Business Case Study: Bonia Corporation Berhad?

1.0 Introduction Bonia Corporation Berhad, a holding entity which is listed in the primary market of Bursa Malaysia Security Berhad. It involves mostly in designing, manufacturing, retailing and distributing trendy leather goods such as handbags, purse, men and women’s apparel, footwear and accessories. Bonia was established during the year of 1974 by the founder, Mr.SS Chiang, who is the current group executive chairman of Bonia Corporation Berhad. He started as a businessman who undertaking wholesaling of leather products in Singapore. During the year of 1978, he has successfully brought this brand into Malaysia market and became the market leader due to aggressive marketing approaches. Apart from Bonia

During mid of 2015, Goods and Services Tax (GST) has officially implemented by Malaysia government. This has brought a material impact to most of the business, including Bonia Corporation Berhad. GST has lower consumer purchasing power and affected their spending pattern. Due to the increase burden and limited budget of consumers, they are getting more watchful about their spending behavior, hence, company will be facing difficulty because of the unpredictable alterations. For the luxury brand like Bonia, result showed that customers will hold back their consumption in order to observe the price movement overtime. Some customers are expected to do cross border shopping instead of shop in local market . Therefore, the sale of Bonia Malaysia has a significant drop especially during the first three months of implementation. However, weaken Ringgit Malaysia has contributed in sales made by foreign tourist. As they are able to get rid of GST, the products’ price is considered reasonable to them. Thus, there is a total 15 percent sales made by tourist in year of