STEPS

Research

Report

FNBE 0814 | ELG 30605 | Ms. CASSANDRA WIJESURIA

SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN

FOUNDATION IN NATURAL BUILD ENVIRONMENT

PRESENTATION TITLE: STEPS

Names Presentation / Research Report Roles.

ENGLISH II / ENGLISH 2 (ELG 30605 / ENG 0205)

LECTURER: CASSANDRA WIJESURIA

SUBMISSION & PRESENTATION DATE: 5/6/2015 12PM

GROUP MEMBERS :

AARON CHONG YU HO 0320270

ABDULLAH MAMODE 0319562

CHONG CHIN PIN 0319595

EE YUN SHAN 0319990

ESTHER CHUAH 0321422

TAN CHIN YIN 0320080

TAN JINGWEI 0320137

Content

TITLE PG

1. Key summary 1

2. History of trade 2

3. Descripton of Sinseng shoe enterprise 4

4. Descripton of Linsim Trading 14

5. Comparative Analysis 17

6. Recommendation 26

7. Reference 28

8. Appendices 29

Key Summary

A shoe is an item of footwear intended to protect and comfort the human

foot while doing various activities. The shoes might as a important tools or

decorative item for your foots , but other people might treat it as their fortune

in their life. In here, we had compared and analyse Ginseng shoe enterprise

and Linsim Trading which both of them are involve in similar industry but

located at different geographical locations. The aspect that we had

compared are the ages of business, range of customers, their competitors

and their strategies used to overcome the difficulties and others. Conclusion,

Ginseng shoe enterprise is more commercially successful and the owner of

family have pass the business to 3 generation.

( 121 words )

Description of the History of the trade

Shoes have actually been around for thousands and thousands of

years. You can’t say that shoes were “invented” so much as they have

“evolved” beyond certain specifications that made them different back then

than they are today. Various citizenries from all over the world throughout

history had some sort of leather that they put on their feet in order to make

walking around less of a hassle and less of a danger to your feet. The only

different is that, the way in which we make these feet covering today is vastly

different then the way we did it over 40,000 years ago.

Sandals were the most common footwear in most early civilisations;

however, a few early cultures had shoes. In Mesopotamia, types of soft

shoes were worn by the mountain people who lived on the border of Iran. The

soft shoe was made of wraparound leather, similar to a moccasin. As late as

1850 most shoes were made on absolutely straight lasts, there being no

difference between the right and the left shoe.

Jan Matzeliger born in 1852 and was an African American inventor best

known for his shoe-lasting machine that mechanically shaped the upper

portions of shoes. He found employment in a shoe factory and became

interested in the possibilities of lasting shoes by machine. Working alone and

at night for six months, he produced a model in wood and on March 20, 1883,

received a patent. His invention won swift acceptance and within two years

had largely supplanted hand methods in Lynn.

His patent was subsequently bought by Sydney W. Winslow, who

established the United Shoe Machine Company. The continued success of

this business brought about a 50% reduction in the price of shoes across the

nation, doubled wages, and improved working conditions for millions of

people dependent on the shoe industry for their livelihood. He received

several other patents for shoe-manufacturing machinery, including an

improved model of his first lasting machine.

With over 100 years of shoemaking history, Malaysia’s shoe industry

has experienced tremendous growth in spite of stiff competition from

neighbouring countries. The industry’s humble roots can be traced back to

the early 1900s, and it was Penang that played an important role, becoming a

hotspot for flourishing shoe businesses and thus heralding the remarkable

development of the shoe-making industry from its beginnings to what it is

today.

The modern-day industry has changed its focus from an emphasis on original equipment manufacturing to marketing and selling its very own brands in the international arena. The Malaysian footwear industry’s emphasis has also gradually shifted to design and quality, mostly due to the emergence of China in the market, where labour and production costs are lower. Now world-renowned for its locally made products, the stylish designs and top-notch quality of Malaysian shoes have made them one of the most sought-after products in the global market.

It is also a great source of national pride that Dato’ Jimmy Choo, one of

the world’s most famous shoe designers, is a Malaysian and an official

Tourism ambassador for the nation. Last year’s festival included a gallery

showcase of Choo’s works inspired by the Year of the Dragon, which drew

the crowds. Other highlights from the 2012 event included a Rainforest Shoe

House, a Wedding Shoe Wonderland, a Young Designer corner, as well as a

foot health corner (complete with massages to pamper your feet!).

Since nowadays people have become more and more fashion minded,

they feel and are more interested in buying beautiful, nice and good shoes.

