Retailer Repertoires are Settling Down
Shoppers are buying at fewer retailers again
Besides fewer channels, shoppers are also visiting fewer retailers. Malaysian shoppers purchased FMCG from 11.9 retailers last year, but the figure has now fallen to 11.5 retailers per shopper. Looking at the longer-term trend, the number of retailers shoppers purchased at in the latest quarter is similar to almost three years ago.
It appears that consumers were shopping around last year in a search for better experience, promotions or prices. However, they have now settled on their repertoire, and do not feel the need to visit as many retailers. As a result, the switching of retailers has declined over the last year as well.
This emphasises the importance of building outlet loyalty as the most effective method of growth, since it will be increasingly difficult for retailers to persuade shoppers to switch, or to be added to the retailer repertoire. A brand that can grow shopper loyalty for a retailer will stand out – and developing a joint business plan to formulate a win-win scenario can potentially expand the market further.
This report provides insights into the landscape of FMCG channels and retailers in Malaysia, to help manufacturers learn about the latest purchasing trends and optimise their trade strategy. A clear comprehension of the market trends is necessary to avoid being left behind on taking advantage of emerging opportunities to achieve targets through key channels and retailers.
The full report will rank channel and retailer importance in FMCG, along with a breakdown of the top retailers and what led to their growth or decline. It will also introduce concepts that are not widely known, such as Closure Rate, to help manufacturers make a positive case to retailers for collaboration on a fruitful partnership.
This is a key driver of growth, showcasing a brand’s ability to improve the retailer’s performance, and therefore cementing its dependability status. To achieve that, brands will need a well-crafted trade strategy and an enticing joint business plan with the target retailer.
