BUSINESS INDUSTRY OVERVIEW
The size of the retail industry in Malaysia is big in size as it covers most shops and markets. Malaysia is quite a big country with a sizeable population that forms the perfect customer base that supports business industry. The industry is categorised according to the size, location and the types of products offered. According to size, there are convenient stores, shops, supermarkets and hypermarkets. Location wise, there are retail outlets and departmental stores, whereas according to products, there are those which are specialised in clothes and apparels, household stuff , appliances or even shops that sell a combination of both. The market is segmented according to the types of consumers prevailing in the society. Malaysia is a cross culture society that harbours a wide variety of ethnicities. The demographics of Malaysia consist of all genders and age groups. Hence, with an extensive variety of the cultures, the retail business offers a wide variety to meet the demands of the customers with these backgrounds. This industry is performing quite well and has a bright future after the announcement of this year 2014 as a year of tourism, hence there will be an influx of tourist and hence the demand of products may considerably rise. Moreover, the postponement of the introduction of the Goods and Sales Tax (GST) in this year has allowed the retail business to flourish and establish strategies of maintaining the customers after its introduction in 2015. This industry is influenced by the various trends that arise and phase out in the customers. Hence, it is important for the retail businesses to adopt and maintain a customer centric approach that fosters customer loyalty. Customer loyalty is a strong value that is appreciated by this industry as it propels the need for retail businesses to generate value added services and products. The key players in this industry, to mention but a few are 7Eleven, KK, 99, AEON, TESCO and GIANT. These players are both convenient stores and major hypermarkets spawning over a large floors pace. There is a confident outlook for this industry as the demands are continuous, perpetuated by the changes that accompany the upgrade of the country’s economy from developing to developed country by the year of 2020. These changes are a boost to the industry.
AEON is a subsidiary of the AEON Group of companies that consists of about two hundred subsidies and affiliations. It operates a s a chain of stores selling common household merchandise. It was incorporated in Malaysia in September 1984. AEON bears it origin in Japan though it boasts of international presence across Asian countries. Statistics show a healthy business performance as it experienced a revenue of an approximately 3.2 billion in Malaysian ringitt (RM). The core business of AEON is the sale of household items, although, it has spawned other services such as credit card business and the development of shopping operations. The philosophy of the company is built upon the customer. It states ‘Customer First’. This customer-centric approach seeks to provide services that surpass the initial customer expectation. More so, it emphasizes in the uniqueness and best quality service that wil eventually lead to the satisfaction of customers. The vision of this company is the creation of an international retail chain store that is geared to provide competitive price across all the countries where they maintain their presence. The company’s operations are governed by three main principles; the core of which lies the customers. These principles are people, peace and community. The strategy that is used by the company in maintaining and acquiring more market share includes the aggressive use of policies to debut the stylistic general merchandise stores. Also, is the accentuation of the development of shop centres as a means of attracting more customers as well as conveniently be located...
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