Some like to wear classic while the other want to wear sporty shoes. As

businesses get on expanding years after years, same become of the models

of shoes of different brands. Favourite brands that people knows are for

example “Bata” a famous shoe shop in the world, Adidas, Nike, Aldo and

many others. So here we are comparing two different shoe shops which are

Sinseng Shoes from Penang and Lin Sim Trading from Pel.Klang

SINSENG SHOE ENTERPRISE

Current Location: Jalan Gurdwara 10300 P. Pinang

Shop and The Environment: The shops are all opposite the shopping malls

(GAMA Mall)

Business Started: Year 1946

Age of Business: 66 years

Number of Branches: 2

Employees: Most of the employees are family members

Main Service: Selling existing product of shoes and accessories

: Provide personal tailored shoes

Customers’ Background: Most of the customers are Chinese

Range of Customers: Most of the customers are the regulars

Organisation Chart: Boss and staffs

Working Days/ Time: Whole week except Sunday, open even when public

holiday. During New Year time, they will open after the first week.

In the past, most of the people in George Town opened tailor and shoe business. Year 1946, Sinseng Shoe Shop was started to operate at that time. There are 3 shoe shops in total. Singseng was the first and main shop Family Chee. Then, it come out with two branches after years. One of the branch has the same name which is also Singseng and the other is named Flash Steps Enterprise. The founder of the business is the boss, Mr. Chee Min’s father, Mr. Chee Kim Seong .

Current Location: Jalan

Gurdwara 10300 P. Pinang

Sinseng Shoe Shop

The shoe shop is opposite the

Gama shopping mall. It located at a

strategic place. There have many

local people and tourists pass by

everyday.

The shoe shop is opposite the

Gama shopping mall. It located at a

strategic place. There have many

local people and tourists pass by

everyday.

Why named Sinseng?

The shop was named by the current boss, Mr. Chee Min’s father, Mr. Chee Kim Seong (founder). The meaning of the shop, Sinseng is new beginning. He believed that everything also will have a new starting point even though the bad things. Besides, the founder also hope that his family and him can have a good starting point in Pulau Pinang after moved to Pulau Pinang.

Brief History of Sinseng Shoe Shop The founder, Mr. Chee Kim Seong (Boss’s father) came from Shanghai, China, the boss was only 11 years old at that time. They went around Hong Kong, Singapore and finally they came to Pulau Pinang. They felt comfortable at Pulau Pinang hence they stopped their steps at here and landed here to start a business. At that time, the British’s culture strongly influenced the fashion of the people in Pulau Pinang included the dress, shoes and others. Therefore, the founder had decided to start a business of shoes. After some years, due to the dislike of study, the boss, Mr. Chee Min learned all of the skills from his father and took over the business.

Boss’s Name: Chee Min Age: 75 years old Gender: Male When, he was young, he did not like to study so he followed his father to learn the techniques of making shoes. After years, he took over the business from his father. He cooperate with his brother to manage the shop. Mr. Chee Min was responsible for making shoes and his brother did the marketing. They had success to establish two branches. Todays, he is in semi-retirement. He act as a shopkeeper at the main shop. He passed the jobs like making shoes to his apprentices. Besides, he also let the other younger family members to manage the shop’s finance and management.

The right person is Mr. Chee Min and the person standing next to him is his brother, Mr. Chee Wai.

The main and first shoe shop for Family Chee. It was opened by the current boss, Mr. Chee Min’s father. It is manage by Mr. Chee Min now.

This is the shoe shop which is also under family Chee but it has a different name from the other two because it was established by Mr. Chee Min’s brother, Mr. Chee Wai. Its shop name is Flash Steps Enterprise.

This is one of the branch of Sinseng Shoe Shop. It is manage by Mr. Chee Wai’s wife.

Sinseng Shoe Shop sell existing products such as other brand shoes and their own made shoes. They are selling formal shoes, sport shoes and others. Besides, they also provide personal tailored shoes.

In addition, they also selling slippers. People also can ask them to help you to make a comfortable slipper.

All the Sinseng Shoe Shop’s products will have a obvious characteristic which is all of them will have the word, ‘SESTINI’ and their logo.

Sinseng Shoe Shop also famous because of his personal tailored dancing shoes. In the past, many local people even tourists also like to come to buy the shoes. Some of them also like to ask the shop to help them to make dancing shoes. The shop will follow the fashion at that time to produce shoes.

Recent years, the shop also help people with orthopaedic problems make shoes, to suit their needs. This need to thanks to Clifton Chee who is the family’s third generation to run the shop. He is the one who start and support this service.

ACHIEVEMENT

This pair of shoe had be published in newspaper includes local newspaper and oversea newspaper. Many journalists and reporters had came to interviewed these shop because of the shoes above and the shop’s good workmanship in making shoes.

