The Business
Mydin Mohamed Holdings Berhad is the largest wholesale trading and supermarket company in Malaysia. Founded by the late Tuan Mydin Mohamed in 1957, the company firmly adheres to the principle of providing halal products to its customers. With the famous slogan "Why pay more, buy at wholesale prices", Mydin Supermarket is now considered the premier place to shop.
In 1957, Mydin Mohamed opened his first wooden-walled retail shop in Kota Bharu, Kelantan. Mydin started his business by selling children's toys and other goods. He was not alone and was helped by his children. Thanks to his patience and good planning, Mydin's business began to spread its wings to Terengganu in 1979.
In 1987, his son Datuk Ameer Ali joined the Mydin Mohamed company and in 1989 the name Mydin was brought to Jalan Masjid India, Kuala Lumpur. The opening of this branch was a turning point in the retail industry in Malaysia and the beginning of Mydin Mohamed Holdings where it received encouragement and support from the local population.
The success of the opening of the branch in Kuala Lumpur gave Datuk Ameer, the current CEO of Mydin Company, the spirit to open the first hypermarket in Subang Jaya.
CEO Of MYDIN
Datuk Wira (Dr) Hj Ameer Ali was born in Penang on June 4, 1956 is the third of seven siblings. He received a MARA scholarship to study in the United States, where he graduated from Western Michigan University in 1979 with a Bachelor's degree in Chemistry and Management. He then went on to Sonoma State University in California to earn a Master's degree in International Management in 1980.
He began his banking career by working with Arab Malaysian Merchant Bank for eight years before leaving in 1989 to grow his family's company, Mydin. The company expanded from a modest emporium to a renowned hypermarket brand under his direction.
In addition to his business success, Datuk Ameer is active in social work through Mydin’s Corporate Social Responsibility (CSR) programme, helping the underprivileged and giving motivational talks on business success.
Since Datuk Ameer Ali came over as CEO, Mydin has expanded quickly by providing a range of retail business categories. Mydin now encompasses three main types, namely hypermarkets, emporiums, and 24-hour convenience stores known as MyMart. In order to satisfy the demands of customers in different places, the company has recently added a fourth category, a mini market known as Mydin-e.
Mydin Company Strategies to lead the Market in Malaysia
Like other companies, Mydin also has its own marketing strategy of attracting local people first rather than focusing on international. The decision to open more types of stores was not intentional but a way to develop the company.
The idea of opening a hypermarket was not something that happened by chance. On a flight to China, he read a book about Kmart, the largest retail failure in US history which triggered the realization that Mydin needed to make changes.
He immediately contacted his brother and stressed that if MYDIN continued to operate as usual, it might face the same fate as Kmart. Kmart at that time focused on urban stores in prime locations, but a change was needed. Therefore, they decided to change strategy and expand operations to rural areas. He was confident that this change could be successfully implemented.
Develop their own brand
Mydin's strategy in developing its own brand aims to offer quality products at more affordable prices to customers. The company introduces its own brand for certain items sold in its stores, but the names used for these brands are not directly related to the original name "Mydin".
Apart from its own brand, Mydin also offers products under generic labels or under its own private label. Products from nearby small and medium-sized businesses (SMEs) better demonstrate this approach, helping SMEs in growing their markets through the MYDIN network. Scholars also suggest that strong customer brand identification can lead to positive brand evaluations.
Understand their clients
MYDIN always understands the needs and wants of its customers, especially among small traders and medium-sized enterprises. This group includes owners of hardware stores, stationery stores, clothing boutiques, as well as other businesses that support entrepreneurial activities.
In order to ensure competitive prices, Mydin applies a bulk purchasing strategy. This method not only allows companies to obtain lower prices, but also helps reduce operating costs. In this way, MYDIN is able to maintain the concept of wholesale pricing that benefits customers, especially entrepreneurs who rely on quality products at affordable prices.
Multiple locations
Companies with multiple branches have a higher chance of gaining public recognition. Similarly, MYDIN’s expansion across various locations and states enhances its credibility, as customers can personally experience and assess the products and services offered.
Mydin wisely chooses the locations of its stores to meet the needs of various segments of society. In urban areas, MYDIN central emporiums are the main choice for office workers who want to shop either during breaks or after work.
In addition, MYDIN also opens branches in less developed states, where business competition is still low and operating costs are cheaper. This approach allows the company to offer more affordable prices to customers in those areas.
For example, Mydin stores in Sinar Kota are often the go-to choice for Nepalese looking for daily necessities. In Klang, most of the customers are shoppers from the Indonesian community. Meanwhile, Jalan Masjid India is not just a shopping location, but also a casual meeting place for Bangladeshis. So that is why people from less developed states also choose to shop their groceries at Mydin.
At the same time, MYDIN also follows the current trend by opening stores in locations that are easily accessible to homeowners and small traders. Areas such as small residential towns and also busy city centers such as Kuala Lumpur are the main targets to ensure that customers can enjoy shopping facilities more comfortably and efficiently.
Focusing on Halal Broad Product Lines
Not only does Mydin sell home appliances and groceries, it also takes the initiative to sell halal products at prices that are much cheaper than in other stores since the majority of people in Malaysia are Muslims.
Mydin offers a wide range of specific things for Muslim clients, including Islamic artifacts, prayer rugs, ihram attire for pilgrims, and worship-related accessories and tools.
This uniqueness gives MYDIN an advantage over its competitors, as most other stores have yet to add a comparable assortment of Islamic products to their stores. This makes MYDIN the first choice for customers shopping for religious stuff, allowing the brand to remain competitive in the market.
The achievement throughout the years
Over the course of 60 years, Mydin has achieved a number of accomplishments and received media attention. Their dedication to delivering affordable products, developing their store network, and upholding excellent business ethics has strengthened their status as one of Malaysia's major retail huge companies. Through continuous innovation and strategic growth, Mydin remains a trusted household name, serving diverse communities across the nation.
Mydin won as CSR Company of The Year at Malaysia Top Achievers Awards 2023
On 28 February 2024, MYDIN's Managing Director received the prestigious award at a ceremony at the Renaissance Kuala Lumpur Hotel & Convention Centre. This recognition demonstrates the strong support from various parties, especially MYDIN Prihatin’s strategic partner, who together helped realize meaningful initiatives for the well-being of Malaysians.
Mydin won Gold at The Putra Aria Brand Awards 2023
On January 18, 2023, Mydin Mohamed Holdings Berhad (MYDIN) was honoured to win the Gold Award in the Retail Category at the Putra Aria Brand Awards 2023, which were hosted at One World Hotel.
What can we learn from MYDIN?
Datuk Ameer Ali grew MYDIN into a well-known retail brand in Malaysia. Since taking over the company, he has implemented various business strategies to ensure MYDIN growth.
He successfully introduced the hypermarket concept and expanded MYDIN branches nationwide. He is also active in corporate social responsibility (CSR) programs. In order to ensure that MYDIN always plays a role in helping the community, especially the less fortunate. Through this initiative, MYDIN is not only a trusted shopping destination, but also a company that cares about the welfare of the people.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
