chapter 6 - Malaysia Productivity Corporation ( MPC)

Innovation and Best Practices
Wholesale and retail trade performance is
purely customer oriented. Hence customer-first
programme has become the basis for the success
of many retail companies. The industries have
invested in refurbishment activities to provide
a more comfortable shopping ambience. The
industries also emphasised on providing better
product mix which includes the introduction of
in-house brands to meet the customers’ needs and
preferences.
Another key innovative practice is branding to
build positive image and to encourage loyalty
among its existing customers. This is achieved
through many community-based programmes.
The retailers recognised the importance of
understanding customers’ characteristics.
Extensive research on customers’ profile was put
forth in order to improve the services delivered.
Many retailers in Malaysia have come out with
different ideas to give new shopping experience to
their customers by recognising the importance of
CHAPTER 6
Figure 6.10: Growth of Labour Cost Competitiveness of the Wholesale and Retail
Trade and Services, 2009-2011
Computed from: Department of Statistics, Malaysia
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
2009 2010 2011
Productivity -4.59 10.51 7.08
Labour cost per employee 6.31 8.07 4.70
Unit labour cost 11.42 -2.21 -2.22
Percent
location, accessibility, good management and the
spending power of its customers.
The innovative practices in retail services were
not limited to only large retailers. Product mix,
store appearance and space management also
concerned small retailers. Some of the small
retailers involved in services diversified by offering
bill payment and tourist guide services. Grocery
stores union members were encouraged to use
latest technology such as teller machine and pointof-sale
system to increase efficiency in managing
their stores. They were given hands-on experience
and involved in seminars to help them to modernise
and adopt changes in retailing. Magazine for small
retailers include success stories and guide on how
to manage their store effectively, information on
what brands are in demand in order to educate the
retailers.
TUKAR programme under NKEA provides a win-win
situation to both giant retailers as well as the small
sundry shops. In this programme, the big players
in act as advisors to small retailers to modernise
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