History of Al Ikhsan

Al-Ikhsan Sports Sdn Bhd is Malaysia's largest sports retailer, focusing on the sale of athletic
footwear, gear, and equipment.Tuan Haji Ali Hassan and Pn Marina Abu Bakar, a husband
and wife duo, founded Al-Ikhsan Sports in 1993 with a single 150-square-foot store at
Holiday Plaza, Johor Bahru.The company has grown from a sole proprietorship to a Private
Limited Company known as Al-Ikhsan Sports Sdn Bhd.The company has expanded
dramatically, and there are now over 125 locations in Peninsular Malaysia.
Since its founding, the firm has evolved from a single sports convenience concept to a multi-
category, multi-concept sporting goods behemoth with a clearly defined strategy to reach
consumers and sports enthusiasts from all walks of life, while providing global brands at a
reasonable price.The ASEAN Retail & Franchise Federation presented the company with the
ASEAN Business Outstanding Award 2011 – Industry Class Sector Sports Retail in 2011.
When the government-linked PE fund Ekuinas (Ekuiti Nasional Berhad) decided to buy a 35
percent stake in Al-Ikhsan Sports in 2016, it marked a significant turning point in the
company's history. The board of directors then opted to hire a worldwide Sports and Lifestyle
retail veteran as CEO, as well as a new management team. Since then, the company has had
double-digit sales growth and extraordinarily high profitability.In 2018, the Sporting Good
Intelligence Report classified Al-Ikhsan as The Galaxy's 63rd largest Sporting Goods
Retailer.At a spectacular ceremony in November 2019, Al-Ikhsan Sports was also awarded
the "Brand of the Year" Award for Malaysia by the World Branding Council, UK.
Tuan Haji Hassan, the founder and managing director of Al-Ikhsan, had come from very
humble beginnings before making it to the big time. His success began with a tiny investment
and a small number of sales to friends and teachers at Universiti Teknologi Malaysia (UTM),
Skudai, Johor. He had also worked part-time as a pizza deliveryman to supplement his income
and pay his tuition. Ali Hassan graduated from UTM with a Diploma in Mechanical
Engineering in 1993 and was offered the opportunity to pursue his education abroad, but he
declined before starting his venture into the business world in 1993.
Issues currently faced by Al Ikhsan

One of the main issues being faced by Al-Ikhsan has been their evolution into adjusting to the
current market trend of payment. Gone are the days of payments via cash and credit or debit
cards hence a more cashless payment setup.
The newest trend coming into the market now is the buy now, pay later(BNPL) of which there
are so many new platforms available for consumers to use and claim more incentives thru
their numerous transactions. BNPL, allows buyers to divide their purchases into equal
instalment payments, many of which are interest-free, making even the most expensive things
appear affordable and the smallest purchases appear insignificant. It's similar to traditional
layaway arrangements, except that customers get the product right away and pay for it in
instalments.
According to a recent survey by LendingTree, around one-third of customers have previously
financed purchases this way, and nearly two-thirds have done so five or more times, as
instalment payments gain traction alongside a boom in online buying in general in the wake of
the Covid pandemic.
When buying online at companies, most consumers will notice a buy now, pay later
alternative, but many BNPL providers are now releasing browser extensions that you can
download and apply to any online purchase. Then there are the apps, which allow you to
make in-person purchases using instalment payments. As a result, consumers can use a short-
term loan to buy almost anything, anyplace.
There are a host of benefits that belie BNPL users for both the consumers and retailers.
According to a ‘PYMNTS.com’ research on the BNPL industry, 87 percent of shoppers
interested in the services were aged 22 to 44. Consumers, particularly millennials and Gen Z,
are concerned about the debt that comes with credit card use. Customers are more likely to
take on extra debt in an uncertain financial environment. Issuers, on the other hand, are
decreasing restrictions or cancelling cards altogether. With so much worry about the future on
people's thoughts, BPNL services stand to benefit from it.In any case, credit cards are simply
one of many credit options available to young people. Below is a diagram of the current
phenomenon.
Among the benefits for the consumers are that they can buy things and pay for them over a
variety of terms, ranging from 3 months to multiple years, depending on the provider,
enhancing the customer experience and removing friction. They can get their thing even if
they don't pay in full. Interest-free payments are accessible, and sign-up is significantly
quicker than with credit cards. When making online purchases, over 42% of BPNL users
prioritise clarity of terms, and 39.1% prioritise the opportunity to track spending.
And as for the retailers, they too enjoy a whole host of benefits as well. They will get to
experience increased sales value without resorting to tactics such as massive discounts of
products. Customers who were previously unwilling to acquire things because the price was
out of their budget may be attracted to a BPNL alternative as it attracts a variety of groups,
including price-conscious buyers who may believe our luxury products are beyond of reach.
The providers will expose a store's products and brand to millions of potential customers
through their own network.
With this, retailers will also notice increased customer loyalty as customers that are aware of
this option on an e-Commerce store and appreciate the seamless quality of the customer
experience are more likely to make repeat purchases.
Solution for Al-ikhsan

As previously mentioned regarding the increased usage of the BNPL facility, Al- Ikhsan will
need to integrated and instill this method of payments into their system to be more current and
appealing to the modern day consumers. This had resulted with their latest partnership with
Pine Labs. As one of Asia's leading merchant commerce platforms, said today that its point of
sale (PoS) solutions have been installed throughout the 136 locations of Al-Ikhsan, Malaysia's
largest sports retailer. Pine Labs' completely integrated tech stack of payments, wallets, gift
cards, and Buy Now Pay Later (BNPL) is used by some of Asia's leading retailers. The ease,
speed, and comfort of using BNPL offers on Pine Labs' PoS terminals, as well as the
availability of prominent issuers on a single unified platform, would all benefit shops wanting
to enhance sales during these difficult times.
Pine Labs has a 95 percent market dominance of offline BNPL services in India, and it has
introduced BNPL in Malaysia through its subsidiary Pine Payment Solutions. Al-Ikhsan is
Malaysia's largest sports shop, having been in business since 1993. Their popularity may be
gauged by the fact that they are also the exclusive Malaysian retailer for Liverpool Football
Club (LFC). The merger of the two companies will provide Malaysian sports fans with
inexpensive instalment buying alternatives as well as a smooth in-store payment experience.
References
1. Dickler, J. (2021, October 22). Now you can buy now, pay later for just about
everything. CNBC. https://www.cnbc.com/2021/10/22/now-you-can-buy-now-pay-
later-for-just-about-everything.html
2. The benefits of buy now, pay later for consumers and retailers. (2020, December 14).
Borngroup.Com. https://www.borngroup.com/views/buy-now-pay-later/
3. Malaysia’s biggest sports retailer Al-Ikhsan partners with Pine Labs to enable
seamless in-store payment experiences for its customers. (2021, May 12).
Businesswire.Com.
https://www.businesswire.com/news/home/20210511005480/en/Malaysias-Biggest-
Sports-Retailer-Al-Ikhsan-Partners-with-Pine-Labs-to-Enable-Seamless-In-store-
Payment-Experiences-for-Its-Customers