Many of us in Malaysia would remember the tune of “Malaysia Truly Asia” vividly in our minds, for many it gives them a sense of pride, for some a sense of belonging and for others bragging rights as it reflects union amongst its many races, customs and cultures, deriving a fusion experience like no other.
Apart from its scenic beaches and sumptuous gastronomic experiences, the campaign also promotes Malaysia as a “Shopping Haven”. Some of us in Klang Valley and frequent goers to Bukit Bintang would remember seeing a signage that reads “BBKLCC A Shoppers Haven” located at the entrance of Bukit Bintang.
Whilst I do agree that our shopping infrastructure in Malaysia is very decent, as we have a number of classy malls. To name a few; KLCC, Pavilion, Gardens, Lot 10 and Sunway Pyramid that give a premium experience whilst being relatively friendly to our pockets with a wide variety of outlets and eateries (if compared to global standards). On the flip side, there are also outlets that are more street like in nature and profit from counterfeit & low-end products. Whilst this maybe a near nirvana like experience for some, but for many including myself, it taints the whole promise from a tourism perspective, negating the haven experience as one was promised in the campaign. Frankly, to the common tourist it would be almost impossible to differentiate the shopping experience in Kuala Lumpur, Bangkok or Jakarta.
- Street Retailing in Kuala Lumpur
I am not suggesting to do away with street retailing, we should maintain it, as it caters the need of a specific crowd, what I would like to suggest is to cap it and focus in giving a new shopping experience, a different type of experience that utilizes on our heavily invested technology platform effectively and also emits vibes of innovation similar to what one feels in Japan, Korea or even in Singapore.
- Smart Vending Machine in Japan capable to charge an electric car
So my question today, Malaysia has seen its fair share of progress but why is shopping still so analog? Why manned kiosks and retail outlets still are the preferred mode of shopping? Why do we like to spend time to bargain, at the night market and feel the adrenaline rush when we see huge signage in red that reads “ 50% or better still 88 % discount” when knowing very well it is probably a catch? Why do we still like to load our cars with heaps of people and get stuck in traffic and later in the car park, rant about it and then continue doing the same weekend after weekend? There must another way to derive joy from shopping.
Is this because there isn’t really any other way to shop apart from kiosks, hypermarkets, shopping malls and retail outlets? What about e-Commerce, with its plethora of sites such as Lazada, Zalora, 11 Street, Fashion Vallet and Lelong, what is missing here? Or is this a case that Malaysian’s still do not fully trust these digital platforms? Or do Malaysian's find e-Commerce boring and like the feeling to just step out of their homes?
Like the retail industry in developed nations, it is time for Malaysian retailers to consider an omnichannel retail strategy and moving away from the “Flintstone” era and move up to the league of the “Jetsons” when it comes to retailing. Our cars are equipped with touch screens and our highly capable phones have the ability to keep track of everything we do, the world has progressed however we still have retail outlets with lazy sales assistants screaming “cheap sale, cheap sale, buy 1 free 2” every now and then. Retail in Malaysia seriously needs a makeover!
On a more serious note, I am in the view that in the next 5 years, retailers in Malaysia would need to innovate to meet the new demands of consumers, you will soon know what I mean, once you reflect on the below trends in Malaysia:
- Encouraging behavioural demographics
- Smart phone penetration > 50%
- Internet penetration> 67%
- 80% of 30M people in Malaysia are between 15 to 45
- Purchasing decision > RM 500 is greatly influenced by reviews
- 16M Malaysians spend at least 2 hours a day on social media
- 40% of e-Commerce consumers purchased their last product on their mobile phone
- The service, convenience and experience factor is beginning to prevail over price
Many believe that brick and mortar outlets are here to stay; instead what will change is the addition of new sales channels a retailer can adopt to increase its competitiveness in the world of disruptive innovation. e-Commerce is certainly an option here.
Keeping that in mind, let’s examine what are the possible omnichannel platforms retailers in Malaysia could consider to give the ultimate shopping experience:
- Trendy County Automated KLIA Departure Hall
- The Smart Vending Machine
- As the name suggests or some even call it the "Automated Store”, it is the smarter sibling of the traditional vending machine that only knew 2 things really, distributing sugar based drinks and pushing unhealthy snacks
- The automated store operates 24 hours a day, does not need to be manned and has the ability to provide a rich interactive platform to shop & pay, similar to one would see on an Android and iOS phone. Unlike e-Commerce it gives consumers instant gratification however SKU range is confined
- Japan, Europe and the USA are leading the way in adopting this technology whilst Intel and SAP are continuously developing new capabilities in this space
- The platform gives the ability to interact via social media and provides real-time feedback on a product or an experience
- Last but not least, it is a metaphoric representation of the “Jetsons” era via its “cool” features such as 3D try on, providing the possibility to accommodate for fashion based products and a whole lot more, only limited by our imagination
- Virtual 3D try on @ Trendy County Automated Store KLIA
- QR Shopping
- A hype in Korea and often located at high traffic locations where consumers download an application on their smart phone, snap the barcode of the required products, finalise the order whilst walking to their destination
- It is convenient, saves time and effective for time poor cash rich type of consumers
- Order is delivered hours later at the office or mail boxes, works well with grocery
- Check it out at Espresso Lab Taman Melawati
- Digital Retail Outlet
- Traditional brick and mortar outlets enhanced with the use of technology, reducing the need of assistants , improving service delivery and the customer experience
- The platform is smart enough to determine your preference, and recommend a product and if you choose to know more about a product, just click or swipe away
- Choose your product, swipe your card or tap your smart phone and be greeted by a friendly sales assistant who hands you the product with a big smile, it will be all about that smile and experience from now onwards, nothing else will really matter
So do reflect on this blog whilst having your favourite cup of coffee. While you are doing that, I will get back to singing, well more like mimicking the modified version of the 1966 Beach Boys track in the context of retail, so here it goes , here it goes, goes ,goes “wouldn’t it be nice to shop together, in a world where we belong, wouldn’t it be nice to shop together, in a world full of digital stores, and it is gonna make that things so much better”….
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