Hypermarkets burst onto the Malaysian shores more than 30 years ago with much fanfare.
Shoppers flocked to them for heavy discounts. For the first time, we saw neighbours pooled their money to buy in bulk and shared the savings.
But like many Malaysian business trends, what started as a novelty soon turned into a herd mentality.
From guava stalls sprinkled with sour plum powder that dotted almost every road corners to karaoke joints, cyber cafes, bistros, snooker centres, and now pickleball courts — the pattern is the same.
They sprouted up everywhere, competed fiercely, then eventually cannibalised one another until only the fittest survived.
Competition is inevitable in all businesses but when we are confronted with a sudden and intensified mushrooming of companies of a similar trade, we need a high degree of operational diligence to stay relevant.
As long as we are able to outlive our competition, our market share will increase and the business will thrive. Although having strong financial backing increases the chances of driving away competitors, it could be at the expense of profitability as it will take considerable time to recover the investment.
It is therefore more advantageous for management to always be on its toes and to constantly come up with policies and ideas that appeal to the customers rather than rely on deep pockets to buy time in outlasting the competition.
However, many companies failed to make the grade even if they had the resources to do so. Not only did they fail to attract customers, they started implementing policies that drove them away.
Competition itself isn’t the problem. The real issue is poor management judgment.
Some businesses adapted with creativity and customer care. Others, blinded by complacency, rolled out policies that drove customers away.
Take one hypermarket chain that was so successful it decided to make membership compulsory.
At first, people paid the fee willingly for bulk discounts. But when a rival hypermarket scrapped both membership and bulk buying, the pioneer responded not by improving service, but by doubling down.
It started to ban children from entering and even forced members to surrender handbags at the entrance. Needless to say, it didn’t take long before it met its ultimate fate.
Another chain insisted customers to insert a 50 sen coin into a gadget retrofitted on the trolley’s handle bar before it can be used .
Although refundable, the hassle of hunting for coins and returning trolleys was probably enough to turn many away.
Some supermarkets went further by tying up customers’ bags at the entrance with cable locks before allowing them to patronise the shop, sending an unmistakable signal: we don’t trust you.
What these policies really reflect is not concern for shoplifting, but a failure to respect customers. Instead of creating a welcoming shopping experience, management chose suspicion and inconvenience.
Contrast this with a department store that once placed trays of one-sen coins at its payment counters, inviting customers to take some if they were short of change. The gesture was eventually withdrawn when “rounding up” was introduced, but it left behind goodwill and a lasting impression.
One restaurant serving western food required its customers to pay extra for any additional gravy, which in the first place came with insufficient amount.
In contrast, another cafe that served a fusion of western and Asian food, stated in their menu that all extra toppings come free of charge, including extra sambal, refilling of rice and all condiments that come with their nasi lemak.
The lesson is clear. Businesses don’t usually collapse because of competition alone — they collapse when they alienate the very customers who keep them alive.
We have entered into an era where advance technology has given rise to a totally new experience in business approach.
While businesses must find ways to embrace this new phenomenon, nothing beats the knowledge of understanding the feelings and emotions of customers.
Ultimately, we will still end up with appropriate customers interaction which forms the bedrock on which a business will thrive.
Just as with personal health, there are always early warning signs. Companies that show respect, make life easier, and build trust will thrive. Those that don’t, end up killing themselves.
Vincent Lim (limhockmian@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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