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View Full Version : MUST READ: How hypermakets cheat consumers in the low prices advertisements



MasterQ
31-05-2009, 06:15 PM
Many people like to compare prices advertised by the hypermarkets before setting off for their grocery shopping. And I cringed whenever I see Giant, Tesco and Carrefour took out multiple page colour ads boasting their limbo rock prices. And they do it practically everyday. Such wastefulness. Each page of colour ad cost easily RM 30,000. It never crosses my mind how they can outdo each other without commiting suicide.

Today, Mydin who didnít join in the price rocking party took a full colour page advertisement in the New Sunday Times on page 25 with the title PLAINLY & BLUNTLY to explain how they did it. But before I share with you the secret, first I must truly apologise for reading the New Sunday Times. I must follow Mahathir in boycotting the NST. And I am trying. Mydin ads says,


Dear Malaysian Shoppers

It appears that of recent times, Malaysia have been inundated with many claims that lead us to think that we are making the correct decisions. You cannot but browse through the daily newspapers and notice large coloured enticing full page advertisements screaming at you about the prices of daily necessities. The prices of fish, onions, cooking oil, toothpaste and washing soap seems to continue to fall faster than the economy. But hey, is this the truth? Being the local homegrown corporate citizen that MYDIN is, we thought we could do a little to checking. So here's the truth about the screaming retail scene from the jury that we sent out..

In the first instance and to put it rather bluntly, the prices that are advertised by some of our international competitors go up the very next day. It is not fixed for any duration. Plainly, the Malaysian consumer seems to be at the shorter end of the stick. So what is the use you may ask if these prices are not adhered to. Well, the promise is simply not kept.... call it false reporting, bad advertising or dishonesty..... take your pick. The prices are hiked up the very next few days and out come the next advertisement, cooked, massaged, scrambled and dished out in full colour. The cycle repeats itself daily.

Mydin, the true price leader!
Thank you to the New Straits Times for voicing the public thought.

For many of you, the last sentence must be very puzzling. You wonder why? Well, if you notice, the only English newspaper that laughs all the way to the bank is The Star who is publishing all those price comparison ads. I believe when Mydin wanted to place this PLAINLY & BLUNTLYad in The Star, obviously Star would refuse to publish it. Why throw sand in your own rice bowl.

AllUrban
01-06-2009, 01:11 PM
Ironically, it is the NST that has clip out coupons from Carrefour every sunday.

As if Mydin isnt going to find a way to play sneaky with their prices.

Ironic isnt it, that local hypermarket Mydin can provide 75% foreign-sourced products while foreign hypermarkets have to provide 70% locally-sourced products.

Despite whatever claims may be made by hypermarkets or government or whomever, the maxim is as it always has been - caveat emptor - let the buyer beware.

Cheers, m

umadavid
01-06-2009, 02:14 PM
They all paint with the same tar brush; the customer doesn't care if they raise up the price the next day or the next week so long as they get the best price at that moment in time.

Sentinel
01-06-2009, 03:08 PM
As long as there is enough competition, consumers will enjoy ELP promotions continuously. Right now I know the folks in Giant hate the guts of the people at TESCO and vice-versa, so consumers are still ok. The day they have teh tarek sessions together, better watch out.

The hypermarkets make money not from margins, sure they do sell at normal price sometimes and make some margins. Their main incomes are from the trading terms with suppliers which include listing fees, promotional funds, volume incentive, sales target incentive, merchandising space buys, advertising contributions (those colorful ads and booklets are paid for by suppliers)....

I am aware of one deal between on of these big boys with a poultry farm... "I will buy from you and only you if every month you give me the chicken at RM5 per bird for one day only!" That outlet will give out those chicken at RM5 a bird for people to come and shop before 10 am, low traffic period.

AllUrban
01-06-2009, 03:58 PM
We've gotten used to this idea that prices should be relatively constant - a chicken today is the same as a chicken tomorrow, etc.

But given the number of people involved in the supply chain, there is no doubt that prices can and will change, and will change regularly in the marketplace - all based on a huge variety of different factors.

Here's a similar example:

We dont criticize the movie theatres for showing movies for a low price only one day a week and then showing those same movies for a higher price on other days.

We dont criticize them for charging 4x the "normal" price to offer those same movies in a much smaller theatre, with leather armchairs and enhanced sound and food and service.

But they have inflated the price of a movie above RM7 (the lowest market price), haven't they?

If we really want to know what the fair prices are in the market then we have to do two things:

*eliminate subsidies (which, amazingly the government is willing to do beginning next year) and

*work against collusion or monopolies in the markets

Cheers, m

Sentinel
01-06-2009, 04:53 PM
The only answer to protect us consumers is there must always be open and fair competition. There must be no monopoly of only 1 chain or should these retail operators be given a chance to form a cartel.

