What are the differences in business models between 30 years back and now?
Looking back at the nostalgic pictures of our parents and grandparents, have you ever thought how lucky we are today to have all the proper tools and facilities to run a business smoothly? Lack of proper facilities, low living costs and simple lifestyle with less intrusive thoughts in the golden days have led to a low competition in the business industry. Back then, people are easily contented by earning just 50 cents or finish selling all 5 bags of apples they bought from the apple planters. Being compared to today, could we deny that the profit for a cup of coffee priced at RM19 is lesser than two thirds of its selling price?
What act of greediness have people today been doing and how can we stop it?
Beginning of the 1970’s, the government came up with the New Economic Policy (NEP) which made flexible SME loans and schemes largely available to eradicate poverty and rebalance economic structure between different ethnics. With more facilities made available, almost anyone can become a business owner and that is when competition starts to rise and become extensive during the emergence of less regulated e-commerce platforms such as LAzada and Shopee. When competition becomes too tight, some people are forced to use other methods to generate higher return and occasionally, these alternatives mostly consists of unethical tactics, cheat and fraud. For instance, trading has been one direct way of business; buying a product from the manufacturer or distributor then sell it to the consumers. It is that simple. But at times when greed and fear of losing looms over, bad intentions brings negative impact not only towards the country and the economy but also you and your family.
Did you know that approximately RM5.4 trillion (US$1.3 trillion) counterfeited goods are traded globally every year and is expected to rise to RM11.7 trillion (US$2.81 trillion) by year 2022. What do you think of this impressive figure bagged by the fake goods industry? The higher the market value of the counterfeit industry, the lower the trading value of genuine products and the more dangerous to consume general products ranging from eggs, rice to baby formula and to the favourite tea that you order from a restaurant.
What if the power bank that you newly bought is fake and might explode when you use it?
On the other hand, have you ever wondered why prices for the same product differs so much on e-commerce sites? Yes, it could be expired or fake but also could be illegal importation by unauthorised dealers or price dumping by agents to get rid of excess stocks. Illegal importation by unauthorised dealers poses serious problems to authorised dealers by adding competition, snatching profits and generating unwanted additional after-sales services and warranties.
To upkeep your business, you must first address your current problems and then look out for solutions. Whether or not your product have been copied or parallel imported, it is always better to be ready before these issues largely affect your income. At Packtica, we have professional advisors to provide free consultation on all sorts of security printing solutions for you to protect and improve your business.
Call us now to get your business protected.