KUCHING: Small and medium enterprises (SMEs) should grab the opportunity to go for e-commerce in response to Covid-19 outbreak, said retail industry experts on Zoom Live Online forum on last Thursday (April 16) night.
The drastic revenue drop following the implementation of the movement control order (MCO) was not only affecting SMEs but also felt by giant businesses, said Senheng founder and managing director Lim Kim Heng.
“When the Prime Minister first announced the implementation of the MCO on March 18, I almost fainted.
“The first phase of the MCO hit our business badly because we had to close all 105 retail stores nationwide.
“In just two weeks, we already lost about RM40 million,” he revealed.
Lim, the man who spearheaded Sengheng in dipping its toes into big data for actionable business intelligence, added that the e-commerce was best left for SMEs to find audience and revenue in light of the ongoing and during the post Covid-19 pandemic.
“There are plenty of windows of opportunity that help SMEs to strive during this time. Such crisis time really needs all business leaders to take measures quickly during this short time. Don’t wait until the last minute.
“They must not delay in making action plan because the longer the delay, the slimmer the chances for survival,” he added.
With the breathing room given by Bank Negara Malaysia’s automatic six-month moratorium for the repayment of SME loans, SMEs leaders, he advised, should utilise available e-commerce platforms in order to stay afloat while maintaining their offline businesses.
“Both tele basic marketing and digital commerce are vital for businesses to reach out to customers,” Lim pointed out.
DiGi Telecomunication chief business officer Eugene Teh, who joined Lim as the panellist, also echoed his view.
He said that for business opportunities, SMEs should explore and embark on its digital adoption.
“I believe our role as a telecommunication service provider, being part of the ecosystem, can help them to grow.”
He pointed out that most of SMEs were wondering how to bring their business online within a short time.
“Usually what hinders them from leveraging online is because they do not know how to start.
“And if they want to start, they also wonder if they can really afford to pay all the start-up costs,” he said.
In suggesting that SMEs follow the rule of thumb, Teh pointed out there were four critical processes of exploring the digital adoption.
“Firstly, start small and secondly, think mobile first. Thirdly, have the mindset to build the eco-system. And fourthly, think on ways to capture the audience by analysing data.
“For example, start online with any e-commerce platform like Shoppe and Lazada. Selling the products through the e-commerce platform will allow the business to continue operating.
“But of course, it will not be able to contribute to a 50 percent increase in business sales but positioning products online can help SMEs to identify their unique selling point, their niche audience.
“And from this, they can learn to use their big data smarter.
“If they don’t start now, they will never be able to really learn this critical process in business,” he said.
