DIGITAL TRANSFORMATION

[Audio] UBAI3113 Applied Ecommerce Present By P3G4 Students 1. Cheong Qi Heng 2005868 2. Chin Chun Hou 2106796 3. Joren Ling Wee Jin 1804102 4. Wong Yu Kai 2101973 5. Zheng Jing Yi 2102258 Good day everyone, we are group of UTAR students that are currently taking the subject UBAI Applied Ecommerce, course code UBAI3113. Here are the group P3G4 student, cheong qi heng, chin chun hou, joren ling wee jin, wong yu kai and zheng jing yi..

[Audio] DIGITAL TRANSFORMATION Kim Mon Tong Enterprise andJaguh88 We will be sharing about how inclusiveness can be adapted to a business through digital transformation by using Kim Mon Tong Enterprise and its online shop Jaguh88 as an example. In this video, we will be covering the journey of digital transformation and several key factors that have led to the success of the company..

[Audio] Kim Mon Tong Enterprise KORINA VILLANUEVA Mainly involved in the catering and shopping areas Prices are usually cheap and moderate To begin with, Kim Mon Tong Enterprise is a company developed mainly to cater to local consumer demand and involved in shopping areas. The prices of their products are usually affordable for customers, ranging from cheap to moderate prices..

[Audio] How the Kim Mon Tong Enterprise began its digital transformation Now we will share about how the company began its journey of digital transformation..

[Audio] In June 2019, Mr. Chong Thim Tuck embarked on his entrepreneurial journey by establishing a family-based business centred around the sale of fishing equipment and animal feed. Mr. Chong Thim Tuck and his brothers have made the joint decision to embark on the journey of entrepreneurship by establishing their own business called Kim Mon Tong Enterprise in Bidor, Perak. Through the passion for fishing and keen interest in the sector, Mr. Chong Thim Tuck and his brothers made a joint decision and embarked on their entrepreneurial journey in June 2019 by establishing a family-based business called Kim Mon Tong Enterprise. Centered around the sale of fishing equipment and animal feed, the business is located in the town of Bidor in the state of Perak, Malaysia..

[Audio] Development process Strong demand for fishing gear in Malaysia With the development of the livestock industry, high quality animal feed is needed to ensure the health and productivity of livestock and pets The location was chosen because Mr Chong lives in Bidor, an area where fishing gear and animal feed are in high demand Initial stage of establishment During that time, Mr. Chong noticed that there has been a significant increase in the need for fishing gear and also high-quality animal feed, driven by the development of the livestock industry in Malaysia. Besides that, Mr. Chong who lives in Bidor, knows well that the town has high demand for fishing equipment and animal feed. This made the location emerges as an ideal spot to start up their business to cater the niche market to reach and serve their target audiences..

[Audio] Development process The types of customers are diverse, and these customers are passionate about fishing and need high-quality equipment that meets their specific needs and preferences In order to meet different customer needs, it customizes its product list and marketing strategy developing Speaking of target audiences, Kim Mon Tong Enterprise has diverse customer base and serves in both fishing equipment and animal feed industries. This includes avid fishermen, outdoor enthusiasts, recreational hobbyists, and professional anglers who are passionate about fishing and need high-quality equipment that meets their specific needs and preferences. While for animal feed, they cater to wide range of customers including livestock and poultry farmers, aquaculture businesses, pet owners, and institutions such as zoos. The company also customizes its product list and marketing strategy to meet different customer needs and succeed in the business..

[Audio] Development process Emphasis is placed on top-class product quality, fast transportation and flexibility for different fishing scenarios and animal dietary needs Build customer loyalty, provide quality customer support, provide personalized solutions, and implement incentives to promote repeat purchases to build lasting relationships developing This involves focusing on product quality, fast shipping, and flexibility. In terms of building customer loyalty, Kim Mon Tong Enterprise educate their customers, offering excellent support and solutions, and providing incentives for repeat purchases..

