Sundry Shops

Adele Lu / Chloe Teh / Dana Kan / Danica Gan / Ong Von Wan / Phares Phung / Shum Li Sze

What?

- Dry food, herbs and traditional medicine sold by Chinese people

- Normally inherited and continued by the next generations of the family

- The shop is the pride of the family

Key Summary

+We researched and interviewed 2 businesses of the same industry in different geographical locations

+Perniagaan Lee Min, located in Puchong

+KwongTuck Sundries and Liquors Sdn.Bhd, located in Georgetown, Penang

+The differences in environment and other external factors lead to different business outcomes

History of Sundry Shop

+Chinese were engaged in mining activities as well as businesses

+Chinese started to sell goods such as dry food, herbs and traditional medicine

+Normally inherited by the next generations of the family

+Surname is often used as name of shop

History of Perniagaan Lee Min

+Started 30 years ago by Mr Lee’s father

+Currently run by the second generation of the Lee family

+Shop has not changed since they started

Perniagaan Lee Min

+Location: Jalan Kinrara, Puchong

+30 years old

+One storey with spacious storeroom at the back of the shop

+100 to 200 customers of all ages +Customers are treated with sincerity

+Mr Lee discourages young people to run a traditional sundry shop

Products sold at Perniagaan Lee Min

Competitors of Business:

1. 7-Eleven 2. Wah Foong Supermarket 3. Home’s Mini Market

Strategy Employed

+Mr Lee pays attention to quality of services and products

+Customers are greeted politely and provided assistance

+Mr Lee also provides medical advices

+Customers are regular

+Products are fresh and reliable

+Prices are affordable and reasonable

History of KwongTuck Sundries & Liquors Sdn.Bhd

+ Has been in business for 185 years

+ Family business operated by the Kwongs from the 18th century

+ Has been on the newspapers

+ Current owner is the 4th generation of the family

KwongTuck Sundries and Liquors Sdn.Bhd

+Location: Georgetown, Penang

+Kwong means sociable and Tuck means good personality

Products sold here:

+Around 60-100 customers a day

+5 employees

+opening hours: 8am-5pm

+Technology was introduced in April last year

Competitors of Business:

1. Syarikat Loh Yoon Poon 2. VengTaat Soon Enterprise SdnBhd 3. KhoonLokMedicine 4. WengHengMedicineSdnBhd

Strategy Employed

+ Prices are reasonable + Customers are treated with honesty + Provides customers with fresh sundry items

Perniagaan Lee Min (Selangor)

KwongTuck Sundries & Liquors Sdn.Bhd (Penang)

i. Number of Competitors 3 4

ii. Barrier to Entry Low. The business has less competition. Good customer count. Experience gained overtime. Master’s Degree in Business necessary to start.

Low. The business has less competition around. Customer count is steady. Experience is necessary but can be gained overtime.

iii. Variety / Uniqueness of Products

Standardised traditional product. Traditional and Local Products.

iv. Pricing Power Low. They have less power to control the pricing of their products as it is mutually affected by their competitors. Pricing range from competitors does not differ too much. But stays reasonable and honest to the price.

Low. They have less power to control the pricing of their products as it is mutually affected by their competitors. Pricing range from competitors does not differ too much.

v. Special Traits Honest, humble and stay loyal to customers. Never cheat. Traditional, Down-to-Earth.

vi. Competition type Monopolistic Competition Monopolistic Competition

COMPARATIVE ANALYSIS OF BUSINESS’ COMPARATIVE TRAITS

Perniagaan Lee Min

(Selangor)

Similarities KwongTuck Sundries & Liquors Sdn.Bhd (Penang)

0 Number of Branches 0

Traditional Sundries and Liquor

Main Product Traditional Sundries and Liquor

Passed down by founder. Interest of founder.

Prompt of business Passed down by founder. Interest of founder.

Home based Business Operation Home based

Work until the retirement age then hopefully pass on to next generation.

Future Plans Pass on to next generations.

Down to Earth. Traditional.

Strategy Humble and Honest. Traditional.

Perniagaan Lee Min

(Selangor)

Differences KwongTuck Sundries & Liquors Sdn.Bhd (Penang)

2nd Generation Generation of Owner 4th Generation

2 employees Workforce 5 employees

100-200 Number of customers 60-100

3 Competitors 4

Selangor Location Penang

Summary of both businesses

Nature of Market

+ Focused business sector + Weak barriers to entry + Reasonable price and good quality of products

Obstacles faced by new businesses

+Heavy Competition +Commercialisation +Financial Issues

Recommendations

+Systematize +Up to date

+Increase variety

Thank You