Getting i-runcit
“THINK outside the box” – that is the rallying call from the Domestic Trade, Cooperatives and Consumerism Ministry to local sundry shops as they face stiff competition against hypermarkets.
Engineer-turned-entrepreneur Karim Abdul Saad believes strongly that there is a future for small traders in the country.
And the first step for mom-and-pop stores nationwide to keep pace with the times, he says, is to modernise their operations.
“We need to work hard and find new strategies to increase sales and get new customers,” he adds.
Karim who owns i-mart in Kepala Batas, Penang, is tapping into technology and social media to boost his business: he is using Facebook for promotions and market research.
He has also started a delivery service using the Internet and mobile phone.
“For a traditional sundry business to survive and grow today, it is crucial that we innovate, and Internet and technology is the best way to do it,” he opines.
One advantage that small retailers have over hypermarkets is their personalised service, Karim adds.
“We can carve a market niche in the community. We need to understand the market and provide the “extra” in our service. For example, most husbands and wives now are working, so they need to grab their groceries after work,” he says, pointing out that delivery is convenient for working households who have no time to pop to the shop.
Karim decided to follow his dream of starting a supermarket business three years ago.
“I wanted to do it before I turned 40. I also did it for my children. In my old job, I had to travel a lot and spend time away from them. I decided to do something that will keep me closer to them.”
When he found the perfect shop, he did not hesitate to leave his stable job and take the plunge. He poured his savings into the sundry shop, and before long, his business started making a profit. However, he soon realised that there is a market that he was not tapping into.
“There are many universities and colleges in the area but the students were not coming to my shop. I realise that I’m losing about 10%-15% of business opportunity,” he says.
Karim then decided to expand to meet the student demand. For that, he needed money.
“Luckily, the ministry’s officers came around to promote Tukar. I quickly applied.”
With the Tukar loan, he was able to rent the shoplot next door to extend his outlet and refurbish it to appeal to a wider clientele. Under the consultation of Tesco, his “new” mart opened last October.
“I also managed to bring in goods that would appeal more to students.”
What he did not expect was the training and useful knowledge gained from his hypermarket “mentor”.
“Tesco’s training really helped. I learned many new things - from the layout of the shop to a more efficient stock management.”
He quips that his shop is like a “mini Tesco” now. “But customers say they love that it is more orderly and attractive. It is easier now for them to find what they want. Many also end up buying other products which catch their eye in the new display.”
Best of all, he adds, daily profit jumped up by a maximum of 22% while the monthly profit went up by an average of 29 to 45%. “Previously it was a 10%-15% max,” he says. With his business growing, Karim is now able to spend more time with his children.
“My sales have increased and I have no problem managing my daily returns, so I have more free time which I can use to spend with my children. This is the best satisfaction from the programme,” he says.
His advice to those who are deliberating on whether they should apply for Tukar is to just do it.
“Don’t worry about taking the risks of taking a loan to modernise your shop and stock up. It is a good investment to spur growth for your business,” he says.