SELINA GAN

Transcription

SELINA GAN

HOW I STARTED
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No customer
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Don’t know how to do organic business – no precedent.
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The market for organics was still in its infancy 10 years’ ago.
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My friends and my family thought I was mad to sell local organic vegetables at
US2.80 per kilo. Who will buy my organic vegetables which is 3 times higher than
the price of conventional vegetables?
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Low level of awareness - Now in Malaysia when you talk about organics: 7 out of
10 people now knows the term organic.
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HISTORY OF RETAILING IN
MALAYSIA
LATE 1990’s
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Sickness Industry
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Customer Profile: 98% ethnic Chinese who are : a) cancer patients
b) degenerative diseases
c) Vegetarians and/or Buddhists
1999 - 2003
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Emergence of “Mom and Pop” shops in Klang Valley and major towns in Malaysia
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Real growth in the number of shops started from 2003 onwards.
2005 – 2008
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Major Supermarket chains like Jusco, and Hypermarket like Carrefour started to create
organic corners.
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Herd mentality – ‘me-too’
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No growth in “Mom and Pop” shops since 2006
PRESENT CUSTOMER PROFILE
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Amongst consumers in the ASEAN countries, the Malaysians are more
sophisticated and knowledgeable about organic and health food in this region.
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80% of the organic consumers are ethnic Chinese. Psychographic profiles of the
Malaysian Chinese community are divided into G1 and G2.
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G1 Group (80%) – Chinese educated Mandarin speaking
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G2 Group (20%) - English educated, English speaking, some Mandarin
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The present consumer profiles have changed and are attracting more health
conscious people in their early forties and those with young families
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Mothers will always give the best to their babies and kids.
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Aging baby boomers (late forties to sixties), who refused to age. Higher disposable
income compared to their fathers time.
SUPERMARKETS AND
HYPERMARKETS
In Malaysia
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Jusco (Store within a Store concept)
Carrefour (Store within a Store concept)
Cold Storage / selected Giant stores
Other niche Supermarkets – Isetan, Sogo, Village Grocers
In Singapore (only dry goods)
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NTUC – 2 Outlets (Finest Stores)
Cold Storage – 12 Outlets
Shop & Save – 10 Outlets
Carrefour – 2 Outlets
TRENDS IN SUPERMARKETS AND
HYPERMARKETS
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Supermarkets and hypermarkets are paying more attention to organic products and
most of them carry some organic products.
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Carrefour and Jusco have set up organic corners measuring from 800 to 1,000 sq ft
in prominent corners adjacent to the Vegetables Section.
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Jusco was the very first supermarket that experimented with organic vegetables 6
years ago.
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Carrefour started one year ago with dedicated organic corners. Country Farms is the
exclusive operator.
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Cold Storage also have Country Farm on their shelves in dedicated stores.
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The smaller supermarts carry a few selected organic items
COUNTRY FARMS INSIDE
CARREFOUR HYPERMARKET
800 - 1000 sq ft “Store Within A Store” – Selected Organic Partner with Country Farms
• Carrefour, WANGSA MAJU, KL
• Carrefour, MID-VALLEY, KL
• Carrefour, SUBANG, PJ
• Carrefour, MALACCA
• Carrefour, AMPANG
• Carrefour, KLANG
• Carrefour, PENANG
• Carrefour, JOHOR BAHRU
• Carrefour, Tropicana City (opening Nov ’08)
• Carrefour, PLAZA SINGAPURA
• Carrefour , SUNTEC CITY, Singapore
JUSCO Supermarket
800 - 1000 sq ft “Store within a Store” – Selected Organic Partner with Country Farms
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Jusco, MIDVALLEY, KL
Jusco, SUNWAY PYRAMID II, PJ
Jusco, BUKIT TINGGI, KLANG
Jusco, TEBRAU CITY, JB
Jusco, PERMAS JAYA, JB
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Jusco, QUEENSBAY MALL, PG
Jusco, PERDA, BUKIT MERTAJAM
Jusco, AMPANG, KL (opening in Nov. ‘08)
Jusco, JOHOR (opening in Dec. ’08))
COLD STORAGE Supermarket
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Cold Storage Supermarket, BANGSAR
Cold Storage Supermarket, MIDVALLEY
Cold Storage Supermarket, GE MALL
Cold Storage Supermarket, KLCC
Cold Storage Supermarket, TS
Cold Storage Supermarket, THE MALL
Cold Storage Supermarket, SUMMIT
Cold Storage Supermarket, PUTRAJAYA
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Cold Storage Supermarket, MD
