Saturday May 19, 2012
Your 10 questions for SungHwan Do
Tesco Malaysia CEO answers....
What is your view on the current hypermarket industry in Malaysia and how do you grow your business in the next five years' Chung KK, Kuala Lumpur
We are optimistic on the growth of hypermarket industry because the modern retail market share is still low, compared with those of developed countries. Our growth has always been successful because we put our customers first, listening to them and delivering what they want. We will continue to attract customers through lower prices, quality products and better customer service with diversified businesses.
Moving forward, we will be growing organically, focusing on improving our availability and range, and optimising our supply chain. We are also looking at refreshing our stores and adding services to our stable.
How does Tesco address the service levels some shoppers may be frustrated with' David Chong, Penang
At Tesco, we always try to satisfy customers. We have committed to the following initiatives to create a better shopping environment for our customers:
● Quick Q to reduce waiting time at check-out counters. If a queue extends beyond the green-line, an additional counter will be opened;
● Ensuring staff are on hand at every shop floor;
● Continuously improving the quality, range and availability of our products;
● Ensuring prices are always correct through Price Promise. Should the price at a check-out counter differ (is higher)from that being advertised or displayed, the difference in price will be doubled and paid to the customer;
● Taking a conscious step to enhance halal awareness among staff. All staff (Muslims and non-Muslims) at the stores as well as those at the head office are required to attend a Jakim training programme.
How does the government policy on foreign hypermarket expansion plan in Malaysia differ from that of other countries in Asia such as South Korea' Arif, Kuala Lumpur
In Malaysia, Tesco complies strictly to the guidelines for Foreign Participation in the Distributive Trade Services, which stipulate that no foreign hypermarket can operate a store below 3000 sq m.
In addition, there is a scope to expand the hypermarket format in Malaysia.
In other countries, we have expanded the hypermarket format more rapidly and have opened smaller stores bringing quality fresh products and great prices to a wider section of the public.
How competitive are prices at Tesco and how can a consumer know if they are getting a good deal when they shop at Tesco' Sulaiman, Alor Star
For the last 10 years, Tesco has been investing in lowering prices for customers. We conduct weekly checks on the prices of 6,000 essential products to ensure that our prices are competitive. Last week, we cut the price of 600 essential products by 10% to 30% .
With this price cut, we are helping customers to spend less to buy their daily essential products. We are also developing Tesco brand products at 20% lower than national brands.
What is your one great success formula in operating your stores in Malaysia while competing with the other hypermarket store chains in the country and how does Tesco differentiate itself from the others' Chua Bing Guan, Malacca
Our success comes from people the customer who shop with us and the staff who work for customers. By listening to our customers, we keep trying to provide a great place to shop with an abundant range of quality products at great prices, all under one roof. We differentiate ourselves from others through innovations such as customer plan, operation plan, people plan and community plan. We thank our customers for shopping with us through Club card to create lifetime loyalty.
Compared with oil and gas or the banking industry, jobs in retail (hypermarket) business have always been perceived as inferior or low profile due to the long working hours and low pay. What are Tescos plans in addressing and changing this misperception that proves to be detrimental to talent hiring & retention efforts' Jason Khaw, Kuala Lumpur
Retail has a long-standing history and will continue to exist forever. Our existence is only possible with great staff. We value our staff and feel we need to Treat people how wed like to be treated. We provide graduate trainee programmes, leader and management trainee programmes, and technical competency and professional skills courses.
We are also fully committed to long-term reward and benefit investment plan to ensure that our total rewards package remains competitive. We conduct a viewpoint survey on a quarterly basis, which gives the opportunity to all staff to voice whats on their mind, and we continuously make improvements based on those viewpoints.
What are the differences you have seen in your job here compared with when you were in South Korea' Jasmine Loh, Kuantan
I find Malaysia a great place to live and Malaysians very friendly. There is not much of a difference between our businesses. Retail is science; we have to understand customer behaviour and plan to meet their needs. Im still trying to understand our customers better by listening to them and making continuous changes to our services to meet their needs.
Tesco in the United Kingdom sells a wider variety of goods than in Malaysia. Why is that so' Subramaniam, Klang
We operate our stores similarly across all countries where the range offered is to serve local customers. From day-to-day, we are trying to meet Malaysian customers needs. We currently offer over 60,000 products across the store and are constantly reviewing the range on a regular basis. We do carry Tesco brand products, including the Tesco Finest range. We have different range for different stores to fit the customer profile in a particular area.
Is Tesco surprised by the growth of the hypermarket business in Malaysia' What contributed to the affinity towards such large shops' Albert Yeoh, Ipoh
Hypermarkets are developed by understanding trends and customer needs. We understand that customers want to shop for products at the lowest prices in one place.
Even though our hypermarkets are big in size, we offer a great range of products and services not just in our stores but also in our malls, which house various small shops, vendors and bazaar rakyat for small local industries.
And so our offers are tailored to meet the needs of the community in which we operate our stores.
How does Tesco help local food suppliers to sell their goods not only in Malaysia but also abroad' Mohd Ayub, Kuala Pilah
Tesco operates as a responsible partner by supporting local suppliers and the community:
● Sixty per cent of our suppliers are local small and medium enterprises (SMEs) and we continue to support SMEs;
● Our Taste of Malaysia initiative sees over 140 SME products being sold in Tesco stores in Beijing and Shanghai ;
● We provide training to our suppliers to meet international food standards, and also guide them in terms in abiding by the Ethical Trade Initiative, under which Tesco is a founding member;
● We help local provision shops to transform their stores into more modern ones under a programme called Tukar and we saw significant sales growth in their shops.