade, “the building block of our business, especially in packeted tea.” By working through a trading house and the open wholesale network, BOH has successfully achieved an enviable width and depth of distribution. “However, as the traditional trade contracts and the modern trade becomes stronger, everyone in the distribution chain – us and our wholesalers, alike – is going to be affected,” Russell remarks. “In order to maintain our access to the traditional trade, we have begun working through a smaller group of wholesalers to implement strategic moves.”

The challenges that BOH, its wholesalers and the traditional trade face as a result of the evolution of the grocery retail industry present very interesting opportunities. Russell says: “The threats can be overcome together. BOH has been around for around 75 years and we want to be around for the next 75 years.”

BOH PLANTATIONS SDN BHD FACT SHEETCountry of origin Malaysia

Incorporated 19�9

HQ address & contact details Boh Plantations Sdn Bhd, No 9, Persiaran Hampshire, Off Jalan Ampang, 50450 Kuala Lumpur. Tel: +603 – �164 6555 Fax: +603 – �164 6610Email: info@boh.com.my

Key brands BOH Packeted Tea, BOH Cameronian Gold Blend; BOH Garden Teas, BOH Ice Teas, BOH Tea, Seri Songket Flavoured Teas, BOH 3-in-1, BOH �-in-1, BOH Teacino

Route to the traditional trade Harpers Trading and key wholesaler network

Website www.boh.com.my

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PACKAGING REVOLUTIONS

Those around age 40 might still remember sucking sweetened condensed milk out of a triangular pack during your school days. That carton was from Tetra Pak, the world’s leader in processing, packaging and distribution systems for the liquid food industry. Tetra Pak is global and works locally. Currently, Tetra Pak carton packages are distributed in more than 165 countries and the company produces packaging materials at 53 plants and has 58 market companies around the world. The largest packaging material plant is in Singapore while the market company that oversees the Malaysia and Singapore markets is located in Malaysia, providing products and services for its customers in these two markets.

Tetra Pak has greatly influenced Malaysia’s grocery retail industry with its innovative carton packaging formats for liquid food products. According to Tang Chee Choy, Commercial

Director of Tetra Pak (Malaysia) Sdn Bhd, the company began its business operations in this part of the world as early as 1958, when it supplied the packaging systems to Cold Storage, to pack pasteurised milk (that needs chilling). The big breakthrough came in 1967 when Yeo Hiap Seng became the world’s first company to adopt Tetra Pak’s aseptic packaging system to pack soya bean milk, herbal tea and chrysanthemum tea in aseptic Tetra Classic carton packages, pioneering the

promotion for such traditional non-carbonated drinks which have since become very popular in Asia and other parts of the world.

Tetra Pak’s aseptic processing and packaging technology is revolutionary. It involves exposing a product to intense heat briefly and then cooling it quickly. This Ultra-High Temperature (UHT) treatment destroys all harmful germs and other microorganisms that can make the product go bad, while retaining its nutrients, flavour and all that is good. This goodness is then locked in by the Tetra Pak carton’s six protective layers. If unopened, the product can be kept for up to 9 months to a year on the shelf (without refrigeration) and still stay fresh and safe for consumption. Mind you, because of the unique aseptic technology, absolutely NO preservatives are added in the process!

For Malaysia’s grocery retail market, there was no turning back. Manufacturers, the trade and consumers, alike, were swept up by the revolution. Demand for Tetra Pak’s aseptic packages rose steadily. Today, Tetra Pak carton packages remain the most popular packaging types for many major beverage categories based on Malaysian consumers’ consumption trend; and Tetra Brik Aseptic packages became the favourite format because of its compact, rectangular shape that makes stacking and distribution of products easy and cost-effective. Other formats were also snapped up as quickly as they were introduced. Stubby or slim,

capped or tabbed, with straws or without, you’ll find them just about everywhere nowadays.

Tang declares: “We are present today in all non-carbonated beverage categories, like soya, juices, nectar, still drinks (like fruit flavoured drinks), Asian beverages (like chrysanthemum tea, herbal tea, lychee), dairy (which includes all milk-based products, like full cream milk and chocolate milk), as well as coffee and tea drinks.” He adds: “We work closely with manufacturers not only to supply processing and packaging solutions, but also in understanding consumers’ changing needs to come up with new product concepts. We don’t only sell packaging but solutions.” You don’t have to look far for examples. Whereas there used to be only one type of soya milk, now you get variants that are enriched with calcium, omega-3, as well as added with natural flavours like green tea and so on.

For Tetra Pak, changing consumer lifestyles and manufacturers’ ever increasing need for product differentiation mean that there is room for other new and innovative aseptic packaging. The company has already launched Tetra Recart which won a DuPont award for being the world’s first carton to use retort technology. Like how canned foods are processed, contents are sealed in the Tetra Recart carton which is then subject to heating at very high temperature and cooled afterwards. Until Tetra Recart came along, no carton has been able to undergo this process. There are more surprises in store, like fun-filled drinks in Tetra Wedge Aseptic and even quick meals packed in microwaveable Tetra Pak package. The company is also ready to introduce Tetra Fino – its cost-effective packaging for the local market, that’s well-suited for the general trade, as proven in Indonesia, China and India.

(Left to right) Tetra Classic, Tetra Wedge, Tetra Rex, Tetra Prisma, Tetra Brik, Tetra Top, Tetra Fino and Tetra Recart

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Rencana Runcit 杂货论坛

LEADERSHIP IN COOKING OIL

LAM SOON FACT SHEETCountry of origin Malaysia

Incorporated 1958

HQ address & contact details Lam Soon Edible Oils Sdn BhdWisma DLS, No 6, Jalan Jurunilai U1/�0, Hicom-Glenmarie Industrial Park, 40150 Shah Alam, Selangor Darul Ehsan.Tel: 03-788� �399 Fax: 03-5569 ��97Email: lamsoonpj@lamsoon.com.my

Key brands Knife, Buruh, Naturel, Daisy, Antabax, Syaza, Fruitale, Puteri Emas, May, Zip

Route to the traditional trade Own sales force, complemented by wholesalers

Website www.lamsoon.com.my

Lam Soon is well-known for its leading cooking oil brands, like Knife, Buruh and Naturel. Knife has consistently earned the consumers’ vote, as attested by winning the Readers’ Digest Superbrand award for six consecutive years as well as the Malaysia Superbrands award.