This is the oldest shoe in the shop. It was made from Mr. Chee Min in year 1974. It already have 41years. One of the pair of this shoe was placed in the main shop to let others to see. Then, the another part was put at home. This shoe is very heavy because it has wood as its base and leather as its body.

This is the shoe which is more than 20 years. It also is the products made from Mr. Chee Min. It is different from the shoe above. It is lighter because it made from plastic materials.

This pair of shoe was made during 80s. At that time, people like to dance in the disco place. They would like to compare their dancing techniques, hairstyle, clothes and shoes. Therefore, many people come to ask Sinseng Shoe Shop to help them to make their own style shoes at that time.

Description of Linsim Trading

This section provides background information about the businesses such as:

i) Their names: Lin Sim Shoes Trading

ii) Telephone: 03- 33487207

iii) Current locations: 36, Jalan Tiara 4, Bandar Baru Klang, 41150 Klang, Selangor

iv) Brief history about the shop: Madam Khoo’s family members started making

shoes in early 20th century at home, all the shoes making materials are from China, after they had designed some shoe models, they will send it to factories for mass production, then they sell it to third parties such as wholesalers, retail shops or even night market stalls. After they have made some profit, they bought a shop lot and started to employ twenty foreign workers to manufacture the shoes themselves and hence they gain a lot of money. After some times, the workers were not satisfied with their salaries and decided to boycott the business, they purposely make bad quality of shoes, eventually the business went down tremendously until they were forced to stop making any shoes, and therefore they have to convert their shoes manufacturing business to shoes trading in year 1999 until this present day.

v) Number of branches: No yet to have any branches.

vi) Number of employees: Around thirty people working for the business at the

beginning stage, now only left with six working people

vii) Organizing chart:

Madam Khoo and her husband Mr.Lee

Chun Lim and his wife Choon Sim and his wife

viii) Main products or services: Basically this shop sells all kinds of shoes but the

most sellable shoes are leather shoes, safety boots, slippers and children

shoes. Besides that, it also provide some custom- designed shoes.

ix) Operating hour: 8.30 in the morning to 5.30 in the evening and sometimes up

to 7 in the evening every day except for national public holidays.

x) Estimated current number of customers: There are three to four customers on average that visits the shop every day, most of the customers are Madam Khoo’s regular customers. Occasionally there will be some new customers that heard of the shop through their friends. Generally, the targeted market of this business are people staying around the neighborhood especially middle aged man, children and workers in the construction industry.

xi) When were the business started: The business was founded in early 20th

century as a home business, and the shoes trading business was started in 1999. It has operated for 16 years until today.

xii) Who are the founders: Madam Khoo (012-6010802), she has two son who

name Chun Lim and Choon Sim, so she combined their last name Lin and Sim as the shop name.

xiii) What was their motive for starting the business: Madam Khoo’s father learnt to

make shoes from China when he was young, after some years he came to Malaysia and was married, then he started a small shoes making business to sustain the family.

xiv) Their recent development (i.e. what has the business accomplished or what changes have occurred in the business over the past 3 - 5 years): There is no new development in their business, Madam Khoo plans to retire within this five years, the succession plan of this business will be pass to her two sons. For this moment, they will continue to work hard, manage well and to provide utmost good services to satisfy their customers.

Comparative analysis of competitive traits

Business 1：SinSeng shoes shop

As Sin Seng shoes shop located in Georgetown, Penang which is a popular tourist

destination, it encounters several competition with many other shops. This is due to the

fact that many businesses realized the opportunity to earn profit in this area due to high

demand for shoes shops. A lots of shoes shops. Perfect competition occurs to each

other. To emulate with other shops, each shoes shop offered or have promotions with a

lower price possible.

Competitors

The top 3 competitors are Hong Kong shoes shop, Nyonya beaded shoes shop, shoes

shop in 1st Avenue. They are nearby to Sin Seng shoes shop.

COMPETITOR 1 : Hong Kong shoes shop

This shoes shop is located at Kimberly Street of Georgetown, Penang which is a

prosperity street making it very noticeable by tourist as a potential business place. It

might seem old, but it sold many different type of beautiful shoes and the prices of shoes

are cheap.

COMPETITOR 2 : Nyonya beaded shoes shop

This shoes shop selling Nyonya beaded shoes for 40 years. The shopkeeper designing,

cutting, sewing and stringing together shoes that used to be popular in local. Although

the prices of the shoes are quite expensive around RM450 – RM1200, but the manual

work shoe attracted alots of costumers visit and consume.

