malaysia online shopping trend

Daily Deals & E-commerce

Wilson QuahCo-founder

wilson@milkadeal.com

Group of Websites

• MilkADeal - Daily Deals (est. 2011)

• HiShop.my - Beauty & Skincare (est. 2011)

• White.my - Household (2012 - 2013) - RIP

• Jane Holli - Female Shoes (est. 2014)

Co-founders

Wilson Quah

Shaun Lee

Wasn’t Our 1st Venture

WineActually.com - Selling Wines Online in 2010

The Journey

My Perspective

Before MilkADeal

• WineActually was running for ~6 months

• Inventory - part bought, part just-in-time

• RM20k monthly in sales (mostly wedding wines)

• No marketing dollars - rely on FB and videos

• Fraud cases

Daily Deals• Groupon made it famous

• Offer services on discount - only ON when minimum achieved

• e-commerce wave no.2 (after Air Asia)

This is what customers see, very high tech right?

Awesome

• One Deal per Day

• No inventory risks

• Pay only when consumed

• Sales & subscribers explosion

First Problems

• Not much choices

• No structured marketing

• Undersold

• Oversold

• Need more money to grow

First Pivot

Behind the modelApproach to

featureCollect

VouchersPayme

ntCollect

VouchersPayme

nt

KEEP REPEATING

More Problems

• Reliant on service deals

• Tedious - hire despatch

• Hard to Scale - expensive

• Disputes

• Customer Dissatisfaction

• Hype declining

Attempt to Solve• Reliant on service

deals

• Tedious - hire despatch

• Hard to Scale - expensive

• Disputes

• Customer Dissatisfaction

• Hype Declining

• Product Deals

• New Payment Structure

• MilkADeal Affiliate Program (MAP)

• Refund Policy

• Spending on Marketing

By End of 2011

• Product Deals - shorter turnaround time

• Tedious Process? - automation

• Marketing? - vigilant tracking

• Grants - Cradle CIP500

HiShop.my

HiShop.my

• Just-in-Time Inventory Model (Slow turnaround)

• Hard to acquire well-known brands

• Founding Team Left

HiShop.my

What about MilkADeal?

New problems

Slow Redemption

Restrictions & Rules

There’s always competition

New problems

Warehouse / Inventory

Management

SuppliersNon

Fulfillment

New problems

Growth / Sales

Decline

Dissatisfied Customers /

Return Products

An example - redemption

Products Redemption

Unclaim Rate Repeated Entries

via Google Forms Very High Very High

via MilkADeal Form after Checkout

Medium None

via MilkADeal Form before

CheckoutNone None

Where are we now?• Somewhere between marketplace & daily

deals

• 95% Products, 5% Service

• 3 types of suppliers:

• Stocks with Us (Express Next Day)

• Stocks Not with Us (5 WD after deal ends)

• Just In Time (21 WD after deal ends)

Where are we now?

• >200,000 registered users

• >1,500 deals per day (MilkADeal)

• >3000 SKUs (Hishop)

• >300 Suppliers - stock with us

• New Site - Jane Holli

• Next Day Delivery

The Near Future?

• Faster Fulfillment Cycle

• Better Products

• More Choices

• More Channels

• Better LogisticsWe Are Still

Learning

Thank you

Wilson Quahwilson@milkadeal.com

Questions?