According to the ACNielsen Retail Audit �005, Lam Soon commands the largest share of the total cooking oil market in Malaysia. The company’s leadership in the category is impressive, considering its humble beginnings. Lam Soon commenced operations in 1958 with the milling and refining of copra. In 1970, the company built Malaysia’s first fractionation plant to manufacture cooking oil.

Lam Soon was awarded ISO 900� certification in 1996 and ISO 9001:�000 in �00�. HACCP certification for product quality and food safety in the packing of cooking oil was achieved in �004.

In 1998, Lam Soon relocated its cooking oil packing operations to an even bigger and more advanced plant in Teluk Panglima Garang, Selangor.

In order to be more responsive to customers’ diverse requirements, Lam Soon has established 15 localised warehouses and sales offices operating in strategic areas throughout Malaysia.

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Media Runcit 杂货媒体

Manufacturers and marketers, take note! A new trade magazine has hit town and is set to make waves in the retail industry.

Runcit Malaysia, Malaysia’s first business improvement magazine for the traditional retail trade, is designed to help traditional retailers meet the challenges of increased competition, changing consumer habits and modernisation. It carries informative articles on current issues, profiles and tips on how to improve business operations.

The magazine is important to manufacturers, marketers and traditional retailers because of its unique ability to bring these groups closer.

According to the ACNielsen Retail Store Universe Report �004, Malaysia’s traditional retail trade encompasses 33,577 outlets nation-wide. Comprising traditional provision shops, Chinese medical halls and mini-markets, they provide a lifeline for FMCG manufacturers and consumers.

Although usually rather small and lacking the physical appeal of modern supermarkets and hypermarkets, traditional trade outlets move large amounts of products daily, contributing about 60-70% to national grocery sales turnover!

Runcit Malaysia Magazine

Getting To Know

By becoming a partner of Runcit Malaysia, you can:

Become a caring business partner who helps traditional retailers by sharing technology and knowledge.Use the magazine as a medium to increase corporate and product awareness among traditional retailers. Mount special campaigns to bring you closer to the traditional trade.Gain valuable insights and opportunities in the traditional trade.

In short, you can effectively reach a huge number of traditional retailers through Runcit Malaysia. Essentially a B-�-B communications tool for marketers and manufacturers to build better relationships with retailers, Runcit Malaysia is a joint effort involving the Malaysian government, market leaders and industry organisations.

Published in Bahasa Malaysia and Mandarin, this quarterly magazine is hand-delivered FREE to proprietors of traditional retail outlets. This is the 4th – and official launch issue – of the magazine.

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Runcit Malaysia is an independent project managed by Infovantage Sdn Bhd. For enquiries, please contact:

Ms Elenie Tan, Client Service Head, Runcit Media Sdn Bhd Tel: +603 7957 1718 Fax: +603 7956 5109

Email: elenie.tan@runcit.com.my

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Can’t get your hands on earlier copies of Runcit Malaysia Magazine? Or perhaps you want the English version of the publication? Well, you can now find them all on the internet! That’s right, we have gone online with an English edition of the magazine, in addition to the original Bahasa Malaysia and Mandarin versions.

The website contains everything you will want to read from the first three issues – and this official launch issue – of this unique trade magazine.

Runcit Malaysia is the only magazine devoted to uplifting the traditional retail trade business in the country. Serving as a B-�-B touch point between manufacturers/marketers and traditional retailers, this quarterly publication is packed with in-depth discussions on issues confronting the trade, success stories, tips to improve sales and retail operations, guidance on business ethics and much, much more.

To access the website, log on to www.runcit.com.my. A click on ‘Our Company’ will give you the profile, strategic roles, services and campaigns of Runcit Media Sdn Bhd.

Goes OnlineYou will find the online versions of Runcit Malaysia by clicking on ‘Runcit Malaysia Magazine’. You can then download and print any of the three language versions of the magazine in PDF format.

Additionally, you can download Runcit Malaysia’s Media Kit if you want to become a programme partner of the magazine. The download section also comes with a selection of wallpapers that you can use to brighten up your computer screen.

If you’re pressed for time, but want to know the latest articles and news featured in the magazine, use the ‘Quick Links’ icon on the right. There, you will find a list of articles that may interest you. Alternatively, you can use the ‘Runcit Search Box’ to find a particular topic.

If you haven’t read the magazine or have missed our earlier issues, the website is the best place to start. Do visit the website regularly for the latest updates on Runcit Media Sdn Bhd and the magazine.

Media Runcit 杂货媒体

Runcit Malaysia Magazine

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Rukuniaga Runcit 杂货守则

Kementerian Perdagangan Dalam NegeriDan Hal Ehwal Pengguna

Be a There is always a temptation to raise prices, especially with increasing

fuel prices. But at the end of the day, you will only benefit from a fair-price policy in your shop.

fair-price retailer

As a retailer, you want your shoppers to keep coming back. At the same time, you naturally want to profit from their visits.

The problem is, if you sell too low, you may get lots of shoppers, but not make enough profit. You may even go out of business. If you sell too high, your gains may be short-term and you will lose customers in the long-run.

These days, with the cost of goods going up, what’s a retailer like you going to do? It would be foolish to keep prices low, when everything else has gone up. So, you may have to raise your prices, but do it in a fair manner. This will benefit not only your shoppers but, more importantly, you as well.

Fair prices Malaysian consumers are already protected by the Consumer Protection Act 1999. But the Government, through the Ministry of Domestic Trade and Consumer Affairs, has also started many programmes and campaigns to educate consumers on their rights and create responsible retailers.

The ‘Buy Low-Priced Goods Campaign’ and the ‘Fair Price Shop Award’ are examples of these initiatives. Although

currently confined to the modern trade, these initiatives promote principles that the traditional trade is well-advised to adopt, mainly to:

Modernise and better manage the traditional retail trade industry.Create a well-balanced trading environment that protects the interests of both traders and shoppers.Allow shoppers to plan their budget and only buy goods from traders who offer fair prices.Provide a comfortable shopping environment for shoppers.

Smart consumersWith so many campaigns to create awareness of consumer rights, your customers are becoming more informed about what to look out for when shopping. They are encouraged to buy goods that are necessary and worth the money they spend.

There is even a toll-free number – 1-800-8886-800 – for shoppers to report traders who increase their prices unreasonably. So play your part as an ethical retailer by selling fairly. Otherwise, your shoppers may decide to go to another shop where they can get a much better price.

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Price tagsAs a responsible retailer, display proper price tags for your shoppers’ convenience. Every item should have a price tag. If your shop has already implemented the bar-code system, you should also have a price-check device installed. And, of course, make sure the prices are consistent. In case of any discrepancy, you should give the lower price. This is only fair.

