While the COVID-19 pandemic proved to be tumultuous for all companies within the logistics sector, Malaysia-based Shui Xing Group appears to have found the dark cloud’s silver lining.
Not only did the warehousing and logistics firm emerge from the period with a growing end-to-end one-stop ecommerce platform operation focused on the athleisure space – VV eHouse – it also has a number of new projects in the pipeline, Group CEO and Managing Director Ken Lew reveals.
“Generally speaking, our entire strategy is based on a one-stop ecommerce platform so today we not only have logistics and warehousing, but also a one-stop ecommerce platform at VV eHouse.”
The company has long managed its own storage and distribution networks, and operates more than 500,000 square meters of covered and open space each month. However, that tally is soon set to spike with a new addition.
“Currently, our biggest project is building a million-square-foot [93,000 square meter] warehouse,” Lew tells The CEO Magazine. “We expect to have completed this million-dollar building by the end of 2024.”
In addition, Shui Xing Group plans to embark on another project this year – an industrial park spanning around 46.5 hectares.
Creative Energy
All of these moves fit into Lew’s broader vision. “Generally speaking, our entire strategy is based on a one-stop ecommerce platform so today we not only have logistics and warehousing, but also a one-stop ecommerce platform at VV eHouse,” he says.
Lew is currently developing and growing the awareness of its one-stop ecommerce platform offering, which connects three sales channels, including online, offline and live selling, as well as logistics and e-fulfillment. The initial focus category will be on furniture, home and living, sport and lifestyle. And while online will be a major factor, so will a physical presence.
“People still like to go to shopping malls in Malaysia,” he points out.
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Lew is confident that VV eHouse is headed for success. Apart from growing VV eHouse awareness locally, he is also taking the concept overseas to other countries in the Regional Comprehensive Economic Partnership (RCEP) – a free trade agreement among the Asia–Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
“The RCEP brings together various companies from certain countries and acts as a platform to facilitate business transactions,” Lew explains.
With its VV eHouse business backed up by Shui Xing’s expertise in warehousing and logistics, it will also be able to offer these services in any market it enters. He also sees the arrangement working the other way, with VV eHouse able to help manufacturing businesses and other brands distribute their products in 19 different markets.
A Strong Position
Lew is confident the plan will be a success, citing Shui Xing Group’s strong reputation for putting customers first as a major differentiator.
“‘Customer first’ means that we must provide good service and ensure that we give customers whatever they ask for, to reduce customers’ troubles and make it easy for them to complete their tasks,” he reveals.
Having worked with many companies around the world, he firmly believes that this merging of one-stop ecommerce platform operations will sell itself to many companies thanks to its ability to ‘reduce their troubles’ by working with a partner they already know and trust.
“Everyone offers different places, different services, different platforms so we can all cooperate. There is a mutual benefit.”
The strength of these relationships, particularly those within the logistics sector, create significant opportunities for all – a real win–win situation.
“The scope of the logistics industry is really huge,” Lew explains. “Everyone offers different places, different services, different platforms so we can all cooperate. There is a mutual benefit.”
This collaborative spirit is a major factor in the company’s growth over the last 20 or so years, from its beginning as a one-man band to the 1,000-strong juggernaut it is today. But despite this vast expansion and the innovative possibilities that lie on the horizon, the company’s core offering remains the same.
“We have never forgotten our original intention. No matter what, logistics and warehousing are still the most important, and we can take our expertise in this area to every corner of the globe,” Lew says.
“No matter how far I go, I can’t leave my original industry. The same goes for people. This is how we work together without forgetting the original intention. We work together as a team, a Shui Xing Group family, to go further and see further.”