Cold Storage Supermarket, SUBANG PARADE
Cold Storage Supermarket, GURNEY PLAZA,
Cold Storage Supermarket, ISLAND PLAZA, PG
Cold Storage Supermarket, PELANGI MALL, JB
Cold Storage Supermarket, KUANTAN
Cold Storage Supermarket, IPOH
Cold Storage Supermarket, SOLARIS
COUNTRY FARMS RETAIL OUTLET CUM
RESTAURANT
CFO RESTAURANT SERVING TASTY ORGANIC AND
WHOLESOME FUSION FOOD
Tom Yam Spaghetti
Organic Nasi Lemak with
Rendang Chicken
8 – Booster Rojak
Organic Soy Smoothies
Fortified with Organic
Flaxseed Oil
CF Organic Salad
Organic Fresh Juice – Green
Apple with Wheat Grass
“MOM AND POP” SHOPS
Typical Health Food Stores in Malaysia
- Approximately 100 stores nationwide run by owner operators
- No growth in volume from these shops
- Consumers preferring to shop in Supermarket now
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The ‘mom and pop’ no longer carry lots of organic food products. They
now carry more natural products from Taiwan mostly:
Beverage powder in tin cans, Asian sauces, fruit enzymes, vinegars, and
cookies.
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No longer can these shops be called organic shops – they are just health
food store. The mom and pop shops are declining. They cannot compete
with the supermarkets and the bigger organic retailers.
NATURAL PROCESSED PRODUCTS FROM TAIWAN
Multi-grain Rice
Powdered Beverages in Tin Cans
Natural Products
from
Taiwan
Asian Sauces
Cookies and Instant Beverages
AWARENESS THROUGH
EDUCATION
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Quarterly Newsletters / Brochures / Website
Organic fair / talks / food demonstration
Guest speaker for event & media
CFO spent approx. USD 120,000 per year on newsletters and communication
materials
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20,000 copies printed every Quarter
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Mailed out 12,000 Free to members
BUSINESS ORIENTATION
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Most health food stores tend to orientate towards:
(a) Macrobiotic
(b) Vegan or Vegetarian (shops refuse to sell meat products)
(c) Buddhism
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Country Farms – APOLITICAL
- We serve consumers from all walks of life
- Halal (Pork Free)
CHALLENGES
PRICE WAR
• Not uncommon – price war do exist amongst the
distributors.
• Private label and contract packing are quite common
as players differentiate themselves.
• Similar products in many different labels
• China organic product – negative image – some repackers have resorted to purposely omit the country of
origin on purpose (which is against the Malaysian
labeling law).
ORGANIC WHOLESALE & RETAIL IN
MALAYSIA
Problems faced by retailers in Malaysia and Singapore
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Shortage of locally grown organic perishables
Limited Assortments of local and imported organic products
Price Premium
Not many certified Organic farmers
Demand
Local fruits, vegetables & Poultry
MORE THAN
Supply
SUPPLY CHAIN
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85% of organic products in Malaysia and Singapore are imported all over
the world.
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Made in Malaysia organic products:
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2008
By 2009
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Some cottage industry players processing soy sauce, miso, taufu & cookies.
Non certified organic processors without any GMP, HACCP or ISO
certifications.
: Asian Noodles – one manufacturer
: two to three processors - Rice Vermicelli, Condiments,
Asian Sauces, Soy Sauce
SUPPLY AND DEMAND
MISMATCH
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In the last 2 years, the DEMAND for organic vegetables in Malaysia has
increased but SUPPLY has not
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Big shortage of organically grown vegetables during rainy season in
Nov / Dec / Jan – supply drops by 50%.
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Supermarkets such as Carrefour and Jusco are now demanding for
CERTIFIED ORGANIC fruits and vegetables, chicken, and
seafood products
COUNTRY FARM’S IMPORT
Country of Origin
USA
China
Finland
Sweden
Italy
France
Germany
Australia
Norway
New Zealand
Brazil
Inner Mongolia
Thailand
India
Indonesia
Philippines
Pakistan
Turkey
Peru
PRICE POINT
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The price differential between conventional and organic in the USA and EU is
narrow - between 25% to 30%.
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Wide price differentials in Malaysia: ranging from 100% and 300% (depending
on the type of organic products)
Imported Fresh Produce
from California, USA
TEMPERATE CLIMATE VEGETABLES
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Malaysians love temperate climate organic vegetables
• Heavy reliance on imported produce for assortments – USA, Australia, New Zealand
Imported - USA
Imported - Australia
CONSTRAINS IN FARMING
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The Four Hills of West Malaysia
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4.
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Cameron Highlands
Lojing Heights
Bukit Tinggi
Gunung Jerai
Lack of suitable land in Cameron Highlands.
Moratorium on hill cultivation
Other highland areas - not cold enough
to produce temperate climate vegetables such as:
1. carrots
2. broccoli
3. cauliflower
4. celery
