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RETAILING IN MALAYSIA

Euromonitor International
January 2016

RETAILING IN MALAYSIA

LIST OF CONTENTS AND TABLES


Retailing in Malaysia - Industry Overview ..................................................................................... 1
Executive Summary ..................................................................................................................... 1
Retailing Sees Stable Growth ................................................................................................... 1
Internet Retailing Sees the Most Dynamic Performance .......................................................... 1
Grocery Retailers Sees More Dynamic Sales Growth Than Non-grocery Retailers ................. 1
International Players Act More Aggressively ............................................................................ 1
Positive Outlook for Retailing .................................................................................................... 2
Key Trends and Developments .................................................................................................... 2
Retailing Performance Driven by Economic Conditions ............................................................ 2
Traditional Grocery Retailers See Slower Growth Than Modern Grocery Retailers ................. 3
Companies Invest in Marketing ................................................................................................ 4
Operating Environment................................................................................................................. 5
Informal Retailing ...................................................................................................................... 5
Opening Hours.......................................................................................................................... 5
Summary 1

Standard Opening Hours by Channel Type 2015 ......................................... 5

Physical Retail Landscape ........................................................................................................ 6


Seasonality ............................................................................................................................... 6
Payments and Delivery ............................................................................................................. 7
Market Data .................................................................................................................................. 7
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Table 14
Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Table 21
Table 22

Sales in Retailing by Store-based vs Non-Store: Value 2010-2015 ............. 7


Sales in Retailing by Store-based vs Non-Store: % Value Growth
2010-2015 .................................................................................................... 7
Sales in Store-based Retailing by Channel: Value 2010-2015 ..................... 8
Store-based Retailing Outlets by Channel: Units 2010-2015 ....................... 8
Sales in Store-based Retailing by Channel: % Value Growth 20102015 ............................................................................................................. 8
Store-based Retailing Outlets by Channel: % Unit Growth 2010-2015 ........ 8
Sales in Non-Store Retailing by Channel: Value 2010-2015 ........................ 9
Sales in Non-Store Retailing by Channel: % Value Growth 2010-2015 ....... 9
Non-Grocery Specialists: Value Sales, Outlets and Selling Space
2010-2015 .................................................................................................... 9
Sales in Non-Grocery Specialists by Channel: Value 2010-2015 ............... 10
Non-Grocery Specialists Outlets by Channel: Units 2010-2015 ................. 10
Sales in Non-Grocery Specialists by Channel: % Value Growth 20102015 ........................................................................................................... 10
Non-Grocery Specialists Outlets by Channel: % Unit Growth 20102015 ........................................................................................................... 11
Retailing GBO Company Shares: % Value 2011-2015 .............................. 11
Retailing GBN Brand Shares: % Value 2012-2015 .................................... 12
Store-based Retailing GBO Company Shares: % Value 2011-2015 .......... 12
Store-based Retailing GBN Brand Shares: % Value 2012-2015 ................ 13
Store-based Retailing LBN Brand Shares: Outlets 2012-2015................... 14
Non-Store Retailing GBO Company Shares: % Value 2011-2015 ............. 14
Non-Store Retailing GBN Brand Shares: % Value 2012-2015 ................... 15
Non-Grocery Specialists GBO Company Shares: % Value 2011-2015 ...... 16
Non-Grocery Specialists GBN Brand Shares: % Value 2012-2015 ............ 16

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Table 23
Table 24
Table 25
Table 26
Table 27
Table 28
Table 29
Table 30
Table 31
Table 32
Table 33
Table 34
Table 35
Table 36
Table 37

