WHILE the high number of retail space within the Klang Valley means more choices for customers, it also means that businesses need to constantly do what they can to stay ahead of the competition.
For local small and medium-sized enterprises (SMEs), the fight for survival is never easy.
“Given that funding and technological know-how is an issue for many SMEs, just staying afloat can be a challenge,” says one industry observer.
In the retail sub-segment, the popularity of online shopping has been steadily growing. Many companies that do not offer a digital alternative in today’s day and age will certainly be left in the dust, says one industry observer.
“This is why in today’s fast-paced competitive environment, businesses, especially SMEs, cannot rest on their laurels and must strive to be on par, if not ahead of the competition,” he says.
Not surprisingly, many SMEs are already “taking the plunge” towards digitalisation, according to a recent FedEx-commissioned study.
The study, called Global is the New Local: The Changing International Trade Patterns of Small Businesses in Asia Pacific”, reveals that an average of 88% of Malaysian SMEs are adopting digital economy platforms, such as e-commerce, mobile-commerce and social-commerce platforms.
The study revealed that 61% of local SMEs are optimistic that the e-commerce platforms will help contribute to increased revenue growth in the next 12 months.
It also found that 69% of Malaysian SMEs have incorporated Industry 4.0 technologies into their operations such as mobile payments, automation software and big data / analytics in particular.
Industrial Revolution 4.0 refers to the paradigm that machines are now able to autonomously adapt and coordinate their tasks to meet human needs.
SME Association of Malaysia national deputy president Ong Chee Tat says SMEs and Industry 4.0 are key components towards the growth of the nation, as Malaysia works towards achieving a high-income economy.
“While technology may have reduced the gap between SMEs and larger industry players, SMEs still face various challenges in the adoption of the latest trends or tools in technology. Most SMEs may find that they lack sufficient finances, knowledge or workforce talent to adopt these new technologies.
“As such, we (the SME Association) are cognisant of the barriers to technology-adoption and continue to guide, empower and support SMEs by providing strategic advice or counsel and initiating networking platforms to facilitate knowledge exchange.”
Furthermore, the survey says 61% of Malaysian SMEs expressed confidence that the digital economy will help reduce barriers to finding global customers beyond Asia Pacific.
Meanwhile, Malaysian Association for Shopping and High-Rise Complex Management past president Richard Chan says despite the intense, competitive retail market currently, one can still thrive simply by “getting your basics right.”
“It all comes down to the basics – it’s how your business. A lot of retailers are not planned or well designed. They don’t do their homework from day one, such as studying the market or if there will be an impact of traffic congestion.
“If there is a problem, it should be rectified from the beginning,” he says.
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