BookXcess writes a new chapter with online shopp

SERI KEMBANGAN: BookXcess Sdn Bhd, which will have three retail outlets by the end of the year, expects half of its sales to come from online purchases next year as it builds an online shopping feature on its website to cater to book lovers nationwide.
Run by husband and wife Andrew Yap and Jacqueline Ng, BookXcess started as a remainder bookstore in Amcorp Mall, Petaling Jaya, and will see subsequent retail outlets open in Fahrenheit88, Kuala Lumpur on May 1 as well as at its headquarters in Shah Alam, Selangor, in July.
Ng told SunBiz the company's online shopping tool is to meet requests by out-of-town customers.
"It'll take six months to move our inventory online but we'll start with limited stock. Currently, there are customers who buy through emails and have to go through 10 steps in the process," she said in an interview recently.
"We believe the online potential is great as we also use social media heavily for our advertising and promotion," said Yap.
BookXcess, which started in 2006, also organises the Big Bad Wolf (BBW) sale annually since 2009, dubbed the biggest book sale in the world.
"BookXcess is here for 365 days a year and BBW is an event... we're trying to tie the two brands together. Hopefully with the three BookXcess (retail) outlets, it will help to serve more readers in the Klang Valley. One outlet in Amcorp Mall is not easy to reach out," said Ng.
BookXcess guarantees 50% discount off retail prices, while certain items can see a discount of up to 90%. BBW guarantees a 75% to 95% discount.
"At this (low) price, customers will go crazy. We want you to be able to buy books without thinking," Ng said, adding that certain items in BookXcess cannot be found in BBW.
She said as a remainder bookstore, BookXcess does not see itself as a competitor to mainstream bookstores as it does not carry newly-launched books. It sells only bargain books, books that are overprinted or unsold.
"The business model is unique. Profit has never been the number one goal. BookXcess and BBW are more of a mission (to increase readership) that somehow became big. It was wanting to make a difference and now it became like a big monster and we need to keep feeding it," said Yap.
He said with the risks that the couple took to embark on the business, no one would actually do such a thing.
"You have to buy in volume and pay upfront, and you have to store the books. It takes us one whole year to buy for our annual BBW sale in KL. One year of having a warehouse with all the stuff... You're just waiting for that 10 days in the year."
Ng said this is not a viable business for most businessmen as sellers usually clear (existing stock) in a warehouse sale but no one will fly to another part of the world just to buy books to be sold in a sale.
"But if we don't do that, BookXcess alone cannot meet the objective of increasing readership. A retail store alone is just not strong enough to convert a non-reader into a reader.
"At the end of the day, BookXcess and BBW are still profitable, that's why we're able to buy our building this year. With our own building, we can do the online store and be more efficient in managing resources for BookXcess and BBW," said Ng.
At a BBW sale, Ng said the company must sell 80% to 90% of its books, or else it would not be sustainable.
"Our breakeven (level) is 80%, or 2.4 million for a total of 3 million books we put out there. We have to sell above 80% to not lose money because of the high overheads and we always aim for 90% for it to become a worthwhile event for us," said Ng.
BBW has planned roadshows to Penang, Malacca, Johor, Ipoh and Kuantan.
"BBW is all about wanting to bring books to the masses at really affordable prices," said Yap.
He added that BookXcess intends to grow its non-book segment to 20% to 30% in two to three years, from 5% now to add value to its product selection.