Innovation drives Senheng ahead | The Star


PETALING JAYA: Senheng New Retail Bhd, en path to a list on the Main Market this month, goals to remain ahead of the competitors because the nation’s largest shopper electrical and electronics (E&E) retailer units itself for growth.

Executive chairman Lim Kim Heng advised StarBiz that the group would repeatedly innovate its enterprise mannequin to remain ahead of the curve and cater to the newest shopper developments.

“Since our inception, we have undergone six phases of transformation, with our latest being the digital transformation in 2015 and transition into seamless New Retail Model in 2017.

“The latest transformations involved digitalising our operations, as well as integrating physical stores and back-end functions to our online platforms and Senheng App.

“Through these enhancements, we continued to capture customers, which ultimately contributed to our revenue growth to consistently exceed the RM1bil mark since 2018,” he mentioned.

Senheng is the most important shopper E&E retailer by income, providing a complete collection of over 280 completely different manufacturers.

Lim added that the group has an in depth chain of about 100 bodily shops nationwide, and is about two to 4 occasions bigger in retailer depend in contrast with a few of its key opponents.

Executive chairman Lim Kim Heng (pic) told StarBiz that the group would continuously innovate its business model to stay ahead of the curve and cater to the latest consumer trends.Executive chairman Lim Kim Heng (pic) advised StarBiz that the group would repeatedly innovate its enterprise mannequin to remain ahead of the curve and cater to the newest shopper developments.

Furthermore, he mentioned e-commerce platforms complement its bodily retail choices to supply a seamless and handy retail purchasing expertise, which is likely one of the key strengths of Senheng.

He mentioned the contributions from the members of its PlusOne loyalty programme alone accounts for greater than 95% of the group’s annual income from 2018 until 2020.

Senheng’s PlusOne loyalty programme has has about three million members.

On one other word, Lim mentioned regardless of the onset of the Covid-19 pandemic, the retailer had managed to chart a 13% income development to RM1.3bil within the monetary yr ended Dec 31, 2020, on the again of multi-dimensional methods to adapt to the pandemic.

“We rose to the challenge by upgrading our stores to feature bigger store space and product variety.

“Furthermore, we leveraged on our online presence and innovative telemarketing initiatives to continue serving our customers despite physical store disruptions due to the various movement control orders (MCOs),” he mentioned.

“While the Covid-19 pandemic remains uncertain, our ability to maintain healthy growth proves our resilience. Not only that, our digitally-forward operations enable our adaptability in facing adversities in the marketplace,” he added.

On its growth, Lim mentioned Senheng’s growth technique includes organising new shops in addition to elevating prospects’ in-store experiences by upgrading current shops into greater and enhanced idea shops.

From 2022 until end-2024, he mentioned the group intends to improve in addition to arrange a complete of 61 shops throughout a number of flagship retailer manufacturers, particularly “Grand Senheng Elite”, “Grand Senheng”, “Grand senQ” and “senQ”.

As as to if there are plans to enterprise abroad, Lim mentioned: “At the moment, we see plenty of growth opportunities in the domestic market and the focus is only on Malaysia.

“We have continued to record increasing PlusOne memberships and are eager to enhance our in-store experiences and product range, which will ultimately drive more sales.”

He mentioned Senheng additionally strives to deliver extra advantages to its PlusOne members by leveraging on its Senheng App, which can quickly enable members to entry third-party lifestyle-based providers on its ecosystem.

“This will open up a larger variety of exciting and new shopping experiences for our members,” he famous.

Commenting on the outlook for the retail trade in 2022, Lim mentioned he believes the market would enhance this yr as financial actions decide up.

Particularly for the E&E section, the corporate is seeing growing gross sales amidst the period of digitalisation, a key pattern that’s prevalent not simply in Malaysia but in addition throughout South-East Asia.

Additionally, he mentioned the rollout of 5G and Internet-of-Things merchandise in addition to associated residence and life-style gear, is anticipated to spur gross sales as customers improve to the newest expertise.

The group, which is anticipated to be listed on Jan 25, launched its prospectus on Dec 29.

Senheng just lately signed an underwriting settlement with Mercury Securities Sdn Bhd, CIMB Investment Bank Bhd and AmInvestment Bank Bhd to underwrite 52.5 million shares.

This would entail a public situation of 250 million new shares and an offer-for-sale of 139.5 million current shares.

At a problem value of RM1.07 per share, Senheng would increase RM267.5mil in proceeds, which might primarily be used for the organising of latest shops and upgrading of current shops into greater, enhanced idea shops.

The proceeds would additionally go in direction of upgrading back-end capabilities akin to creating new model distribution enterprise, increasing and upgrading logistic community in addition to boosting the group’s digital infrastructure.

Of the 250 million new shares, 149.5 million could be positioned out to institutional and chosen traders and 48 million shares could be positioned out to bumiputra traders authorised by the International Trade and Industry Ministry.

Another 22.5 million shares could be made obtainable for software by eligible administrators, workers and individuals who’ve contributed to the group’s success.

The remaining 30 million new shares could be made obtainable for software by the Malaysian public by way of balloting.

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