Just read a news report that there is this smart convenience store, called Twenty4, opened in Ipoh yesterday. It is apparently the first of its kind in South East Asia.
From what I understand, it is smart in the sense that no one needs to man the convenience store. It is not quite as smart as the Amazon Go supermarket in Seattle where customers can walk in the shop and grab things out from the shelf without having to so much as going to a cashier or a self checkout till.
Basically Twenty4 is a shop filled with vending machines, so to speak. Instead of accepting cash, or coins, like the traditional vending machines we Malaysians are used to, these vending machines accept credit cards! LOL You can use PayWave to pay for items you want to buy, or maybe using your e-wallet too if you have one by scanning the QR code on the vending machine’s checkout display.
It may sound like it is quite exciting, but actually to think about it, it is just a marketing gimmick. From one of the video I watched, it is not quicker to buy from one of these vending machines than say from a manned cashier in a typical convenience store. Perhaps the difference is there are multiple vending machines rather than just one cashier serving you, so queue forming is not as likely.
Besides, their claims that they get advertising revenue, from displaying advertisements in their shop or vending machines, I believe, are just trying to give you the impression that the items you buy from their vending machines can potentially be subsidised and thus are cheaper than buying elsewhere. But I very much doubt it. Items sold in convenience stores are typically low value items and it is difficult to negotiate a good price if you are not moving products in volume. (These vending machines can’t store many items, to be honest.) And they don’t sell as many varieties as in a typical convenience store. Moreover, this Twenty4 even occupies a prime space, albeit quite a lousy one, in Ipoh Parade! (I said lousy because it is not connected to the inside of Ipoh Parade. People shopping in Ipoh Parade need to exit the nearest main entrance to get to the store. Not ideal at all.) Perhaps it is a concept store so they can afford to do that, initially. In the long run I believe it will be loss making. The area around there has not a dense enough population (in fact nowhere in Ipoh is dense enough LOL.) There are schools, a shopping mall, and a hotel next to it. But no high rise residential.
For some reasons Ipoh, full of old folks, likes to get into “smart” technologies, with robot waitresses dishing out food in Nam Heong SOHO, and now smart convenience store with vending machines. Is Ipoh really a good place for testing out new technologies for businesses? Perhaps Ipoh just has more adventurous and loaded entrepreneurs than others.