Bringing digital to the markets
Startup looking to be e-distribution channel for wet market merchants
THE wet markets are probably the last places that one would expect to see the use of digital technology like apps and online delivery. But Tunku Danny Nasaifuddin Mudzaffar and Tunku Nasruan Adil Mudzaffar, also known as Eddy, of Pasar App thought there was a gap there that they could pursue.
“Everyone is doing digital these days. And while there are third-party delivery apps that service the supermarkets,p, there wasn’t oneo that service your ‘uncles’ and ‘aunties’ in the pasar. So we s aw a gap in that market.
“We d don’t want our market merchants tot be left behind in this digital revo olution so we thought we could h elp them with their first e-distrib bution channel and be an added sources of revenue for them,” sayss Danny.
The brothers,b along with co-foun nder Jeysie Wong, launche ed Pasar App last Aug gust, which enables me erchants in wet markets s to sell their wares th hrough the platform m. Customers can then n make an order an nd have their ite ems delivered to their doorstep.
But wasw there a real gap p or were they just tryi ing their hand at intro ducing digital technol ogy into a marketplace th hat has been doing fine wit thout it?
“The consumer pattern is c changing. People are mor re used to getting the eir things online. The hyp permarkets already y have this service. An nd for us, we can see the gap in the pasar sp pace and we see it growi ing. People who don’t ha ave the time to go to th he pasar, we now provide this convenience to them. And we are helping the merchants,” Danny explains.
Notably, Pasar App, owned by Munaq Holdings Sdn Bhd, is not the first platform to service the markets.
E-commerce startup, Pasar Tap, was launched in January 2016 and offers produce from two main markets as well as through wholesalers.
The difference between the two, though, is that Pasar Tap’s users don’t know which market or merchants their groceries come from while Pasar App’spp users can optp to purchase their products from specific merchants.
“It’s important to have the names of merchants on our platform. Most shoppers, particularly the older ones, go to the market for a certain merchant,” says Eddy.
Danny notes that Pasar Tap has been doing well so far, which paves the way for Pasar App to grow.
Currently, groceries on Pasar App can be ordered from five markets – the markets in Taman Tun Dr Ismail, Jinjang, Taman Muda, Kampung Datuk Keramat, as well as Jalan Othman.
“Our main target segments are housewives who are too busy to go to the market, young workers who want fresh groceriesg as well as students. When we started our first service area outside Klang Valley, we went to Kampar, Perak, where it is mostly a student area. And they are using the app a lot.
“In Kampar, we are not just doing groceries. We found that there is also a gap in that market for other things like toiletries and prepared meals and so on. So we are providing that market with more services. We are a delivery app anyway,” says Danny.
According to Danny, Pasar App has seen more than 10,000 downloads with 5,000 registered users.
Nonetheless, he acknowledges that the app is struggling to convert its registered base into regular users. Currently, regular users amount to about 100. Those who have actually tried the app use it fairly regularly, he says.
It takes time to educate the market,, adds Eddy,y, jjust as it takes time to educate wet market merchants that the way forward is to go online.
Converting merchants was also a challenge for Pasar App.
“How do we get them online without disrupt- ing their way of life? That was a gap we had to overcome. When users order through the app, we have to pass on the orders to the merchants through SMS. So even if we are digital, we have to change it back to a more traditional communication form for them. But we’re still giving them that e-distribution channel to add to their business. And some are seeing how the app has helped other merchants and now, they too want to come onboard,” says Eddy.
The Pasar App team is currently focusedocused ono openingop access for users in Penaang, Perak, Kedah and Kelantan befoore expanding to the Southern stattes in the second half of the year. AAnd next year, it is eyeing markets iin Sabah and sarawak.
But Pasar AApp’s expansion plan does not revoolve around adding locations alonne. It is also looking at adding on moore features such as e-wallets andd credit cards usage to the app to givve its users a better experience.
“In the futuure, we want to look into the B2B (business-to-business) segment as wwell like the caterers and restaurannts. That will be a more sustainnable market segment. But it also reqquires more investments into loogistics because the orders are llarger. Now, we are just dealinng with motorbikes. But we’ll need trucks for B2B,” says Dannny.
Danny hopes Pasar App will get it rightt in the local market as this will paave the way for the company too expand overseas.
“Online grocery is a growing market. Lookk at what’s going on with Amazonn and its acquisition of Whole Foods. So there is potential in this space. It’s a matter of maintaining sustaiinability.
“To be succcessful, you need to differentiate yourself. It’s about how well youu position yourself through brannding and marketing. It requires a llot of groundwork. But it’s a greaat space to be in,” he says.
Pasar App is aiming for 100,000 downloads byy the end of the year.