SHAH ALAM: E-commerce fulfillment company, Store N Go, will venture into an offline model to complement its online model this year, according to its founder and CEO Tee Kee Lion (pix).
He confirmed that the company, which started in the offline sphere before focusing on online, will return to its roots and start its offline operations, expected in the second quarter of this year.
“We have to put in more resources to make sure that we are really number one, that no one can overtake us within these few years. But it’s now time for us to move to offline because we are from offline before. We have connections already. For us, going to offline from online is easier,” he told SunBiz.
Tee said that there is a huge market in Malaysia which offers the company huge opportunities to improve and grow in the e-commerce sphere.
He also believes that companies in the same market should work together to complement one another, which in turn can provide leverage to the whole market and take it to the next level.
On how it differentiates itself from its competitors, Tee said that the company is able to provide both marketing services as well as e-commerce warehouse fulfillment services to clients, which only a few companies are able to offer.
It is in talks with four overseas brands, two each from China and South Korea, to be both an online and offline distributor for brands looking into entering the local market, which he reckoned will be rolled out in the early second quarter and third quarter of this year. The products will be in the cosmetics and skincare categories.
“We help new online brands from overseas, bring them into Malaysia, not only would it be available online but also make it available offline,” he shared.
He also shared that e-commerce platform Shopee has contributed about 64% overall of its gross merchandise value (GMV), while the balance of 36% is split equally between Lazada and TikTok platforms.
This year, he foresees that its sales on TikTok will continue to strengthen and increase in market share.
In 2022, its warehouse GMV totalled up to about RM145 million, which this year it projects to increase to between RM180-200 million. He said that as a seller, it registered a revenue of RM28 million last year and expects it to increase to about RM58 million.
In terms of outlook, Tee is “very optimistic” on the promising online retail trend and shared that last year, the company grew to about 94%, underpinned by higher orders from new brands which it was able to handle due to its newly set-up warehouses.
However, he said that this year he is projecting a lower growth rate of 35%, driven by its strategy to reinforce its current workforce through training and hiring new staff to cope with demand as orders increase.
“When we grow faster in the next three years, we have more warehouses coming onboard. I think this year is a good year to train our people to be ready for the future,” he explained.
By taking its time to realign and strengthen its staff in 2023, Tee said that the company will be able to grow its business further in the next three years where it will go all out for the years 2024 until 2027, and he reckoned that the company will grow further than the past three years.
Within five years, Tee said the company plans to have a 1 million sq ft warehouse in Selangor that is equipped with advanced automation capabilities which it will model after China’s automation standard.
“E-commerce industry in warehouses is very manual work and as a player in the market, (we want) to really invest into a technology that is able to uplift the entire e-commerce fulfillment market in Malaysia … to increase the entire capability and efficiency,” he said, adding that it is not in talks with any investors yet.
In addition, Tee said that it hopes to list on the Bursa Malaysia exchange within three to five years.
Meanwhile, Store N Go has set plans to be a key regional warehousing and cross-border shipment provider in Southeast Asia, starting with Indonesia within the year.
Last month, it has officially launched its flagship hub and headquarters in Shah Alam. To date, the company and its workforce of 150, provide end-to-end e-commerce solutions to over 30 local and international brands.
Over the years, the company has won the SIDEC’s Top E-Commerce Merchant Award and Shopee’s Top 5 Premium Enablers in Southeast Asia.