Price Monitoring Volunteers (PMV)To encourage fair-price practices and smart consumerism, the Ministry of Domestic Trade and Consumer Affairs has also created the Price Monitoring Volunteers programme to monitor the price of goods as well as unethical business practices among retailers.

Rukuniaga Runcit 杂货守则

The volunteers are appointed by the Ministry and come from all levels of society. They monitor pricing activities through the ‘shopping and monitoring’ concept. Take note: Some of these volunteers may drop by your shop unannounced to see how you price your goods.

In a nutshell, offer fair prices to your customers. They win, and so do you!

The recent fuel price increase was expected, but it still caused much concern among the public. They fear that unscrupulous traders will use it as an excuse to raise prices unfairly.

These concerns are being voiced daily in the media and the Government has come out strongly in warning traders against profiteering.

Domestic Trade and Consumer Affairs Minister Datuk Mohd Shafie Apdal said on March 2 that food prices should not increase by more than 5% because the impact of the fuel price hike on the industry is only 0.�9%.

The 0.29% figure is based on a price-impact study conducted by the Ministry on 36 food manufacturing industries, including milk, sugar, meat and poultry. The same study also showed that the cost of fuel in total expenditure for all industries averaged only 1.4%.

Don’t Raise Prices Indiscriminately

Enguiry and CommentsPlease submit your enguiries and comments to :

Bahagian Penguatkuasaan Kementerian Perdagangan Dalam Negeri Dan Hal Ehwal Pengguna, Lot �G3, Aras � & 3, Presint �, Pusat Pentadbiran Kerajaan Persekutuan, 6�6�3 Putrajaya

Telefon: 03-888� 5500 Toll Free: 1-800-886-800 Fax: 03-888� 6171 Emel: aduan@kpdnhep.gov.my http://e-aduan.kpdnhep.gov.my

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Therefore, any drastic increase in prices would be nothing short of profiteering, he warned, pointing out that some unscrupulous traders had already raised food prices by 50% to 60%.

The Ministry is working closely with local authorities to monitor prices at retail outlets, including hypermarkets, fresh markets, provision shops, mini-markets and food stalls. Traders who are found to have raised prices indiscriminately may lose their business licences. That’s how serious the Ministry is in ensuring that consumers are charged fair prices.

The Ministry is also preparing a Fair Trade Practice Bill, which will be used to further curb unscrupulous practices and give consumers more choices.

So do what’s best for you and your shoppers. Be fair-minded if you have to increase prices. Nothing will please a shopper more than being able to get a bargain despite the fuel price increase!

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92%

44%

13%

0%

Conceal stolen items

Work in groups

Hide items in packaging of

cheaper products

Other methods

32%

33%

27%

3 months once At least

once a month

2 months once

8%

At least oncea week

In Issue 3 of Runcit Malaysia Magazine, we conducted a survey to determine the seriousness of shoplifting in traditional retail outlets. A total of 857 proprietors responded to the survey. This is what they told us.

the shoplifters!Stop

Question 1: Have you ever experienced shoplifting?

17%

25%

58%

Never

Yes

Don’t know

Tip: If you don’t know whether you’ve been shoplifted, it’s time to conduct regular stock checks. You may be losing hundreds, or even thousands of ringgit, to shoplifters every month.

The majority of proprietors – 58% – say have fallen victim to shoplifters, while 17% say they have not. Interestingly, a quarter of respondents are not even sure whether shoplifting has ever happened on their premises!

Question �: How often does shoplifting occur in your shop?

Tip: If it happens often, you have to do something about it. Train your workers to spot suspicious-looking shoppers.

About one third of respondents say shoplifting happens once every two months, while another third says it occurs once every three months. Twenty-seven per cent say it’s a monthly occurrence, and 8% a weekly affair.

Question 3: During what time of the day does shoplifting usually occur?

Tip: Have more staff working and watching shoppers during these two periods when shoplifters are more likely to strike.

Shoplifting occurs most often in the afternoons. Forty-three per cent of respondents say it happens between 1�pm and �pm, while 41% say it occurs between 5pm and 7pm. Co-incidentally, these are lunch hours and after-work when there are more shoppers around.

34%

41%

31%

43%

21%

Night (7pm - 10pm)

Evening (5pm - 7pm)

Afternoon (�pm - 5pm)

Lunch time (1�pm - �pm)

Morning (9am - 1�nn )

Question 4: What are the most common methods of shoplifting?

Tip: Provide racks for shoppers to keep their bags, helmets, umbrellas and other belongings while they shop.

An overwhelming majority – 9�% – say that shoplifters hide their stolen goods in shopping bags, helmets, umbrellas and pockets. A big percentage of respondents – about 44% – say shoplifters work in groups.

Selidik Runcit 杂货业展望

A Runcit Media Readers’ Survey. To find out more about this value-added service,please contact Tel: +603 7957 1718, Fax: +603 7956 5109, Email: info@runcit.com.my

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Install more mirrorsor CCTV

49% Keep small goodslocked up

Display warning signs29%

25%

6%

6%

Train staff to identify shoplifters

Employ more workers

No action taken

63%

Took items by accident65%

No money tobuy the items

Could not resisthaving the items

58%

22%

9%

4%

For fun

Challenged to a dare

66%64%

14%

Demand return of stolen items

Demand payment for stolen items

Call thepolice

40%

61%

68%

37%

7%

School chldren (below age 1�)

Teens (1�-19 years)

Young adults (�0-35 years)

Middle-aged (36-50 years)

Elderly (Over 50 years)

7%

22%

24%

27%

29%

41%

42%

52%

77%

Others

Batteries

Tinned foods

Soap and detergents

Toothbrushes and toothpaste

Stationery

Powdered milk, sweetened condensedmilk and other dairy products

Sweets, chocolates,biscuits and cakes

Personal care items

Question 5: What do shoplifters usually steal?

Tip: Use mirrors to monitor shelves that display items commonly targeted by shoplifters. Mirrors also serve as a deterrent to would-be shoplifters.

The most commonly stolen goods are toiletries, including beauty care, skin care and hair care products (77%). Food items are also popular, with 5�% of respondents saying confectionary tops the list, while 4�% identify milk powder, condensed milk and other milk products.

Question 6: What is the age group of shoplifters caught?

Tip: Keep a close eye on young people as they are the most frequent shoplifters.

