What is changing in Malaysia?

1) From $$$ for subsistence To $$$ for health

The growing urbanization trend and increasing affluence has resulted in creating a huge population of time-poor but increasingly health conscious consumers. Consumers are opting for the convenient route to achieve better health by purchasing products that are believed to contribute to their health physiologically and psychologically. Massaging, exercising & slimming products, water filters, organic food, yoga classes, gym membership and spa shower gels are flourishing in the market. Also, food has entered the realm of "personal care" and as such is overlapping the medical & beauty market. Beyond nutrition, consumers are purchasing food supplements that are expected to help ward of the ravages of age, reduce stress, cleanse & detoxify our systems. On the rise, in functional foods & beverages, are probiotics, energy enhancers, brain food, stress pills etc.

 

Targeting consumers based on the ‘wellness profile' might be a tactic to consider...food for seniors & menopausal women

2) From McDonald's to McMamak's

Malaysians are showing increasing appreciation for local food. The reason for this shift goes beyond tangible values of affordability. Malaysians find local food joints familiar, comforting, understanding their needs & catering to it. They are starting to realize that ‘foreign' is not necessarily better than ‘local'.

Another factor for the increasing popularity of local food joints is the elevation of image via branding. An example is Old Town White Coffee house, which is becoming increasingly popular. It still serves traditional kaya toast and local coffee in ceramic but now at a premium price.

Local brands like Secret Recipe, The Chicken Rice Shop and Old Town White Coffee seem to be more popular than established foreign brands like Burger King and A&W. It's very common to see clubbers choosing local street food for supper, for an environment that they are comfortable with, rather than McD after clubbing.

Are we witnessing an Expectation Economy (an economy inhabited by experienced, well informed consumers who have a long list of high expectations that they apply to each and every good, service and experience on offer) in the making?

Price and ‘brand' are not everything. Consumer expectations are increasing. Understanding customers, their high expectations and delivering on those is paramount.

3) From Adults to Kidults

People are staying ‘younger' longer with adults indulging in their childish whims with toys, electronic games, shoes etc.

The decrease of social burden and family responsibilities as well as increase in disposable income, in recent years, has shaped a consumer group of Kidults who are willing to spend on hobbies and gaming.

Retail outlets targeted at Kidult have emerged around Malaysia i.e. The Bike Boutique, Sole What that sells premium street wear and numerous toys shops that sells premium vinyl toys like Bearbrick and collectable figurines.

Boundaries between age groups are blurring and the young and old share similar passions. It's no longer appropriate to market solely by life stages & it would benefit brands to re-look at imagery used in marketing, their brand mix and channel strategies

4) From popcorn & sodas To VIP treatments

Cinema theaters in Malaysia have evolved from standard seats to first class to golden class. Now its time for Platinum suites with HUGE armchairs that have reclining back and arm-rests with the option of ordering food to be sent to you while you are watching a movie. This is not all? A humongous waiting lounge, large comfy sofa chairs, automated massage chairs, computers for internet surfing, X-box to keep you occupied, free Wi-Fi and a complimentary soft-drink to greet you. In fact, a lot of people have started coming to the theater well before the movie time to enjoy these facilities. Yes, Malaysians are looking to turn the most common activities into luxurious experiences

Selling experiences vs. products has been the way to differentiate your brand in an increasingly competitive world. The benchmarks seem to be changing

5) From passive acceptance to Fighting for their consumer rights

Passive Malaysians have been bearing the brunt of indiscriminate & exorbitant price increases. However, consumerism is gaining momentum.

Campaigns and web-portals like www.smartgeneration.com.my by the Ministry of Domestic Trade and Consumer Affairs to educate consumers of their rights has shown its effects.  The aim is to produce discerning individuals who know how to compare prices, identify fair price shops and shop for quality as well as make the right decisions when purchasing goods or services. Increasing number of cases in the Consumer Claims Tribunal is a manifestation of this trend

The rising consumerism & demands are creating an atmosphere in which a brand needs to be the consumers ally and give him fodder for feeling good about choosing your brand (something to brag about).

 

6) From wet-markets To air-con aisles

Increasing presence across the nation, longer opening hours, wider range of products and more competitive price are turning supermarkets, hypermarkets, convenience stores, pharmacies etc. into the new retail heroes vs. the traditional grocery stores & wet-markets.

These modern trade channels continued to grow well in the past year with convenience stores recording a significant growth in users.

To widen reach, hypermarkets are expanding their franchise by opening up convenience stores. Carrefour has recently opened up Carrefour Express to compete with the likes of 7-11 in the urban business environment.

Given limited scope of expansion in the primary cities, hypermarket chains are now shifting their focus to secondary towns including the relatively undeveloped towns of East Malaysia for future expansion.

Migration towards these modern outlets presents an opportunity to brands to maximize sales with the right kind of P2P communication.

Avinash Lal is strategic planning director at Bates 141 Malaysia.