British High Street Fashion Finds Favour in Value-Conscious Malaysia

Andy Jackson, the Managing Director of Debenhams Malaysia, answers the following questions: 

- UK positioning -- more of a High Street brand. Globally? In Malaysia? Can it establish itself higher purely by virtue of being foreign and British? 

- Global positioning? Malaysia - competitors 

- Represents edgier brands - issues 

- International franchise - terms - issues 

- Majority of the investor and corporate messaging indicates a strong focus on the UK retail scene and very little hoopla about international store growth - why 

- Debenhams Malaysia master franchisee is Stellar Retail Sdn Bhd - historical perspective -- whether involved in the earlier foray 

- Govt instrumental in abolishing import duties on clothes - 25% plus GST - ‘game changer’ 

- MY Franchise? Details - backers - financial capability

- The Curve - 3 million ringgit investment (12,500sf) - Starhill Gallery 6 million ringgit (40,000sf) - Penang 19,000sf, 4.5 million ringgit) 

- Ascertaining local selling conditions - product range - target markets 

- Like-for-like sales 

- Gross profit margins

- Purchasing -- system - whether an ‘Asian advantage 

- Buying centralised from the UK but how do lower costs get passed down -- e.g. cotton prices 

- Competition: M&S, Zara, H&M, Uniqlo - vicious - price cuts 

- 50% storewide discounts - implications: footfall, word of mouth? How are these promotions decided upon, frequency? 

- UK - growing online sales -- good mitigator - Malaysia takeup 

- Expectations - Penang - buying habits - Johor next 

- Regional plans - Singapore - capital raising - flotation