Most of the culprits are young adults. Some 68% of respondents say that shoplifters are between �0 and 35 years of age, while 61% also identify youths between 1� and 19. What is surprising is that primary school children, too, have been caught shoplifting, with 40% of respondents saying they have caught children under the age of 1�.

Question 7: Which gender is more likely to shoplift?

Tip: Don’t be fooled by appearances. Anyone, male or female, can be a potential shoplifter.

Lelaki

9%

22%

69%

Females

Males and Females

Males

Question 8: What do you do when you catch somebody shoplifting?

Tip: Be strict with anyone caught shoplifting to ensure he/she doesn’t repeat the offence. However, don’t take matters into your own hands by beating up suspects!

Most respondents either ask the shoplifter to return the stolen item (66%) or ask them to pay for it (64%). Only 14% will call the police.

More than two-thirds – 69% – of respondents say both sexes have been caught shoplifting, although males outnumber females.

Question 9: What are the common excuses given by shoplifters?

Tip: Beef up your workforce so that such ‘mistakes’ don’t happen. When you have more workers observing your shoppers, shoplifting is reduced.

About 65% of respondents say those caught shoplifting claim they took the items by mistake, while 58% say shoplifters gave the excuse that they did not have enough money.

Question 10: What are you doing to prevent shoplifting?

Tip: If you haven’t done anything to prevent shoplifting, start now. Even small precautions will save you money.

Most respondents say they are doing something to prevent shoplifting. About 63% have installed more mirrors and CCTV. A small number (6%) don’t seem concerned about shoplifting and are not doing anything to prevent it!

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Selidik Runcit 杂货业展望

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Urusniaga Runcit 杂货生意

Profit Matters

If you are enjoying good sales, but still have little surplus money, you need to look again at how you calculate profits.

We often hear of companies going bankrupt despite enjoying huge sales turnovers. What went wrong? Well, the chances are, these companies focused too

much on sales and not enough on profits.

How many items you sell and how much profit you make are two completely different things. This article will help you understand profits and profit margins better.

Types of profit

1This is sales revenue minus the cost of goods sold. Also called ‘direct profit’, it is the profit you get before subtracting operational costs like administrative and marketing expenses.

Gross profit

2This is gross profit minus operating costs (overheads). It’s also called ‘profit before tax’.

Operating profit

3This is operating profit minus taxes, and sometimes referred to as ‘the bottom line’.

Net profit

Monthly Income Statement RM RM

Sales (revenue or turnover) 36,000

Minus: Cost of Goods Sold �8,100

Gross Profit 7,900

Minus: Operating Costs (overheads)

Wages 1,500

Utilities 500

Rental �,000

Repairs 350

Miscellaneous 500

Total Operating Costs 4,850

Operating Profit 3,050

Minus: taxes

610

Net Profit 2,440

The example below illustrates the different types of profit.

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Gross Profit Margin or Gross Margin: (Gross Profit ÷ Sales) x 100 = (RM7,900 ÷ RM36,000) x 100 = 21.9%

Operating Profit Margin: (Operating Profit ÷ Sales) x 100= (RM3,050 ÷ RM36,000) x 100 = 8.5%

Net Profit Margin: (Net Profit ÷ Sales) x 100= (RM2,440 ÷ RM36,000) x 100 = 6.8%

Shop A Shop B

Sales RM30,000 RM45,000

Expenses RM�3,000 RM37,000

Operating Profit RM 7,000 RM8,000

What do these percentages mean? The example below demonstrates:

Shop B appears to be making more than Shop A. But the figures don’t say much about their profitability. Let’s apply the Operating Profit Margin formula to see what it reveals about their actual performance.

Shop A Shop B

Operating Profit ÷ Sales x 100

RM (7000 ÷ 30000) x 100

RM (8000 ÷ 45000) x 100

Operating Profit Margin 23% 18%

Urusniaga Runcit 杂货生意

The result: Shop A gets a 23% return on sales while Shop B gets 18%. This clearly shows that Shop A runs its business more efficiently!

Generally, you should aim for two things to achieve a high profit margin:

maximise salesreduce expenses

Remember, huge sales won’t help unless you keep your expenses low.

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Managing profits and profitability

Here are additional ways to increase your net profit and maintain good and consistent profit margins.

Run your shop like a companySeparate your personal expenses from your business expenses so that you will know the true profits of your business. Give yourself a fixed salary.

Keep track of profits and marginsCalculate your profits and margins every month to chart the progress of your business.

Manage costsUse margin analysis to help manage costs. For example, a high gross profit margin will tell you that you have a lot of surplus money to spend on operations. A low operating profit margin could mean that you have been spending too much on operations. Review your operations to see how you can reduce costs.

Set Key Performance Indicators (KPI)Set realistic profit and margin targets and work towards them. Start calculating your monthly profits and margins now and set targets for the next two, three, four months, etc.

Manage cash flow wiselyHigh profit margins do not necessarily give you high cash flows. Learn how to handle money coming in and going out. Also, try to reduce the amount of credit you give shoppers.

Keep cost of goods downThe cost of your goods can also vary, depending on who you buy from. Make sure you deal with the supplier, brand owner, distributor, wholesaler or van operator who can offer you the best price.

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Do not confuse gross profit margin with mark-up percentage. A mark-up refers to the amount added to your cost to determine your selling price.

From the example we used earlier, our goods are marked-up by 28% [(7900 ÷ cost of sales) x 100 = (7900 ÷ 28100) x 100].

Note how misleadingly it is. The marked-up figure of 28% is far higher than the gross profit margin of 21.9%. It should not be used in measuring profitability, despite what some suppliers may try to tell you!

The ‘Mark-up’ Truth

Clearly, any business should aim for a high net profit. But is that enough?

Simply put, profitability is a company’s ability to make a profit. Besides looking at net profit, you should also look at profit margins. Profit margins, which are expressed as percentages of sales, can provide an insight into how efficient you are in managing your business.

Using the figures from the earlier example, the profit margins are:

Profitability and margins

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Operasi Runcit 杂货运作

Good store layout makes your shop more attractive and easier for customers to find what they want. Like most traditional retailers, you probably have limited shop

space. But that doesn’t mean you should neglect the concept of effective store layout. In fact, good layout is even more crucial when you are working with limited space.

What is good layout?Due to space constraints in traditional retail shops, the best type of layout is probably the grid – the use of long aisles to guide shoppers. The aisles should also be wide enough for two shoppers to pass each other easily.

