'Little things' make a big difference

 

Although Malaysian SME products may have the potential to succeed abroad, it is the little things - the packaging, labels that spell out the nutrient contents and even the product's weight - that make the difference, which are overlooked.

THREE years ago, the government helped 42 small companies to promote their products in a Hong Kong supermarket.

Only two made it. Syarikat Hang Tuah Sdn Bhd's Hang Tuah Coffee and Alif Sauces by Alif Food Industries Sdn Bhd remain on the shelves of Wellcome Supermarket until today.

That episode underscores how difficult it is for Malaysia's small and medium-sized enterprises (SMEs) to break into overseas markets.

Although SME products may have all the potential to make it abroad, it is the little things that make the difference, which are overlooked. These include the packaging, labels that spell out the nutrient contents and even the product's weight.

The Hong Kong trip in 2005 was part of the government initiatives to help SMEs, in partnership with hypermarket operators present in Malaysia. Wellcome Supermarket is owned by Dairy Farm Co Ltd, the parent of Giant hypermarkets.

Besides Hong Kong, similar campaigns were launched in Paris and the UK three years ago by Carrefour and Tesco respectively.

Last Week, Giant Malaysia and Wellcome Supermarket launched a two-week campaign to promote food items produced by Malaysian SMEs at 19 selected Wellcome supermarkets on the island.

The "Taste of Malaysia" campaign is a collaboration between the two retailers and the Ministry of Domestic Trade and Consumers Affairs Industry. Deputy minister Tuan Jelaing Anak Mersat launched the promotion at the Wellcome Supermarket Metro City 111 in Hong Kong.

Unlike 2005, this time around a buyer from Hong Kong chose the products deemed to have the potential to be marketed there.

Previously, the government helped the SMEs to bring the products to test the market.

"Last time, we brought over products that we think the local market would want. But now, we let them choose what they want, that's why we are hopeful to get all the products listed in the supermarket," Tuan Jelaing said.

The minister believes that this is the right way to introduce SME products internationally. It may continue to do the same for other overseas markets.

Wellcome Supermarket marketing director Diane Chiu agreed that the major difference in product selection this time will help create awareness.

She also hopes the new products that were selected will stimulate demand by Hong Kong consumers.

"This time, we have more say in the product selection so we chose those that suit the Hong Kong consumer's taste, which consist of 95 per cent local Chinese, most who are well travelled and aware of food available in Malaysia," she said.

Popular products that are sought for by Hong Kong consumers are sauces, noodles and snacks like cookies and chips.

Meanwhile, distributor Fok Hing (HK) Trading Ltd sales and marketing director Charles Lui pointed out that Malaysian products lack a brand identity compared with products from Indonesia, Thailand and Singapore.

"Malaysian SMEs may have good products but poor branding and lack of identity make it difficult to market the products outside of Malaysia," he said.

"For foreigners, when they think of nasi goreng , they will think it's from Indonesia and lontong is from Singapore, Tomyam is from Thailand. That is the product identity that Malaysia lacks especially when it has similar products with these countries," said Lui.

Fok Hing is the distributor that is bringing Malaysian SME products to Hong Kong. It is also the distributor for products from Indonesia and Thailand.

Lui also suggests the ministry to spend more to allow foreign consumers taste Malaysian food. This will take time, but at least it could create the buzz or word-of-mouth marketing for Malaysian food abroad.

Another important point for Malaysian products is the pricing, where it is priced among the mid-ranged goods. One way Malaysia could compete is by selling cheaper products and companies could reduce product weight to do so, Lui said.

Lui also hopes the government will continue to support Malaysian SMEs and keep them updated with issues like labelling requirement and packaging efficiency to comply with international requirement.