MyNEWS lately made the information for its plans to convey a well-liked South Korean comfort retailer generally known as CU into Malaysia.
The launch is deliberate for early 2021, with about 30-50 shops to be opened within the first 12 months, and 500 inside 5 years.
Even earlier than this latest information, nonetheless, it’s exhausting to disclaim that MyNEWS isn’t already a prolific model in Malaysia.
Underneath its belt, it operates over 530 shops as of as we speak.
MyNEWS’ development and growth might not have been as explosive as its opponents 7-Eleven and FamilyMart’s, however we’d say it has probably the most fascinating and humble beginnings.
The Previous Days
Simply as humble as MyNEWS’ beginnings are the beginnings of its founder Dang Tai Luk, who was named 2019 Ey Entrepreneur of the Yr Malaysia.
(Fourth from our left) Holding 2 awards, Dang earns EY Entrepreneur of the Yr 2019 / Picture Credit: EY
Although he holds each a Bachelor’s and Grasp’s diploma in pc science from the College of Manitoba, Canada, Dang didn’t come from a place of privilege.
In an interview with The Edge, Dang shared that he grew up watching his father help 9 youngsters by way of rubber tapping and finally, his ironworks enterprise.
Rising up watching his dad’s startup had at all times impressed Dang to pursue a enterprise of his personal.
Previous to MyNEWS, Dang skilled two failed enterprise ventures that have been in distribution and manufacturing.
He failed the primary time partly because of his accomplice’s inexperience.
The second time was because of “private greed and mismanagement”, he shared with The Edge.
Lastly, Dang and his spouse, Ling Chao, opened the primary flagship retailer in December 1996.
Their first retailer was truly referred to as MagBit, combining the phrases “journal” and “titbits”, which they offered of their retailer.
“It was a really small conventional newsstand that me and my household based,” shared Dang.
The primary flagship retailer, MagBit / Picture Credit: MyNEWS
The shop was solely a single newsstand measuring 200 sq. toes in 1Utama Buying Centre.
Solely after they launched their third retailer in MidValley Megamall in 1997 did they then change MagBit’s model to the MyNEWS we now know.
It was then that they shaped Bison Shops to function and handle MyNEWS.
Bison was truly the college mascot of Dang’s alma mater, therefore the identify of the corporate.
Born Prepared Amidst Competitors
Regardless of being a small homegrown retailer, going up towards big-name comfort shops like 7-Eleven didn’t scare Dang an excessive amount of.
He shared his expertise in an interview with Astro Awani in 2017.
“We got here from a poor background with not a lot capital. What we’ve is vitality and expertise, so we’ve to tackle it and develop.”
“There are worldwide manufacturers and there are homegrown manufacturers, however homegrown manufacturers can develop to be huge and robust too,” mentioned Dang.
In 2007, MyNEWS had already reached its 100th outlet.
By the point they reached their 150th outlet in 2012, Dang signed a 50-50 three way partnership with WHSmith Journey, a British retailer much like MyNEWS, that operates in airports.
Their 200th and 300th outlet adopted in 2014 and 2016 respectively.
In the identical 12 months, their 300th outlet launched, in addition they licensed 2 MyNEWS shops in Myanmar’s Yangon Worldwide Airport, their first stepping stone into the worldwide market.
Whereas titbits have been at all times a staple in MyNEWS, it didn’t cease Dang from constantly adapting to comfort retailer developments regarding ready-to-eat meals.
They partnered with Connoisseur Kineya Co. Ltd and Ryoyu Baking Co. Ltd in 2017 to supply ready-to-eat meals and bakery merchandise for its shops, marking a significant improve from titbits and snacks.
Each the ready-to-eat meals and bakery merchandise factories are situated at a meals processing centre in Kota Damansara, the place they relocated their HQ to the next 12 months.
The present meals processing centres supplying to MyNEWS may also be supplying to CU.
Comfort Is Underserved In Malaysia
From Dang’s backstory, it appears like he’s a veteran in relation to adapting to fashionable comfort shops developments.
It’s much less of a shock now that he’s determined to tackle one other worldwide franchise that won’t solely compete along with his personal however different institutions which were right here earlier than MyNEWS.
With the rising recognition of Korean meals, music and tradition amongst Malaysians, it’s comprehensible why Dang is taking this chance.
Whereas many people might even see a saturated comfort retailer market in Malaysia, Dang begs to vary.
“That’s the way in which Malaysian customers understand it. However from an business participant’s standpoint like myself, it’s removed from saturation. I name it underserved and underdeveloped.”
“Our comfort business is behind different international locations. While you’re behind and once you’re underdeveloped, which means there’s loads to do and we are able to do much more,” Dang acknowledged.
As of 2019, MyNEWS recorded a income of RM517.79 million, a rise of RM132.14 million or 34.Three% in comparison with RM385.65 million from 2018.
Although their income this 12 months to this point has dropped to RM374.16 million, they’re nonetheless eager on pursuing this sub-franchising for a superb cause.
In response to The Edge, Dang famous that their group will see greater income on account of the brand new shops which might be anticipated to realize higher gross margins when in comparison with the MyNEWS shops, whose margins are usually 30% to 40% at present.
Whereas their very own shops will proceed to be the group’s fundamental earnings contributors, Dang expects to see CU contributing extra sooner or later, as soon as they break even in 2-Three years’ time.
You may learn extra about MyNEWS right here.
Featured Picture Credit score: Dang Tai Luk, founding father of MyNEWS (EY/MyNEWS)