09 Apr What is New Retail in Malaysia?
Coined by Jack Ma in 2016, the “New Retail” concept may not be foreign to most of Malaysia’s retailers. Today, the New Retail strategy is already present in most large retailers.
Let’s find out what exactly it means, and what it can do for your business.
What does New Retail actually mean?
New Retail describes the concept of unifying the digital and physical world in retail. By seamlessly blending traditional brick-and-mortar commerce with online e-commerce, consumers are put in the centre of an efficient retail ecosystem.
In essence, New Retail puts the customer in the center, and optimises all the other aspects of commerce around it to make for a more convenient and memorable experience for the customer.
Senheng’s founder and Managing Director Lim Kim Heng describes New Retail as “a holistic shopping experience where customers have the power to decide”.
Where did the term New Retail originate?
At Alibaba’s 2016 Computing Conference, Jack Ma’s speech focused on five areas of technological transformation. The list includes:
- New Finance
- New Manufacturing
- New Technology
- New Energy
- New Retail
This outlined his vision of merging online technology into traditional retail models, bringing to life the New Retail concept that brought life to retail as we know it today.
What are the pros and cons of New Retail?
| Pros | Cons |
|
Need for technologically advanced platforms and solutions |
| Broadened marketability | Heightened costs and manpower involved |
| Greater sales potential | Need to determine specific solutions and areas of transformation |
How is New Retail being carried out in Malaysia?
But what exactly does it look like to integrate online and offline retail together?
Major retailer Senheng has been at the forefront of the consumer electronics industry for the past 3 decades and counting. With their seamless business model centred around the New Retail concept, here are some of the ways Senheng has geared their organisation towards New Retail.
- Strengthening the Senheng online e-commerce platform
- Displaying as many SKU (Stock Keeping Unit) as possible online
- Expanding their “Shop-in-Shop” concept
- enable same-day shipping
- Implementing the “Fixed Price Policy”, where offline and online prices are unified to communicate transparency to all customers
- Employing a Central Distribution Management System (CDM) to oversee all supplier’s goods at a glance and Introducing the PlusOne membership program, a cardless membership program that utilises the Senheng app.
Building the New Retail experience.
Whether you’re operating in the online or offline space, taking the first steps in the New Retail route can leave you feeling unsure and confused.
Senwave’s New Retail Solution Packages are designed to guide businesses of all levels on their New Retail journey with the right platforms and tech solutions. Click here to find out more!
