Three years ago, frasers pemeriksjaya’s book publication policies seemed very similar to the industry’s practices. They even followed the usage scenario prescribed by the Malaysian Communications and Multimedia Commission’s (MCMC) Digital Development strategy. The company reprinted its content on standard paper sheets using standard $1.50 and RM2 rates per sheet.
Further down the line, its prices had decreased considerably from RM2.50 per sheet to only 20 sen per sheet. The digital editions were available for as low as RM2.50.
Fortunately, frasers had mastered the ability to continue iterating as its content was constantly being updated. Its investors were present and supportive, and in 2011, it was able to accept a $1.50 per sheet sale, remaining the lowest-cost supplier in the Malaysian marketplace.
Frasers Pemeriksjaya’s new authorities
Flaws in Frasers’ competitors cost it sales and profits over the past few years. The three largest newsagents in the country outsource their production, publishing, and packaging to self-owned companies. Frasers’ competitors spent huge amounts of effort developing and ramping up their capacity to keep up with market demand, but by the time it was caught, they were on its heels. It was nigh on impossible for frasers to compete.
Instead of unleashing itself into the highly competitive media industry, frasers became engrossed in its own troubles. The company was plagued by multiple internal and external factors, from costly hires, enormous operational expenses, and the burden of a high overhead, to fierce competition from little-known competitors. With the retail market increasingly moving online, the newsagent business went on a downward spiral.
Frasers Group: Postponing its own demise
Fulton Krith, Frasers group’s managing director, took it upon himself to save frasers’ floundering newspaper business from its own self-inflicted mistakes. He started talking to the conglomerate’s key stakeholders and initiating corrective measures. The saving grace was the eventual acceptance of Frasers by Post and Telecommunications.
The National Business Development Bank (NBNB) saw a market opportunity in helping Frasers undertake the necessary first steps in its turnaround. This enabled the company to amend its previous procedures by hiring a new one of its own. Despite the stressful situation, Fulton Krith’s quick and encouraging action spurred Frasers to implement some successively positive changes.
The first of which was slashing salaries for staff, instead of resigning on the spot. The second was introducing new incentives as a payment mechanism to customers. Then a new system was implemented where stores that met deadlines were paid. The decision might have proved a fiasco if it had been implemented at the first instance, but with more than 5,000 outlets attached, Fulton Krith took it upon himself to work round the clock, 365 days a year.
Two years down the line, frasers pemeriksjaya has emerged as a strong player in the market, “helping people to help themselves” according to Fulton Krith. The new rewards were successful as wholesalers and newsagents. But the biggest success story for Frasers pemeriksjaya was the purchase of all 3,500 operating newsagents.
Full recovery in sight
For this impressive turnaround, Fulton Krith was awarded as the 2018 Geeks for Achiever Young Entrepreneur of the Year by Malaysian Business and Leadership Magazine. It is also acknowledged as the best value retailer in Malaysia. These accolades demonstrate how frasers pemeriksjaya is now on a definite path to recovery.
A recharged frasers pemeriksjaya has come a long way. There will always be room for change and adaptation, but the website is now in optimum shape. It is also an integral part of how newsagents order new copies, how it handles supply for customer feedback, and how newsagents interact with the frasers pemeriksjaya team. As for the prices of its content, those are currently being reviewed after several years of decline and are expected to be lowered further. Frasers Pemeriksjaya is determined to re-establish its role as the leading player in the newsagent business.
Despite the tough times ahead, frasers Pemeriksjaya has bought back our trust and confidence. We are still watching with baited breath. The opportunity is here, and it is time to do some business with Frasers pemeriksjaya.