COMPETITOR 3 : Shoes shop in 1st Avenue

The shoes shop in 1st Avenue is one of the strongest competitor to Sin Seng shoes

shop. As it is located in the shopping centre so there are many customer patronize. The

shoe that sold inside are new fashion and variety type that attract the customer to buy.

Strategies Employed By Sin Seng shoes enterprise to compete with competitors

A few strategies were employed by Sin Seng shoe shop to attract customers.

A buy 1 free 1 promotion will carry on every years.

No GST in all shoes

The worker always have a warm-welcome to the customers and have a nice

service which is patient to descript the characteristic of the shoes to costumers

and help them to test the shoes before buying.

Although Sin Seng shoes shop is an old fashion shoes shop but it have numerous of

frequent guest consume and it also located at a good place that can attract the eyes of

tourists.

Business 2: Lin Sim Trading Shoes Shop

As Lin Sim Trading shoes shop located in Klang, Selangor which is a popular tourist

destination, it encounters several competition with many other shops. As many tourists

flock into this city from all comers of the world. A lots of shoes shops. Perfect

competition occurs to each other. Customers have a variety of choices to choose from

the market. To emulate with other shops, each shoes shop offered or have promotions

with a lower price possible.

Competitors

The top 3 competitors are Ka-lee shoes shop, Bata shoes shop and Two lips shoe shop.

COMPETITOR 1 : Ka-lee shoes shop

This shop is located at Jalan Taiping. This shop always have a lots of customers that

from the nearby residents. Although it is a small shop, it has his own frequent customers

to buy their shop frequently and the price of shoes is quite cheap compare to other

shoes shop nearby.

COMPETITOR 2 : Bata shoes shop

Bata shoes shop is one of the famous shoes shop in Malaysia. It produce a good quality

shoes from the proprietary factory. The customers always be attracted because of its

famous and the shoes that buy from Bata can be wear for a long time and also the

shoes are comfortable to wear.

COMPETITOR 3 : Two lips shoe shop

This shop is a big shops, it sell a new-fashion design shoes. It attract a lots of female

customers. Variety types of new shoe can be seen in the shops. Although the design is

beautiful, its price is also not too expensive as well.

Strategies Employed By Lin Sim Trading shoes shop to compete with competitors

Have a good service.

Promotion carry on often

Cheap in price

The frequent guests can have a discount of 20%

Although shoes shop had less type of shoes compared to other competitors but it have

numerous of frequent guest consume the prices of shoes are cheap which can attract

the tourists.

Nature of markets :

SinSeng Shoes and LinSim Trading both are in a monopolistic competitive state. This is

due to the fact both shops sell shoes. However, they differ in quality, genre, and pricing.

LinSim would sell shoes that suit for men (mostly), slippers and shoes for children, while

SinSeng which offers a wider range of shoes such as branded shoes, custom made

shoes, formal shoes, sport shoes and other types of shoes. They may sell the same

product however they are still differentiated from one another and hence are not perfect

substitutes of each other.

Comparison between SinSeng Shoes and LinSim Trading

SIMILARITIES

DESIGNS OF SHOES MODERN CONTEMPORAY DESIGN

NATURE OF MARKET MONOPOLISTIC CCOMPETITIVE

GST BOTH SIDES ARE NOT AFFECTED

RANGE OF CUSTOMERS

AVERAGE

STAFFS MOSTLY FAMILY MEMBERS

DIFFERENCES

SINSENG SHOES LINSIM TRADING

YEAR STARTED 1946 1999

BRANCHES 2 NONE

TYPE OF SHOES TAILORED SHOES/BRANDED

SHOES

BRANDED SHOES

WORKING DAYS WHOLE WEEK EXCEPT SUNDAY

WHOLE WEEK

Conclusion

The business which stands out to be more commercially successful would be the

SinSeng Shoes. Its points for its dominance over the LinSim Trading are obvious in

terms of branches, services provided, products and experience. SinSeng started their

business in 1946 while LinSim started in 1999, this shows that SinSeng has 54 years of

experience in this business more than LinSim trading, which is considered as a huge

gap between the 2 businesses. Another fact that supports this is that SinSeng Shoes

was started by Mr. Chee Min’s father Mr. Chee Kim Seong who was experienced in

making tailored shoes. On the other hand, LinSim however wasn’t experience in making

shoes. This became an advantage for the SinSeng Shoes as they were able to not just

sell shoes made by other firms but also sell custom made shoes. It is also worth to

mention that SinSeng shoes made good quality custom made shoes as they have a

history where journalist and reporters visited their shop and even made it to the

newspapers. When Mr. Chee Min took over the business, he was able to open 2 more

branches which is ran by the other family members.