Non-Grocery Specialists LBN Brand Shares: Outlets 2012-2015 .............. 17


Non-Grocery Specialists LBN Brand Shares: Selling Space 20122015 ........................................................................................................... 18
Forecast Sales in Retailing by Store-based vs Non-Store: Value
2015-2020 .................................................................................................. 18
Forecast Sales in Retailing by Store-based vs Non-Store: % Value
Growth 2015-2020 ..................................................................................... 19
Forecast Sales in Store-based Retailing by Channel: Value 20152020 ........................................................................................................... 19
Forecast Store-based Retailing Outlets by Channel: Units 2015-2020 ...... 19
Forecast Sales in Store-based Retailing by Channel: % Value Growth
2015-2020 .................................................................................................. 20
Forecast Store-Based Retailing Outlets by Channel: % Unit Growth
2015-2020 .................................................................................................. 20
Forecast Sales in Non-Store Retailing by Channel: Value 2015-2020 ....... 20
Forecast Sales in Non-Store Retailing by Channel: % Value Growth
2015-2020 .................................................................................................. 21
Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling
Space 2015-2020 ....................................................................................... 21
Forecast Sales in Non-Grocery Specialists by Channel: Value 20152020 ........................................................................................................... 21
Forecast Non-Grocery Specialists Outlets by Channel: Units 20152020 ........................................................................................................... 22
Forecast Sales in Non-Grocery Specialists by Channel: % Value
Growth 2015-2020 ..................................................................................... 22
Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth
2015-2020 .................................................................................................. 22

Definitions................................................................................................................................... 23
Store-based Retailing ............................................................................................................. 23
Non-store Retailing ................................................................................................................. 24
Sources ...................................................................................................................................... 24
Summary 2

Research Sources ...................................................................................... 24

Retailing in Malaysia - Company Profiles ................................................................................... 26


7-eleven Malaysia Sdn Bhd in Retailing (malaysia) .................................................................... 26
Strategic Direction .................................................................................................................. 26
Company Background ............................................................................................................ 26
Digital Strategy ....................................................................................................................... 26
Summary 3

7-Eleven Malaysia Sdn Bhd: Share of Sales Generated by Internet


Retailing 2013-2015 ................................................................................... 26

Private Label ........................................................................................................................... 27


Summary 4

7-Eleven Malaysia Sdn Bhd: Private Label Portfolio .................................. 27

Competitive Positioning .......................................................................................................... 27


Summary 5

7-Eleven Malaysia Sdn Bhd: Competitive Position 2015 ............................ 27

Aeon Co (m) Bhd in Retailing (malaysia).................................................................................... 28


Strategic Direction .................................................................................................................. 28
Company Background ............................................................................................................ 28
Digital Strategy ....................................................................................................................... 28

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Summary 6

AEON Co (M) Bhd: Share of Sales Generated by Internet Retailing


2013-2015 .................................................................................................. 28

Private Label ........................................................................................................................... 29


Summary 7

AEON Co (M) Bhd: Private Label Portfolio ................................................. 29

Competitive Positioning .......................................................................................................... 29


Summary 8

AEON Co (M) Bhd: Competitive Position 2015 .......................................... 30

Ecart Services Malaysia Sdn Bhd in Retailing (malaysia) .......................................................... 30


Strategic Direction .................................................................................................................. 30
Company Background ............................................................................................................ 30
Summary 9

Ecart Services Sdn Bhd: Share of Sales Generated by Internet


Retailing 2013-2015 ................................................................................... 30

Competitive Positioning .......................................................................................................... 31


Summary 10

Ecart Services Sdn Bhd: Competitive Position 2015 .................................. 31

Gch Retail (m) Sdn Bhd in Retailing (malaysia) ......................................................................... 31


Strategic Direction .................................................................................................................. 31
Company Background ............................................................................................................ 31
Digital Strategy ....................................................................................................................... 32
Summary 11

GCH Retail (M) Sdn Bhd: Share of Sales Generated by Internet


Retailing 2013-2015 ................................................................................... 32

Private Label ........................................................................................................................... 32


Summary 12

GCH Retail (M) Sdn Bhd: Private Label Portfolio ....................................... 32

Competitive Positioning .......................................................................................................... 33


Summary 13

GCH Retail (M) Sdn Bhd: Competitive Position 2015................................. 33