Healthy competition will ensure these operators squeeze the suppliers who will in turn be more efficient in their production and supply chain management to reduce cost & improve quality.

The ELP (Everyday Low Price) practice is good for consumers, just don't buy more than you need because its cheap, yah! I know some small retail shops even buy from these supermarkets to resell in their shops... they lined up for hours when the outlet limited 2 cans per customer....

jan tomaswaki
01-06-2009, 05:53 PM
As long as there is enough competition, consumers will enjoy ELP promotions continuously. Right now I know the folks in Giant hate the guts of the people at TESCO and vice-versa, so consumers are still ok. The day they have teh tarek sessions together, better watch out.

The hypermarkets make money not from margins, sure they do sell at normal price sometimes and make some margins. Their main incomes are from the trading terms with suppliers which include listing fees, promotional funds, volume incentive, sales target incentive, merchandising space buys, advertising contributions (those colorful ads and booklets are paid for by suppliers)....

I am aware of one deal between on of these big boys with a poultry farm... "I will buy from you and only you if every month you give me the chicken at RM5 per bird for one day only!" That outlet will give out those chicken at RM5 a bird for people to come and shop before 10 am, low traffic period.
Talking about listing fees,i once want to sell something from Aust.dyring the SARS period,a h/market charge me RM30K.One thing foriegn h/markets invest in Malaysia they also bulid their own building,if one day they went kabut they can sell the building!Properties in Malaysia is ever rising.Ikea building their building incl.land RM70M now it cost more than RM300M.See what i mean

Sentinel
01-06-2009, 06:13 PM
Talking about listing fees,i once want to sell something from Aust.dyring the SARS period,a h/market charge me RM30K.One thing foriegn h/markets invest in Malaysia they also bulid their own building,if one day they went kabut they can sell the building!Properties in Malaysia is ever rising.Ikea building their building incl.land RM70M now it cost more than RM300M.See what i meanIs that wrong?

tupai
01-06-2009, 07:35 PM
READ my lips;

Nobody luvs me except my parents...


HAHAHAHAHAHAHA!!!

Yang Berkedukut latotupai :p

AllUrban
02-06-2009, 04:29 PM
READ my lips;

Nobody luvs me except my parents...


HAHAHAHAHAHAHA!!!

Yang Berkedukut latotupai :phow about ur bike? Aphrodite?

Cheers, m

Sentinel
02-06-2009, 09:28 PM
how about ur bike? Aphrodite?

Cheers, m
ROTFLOL! Really cheeky bugger lah you M!

AllUrban
03-06-2009, 01:17 PM
ROTFLOL! Really cheeky bugger lah you M!what...Im innocent mah! :D

Read this letter tho: it is a very specific to a certain Syarikat Jus

Consumers being taken for 'discount rides' (http://www.malaysiakini.com/letters/105588)

Shorts that were selling for RM30 plus recently are now listed at RM69 and then discounted 50% back down to their original price. A cotton slacks that I had bought at a RM69 regular price is now listed at RM139 before being put on sale at a very attractive 70% discount.
Now that is cheeky~ :(

Cheers, m

MasterQ
03-06-2009, 05:25 PM
They say, "It takes a thief to catch a thief." Sound too philosophical? Basically when Mydin took that advertising page and started to spill the beans of hypermarket advertising tricks, most probably Mydin has been beaten on its own game so it is "Tell all" time. Mydin has tried everything but can only bully Giant, its easy pushover neighbour in USJ. At that time Giant USJ was already on the floor in the proverbial knockout fights as its has to cope up with a legal cases. But when Tesco and Carrefour came in to fight, it looks like 3 against 1, our friend Mydin has to resort to this Tell All charade.

tupai
03-06-2009, 05:30 PM
how about ur bike? Aphrodite?

Cheers, m

Aphrodite not my bike lah... I merely lust after Aphrodites! Plus whats luv gotta do with lust?

Its comparing bikes to cars lah! Or helicopter ride to a 777 plane ride. Where's the thrill???? :p


Yang Bercinta latotupai :eek:

Mrs A Tham
09-06-2009, 04:51 PM
They say, "It takes a thief to catch a thief." Sound too philosophical? Basically when Mydin took that advertising page and started to spill the beans of hypermarket advertising tricks, most probably Mydin has been beaten on its own game so it is "Tell all" time. Mydin has tried everything but can only bully Giant, its easy pushover neighbour in USJ. At that time Giant USJ was already on the floor in the proverbial knockout fights as its has to cope up with a legal cases. But when Tesco and Carrefour came in to fight, it looks like 3 against 1, our friend Mydin has to resort to this Tell All charade.