The fastest-selling items in your shop should be given the best location – the front portion and at eye level. Also, put related products next to each other. For example, toothbrushes should be next to toothpastes.

The cashier’s counter should be neat and not cluttered with boxes and paper. If you want display items at the counter to encourage last-minute purchases, choose a maximum of three products. These items should be small, reasonably priced and seasonal or festive.

EffectiveStore Layout

Invest in fittings and fixtures that are moveable and adjustable so that you can change your layout easily when you need to. Keep this in mind when you buy new cabinets, shelves, lights and other furnishings.

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Operasi Runcit 杂货运作

What good layout can do for youThis is how you can benefit from good store layout:

1. Optimisation of floor spaceGood store layout helps you overcome space problems. With careful planning, your shop will not be cluttered, and products stacked everywhere.

2. Good traffic flowStudies have shown that shoppers tend to move an anti-clockwise direction. So put your entrance on the right side of the shop to accommodate the normal way customers move around a shop. This, in turn, will encourage them to spend more time in your shop.

Researchers have also found that most shoppers start at the back of the shop and move towards the front. Therefore, the best spots for point of purchase (POP) materials are the back of the first aisle, down the first aisle and the front end.

3. Good exposure for all productsThe more products your shoppers can see, the more they will buy. Design your store in such a way that you will be able to draw your shoppers to all sections of the shop.

4. Neat and pleasant environmentA good shopping environment will always attract customers. Nobody enjoys shopping in an untidy and cluttered store.

7. Better securityBy keeping everything open and installing convex mirrors or CCTV, you and your staff can observe all shoppers. This minimises shoplifting.

8. Better control of shopper trafficWhen everything is laid out properly, you can control shopper traffic and have a good view of your shoppers at the same time.

5. Check and restock easilyWhen your layout is logical and effective, you can easily check and replenish your stocks. This will reduce the number of unsold or damaged stocks. 9. Attracting potential suppliers

Good store layout is also more likely to attract the attention of potential suppliers. If you wish to engage in credit transactions with your supplier, a well-laid out shop is a good way to start.

6. Permanent display areasGood layout will allow you to create permanent display areas for promotional items and fast-moving products. If yours is a bigger shop, you can even earn extra income by renting out the display space.

Smart TipsMake it easy for your shoppers to see and buy what you’re selling.

The front one-third of your store should provide 50% of total sales and the back two-thirds, the remaining 50%.

When choosing flooring, make sure it’s durable, safe and easy to maintain.

Use different types of lighting to enhance the appeal of different products. For example, use yellow fluorescent lights around meats, fruits and vegetables.

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In the previous issue, we shared some tips on creating a good display in your shop. This time round, we will touch on some key principles of merchandising.

Principle 1: Arrange your shelves logicallyMake use of the space you have with a logical shelving arrangement. This will result in:

Good traffic flow so that customers can shop comfortably.Shelves not being overcrowded, allowing shoppers to see goods better.Effective control of crowd and goods.Better appearance and image for your shop.

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Principles of Merchandising

Peragaan Runcit 杂货经营

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Principle 2: Place products correctly on shelves

A planogram, a drawing that shows how products are physically placed on shelves and displays, is extremely useful. Get help from your supplier if you’re not sure how to create an effective planogram.

Give priority to fast off-take products by putting them in high traffic areas and at eye level. Maximum exposure results in your products moving faster.

Here’s a golden rule to remember: Products with the most shelf space and the most variety enjoy the highest turnover.

Principle 3: Adopt an effective pricing strategy The recommended selling price from your supplier is a good guide. Avoid selling higher. You can sell lower to get more customers, but try not to start a price war with other retailers!

When using price tags, remember these tips:

Make sure the price tag does not block the brand name or expiry date.Ensure that the attractive packaging is maintained.For promotional items, highlight the price to get shoppers’ attention.

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Principle 4: Exercise good stock control

Make sure you have enough stock at all times. Running out of goods will disrupt sales and affect your display and merchandising. It gives a bad impression to customers. Here are some tips:

Avoid cluttering your shelves and ensure no space is visible when goods are up on display. Give your goods as many facings as possible for maximum exposure.Practice stock rotation.Check on the inventory in the front and back rooms regularly.Know which stocks have almost expired. Keep damaged or defaced goods for collection the next time your supplier visits you.

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Principle 5: Use sales promoters

This only applies to bigger shops whenever there is a major product promotion. Often, a sales promoter is provided by the supplier or brand owner. With a sales promoter, you can:

Generate trial purchases for new products.Create immediate sampling (for food items).Encourage brand switching.Show how a product is used or how useful it is.

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By following these principles on merchandising, your shop will undergo changes that will please your customers. So make that change now !

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Wang Runcit 杂货财务

More Sales withCredit, Debit Cards

By accepting credit and debit cards, you are giving yourself a greater chance of increasing sales

This is a common scenario: A shopper enters a provision shop. As he picks up the items he has come to buy, he sees other things he had not thought about and wants to

buy them, too. He asks the shop owner if cards are accepted. The shop owner shakes head. The shopper pays for what he originally came to buy. If he still wants the other items, he will have to return with more cash.

Question: Is the shopper likely to go all the way to an ATM to withdraw money and then return to the shop to buy the other items? The answer is probably ‘no’.

By not giving shoppers more payment options, the shop owner has lost a chance of increasing his sales.

If this happens to you regularly, it’s time to introduce other modes of payments – namely, credit and debit cards – for your shoppers.

CashEverybody loves cash. It is liquid and doesn’t need any processing time. As soon as you receive cash, you can use it to pay bills and overheads and buy new stock. The biggest

disadvantage is that cash needs careful handling. You can lose it or get robbed.

Also, if you insist on cash, shoppers will quickly find their way to other shops that accept other methods of payment.

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Wang Runcit 杂货财务

Credit CardsIn the old days, many small retailers provided credit by jotting down the amount owed to them in small ‘555’ books. It worked to an extent, but it was also very risky for retailers. Some shoppers who bought on such credit would just disappear without a trace.

Today, credit usually comes in the form of credit cards. Basically, credit is money made available to the credit card holder by a bank. It’s like a loan. In Malaysia, it is estimated that about three million people carry credit cards. By accepting credit cards, retailers can open up their business to more sales.

Credit cards are widely accepted in big retail shops, supermarkets and hypermarkets. This is one reason why shoppers are drawn to such outlets. Credit cards are popular and convenient. Unfortunately, the increasing

incidence of credit card fraud has worried both credit card holders and retailers. So, there is a downside to it.

