The wholesale industry is here to stay.
Welcome to the new wholesale platform of the future.
The evolution of Wholesale
The Era of Large Capital, Big Inventories and Large Warehouses
During the 1970s and 1980s, traditional wholesaling was both a capital and labour intensive endeavour. However, the biggest challenge has always involved securing large warehouses - between 5,000 to 10,000 sq ft - to maintain an inventory size that would make the business viable.
There are other considerations such as the minimum quantities on orders as well as logistical concerns when shipping the merchandise to retailers or agents. In short, the barrier of entry was high.
The Knowledge Economy era
The 1990s brought forth the Knowledge Economy era, which allowed for the supply chain, logistical and transport systems to improve and therefore lowering cost. The need for large warehouses was eliminated and smaller storage space - often around 3,000 sq ft - became the new norm.
The Digital Age
Now, we live in the age of mobile internet, e-commerce and smartphones, which has changed the landscape of how businesses meet consumer demands. Young entrepreneurs are now meeting the surge in demand for online shopping, with some even launching their own wholesale shopping systems.
The Digital Age has brought forth many new opportunities for traditional wholesale business, but many are hesitant to embrace new methods. Although there are obstacles, keeping up with technology and perseverance can result in increased efficiency and discarding old methods to fulfil the supply chain.
The Era of Online to Offline (O2O)
Chinese entrepreneur Jack Ma had famously coined the term "new retail" to describe how Alibaba and Alipay had broken free from the traditional e-commerce model, which led to changes in the online wholesale and retail business. "New retail", or O2O (Online to Offline), combines both traditional trading with online services, making the Internet the new trading platform.
The O2O model allows consumers a wide range of choice in products and services, as well as targeted marketing at specific demographics or localities. Without an online presence, many entrepreneurs will be unable to maximise their reach and showcase their products or special offers.
O2O Limited will be walking in the footsteps of giants by bringing a proven O2O model through our flagship Chow Kit Baru, located in Chow Kit Main Road, which long history as a wholesale destination at the heart of Kuala Lumpur.
Chow Kit Baru will not only provide business space in a strategic part of Malaysia’s most important business district, but also house all the necessary tools and services for wholesalers to succeed.