[Audio] Development process Mr. Chong remained committed to staying abreast of industry trends and exploring innovative avenues for growth. He was introduced to the online shopping platform by a friend who is also actively managing their business on the platform. Mr Chong observed lower business profits, fewer foot traffic in physical stores and more customers choosing to place orders via social media apps such as WhatsApp and wechat. To sustain in the business, Mr. Chong kept up with the industry trends and explored new ways for improvement. He observed a drop in business profits and fewer customers coming to the physical shop as more customers were ordering through social media apps like WhatsApp and WeChat, they also prefer delivery over visiting the shop. This is where Mr. Chong learned about online shopping platforms like Shopee through a friend who also used them for their business and decided to try it out..

[Audio] Development process With the expertise of his brothers, who are well-knowledgeable in the internet, Mr. Chong initiated the process of registering as an online seller on the Shopee platform Eventually, although Mr. Chong having difficulties in understanding Shopee's functions, managing orders, and shipping delays during the process. He managed to register as a seller on Shopee and gradually took over the platform's operation successfully with his brothers' internet expertise and guidance. By embracing e-commerce, Mr. Chong wanted to expand the reach of his business beyond traditional physical stores and tap into a wider domestic and global market..

[Audio] Key factors for its continued success Now, let's talk about what led the success of digital transformation. There are five key factors in total for Kim Mon Tong Enterprise and Jaguh88 continued success through E-commerce platform like Shopee..

[Audio] 1.Platform-support First of all, the platform support..

[Audio] Platform-support Shopee dominates the e-commerce space Shopee provides sellers with access to a vast client base and a global marketplace, offering opportunities to reach a diverse audience across different regions Shopee is the first option selected by Mr. Chong to start up his online business as the platform have dominant position with 71% of online traffic in the e-commerce landscape in Malaysia compared to other platforms like Lazada. This allow Shopee to attract a wide range of customers and offers diverse products and services, catering to various consumer demographics. Shopee also offers access to a vast client base and a global marketplace, allowing sellers like Kim Mon Tong Enterprise and Jaguh88 to connect with customers across different regions..

[Audio] Platform-support Using Shopee's platform, sellers can connect with potential customers at home and abroad, increasing their chances of success in the competitive e-commerce environment. Shopee prioritizes user experience and provides a user-friendly platform that simplifies the process of selling products online Besides that, by using Shopee' platform, sellers can reach potential customers at home and abroad, this may increase their chances of success in the competitive e-commerce market. Shopee also prioritizes user experience with its user-friendly platform that simplifies the process of selling products online. For example, the platform provides features like easy navigation and simple listing tools to help sellers and buyers to manage, browse, and purchase products more easily..

[Audio] Platform-support Opening an online store on the Shopee platform is often more economical than opening a physical store Shopee provides sellers with operational flexibility, allowing them to manage their online stores at their convenience Next, opening an online store on the Shopee platform is often more economical and cost-effective than opening a physical store by avoiding expenses such as rent, staffing, and utilities. Additionally, running an online store also means lower overhead costs, allowing businesses to allocate resources efficiently to areas like marketing and product development. Shopee also provides sellers with operational flexibility in terms of operating time compared to traditional stores, allowing them to manage their online stores at their convenience..

[Audio] 2.Digital infrastructure The second key factors are digital infrastructure..

[Audio] Digital infrastructure Shopee provides sellers with powerful data analytics tools to gain insight into all aspects of their business, including sales performance, customer behavior, and market trends Shopee allows customers to leave feedback and reviews on purchased products, providing sellers with valuable insights E-commerce platform like Shopee provides sellers with powerful data analytics tools to gain insight into all aspects of their business, including sales performance, customer behavior, and market trends. This allows sellers to make informed decisions to improve their strategies and drive growth. Shopee also allows customers to leave feedback and reviews on purchased products, providing sellers with valuable insights..