Yup! ...I agreed! All hypermart incl Mydin has their strength and weakness and they infact are all the same...It takes one to know one lah...
So was told as of yesterday, Mydin's milo was @ RM25.++/2kg while Carrefour's @ RM22.++, Jasmin Superwhite was at RM51.++ while Carrefour's @ RM43.++, Jacob's Cracker @ RM12.++/tin, while Carrefour's @ RM10., brocoli @ RM8.++/kg while Carrefour's @ Rm6.++/kg......etc
and on top of that Carrefour is giving away RM5 voucher to all RM240 purchase (80/chopx3) ...what has Mydin got to offer?????

So who's the bigger CHEAT here??

That's why for those who does the grocery monthly, they will know where to get what...somethings are cheaper @ Carrefour, some @ Giant, some @ TEsco,...but as for Mydin, well they always claim, "MEngapa Bayar LEbih? Belilah dengan harga borong!" Go figure.. :rolleyes:

Sentinel
09-06-2009, 05:51 PM
If you know MYDIN's background as a small Mamak minimarket in Penang and in just a few years become a national chain to challenge Giant (from TMC Bangsar) and TESCO you will wonder how it becomes so big with so many millions in capital... ask local Penangites and you will be shocked!

EricK
09-06-2009, 08:15 PM
If you know MYDIN's background as a small Mamak minimarket in Penang and in just a few years become a national chain to challenge Giant (from TMC Bangsar) and TESCO you will wonder how it becomes so big with so many millions in capital... ask local Penangites and you will be shocked!

Ok i'll bite. Can you tell us how MYDIN become so big in a few short years? :D
You are a Penangite right?

Sentinel
09-06-2009, 10:10 PM
Ok i'll bite. Can you tell us how MYDIN become so big in a few short years? :D
You are a Penangite right?I said ask a local Penangite, I am an adopted Penangite, choosing to spend my early retirement years here.

tupai
10-06-2009, 11:01 AM
If you know MYDIN's background as a small Mamak minimarket in Penang and in just a few years become a national chain to challenge Giant (from TMC Bangsar) and TESCO you will wonder how it becomes so big with so many millions in capital... ask local Penangites and you will be shocked!

The first part is incorrect lah. The first shop is a typical 2storey, chup-hooi-tiam shoplot, located in Jalan Tok' Hakim, New Castle. The family lived upstairs as in the typical small time chinese retailers. Even in those early yrs they have been a sort of wholesaler/importer of tik-tik-toktok products, with many from india. Think along those indian retailers now in masjid india or those in medan pudu years ago.

In my blurblur deduction, their success lies in catering, along the line of 'tanpa was-was' to the growing malay segment, (with expanding disposable income lah). Majority of the mydin outlets are malaycentric (with the exception of mydin usj lah)...

BUY M'sian...but BUY SMART! :p

Yang Blur shopper latotupai

p/s i know that dato amir lah... :p

Lau_utlang
10-06-2009, 12:32 PM
Let there be WAR. Tesco, Carrefour, Giant, Mydin. Let them fight it out and enjoy their loss leaders. Staying in SJ means going to these places is easy. Should also try Khas. This is located opposite Mydin. You may bump into your favourite hawkers buying their stuff there. Shopping there is NOT a breeze but can get some dirty cheap foodstuff there. End of the day shop wisely and compare prices.

You will also notice that credit card company pushing the credit card of the month (this means shopping using this credit card gives additional discount). Do not bother to apply as by the time you get your card, the promotion in Carrefour is over. Another bank will then come in to do their promotion with Carrefour and the merry go round begins again.

Sentinel
10-06-2009, 01:52 PM
Like I said in my earlier post, as long as there is "COMPETITION" the people who will benefit from the spoils are the consumers. Let them fight, let them lose their margins, we will only get the products cheaper. Why say they are cheating us? No way, if there is competition, we will enjoy the fight.

VeeJay
14-06-2009, 08:11 PM
The first part is incorrect lah. The first shop is a typical 2storey, chup-hooi-tiam shoplot, located in Jalan Tok' Hakim, New Castle. T

Yang Blur shopper latotupai


The background of Mydin from Wiki

In the 1940's, Mr. Mydin Mohamed started a business in Penang as a general merchant hawker by selling general merchandise. In 1945, he opened his first shop in Jalan Tok Hakim, Kota Bharu, Kelantan by selling toys and also general merchandise. The location of Kota Bharu was chosen because of the heavy inflow of goods to and from Thailand, enabling his business to expand. With the help of his immediate sons, the business spreads its operation to Kuala Terengganu which became its second outlet, and Kuala Lumpur.

