
A simple breakfast before starting the day. Lately had been visiting Family Mart to purchase grocer like bread and fresh milk which is very convenient and to my liking. While enjoying the breakfast bought from Family Mart, I wanted to start looking into how the QL Group going to expand the franchise throughout Malaysia. It is interesting to see that the group does not open to outsider to take up the franchise and own the premise. Unlike 7-11, QL takes the expansion directly under their control. Family Mart has also introduce new line of grocery into the shop which is a refreshing image for the grocer to compete with other marts. However, I would say the closest competition is 7-11 as they sell fast consumption items more than slow consumption. Under QL Group, they also have food production arm that supplies different food product like the bakery product that I bought from the mart. This is like an ecosystem that support each other to form a impenetrable business module. With that, they can precisely understand the demand for each items. In terms of expansion, family mart is still far behind 7-11 in terms of location coverage. Such business module will require a lot of capital and capturing small radius coverage. When it becomes a norm for the people to visit the mart for grocery; then it will strengthen their brand and role to become the come and grab place. This is quite similar to how Mr. DIY to sell accessories. They have gained VC’s capital to expand their shop throughout Malaysia and even Southeast Asia. Furthermore, they also expect to go IPO by around 2020 or 2021 if not mistaken. With such Capital, they could roll out even faster and kill off all the SME which are doing similar business. Like Family Mart, they are also killing off local grocery shop which then it is unlikely to survive unless they sell unique items. It is a tough business as there are large capital supporting the expansion and operation. Thus, it is important to know where and how we going to venture into business before really making the move.