Additional Trips to New Outlets
Understanding shoppers’ channel priorities
The online channel has increased in importance over the years, reaching a peak in the last year. For baby products, the internet has overtaken supermarkets as the biggest channel, with a value share of 27.1%. In comparison, the internet has a 5.9% share of total in-home FMCG spend. This exceptional growth for baby products was driven by an increase in penetration, rising from 53.6% to 71.9%. This comes at a time when most channels are losing penetration.
The new generation of Malaysian parents allocate more of their spending towards the online channel compared to previous years. This means brands need to ensure that their online activations are effective in winning shoppers – including around the usual year-end spikes driven by online promotions such as 9.9, 10.10 and 11.11. A brand that misses out on winning shoppers during the year-end period of opportunity may miss out on growth. On the other hand, huge rewards beckon for brands that can convert shoppers online.
This report provides insights into the landscape of baby FMCG to highlight short-term opportunities that exist despite the long-term decline in births in Malaysia. There are still white spaces where brands can find avenues of growth, primarily among newborns. There is no guarantee that the birth rate will continue to recover, so it is urgent to act now to win this generation of shoppers for baby products. Brands need to sharpen their knowledge of the latest market trends to implement strategies and be a more efficient player in the baby FMCG market.
The full report also goes into detail on category performances, demographics to focus on, and the dependence on promotions. This will provide a more holistic view of the baby FMCG market, and give brands the information they need to thrive in this limited window of opportunity.