Debit CardsUnlike credit cards, debit cards only allow shoppers to spend what they actually have in their bank accounts. While debit cards are relatively new in Malaysia, they have been around in other countries for quite some time. Australians started using them in 1981. In Singapore, they first appeared in 1987. Today, all retailers in Singapore accept debit cards.

Known as Bankcard e-Debit in Malaysia, it is accepted at all outlets that display the Bankcard e-Debit logo. Bankcard e-Debit facilities are promoted by Card Pay Sdn Bhd, a subsidiary of GHL Systems Bhd.

At present, there are about �,000 participating merchants nationwide. However, group managing director of GHL Systems, Alex Tay Beng Lock, is convinced that e-debit will be widely accepted in the near future.

“Debit cards have been successful wherever they were introduced. However, there is a lack of awareness of such programmes here.” Therefore, he says, there is a need to emphasise the benefits of debit cards to the general public.

Tay says retailers who accept credit and debit cards enjoy a 30-40% increase in sales. “The reason is simple: shoppers have more options to pay for their goods. It is human nature to

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About Bankcard e-DebitIf you want to know more about the Bankcard e-Debit programme, call GHL Systems at 03- 6�86 3388 or email edcsales@ghl.com or edcpool@ghl.com. Alternatively, you can contact the representatives below:

Joe Pie Chong SengH/P No: 016-�63 5300D/L No: 03-6�86 3�68Email: pcs@ghl.com

David Tan Yen SeongH/P No: 019-38� 3950D/L No: 6�86 3398Email : tys@ghl.com

buy on impulse. Unfortunately, shoppers can’t do that if they don’t have enough cash on them when they enter shops that only accept cash. If they have to go to the nearest ATM to withdraw money, there’s a good chance they’ll change their minds about buying the items. By insisting that your shoppers pay in cash, you’re limiting your sales opportunities.”

Why restrict your business to ‘cash only’ when you can make more sales by accepting credit and debit cards? When shoppers have more payment options, they are more likely to shop with you and buy items on impulse.

So, if your shoppers suggest that you accept credit or debit cards, give it serious thought. Once you accept these other modes of payment, you’ll be surprised at how much you can gain.

Damon Hen Saul Kuaw H/P No: 019-355 4133D/L No: 03-6�86 3�88Email: hsk@ghl.com

Maxie Boon LearnD/L No: 03-6�86 3�60Email: bol@ghl.com

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Insuran Runcit 杂货保险

Protect Your Business WithInsuranceAn insurance premium is a small price to pay for the

protection of your business and peace of mind

Fire, theft, accidents, injuries -- these are real-life nightmares you don’t need. No matter how small your business, you need insurance to protect you against the many risks that could cripple your operations.

Insurance simply means transferring a risk that you can

afford – the payment of a premium – to cover a risk you cannot afford. It’s the best protection you can give your business.

Many insurance companies provide special packages for small businesses to cover most of your needs. Here are some of the different types of business insurance policies you should consider:

1 Business property insurance

This covers damage to property, including the shop (if you own it) and its contents -- stock, equipment, furniture and cash. There are generally two types of property insurance: All-Risk Coverage and Named Perils Coverage.

An All-Risk policy covers almost any type of loss.A Named Perils policy only covers specific items which you have identified. Ideally, get All-Risk coverage.

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2 Burglary insurance

This covers loss of property or damage as a result of theft and robbery. More business owners are now opting for this insurance because of the increasing crime rate.

3 Fire insurance

Fire insurance covers damage to the building and its contents due to fire or lightning. Some insurance companies also offer insurance against arson, explosions, riots/strikes, damage caused by road vehicles and aircraft, vandalism, etc.

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Insuran Runcit 杂货保险

4 Business interruption insurance

Many business people buy insurance to protect their property, but forget about loss of income when their business is forced to stop temporarily. Suppose a fire destroys your shop. Your property insurance will reimburse you for the building and the contents of the shop. But what about the income you will lose while you are rebuilding your business? This is where business interruption insurance comes in useful – it covers you for lost of income.

5 Life insurance

You are the most important person in your shop. For this reason, many banks will ask to see your life insurance policy before they give you a business loan. Life insurance will also ensure that your spouse and children will have enough money if the business is forced to close in the event of your death.

7 General liability insurance

If someone is injured while shopping at your store or gets hurt using a product he or she bought from you, a general liability policy will cover you. This policy will protect you from anyone who sues you for damages suffered when they are in your shop or during business deals with you.

6 Disability insurance

Many shop owners wisely invest in life and/or health insurance policies. But what happens if you fall seriously ill or become permanently disabled? Your health insurance will pay for your medical bills, but not your lost income. That’s what disability insurance is for – providing you with income when you can no longer work. It’s like business interruption insurance, but more personal.

8 Commercial vehicle insurance

If you use vehicles in the course of your business, you need commercial vehicle coverage. Your private vehicle insurance policy does not cover business activities.

So, give yourself added financial protection and peace of mind by making a small investment in business insurance policies. You’ll be able to sleep soundly after you’ve closed your shop for the day.

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Kategori Runcit 分类杂货

Protection from the sun is fast emerging as a key need for consumers. Malaysians are getting increasingly aware of the damaging effect of the sun to the skin and

hair. Over-exposure to the sun could result in tone darkening, blemishes and accelerated aging. The sun can also damage the hair, resulting in dry, discolored and frizzy hair.

From a study conducted in �005 on the skincare needs of Malaysian consumers, over 40% of the respondents indicated that ‘making skin fairer’ was a top need. Specifically, 27% pointed out that it is important for their skincare products to ‘provide protection from the sun’. Among those who had used moisturizers for the past 1� months from the time of interview, 80% indicated that they had a need for a whitening product! There is therefore a huge potential for skincare whitening products in Malaysia.

Apart from skincare-related sun protection products, there are also haircare products that offer sun protection benefits, mainly in the premium segment. These are shampoos and hair treatment masques which offer UV protection and vitamins to prevent the drying up, discoloration and fading of hair.

Is sun protection an attractive category?

In a word – YES! The sun care category (which includes tanning products as well) grew 10% over the past three years. Specifically in the

on Sun Protection Products

Consumer Trends

…and what they mean to the retailer

skincare category, the whitening segment is the biggest, comprising 60% of the total category in volume, growing by approximately 1�% last year. This was approximately in line with last year’s total skincare category growth.

What can retailers do to seize this opportunity?

With the fast growing consumer needs for sun protection (as seen in the segment offtake growth), retailers should start to look at opportunities in this segment.