Recommendation

Sinseng Shoe Enterprise

Organizing an event :

Organising event such as fashion show and display the stylish and unique models of

shoes. People would be attracted to watch the show and will definitely buy the shoes

that they find appealing. This is the best way of displaying shoes and boasting about the

uniqueness of the store. At such events, Sinseng shoe enterprise can distribute loyalty

cards and discount coupons for next purchase. This is a very effective way of tying the

customers to their store. Having hold of discount coupons and loyalty cards, customers

are sure to give thought of coming back to Sinseng shoe’s store.

Set up customer’s reward programme :

Another way of attracting customers and keeping your customers tied is to show that

you care for them. You can offer al your customers a family package that indicates

discounts and gifts if they buy shoes for their family members from your store. People

find it convenient and discounts attract them as they can shop for all the family members

under one roof. Giving shoe care facility is another way to show your customers that you

care for them. You can give the service of shoe care such as shine and minor repair.

Online advertising :

Advertising about you your shoe store is above all the most important thing. You can put

up banners mentioning your address and offers that you are giving at your store. Many

customers would visit your store looking at such banners and this would certainly

contribute in boosting up the sales. You can come forward to sponsor a local event and

in exchange you can advertise about your business. This would make people aware

about your store and also build up a healthy reputation of your business.

Linsim Trading

The most spaces of improvement of LinSim Trading is their human resource

management. Here are some suggestion to improve on human resource of productivity

to improve the competitiveness.

Secure staff’s performance – by install security system(CCTV).

Change rate of salary of workers in factory– Change the system of payment of

salary to payment by daily rate instead of payment on unit of shoes that have done

a day.

Set employee’s reward programme

Salary of staff based on commission

Punishment when someones break the rules.

Make all employees accountable for their goals and their assignments. Don’t give

generic orders; be specific. Delegate duties to individuals and make sure the

individual understands the responsibility involved with the task; make sure he/she

understands that the accountability of that task rests solely on his/her shoulders.

Encourage, reward, motivate and recognize all jobs well done. Nothing inspires an

employee more than a big thank you hug from the boss; it makes an employee

feel important and that employee will strive to repeat the feat that earned him/her

the hug

Set realistic and achievable targets for the workers. Setting goals or targets for

your employees improves their productivity, effectiveness and efficiency but make

sure the goals are attainable.

Communicate with customers

Chee. M. (2015, May 2). Personal interview.

• Tan. C. (2011, May 26). Shoemaker brings cheer to those with walking disability. The Star. Retrieved from http://www.thestar.com.my/story/?file=%2F2011%2F5%2F26%2Fnorth%2F8710836&sec=north

• Bellis. M. (2015), The History of shoes (Retrieved on 2015, May 26),

http://inventors.about.com/od/sstartinventions/a/Shoes.htm

• (Retrieved on 2015, May 26), http://invention.yukozimo.com/who-invented-the-

shoe/

• African American Registry. (2013) Jan Matzeligers are used today (Retrieved on

2015, May 26), http://www.aaregistry.org/historic_events/view/jan-matzeligers-

inventions-are-used-today

• Manveen. M. (2011, March 20), A celebration of Shoes.

http://www.expatgomalaysia.com/2013/03/20/a-celebration-of-shoes/

REFERENCES

Interview questions

1. What is the most important factor / motive that you caused you decide to open a

(business)

2. When was the business started? 3. Why is the (shop) named…….? 4. How many type of services that you provided?/how much 5. Do you have any branches? 6. How many branches and employees that you have? 7. How much is your day/ month expenditure? 8. How much is your rough annual revenue figure? 9. What is the peak season? 10. Can you please share some brief history of the development of (shop)? 11. What are the obstacles that you faced? 12. How satisfied are you with your (business)? 13. Do you had experiences that met with some special costumers? 14. Customers’ background? 15. Range of customers? 16. Are there a lot of competitors? Who are the top three? 17. What are the strategies to compete with them?

18. Are there any specialised field of knowledge needed to run this business? 19. What are the challenges that new business will face during starting period? 20. Shop and environment? Location of the shop?(Population) 21. Advancement in the future 22. How the Tax, GST affect your business? 23. Organisation Chart 24. Working Days/ Time Last 1. Can we have your detail personal information?

Name: Age: Gender: Phone Number: Business Name: Age of Business: Address:

Photos of interview ( Sinseng Shoe Enterprise )

Group meeting

Penang meeting 1-5-2015

Klang valley interview 4-5-2015

First meeting( job division) 8-5-2015

Slide and report combination 28-5-2015

Practice presentation 4-6-2015

Minutes of meeting : 12hours