As a model proprietor, Andy Goh says producers face many challenges within the provide chain. Goh, the founding father of restaurant chain OldTown Bhd and present proprietor of Nam Heong Kopitiam Sdn Bhd ought to know. He has been coping with distributors for greater than 20 years.
To get a product to shoppers, producers have to discover a distributor to promote it to retailers, who will then promote the merchandise to prospects. Goh is of the opinion that there are too many layers between the producers and prospects.
“Distributors are inclined to arm-twist producers or model homeowners into giving them a greater worth margin. They distribute to retailers at purchasing malls and when retailers need extra enterprise, they provide reductions nevertheless it doesn’t come from them. The low cost comes from us, the producers, as a result of distributors will attempt to drop the costs as little as the ground,” he tells Digital Edge.
To beat this, Goh got down to develop an answer that will lower out the intermediary and empower producers, permitting them to manage each product pricing and the distribution channel. After 9 years of analysis and improvement, he launched MeCan Commerce, a social commerce platform, in April.
Social commerce is a brand new enterprise idea, says Goh, who can also be CEO of MeCan Commerce. It includes the usage of social media platforms to advertise and promote merchandise. This idea was particularly obvious throughout the Motion Management Order (MCO) when influencers or key opinion leaders (KOL) bought merchandise through dwell streaming on social media.
MeCan Commerce permits KOLs to create their very own e-store and select from a big number of merchandise (provided instantly by producers and types) to promote on their web site. The KOLs or ambassadors, as Goh likes to name them, can select the kind of merchandise to showcase on their web site based mostly on what their followers are concerned with.
This platform doesn’t require the ambassador to have start-up capital or an area to inventory stock as it is going to all be dealt with instantly by MeCan Commerce. Goh has invested greater than RM20 million during the last 9 years to ascertain this complete good e-commerce platform in addition to construct a community of credible companions.
“The platform requires zero funding and has zero threat. It might probably assist anybody develop into an entrepreneur with out worrying about being hit by an financial slowdown. My mission is to allow everybody to commerce anytime, wherever, domestically and internationally, and this resolution permits entrepreneurs and producers to hook up with a wider vary of consumers and customers worldwide.
“Individuals can simply personal the e-store or web site they usually don’t have to hold inventory of the merchandise they wish to promote. Most individuals have their very own social platform with followers and all they should do is to advertise the merchandise to shoppers.
“Every little thing else is managed by us. We’ll deal with the stock and inventory, and we are going to ship the merchandise to the shoppers. We now have simplified the entire provide chain so there is no such thing as a want for a distributor,” he says.
How does this empower producers? He explains that the promoting worth of merchandise is predetermined by model homeowners. Because of this the costs are the identical on all of the e-stores arrange by ambassadors.”That is how we defend the pursuits of producers and model homeowners.”
The platform is not only restricted to producers. Goh says those that produce issues at house will have the ability to promote them on MeCan Commerce, offered they don’t violate Malaysian legal guidelines. These sellers can ship the merchandise to be added to MeCan Commerce’s pool, and they’ll then be fed out to different e-stores linked to MeCan Commerce.
“There isn’t any minimal quantity for this. So, for instance, in case you’re making cleaning soap at house and also you’re solely in a position to produce 20 items, then that would be the restrict on the platform. When the inventory is completed, it is going to disappear from the product record. So the platform is an efficient means to assist individuals begin a small enterprise and construct it up.”
He says ambassadors who join with the e-store will obtain a fee for each product bought and generally, incentives are given to those that promote extra. The fee might be directed to the ambassador’s MeCan Commerce e-wallet as quickly as a transaction is accomplished.
“The fee is perhaps totally different for various individuals as a result of the model proprietor will set it in response to your efficiency. For the highest performer, they could wish to give a greater reward or higher margins, reminiscent of a further 5% fee. Manufacturers are in full management,” he stresses.
The platform presently has over 700 merchandise listed by 50 model homeowners and producers. It has about 200 model ambassadors signed up and is focusing on for 1,000 ambassadors by yr finish.
Goh says the corporate vets everybody who desires to develop into a MeCan Commerce ambassador. Producers and model homeowners are additionally vetted to make sure that the merchandise bought on the platform are authentic and of excellent high quality.
For each product bought, MeCan Commerce receives a fee that’s pre-determined when the producer or model proprietor will get on board. These model homeowners and producers incur two separate prices once they be a part of the platform — the administration service charge and the fee to ambassadors. The share for each charges is decided on a case-by-case foundation.
Ambassadors, however, would not have to pay a charge to affix. “We wish to make it free for all times as a result of we wish to loosen up the entry stage. We imagine so long as there’s a user-friendly system, individuals will wish to come on board.”
MeCan Commerce was scheduled to be launched subsequent yr, however with everybody at house due to the Covid-19 outbreak, the corporate determined to launch it in April, Goh says. It has obtained lots of optimistic suggestions from individuals as many had misplaced their jobs or a part of their earnings owing to the pandemic.
“Everybody, whether or not younger or previous, needed to be taught what the web was and methods to use it. Due to that, it was straightforward to get individuals’s consideration and train them methods to use MeCan Commerce. It additionally helped that folks have been open to listening to us as they wanted an earnings,” he provides.
The corporate carried out weekly webinars on methods to use the web, navigate the MeCan Commerce platform and construct an internet site. Goh says each ambassador that’s onboarded will undergo social commerce coaching and a workshop on net design. “Our net designing interface may be very straightforward to make use of, utilizing a drag-and-drop operate, making it very user-friendly like Wix.”
The target of MeCan Commerce is to assist individuals earn an earnings in these troublesome instances in addition to enabling producers and model homeowners to push out their merchandise extra simply. Goh says it might take a producer as much as 5 years to discover a distributor keen to promote their merchandise if the standard mannequin was used.
“On this means, everyone seems to be the producer’s salesman.”
Goh observes that the youthful era, particularly millennials, shouldn’t be concerned with 9-to-5 jobs and is extra concerned with producing a passive earnings. “This group of individuals grew up with the web and they’re very snug with social media, to allow them to use this platform as a strategy to become profitable via their social community. MeCan Commerce fulfils the necessity of the youthful era.”
It has partnered Zanroo Ltd to include large knowledge analytics and synthetic intelligence into the platform to find out about market tendencies and supply insights to those that personal e-stores.
“We’ll construction, analyse and course of the buying knowledge from shoppers and inform the ambassadors what merchandise they should create to satisfy the demand, in order that they will promote higher.”