TRANSFORMATION, CREATIVITY & BEYOND: Part 4

Retail Conference at Istana Hotel, Kuala Lumpur on 26 April 2018

The second panelist speaker Tourism Malaysia Chairman Dato’ (Dr) Siew Ka Wei said since 2000, Tourism Malaysia has established a dedicated Shopping Secretariat to oversee shopping programmes for tourists besides positioning Malaysia as a preferred shopping destination in the region.

Through the Secretariat, Tourism Malaysia has streamlined and kicked off three national shopping campaigns annually, namely Malaysia Super Sale (February – March), Malaysia Mega Sale Carnival (May – July) and Malaysia Year End Sale (November – December).

It has been targeting tourists from the 10-member countries of the Association of Southeast Asian Nations, China, India, Bangladesh, and the Middle East besides working with industry partners such as travel agents, airlines, banks, credit companies and cashless payment companies like Boost.

Dato’ Siew said the Shopping Secretariat has also embraced the digital revolution with AliPay and WeChat. Overseas tactical campaigns with hard selling approach were being run to promote shopping directly to consumers.

Trending in Malaysia has been the development of premium outlet malls.

With good transportation facilities like the LRT and MRT systems as well as lifestyle experiences of theme parks, shopping has been more exciting and accessible to the public.

The use of digital marketing to expand marketing and promotion efforts has led to the introduction of Miss SHOPhia, a national shopping icon and mascot that has been promoted extensively in real life, online and through social media.

Followers on Instagram and Facebook were very encouraging, and the strategy through digital promotion was recognised by Hong Kong’s U Travel magazine.

Since 2015, receipts for shopping surpassed that of receipts for accommodation by tourists.

Dato’ Siew said Tourism Malaysia will continue to expand its shopping agenda and activities in overseas promotions to increase tourist arrivals and spending in Malaysia besides getting involved in more creative collaborations with associations, malls, retailers and Iris Global Blue, a tourist refund scheme.

The audience was also told to expect tourist arrivals from the biggest market China, with its 130 million outbound tourists predicted to reach 200 million by 2020 but it is likely to hit the target by 2019.

With Visit Malaysia Year 2020, Dato’ Siew urged the audience to work together to bring about successful tourism which should start from the time the tourists arrive until they leave the country.

The audience was tickled to hear of Musang King durian trees being sold to the Chinese for RM5,000 each. Forty videos have been developed showcasing Malaysian experiences, airlines, restaurants, retail, and services, and of sun, sea, kampung homestays, shopping, adventure, etc.

The tourists have to be sold on why it is good to shop in Malaysia and be instilled with the “feel good” shopping experience. Changes to be made include improving communications and solving offline problems like cleanliness of toilets and safety as well as promoting gourmet artistry by Malaysian chefs.

Nearly 70% of the outbound tourists from China are frequent independent travellers who are on the Internet, so the travel industry has to evolve.

Dato’ Siew also reminded the retailers to create a bucket list of experiences from the time the visitors leave their country to going home with thoughts of wanting to return to Malaysia.

During question time, when asked besides driving sales through promotions, how can retailers compete in today’s environment, he recommended embracing the digital revolution besides incorporating experiential, innovation and fengshui into their activities and programmes.

On what is the impact of China-United States trade war on the retail market, Dato’ Siew cautioned against over reacting, saying that trade and businesses go on as usual but suggested looking out for other markets to play safe.