BUSINESS

MR DIY EYES EXPANSION INTO SMALLER TOWNS, SEMI-RURAL AREAS

23/10/2020 05:32 PM

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Oct 23 -- While its distinctive yellow facade might be an ubiquitous sight in towns and urban city centres, MR DIY Group (M) Bhd sees great potential in moving deeper into the heartlands of Malaysia, into smaller towns and semi-rural areas, providing a wide range of products at “Always Low Prices”.

Part of the reason for its confidence in this growth comes from the fact that it has successfully ventured into smaller markets before.

In smaller towns, the anticipation and excitement start from the time a store location is identified, and as the lease is signed, the fit-out and recruitment from the local community begin. 

Vice president of marketing Andy Chin said any area with a big enough population is a possibility for the company to expand further into an untapped and underserved market.

"We have a comprehensive and proven checklist for identifying the location of our stores and it has served us well," he told Bernama in an interview.

Launched in 2005, MR DIY has caught the attention of the public with its promise of a wide range of home improvement products at accessible prices.

Now the company boasts over 670 stores in all 13 states in Malaysia with over 16,600 products varieties and the growth is not expected to stop any time soon.

Chin said once a potential new site is identified, the company's internal site assessment and procurement team would conduct due diligence, a feasibility study and market analysis to assess the proposed site against a range of factors that might contribute to the commercial success of the store.

"These include the size and demographics of the local population, the presence of other retailers, customer traffic and the accessibility and developmental prospects of the area.

"Usually with a hypermarket and/or supermarket in the area, we find that we would be able to complement their offerings and provide customers in the area with a wider variety of retail products," he said.

 

Sustainable growth for local communities

Chin said there is a lot of interest generated within a community prior to the opening of MR DIY stores.

"We realised that even just confirming the location of a new store serves to kick-start interest.

"In suburbs and small towns, the local informal grapevine is very strong and people will know very quickly that a MR DIY store is coming and they watch our brand closely," he said.

Engaging with the local community ensures not only a successful opening but also business longevity.

Its festive store openings have attracted a sizeable portion of the community, who got a taste of the company’s brand promise, well-trained managers and supervisors with their ears on the ground keeping these stores’ promotions and campaigns relevant to the local communities’ needs and preferences and a lot of public outreach by the stores to further root themselves in the local communities.

Chin said the company would always built a lot of excitement around the opening of a new store as the local community makes up its biggest customer base for each store.

"So it is our responsibility to make it exciting and rewarding for them. We keep them informed through social media and local marketing collaterals.”

 

Scalable business model

He said it is vital for MR DIY to move fast, with a tight go-to-market timeframe of between 30 and 60 days.

"Our stores follow a standard design and we use partners who are familiar with our standards, so we get to work quickly.

"We also ensure that all our sites are managed well, that the surrounding area is safe and we do not impact or inconvenience the local community that could result in delays," Chin said.

Another key component that has contributed to the company's business growth is its standardised marketing and promotion.

"We regularly create campaign taglines to engage with our customers and to make our brand more noticeable such as ‘Biar Kami Rugi, Anda Puas Hati’ and ‘Jangan Marah, Kami Termurah’. We organise timely promotional campaigns for customers and hold contests to attract customers to make a purchase and win," he added.

-- BERNAMA


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