By Khairie Hisyam
From a home-based operation using two sewing machines, Fareeda has made it big, raking in double-digit millions each year. But the founders are looking ahead still, preparing for the next phase of their business journey.
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By mid-2016, the RM30-million tudung business that is Fareeda will be celebrating its 10th year in existence. But the road to success had not been easy, as its co-founder Aminuddin Basirron shared with KINIBIZ.
Among others the company had been grappling with unscrupulous parties who produce lower-quality imitations of its products selling for cheaper prices. While Fareeda has complained to the Ministry of Domestic Trade, Cooperatives and Consumerism, which also subsequently took action, the problem has been recurring since at least year 2011.
Aminuddin Basirron
“There has been action by authorities… Statistically I can’t say but there are always copycats out there,” said Aminuddin, adding that some originate from places outside the country such as Vietnam. “We hope the government can increase efforts to curb these activities.”
Part of the issue may be relatively low awareness on copyright law, he added. Nonetheless, part of the business strategy is to register each new design with Intellectual Property Corporation of Malaysia (MyIPO), added Aminuddin, to protect the company’s interests.
Other challenges include the proliferation of competing tudung labels, following in Fareeda’s footsteps and challenging it for market share. “Even in Bangi there are dozens of new boutiques,” said Aminuddin. “But they all have their own unique selling points.”
By all indications the tudung business is profitable. And it is, said the Fareeda co-founder, because for Malay Muslim females tudung is a basic need.
“Covering up is a must but women like things that are beautiful and attractive – they like these qualities in their tudung too,” he said. “When others saw Fareeda’s success, they gave it a shot too, but I can say that we still have a strong market share.”
More recently, however, the company had not been spared the bite of the goods and services tax, which was implemented nationwide from April 1, 2015. Sales have slowed, admitted Aminuddin, as customers tightened their belts.
“To maintain our customers we have lowered some prices, renegotiating with suppliers and so on to do this,” he said. “That way people can still afford our products.”
Eyes overseas, in time
While the short-term hurdles are aplenty, what lies ahead for Fareeda in the long term? For Aminuddin, the premium and overseas markets beckon, though he apparently prioritises caution when it comes to expansion talk.
To be sure, Fareeda is not in a hurry. Demand for its products has been strong, even from neighbouring countries such as Brunei, Singapore and even places like Turkey, said Aminuddin, but there are much to be achieved within Malaysia still.
“Well, not everyone wears Fareeda tudungs,” he remarked with a smile on the Malaysian market, adding that if he could go back in time he would try to improve accessibility to Fareeda products for customers. “We’d try opening branches in major cities… If possible one for every state, although there would be limitations in how much we can invest.”
Aminuddin added that today Fareeda has that capacity but prefers not to rush things, though they are slowly putting in effort towards growing bigger. Speaking to KINIBIZ, he disclosed that there had been approaches by international investors to bring the Fareeda brand into their home country but the company is employing caution.
“We have to be careful and find partners that we really, really trust,” said Aminuddin, adding that time trust is essential in business partnerships. “What’s important is having the right partner at the right time – the right partner at the wrong time wouldn’t be a success and vice versa.”
So if Fareeda were to expand beyond Malaysian shores, where would it go? The co-founder feels good about Turkey, citing strong economics and a promising potential market.
“The Muslim population is quite high and they are economically strong, their purchasing power is strong,” opined Aminuddin. “We don’t have a timeline yet though, just ideas swirling in our heads about other places too like Europe and France.”
However, is he not concerned about much-touted restrictions on headscarves and hijab among some developed nations, including France which reputedly has strict laws against head coverings in certain places?
Aminuddin agrees that there are some restrictions on paper but when he queried customers there, he found the restrictions are more towards Arabs wearing niqab and not so much on fashionable tudungs such as Fareeda’s.
Planning for the future
Another aspect Aminuddin and his wife have been preparing for is grooming their daughter Mawar, who is already the de facto face of the brand, in modelling Fareeda tudungs in advertisements and billboards.
“We’re exposing Mawar to the business world and its challenges,” said Aminuddin to KINIBIZ, adding this will ensure there is proper succession when the business grows further.
Mawar, recently wed to a local celebrity cum entrepreneur, had also been more involved in the creative aspects of Fareeda. Among others she had come up with her own clothing products including a mini baju kurung design for Aidilfitri while an alternative baju melayu design came out under her husband’s label.
It represents an organic progress for Fareeda. Apart from the diversification into other clothing items spearheaded by the founders’ daughter, the business had also began producing customised tudung articles in a separate production space in Bangi, located across the road from its main boutique and office, said Aminuddin.
“The separate production is exclusively for custom-ordered tudungs based on what our customers want in terms of colour, patterns and brooch types,” he said. “This started in mid-2014 – we use slightly better materials for the customised tudungs and our clientele are usually somewhat better off as well.”
While the company is considering expanding production capacity by possibly looking into setting up a factory someday, at this point Fareeda’s growth investments are more focused on growing its network of branches, said Aminuddin.
“When you want to open a big factory you have to gauge the market first,” he said. “Expanding (in terms of boutiques) is very costly because you have to be consistent in your branding.”
Citing the latest experience of opening one boutique in Alamanda Putrajaya mall, Aminuddin noted that the mall operator set high expectations in line with the presence of international brands at the mall.
“So we can’t do it half-baked, later it will backfire in terms of customers,” said Aminuddin. “We say we’re exclusive but if we do things haphazardly, they’ll ask, what sort of exclusive is this?”
And in the far horizon, will Fareeda look to list on Bursa Malaysia someday? That is a possibility he ponders from time to time, admits Aminuddin.
“We always get advice on how to grow, we’ll see in a few years’ time if business is good,” he said to KINIBIZ. “Maybe someday a tudung brand can make it to the stock market – we hope to be the first.”
Yesterday: Rise of a tudung juggernaut
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