The Case for Basket Size

Growth in Malaysia comes from bigger baskets

In Malaysia, shoppers are going on fewer trips to buy FMCG. If the other two measures had remained constant, this would have triggered a decline in the FMCG market. However, an increase in basket size not only reversed the effects of lower frequency, but also resulted in market growth. This applies to the two major sectors within FMCG: Food and Non-Food. Neither sector grew in frequency, but both grew in terms of basket size. This shows how uniform the trend for fewer FMCG trips is in Malaysia.Delving deeper, we analysed these sectors using the growth formula, along with Total FMCG, and Packaged Groceries, Beverages, Dairies, Household and Toiletries. They all experienced an increase in basket size – but only beverages and dairies recorded an improvement in frequency. Basket size is very important if FMCG is to continue growing, because on a macro scale, all shoppers are already purchasing FMCG. In order to drive market growth, shoppers have to purchase more. This means that in the face of fewer trips being made, they will need to upsize their trips.