Mara Digital traders back 'bumi monopoly' model

Despite limitations imposed by WGN Innovation Frontiers, the bumiputera-owned company appointed as sole supplier for IT products sold at Mara Digital, the majority of tenants met by Malaysiakini agreed that what was criticised as a 'monopoly' system has actually benefited their business.

Operating from the third floor of Medan Mara in Kuala Lumpur, many of them are first-time retailers who took the opportunity to set up shop at the digital mall that was launched on Dec 8 last year.

An employee at the ACER dealership who introduced himself as Bob Nordin said WGN Innovation (registered as WGN Scan Sdn Bhd) has been a big help to retailers.

In this case, Bob said, having a single supplier for major laptops and handphone brands is a convenience, rather than a restriction.

"People may call it a monopoly (by WGN) but it (the system) has actually helped retailers.

"Anyone can place a direct order with the main supplier (for example, ACER) but not everybody can register to get a consignment.

"Independent retailers can't afford to get a consignment quota," Bob (photo) said.

WGN is the single authorised supplier for major brands sold at Mara Digital using the consignment model and there are currently 36 tenants, comprising authorised dealerships, ordinary retailers and a cooperative store.

In terms of cost, another retailer, Haizal Izwan, said it is cheaper to obtain supplies through WGN.

"WGN is assisting us (retailers). Our cost is not high to obtain stocks so we can also sell our products cheaper.

"For a major brand laptop, we can sell it at minimum of RM100 cheaper than the shops elsewhere," Haizal said.

In the event that a customer seeks an unavailable model, Haizal said, he would forward the request to WGN, after which the order would be received, within three days to one week.

"So far, it is not often that a customer is looking for an unavailable model," he said, adding that he has sold more than 30 laptops in the first month of operations.

Further, reducing their cost is also the fact that all tenants are exempted from paying rental for their space for the first six months.

And while there is no price competition for the main products supplied by WGN, Haizal said each retailer would 'compete' to provide the best service, aside from also selling IT accessories and gadgets.

One way to do it, according to shopowner Azizul Azri, is to make follow-up calls to his customers.

"We have our customer details and so I will call them one week after they come and buy a laptop. When they come, I will also make recommendations based on available models and their budget.

"Each of our 'strikers' (sellers) must have the skills to sell or else we will lose out," Azizul said.

However, Azizul looked distinctly uncomfortable when asked to comment on criticisms that the single-supplier model is disadvantageous to consumers due to 'limited' choices.

"That is a different story... Maybe there are people who are unhappy (with Mara Digital). They don't want to see us succeed," he claimed.

'No alternative products'

Aside from guaranteeing that only original products are sold at Mara Digital, WGN Innovations also prevents retailers from offering alternative operating systems to meet consumer demands.

At the moment, all of the laptops sold run on Windows 10.

Aside from the major names, among the independent local brands sold at Mara Digital include Elephone mobile phone and the Forte range of networking products.

Mohd Naim Md Tawil, a staff at Forte's booth, noted that there are times when supplies for the major brands can run short due to high demand.

"Here we only take three models of laptops from WGN so we are not really affected.

"But maybe it would be good to have a second supplier because there are times when many customers are looking for a model that is in limited stock," Naim said.

WGN Scan general manager Wan Mohd Zaffique Zin had previously told Malaysiakini that the company's main role is to assist Mara Digital tenants by reducing their overall costs to open a business.

Wan Mohd Zaffique also confirmed that his father, WGN Scan chairperson Wan Mohamad Zin Mat Amin, was an Umno candidate for the Kemuning state seat in Kelantan during the 2008 general election.

On Jan 5, Sinar Harian quoted Wan Mohamad Zin as saying that Mara Digital had recorded sales of over RM100,000 in its first two weeks, describing it as an encouraging sign to counter critics who predicted that the bumiputera-only business model will not last.

Rural and Regional Development Minister Ismail Sabri Yaakob had, during his walkabout at Mara Digital on Monday, said the government was looking to adopt the single-supplier model as part of the outlet's nationwide expansion plan. -Mkini