[Audio] Digital infrastructure Shopee's logistics support streamlines the order fulfillment process for businesses Shopee offers real-time tracking of shipped items, which provides transparency throughout the delivery process, allowing customers to monitor the status and location of their orders in real time Moreover, Shopee provides logistical support to streamline order fulfillment for businesses. The platform allows Sellers to choose third-party logistics providers that partnered with Shopee like J&T or their own in-house logistics service provider which is Shopee Express, ensuring efficient packaging and shipment. Besides that, Shopee offers real-time tracking of shipped items, which provides transparency throughout the delivery process, allowing customers to monitor the status and location of their orders in real time allowing them to address any potential issues proactively..

[Audio] Digital infrastructure Shopee offers users a variety of payment methods to facilitate seamless transactions Lastly, Shopee offers a variety of payment methods including bank transfers, credit/debit cards, digital wallets like Shopee Pay, and Cash on Delivery (COD). This diversity caters to different user preferences, enhancing convenience for both buyers and sellers. Shopee's logistical services extend to supporting COD transactions, providing flexibility and convenience in payment options, allowing customers to pay in cash upon delivery..

[Audio] 3.Availability of skills, talent, and training Project 03 Thirdly, the key factors for its continued success are the availability of skills, talent, and training..

[Audio] Availability of skills, talent, and training Through continuous investment in development activities, employee training and recruitment strategies, it ensures that its workforce is aligned with the evolving operational needs of the business The Shopee Seller Education Center offers mostly free courses to improve their skills and knowledge Kim Mon Tong Enterprise and Jaguh88 prioritize skills, talent, and training to stay competitive and adapt to market changes. They invest in development campaigns, staff training, and recruitment strategies to align with evolving business demands. Through continuous investment in development activities, employee training and recruitment strategies, it ensures that its workforce is aligned with the evolving operational needs of the business. Furthermore, active engagement with educational programs on the Shopee Seller Education Hub enhances employees' skills and knowledge, covering topics like product advertising and marketing. Most programs on the platform are free, providing valuable resources for skill enhancement without extra costs..

[Audio] 4.Government support and policies Next up, the following key factors are the government support and policies..

[Audio] Government support and policies Targeting young entrepreneurs with initiatives such as eMadani on the Shopee platform to provide free funding The government's supportive approach to regulating online sellers, especially on platforms like Shopee, fosters a favorable environment for entrepreneurship. With just a single device like mobile phones, entrepreneurs can start up their online business easily as the process of registration and regulatory problem are not as complicated and troublesome now. Not only that, the government's commitment on targeting next generation of entrepreneurs with initiatives such as eMadani on the Shopee platform to provide free funding serve as significant incentives, boosting sales and promoting innovation in the digital economy..

[Audio] 5.Geography and local specialties Project 03 The last key factors are the geography and local specialties..

[Audio] Geography and local specialties Geographically, Bidor facilitates the transportation of raw materials and finished products, which can save costs and improve overall operational efficiency. Bedol's topographical features make it an ideal location for fishing and agriculture-related activities Geographically, the Bidor town situated in Perak state, offers unique advantages for businesses like Kim Mon Tong Enterprise and Jaguh88. Its strategic location provides easy access to transportation routes and ports, reducing costs for procurement and distribution contributing to overall operational efficiency. Moreover, Bidor's topographical features such as abundant freshwater sources and fertile land make it ideal for fishing and agriculture-related activities..

[Audio] Geography and local specialties Bidor's specialization in freshwater fisheries and agriculture creates a competitive ecosystem that promotes innovation and cost optimization Bidor's specialization in freshwater fisheries and agriculture creates a competitive ecosystem that promotes innovation and cost optimization. The town's reputation in freshwater fishing attracts a large customer base for companies like Kim Mon Tong Enterprise and Jaguh88. Additionally, Bidor's expertise in agriculture ensures a steady supply of high-quality ingredients for animal feed production..

[Audio] Geography and local specialties Bidor has a reputation as a centre of fishing and agricultural activity Bidor's status as a fishing and agriculture hub draws tourists interested in these industries, creating opportunities for businesses to expand their customer base. By engaging with the local community and participating in related events, companies can enhance their brand presence and build lasting customer relationships..

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