5. potato
LIMITED ASSORTMENTS OF LOWLAND VEGETABLES
Asian Leafy Vegetables
Asian Leafy Vegetables
Tropical Fruits
Tropical Fruits
LOCAL FARMERS
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70% of organic farmers are highly educated with tertiary education.
Small Acreage (2 - 10acreas) – No economies of scale.
Most farmers practiced some form of organic farming
Certified farmers by NASAA & SOM
• Titi-Eco
• Zenxin
• Loh Organic
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Certified by SOM
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Titi Eco
Kahang Organic
Natural Red (Ishak)
GK Organics
Ponak Plantation
MALAYSIAN ORGANIC CERTIFICATION
UNDER THE DEPARTMENT OF
AGRICULTURE
SOM
( SKIM ORGANIK MALAYSIA )
• launched in 2005
• certified ten (10) farm operators to date
MALAYSIAN PIONEERS IN ORGANIC
FARMING
Mr & Mrs GK Gan
( GK Farms )
Ms Tan Siew Luang
( Cetdam )
Mr Lee Ong Sing
( Cameron Organic )
Mr Lim
(Titi-Eco Farm )
Mr Ho San Cheh
(Vision Eco Organic Farm)
Mr Ho
( Ho Organic )
COMMON COMPLAINTS BY
FARMERS
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Lack of Suitable Land
Poor Top Soil
Labour Problem – Malaysia has almost 2.1 million foreign workers (legal
and illegal) in various industries. Population of Malaysia is 28 million
Not many passionate and knowledgeable organic farmers.
Many young Malaysians prefer white collar jobs
Insufficient capital for expansion or to build rain shelters
Climate - Too much rain or too dry
Low Yield
Constant Insect Attacks
Poor Top Soil
Wet climate – susceptible to
fungus attack
“Kangkong” & Local Spinach – easy to grow
Lots of soil conditioning
ORGANIC CERTIFICATIONS
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Organic certification is the most important factor in the organic industry.
Malaysian government has not enforced rules on organic labeling yet.
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Liberal use of the word “Organic” and Organic logos
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Customers do not question the authenticity of the products. It’s all based on
trust.
SERVICE PROVIDER / ORGANIC
CERTIFICATION IN MALAYSIA
SOM ( Farm Production )
ACT ( Export )
OAM ( Service Provider )
ICEA
HOW TO GROW THE ORGANIC MARKET IN MALAYSIA
Small Market
§ Create A Wider
Market: The
Middle to Upper
Class Segment
§ Catch 22
Situation
§ Make Organic
Food even more
affordable
§ Volume Purchase
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Work with Supermarkets as partners.
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Work in partnership with big FMCG organizations to contract pack organic
products to further expand to more mainstream consumers. Example: Contract
packing of oats, sugar and etc
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The growth will be from the Supermarkets – not from the “mom & pop” shops.
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Commoditized popular organic products and bring them to the mainstream market
through the supermarket channels.
Organic Oats
Organic Raw
Cane Sugar
Organic Bihun
Organic Rice
Organic
Soy Sauce
Natural
Himalayan Rock
Salt
COUNTRY FARM’S
LONG TERM PLAN
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Grow the Organic market to create a wider market.
Achieve economies of scale to make organic food more affordable to the
public. Organic will never be cheap, there is a premium tied to organic.
Trade with regional countries
Reduce Carbon Footprint
Price Point - Magic Rule - “20% to 30%” for Vegetables & Groceries
(Organic products are priced at 20%-30% more than the conventional
price.)
Organic Sea Food – 30% more than conventional
Natural Sea Food (Chemical Free) – 15% to 20% more than
conventional seafood
Malaysia has high middle class population. Our aim is to pursue the middle
class segment in urban sectors.
Promote the local manufacturing and processing of organic food products
e.g. noodles, tomato ketchup, jams, etc,.
RICE VERMICELLI
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Mainly for Export
Made in Malaysia product – Rice Vermicelli (Non Organic –
certification in mid 2009)
Not from white flour with emphasis on high fibre
Vermicelli – Brown Rice, Tomato &
Beetroot
ORGANIC ASIAN NOODLES
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Mainly for Export
Made in Malaysia product –
Asian Noodles
Value Added by
manufacturing in Malaysia (
M’sia does not produce any
flour)
MATRADE encourages
Malaysian companies to
export manufactured food
products extensively
T
H
A
N
K
Y
O
U
ECOWASH
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Consumers care more for themselves than caring for the
environment
Although price is quite compatible, consumers still prefer detergent
with lots all foam (example: maids)
Mainly Caucasians are aware and buys Ecowash
Ecowash’s range: Dishwashing Liquid, Floor Cleaner, Colour Wash
and Washing Powder with Bleach
BIOKINDER
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Recent Melamine Scare – Panic and damage control
Certification via Ministry of Health to allay their fears
Country Farms Infant Formula, Toddler and Goat Milk originates
from the US and Germany
Product of USA
Product of Germany
ORGANIC SEASONINGS
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To be certified in 2009
Processed in Malaysia exclusively for Country Farms
Gluten Free Soya Sauce
Organic Light Soy Sauce and Soy Sauce
Organic Chunky and Creamy Miso

SELINA GAN

Transcription

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