Mydin's business began to prosper after Dato' Haji Ameer Ali joined the family business in 1986 where he opened his wholesale shop at Jalan Masjid India, Kuala Lumpur. Before joining the business, Dato' Haji Ameer Ali was in the forefronts of the banking sector for ten years.

When Mydin Mohamed & Sons Sdn Bhd stores had been based in Kuala Lumpur, their stores have been acknowledged as the "Headquarters for all its branches in the West Side of Peninsular Malaysia. Before Mydin was based in Kuala Lumpur, their stores in Kota Bharu had become the contributions center for some of the items, especially for Muslims traders.

In July 1991, due to rapid growth in size and turnovers, the business was converted from sole-proprietor to a private limited company. Mydin Mohamed Holdings Sdn Bhd was led by Mr Mydin Mohamed as its Chairman and all four of his sons were named as the Board of Directors. In February 2000, the company has changed its name to MYDIN Mohamed Holdings Berhad.

http://en.wikipedia.org/wiki/Mydin

AllUrban
14-06-2009, 08:39 PM
Let there be WAR. Tesco, Carrefour, Giant, Mydin. Let them fight it out and enjoy their loss leaders. Staying in SJ means going to these places is easy. Should also try Khas. This is located opposite Mydin. You may bump into your favourite hawkers buying their stuff there. Shopping there is NOT a breeze but can get some dirty cheap foodstuff there. End of the day shop wisely and compare prices.Hawkers buying dirty, cheap foodstuff? :eek:

That explains a lot! :D

hmmm...m thinks that competition is great but too much competition can be destructive. Imagine that TESCO, Carrefour, Giant, Mydin, Pacific/The Store/Milli Mella and Khas (among others) go to war and savage each other with their great deals - customers will save alot of money and producers and wholesalers will be beaten down.

Then after the companies have beat each other into the ground, Wal-Mart comes in and buys over one of the dying companies and proceeds to run roughshod over the Malaysian companies.

Cheers, m

Sentinel
14-06-2009, 10:14 PM
The background of Mydin from Wiki

In the 1940's, Mr. Mydin Mohamed started a business in Penang as a general merchant hawker by selling general merchandise. In 1945, he opened his first shop in Jalan Tok Hakim, Kota Bharu, Kelantan by selling toys and also general merchandise. The location of Kota Bharu was chosen because of the heavy inflow of goods to and from Thailand, http://en.wikipedia.org/wiki/Mydin
Tupai, looks like your info in trying to correct my earlier posting is wrong. My infor was from my father-in-law, who is 76 and still running a wholesale business here in Penang... he should have known better!

tupai
15-06-2009, 12:11 PM
Tupai, looks like your info in trying to correct my earlier posting is wrong. My infor was from my father-in-law, who is 76 and still running a wholesale business here in Penang... he should have known better!

hehehheh...Mea culpa. :D sori ah. Duh Blur tryin' too hard 2 be smartee-ass :p But still a Blur sotong lah! :D but damn! like chinese, they are everywhere aren't they? ahahhahaha

Fast forward>>>> pearl of orient to land of lightning...This Ameer guy and his brudders were my neighbours lah...but i didnt know they originated from penang (which in hindsight, is an obvious heritage ~ astute bizz savviness etc)

New Castle Mydin's thai connections were the same as my aunt's chup-hoi-tiam, which was just 3doors from Mydin's!


Yang Blur Blur Berasal Newcastle latotupai :p

Sentinel
15-06-2009, 07:38 PM
Their No.1 product was the pots and pans and kettle which were very popular in Thailand (Elephant Brand, Zebra Brand) and they are the ONLY one allowed to bring in and retail.... in Penang and elsewhere....

Not to mention the Beras Wangi and Pulut Hitam from Thailand in the early days... MONOPOLY!

Now, they want to complain about Carrefour, TESCO and Giant lagi??? Sudahlah!

Phres
16-06-2009, 08:31 AM
Heard Mydin is coming to USJ27/Putra Heights ... seems they like to go where Giant is eh?

bslee
16-06-2009, 11:17 AM
Heard Mydin is coming to USJ27/Putra Heights ... seems they like to go where Giant is eh?

Heh, just like Sri Paandi Banana Leaf restaurant. They have a couple of branches next to some long established BL restaurants in PJ. More the merrier and on purpose? Man!... BUSINESS IS WAR!... period!
Sorry if its OT.

jan tomaswaki
16-06-2009, 07:23 PM
Heard Mydin is coming to USJ27/Putra Heights ... seems they like to go where Giant is eh?
Same as where Jusco go,Tesco will follow!