Start to stock sun protection products like facial care products that offer sun protection. Consider dedicating a shelf for ‘sun protection’ category, which can include sun protect variants of shampoos, sun blocks and whitening skincare products. This is a good opportunity to cross-sell the shopper on adjacent product types. For example, a shopper who shops for a sun block would be ‘exposed’ to a facial whitening product which is shelved just next to the sun block. By shelving these products together, the retailer can grow total store offtake.Taking this a step further, the retailer should work hand-in-hand with manufacturers to build deep understanding about consumer and shopper needs for sun protection products, and use the learnings to drive the business in-store.

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Article courtesy of Procter & Gamble (M) Sdn Bhd

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Kategori Runcit 分类杂货

TEA time!

Reach for the tea bags (or leaves, if you like) and pop them into some hot water. In just a few minutes, you’ll be savouring

the flavour of nature’s healthful beverage that will wash away your stress and help you relax for a while.

But, wait a moment. Before your teacup takes your mind off to BOH’s peaceful, undulating plantations in Cameron Highlands, do read the rest of this article. It might just make your journey more interesting.

The tea story

Everyone knows that tea originated in China. One fateful day 5,000 years ago, a few tea leaves found their way into Emperor Shen Nung’s cup of hot water. He was delighted at the taste and, from that first sip, so began a thrilling love affair with tea that has swept billions of people off their feet all over the world.

Been having a busy time in the shop?

Well, it’s time for the refreshing power of tea.

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GREAT NEWS FOR TEA DRINKERSfrom the Antioxidant Research Centre in London:

� cups of tea contains as much antioxidants as 7 glasses of orange juice or �0 glasses of apple juice.

More Good News …

One Dutch study found that men who drank between 4-5 cups of black tea every day were nearly 70% less likely to experience a stroke compared with those who drank � cups or less.

TEA TALK

Tea comes from the Camellia family. All 3,000 varieties of tea consumed in the world come from this one plant and its hybrids.

After tea leaves are harvested and processed, it’s the method of processing that turns them into one of three basic forms of tea – Green, Oolong (Chinese) or Black.

Black Tea, such as BOH tea, is fully fermented. The leaves are crushed and exposed to the air to undergo natural chemical changes before they are dried.

Green Tea is not fermented. The leaves are only heated and dried.

Oolong Tea is half fermented.

Both Green Tea and Black Tea contain about 15% - 16% flavanoids.

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Tea took its place in culture – think of the Chinese and Japanese and their elaborate tea ceremonies. As the beverage of gentlemen and ladies in Europe, tea became associated with social status. Tea has even found itself at the centre of battles, like during the Boston Tea Party in America where crates of tea were dumped into the sea in political protest!

Goodness in every teacup

Of course, we mustn’t forget the long traditions in which tea has been regarded as a remedy to prevent or cure all kinds of health problems – from heatiness, fever and chest infections, to heart attack and even cancer.

Some of the old beliefs seem a bit far fetched today but you can rest assured that there is growing scientific proof that drinking tea does help keep one healthy.

Researchers have established that tea is rich in certain plant chemicals, called flavanoids. This substance is found in green tea, oolong (or Chinese) tea and black tea (eg BOH Tea). Flavanoids are antioxidants that help prevent a number of disorders and diseases by protecting the body from damage caused by harmful oxygen molecules called free radicals.

Whether it’s for relaxation or for health, there is much goodness to be found in every cup of tea and you would do well to tell your family, friends and customers about it.

Article courtesy of BOH Plantations which supplies 70% of all black tea produced in the country and caters to more than 50% of the local tea drinkers’ market. BOH offers a wide range of tea products including BOH Cameronian Gold Blend, Garden Teas, Seri Songket Collection, BOH Iced Teas and BOH 3-in-1.

Kategori Runcit 分类杂货

3�

COLOURED TEA IS HARMFUL & ILLEGAL

“Tea shall not contain any colouring substance, whether permitted or not under these Regulations” -- Regulation �60 Clause 3, Food Regulations 1985

Have you ever wondered why your ‘teh tarik’ is bright orange in colour? The answer is because your ‘teh tarik’ has been made with coloured tea.

It might surprise you but, in the eyes of the law, adding food colouring to tea is an illegal activity. Why? Because tea is regarded as an ‘all-natural’ beverage and should not contain any additives, some of which can be very harmful to health.

Sadly, there are many tea vendors who flout the law and brazenly colour the tea they sell to mamak or coffee shop owners who only care about getting maximum ‘cup distance’ (jarak cawan). This refers to being able to make as many cups as possible from a single spoonful of tea. Coloured tea offers much greater ‘cup distance’ than uncoloured tea which loses its colour after being diluted just a few times.

The quest for maximum ‘cup distance’ doesn’t stop there. Some unscrupulous tea vendors go around collecting used tea dust. Then, they dry it, add a bit of new tea dust (as well as food colouring) and sell this ‘recycled tea’ back to the mamak or coffee shop owners who are all too happy to make a bigger profit from every cup that’s made.

Their customers certainly appear to be quite satisfied. They think the bright orange colour means that their tea is strong. They don’t realise that the tea they are drinking contains illegal food colouring and that they could be endangering their health with every cup consumed.

As a responsible retailer (and a health-conscious tea drinker), you should refrain from supporting the sale of tea leaves or tea dust with colouring of any kind.

Uncoloured tea dust won’t leave stains on your finger and thumb.

Cold Water Test

Put half a teaspoon of tea dust into a clear glass full of

cold tap water.Coloured tea dust will immediately

show the colour streaming down from the surface of the water.

Uncoloured tea dust does not infuse easily in cold water.

Rubbing Test

Dip your finger in some tap water and rub some tea dust

between your index fingerand thumb.

Colour stains on your finger and thumb means the tea is coloured.

TEA TESTSHow do you tell if tea is coloured or not? Here are some simple and effective tests:

Leave tea dust in the water overnight. If the tea dust is coloured, you’ll see a gel-like layer in the glass when you drain the liquid the next day.

Overnight Test

Coloured Not Coloured

Kategori Runcit 分类杂货

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Halaman Pak Runcit 杂货伯伯问答箱

SOMETHING ON

YOURMind?QUESTION CORNERQ1: I have many expired goods, but the suppliers concerned never drop by and cannot be reached. If I discard them, I will make a loss. What should I do?- K/R Che Jah Ibrahim, Pauh Lima, Kelantan

A: The ultimate objective in business is to make money. Therefore, you must do everything possible to avoid a loss situation. This certainly applies to the expired goods you are holding. You must continue to pursue your suppliers – unless it was clearly stated in the sales agreement that damaged or expired products are non-returnable nor exchangeable. If these are the terms and conditions of the sale, you have no choice but to bear the losses.

Most fast-moving packaged consumer goods which carry an expiry date are usually exchangeable or replaceable. This is the current practice of the Industry.

The term ‘suppliers’ comes under two distinct categories:

1. ResellersIt is very important that you deal with trusted suppliers and not with fly-by-night operators who disappear immediately after the first visit!

‘Reliability’ is the keyword. Unless you are absolutely sure, do not be taken in by attractive pricing or hard-to-resist promotional gimmicks.

A business relationship is certainly not a one-time affair and after-sales service is a good yardstick to use to determine your future dealings with any supplier. It is wise to check on its reputation before going into business with a supplier. Remember that every transaction, including cash sales, must be supported with an invoice.

The key suppliers are: DistributorsAppointed Key Wholesalers/StockistsWholesalersVan Operators

We advise you to make a final attempt to contact the supplier who is turning a deaf ear to your complaints. If the person is not contactable, you should get in touch with his immediate boss or someone else in authority – the department head, division manager, general manager or managing director. For all you know, your contact person may be acting without the knowledge of the management and such irresponsible people

a.b.c.d.

Q2: Due to irregular delivery, some products are always out of stock. What should I do?- Chop Lee Hark, Parit Jawa, Johor

A: Before you even plan to take any corrective action, you must first establish the causes, which could arise from any of the following:

Logistical reasons: Your shop is in an area which is not regularly serviced by transporters. This usually happens if a shop is off the main trunk road. In such cases, the appointed transporter usually uses the services of a third

a.

should be taken to task. The telephone number can easily be obtained from the invoice.

If all else fails, take a look at the product itself to find out the name of the manufacturer and give them a call.

One sure method of getting the supplier’s attention is to hold back any outstanding payments.

2. Brand Owners/ManufacturersBrand owners and manufacturers will usually take full responsibility for their products, especially expired items, unless a no-trade-return policy is being enforced. In such cases, an ullage (spoilage) allowance is usually given to the trade.

Sometimes, brand owners/manufacturers are totally in the dark about the distribution of their products as they are handled through a distributor or key wholesalers.

Under normal circumstances, no brand owner or manufacturer will want to see their expired products being offered for sale, as this will have a very damaging effect on the brand name and spoil the image of the company. As such, we are very confident that your expired stocks problem can be resolved if you bring it up with the right party.

We also advise you to exercise extra care the next time you purchase any stock with an expiry date. The safest bet is not to carry a high inventory if you do not know the demand, especially for a new product.

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party and, depending on your location, it could take many days for the goods to arrive.

A stock-out situation: This usually happens when the goods are imported on a controlled basis, especially items with a short expiry date.

Dock strikes: In this modern age, in which the transportation sector is so advanced, delays are not likely to occur at the country of origin unless there is a ‘dock strike’. We encountered many such problems in the past with goods coming out of the UK.

Non-payment for goods: One very common problem – which no retailer will admit to – is the non-payment of over-due bills. If you have been late in settling your bills, then any new orders you place will naturally be held back until you make settlement. The time frame in which to settle your bills is laid out in the credit terms of the company concerned. So, pay your bills promptly.

Call frequency: If the call frequency of the salesman is irregular, then your stock delivery will also be affected. In such a case, you must make a careful study of your inventory holding and customer demand for the product. This will allow you to plan how much stock you should carry.

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Have you got a burning question or an issue you want to raise regarding your business? You’ve come to the righr place! Pak Runcit is always ready to answer

your queries by drawing on his years of experience in the retail industry and his expertise as a trainer. Also, keep watching this coloumn for other interesting articles, surveys, opinion polls and others.

To Pak Runcit:Mr/Mrs/Ms ………........…………………..................... Name of Company .....................………..…………..…

Address …………......................................…………………………..............................……………………………..…………

........................................................................................................................................................................

City …………………………………… Postcode .…............……..........…… State .....................…...............……..…..

Tel …......………….......………….… Mobile …….....…........……………… Fax ..........………..............……......……

Email …………………………………………………….

My question is:

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......................................................................................................................................................................................

Hand your questions to your friendly Runcit Media Sdn Bhd field supervisor OR send them to:

Pak Runcit, Majalah Runcit Malaysia, Suite 12.01, Tingkat 12, Menara Merais, No 1, Jalan 19/3, 46300 Petaling Jaya, Selangor Darul Ehsan. Fax: (03) 7956 5109

"

Every question that is published will win a product hamper !!

Sponsor

While some factors are totally beyond your control, you can try to minimise an out-of-stock situation by planning ahead. If you are out of stock due to your own negligence, it can be a very costly affair as you will not only lose sales, but your customers will start to patronise other shops.

Some useful tips: Monitor your inventory regularly.

Place your orders on a regular basis and not when stocks are sold out.

Make sure you carry enough stocks to last until the next call-cycle of the salesman. This also applies to promotion items.

Improve your store layout. This will allow for better stock management and easy replenishment, besides providing shoppers with easy access to your products.

Strive for a high standard of display and merchandising. This will not only help accelerate the off-take of products, but also increase stock depth.

Settle your bills regularly to ensure continuity in supply.

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Halaman Pak Runcit 杂货伯伯问答箱

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Tinjauan pembaca mengenai majalah Runcit Malaysia 阅读调查

Inginkah anda menerima nasihat dan panduan untuk membaikkan perniagaan anda?

1.

Ya79%

Tidak

21%

Perkara manakah yang anda ingin menerima nasihat dan panduan?

Pelaburan 75%Menarik pelanggan 7�%Bersih, kemas & beratur 59%Bersaing dengan Pasar Raya Besar 58%Mengembangkan perniagaan 57%Polisi-polisi & undang-undang Kerajaan 57%Keselamatan dalam kedai 55%Kesihatan & keluarga 55%Pendidikan kanak-kanak 50%Kewangan 49%Peragakan barangan 48%Pengurusan stok 46%Teknologi 46%Pengiklanan produk 4�%Promosi Produk 39%Resipi 30%

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1.�.3.4.5.6.7.8.9.10.11.1�.13.14.15.16.

Apakah bahasa yang anda boleh baca?2.

Bahasa Tamil 21%

Bahasa Inggeris 30%

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Bahasa Malaysia 77%

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