Jade Eservices Malaysia Sdn Bhd in Retailing (malaysia) ......................................................... 33


Strategic Direction .................................................................................................................. 33
Company Background ............................................................................................................ 33
Summary 14

Jade EServices Malaysia Sdn Bhd: Share of Sales Generated by


Internet Retailing 2013-2015 ...................................................................... 34

Competitive Positioning .......................................................................................................... 34


Parkson Holdings Bhd in Retailing (malaysia) ............................................................................ 34
Strategic Direction .................................................................................................................. 35
Company Background ............................................................................................................ 35
Digital Strategy ....................................................................................................................... 35
Summary 16

Parkson Holdings Bhd: Share of Sales Generated by Internet


Retailing 2013-2015 ................................................................................... 35

Private Label ........................................................................................................................... 35


Summary 17

Parkson Holdings Bhd: Private Label Portfolio ........................................... 36

Competitive Positioning .......................................................................................................... 36


Summary 18

Parkson Holdings Bhd: Competitive Position 2015 .................................... 36

Poh Kong Holdings Bhd in Retailing (malaysia) ......................................................................... 36


Strategic Direction .................................................................................................................. 36
Company Background ............................................................................................................ 37
Digital Strategy ....................................................................................................................... 37

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Summary 19

Poh Kong Holdings Berhad: Share of Sales Generated by Internet


Retailing 2013-2015 ................................................................................... 37

Competitive Positioning .......................................................................................................... 37


Summary 20

Poh Kong Holdings Berhad: Competitive Position 2015............................. 38

Tesco Stores (malaysia) Sdn Bhd in Retailing (malaysia) .......................................................... 38


Strategic Direction .................................................................................................................. 38
Company Background ............................................................................................................ 38
Digital Strategy ....................................................................................................................... 39
Summary 21

Tesco Stores (Malaysia) Sdn Bhd: Share of Sales Generated by


Internet Retailing 2013-2015 ...................................................................... 39

Private Label ........................................................................................................................... 39


Summary 22

Tesco Stores (Malaysia) Sdn Bhd: Private Label Portfolio ......................... 39

Competitive Positioning .......................................................................................................... 40


Summary 23

Tesco Stores (Malaysia) Sdn Bhd: Competitive Position 2015 .................. 40

Grocery Retailers in Malaysia - Category analysis ..................................................................... 41


Headlines ................................................................................................................................... 41
Trends ........................................................................................................................................ 41
Traditional Vs Modern ................................................................................................................ 42
Competitive Landscape .............................................................................................................. 42
Prospects ................................................................................................................................... 43
Channel Formats ........................................................................................................................ 43
Chart 1
Chart 2

Modern Grocery Retailers: Giant, Hypermarkets in Selangor .................... 44


Modern Grocery Retailers: Cold Storage, Supermarkets in Sunway
Pyramid Shopping Mall .............................................................................. 44

Channel Data ............................................................................................................................. 45


Table 38
Table 39
Table 40
Table 41
Table 42
Table 43
Table 44
Table 45
Table 46
Table 47
Table 48
Table 49
Table 50
Table 51

Grocery Retailers: Value Sales, Outlets and Selling Space 2010-2015 ..... 45
Sales in Grocery Retailers by Channel: Value 2010-2015 ......................... 45
Grocery Retailers Outlets by Channel: Units 2010-2015 ............................ 46
Sales in Grocery Retailers by Channel: % Value Growth 2010-2015 ......... 46
Grocery Retailers Outlets by Channel: % Unit Growth 2010-2015 ............. 46
Grocery Retailers GBO Company Shares: % Value 2011-2015 ................ 47
Grocery Retailers GBN Brand Shares: % Value 2012-2015 ...................... 48
Grocery Retailers LBN Brand Shares: Outlets 2012-2015 ......................... 48
Grocery Retailers LBN Brand Shares: Selling Space 2012-2015 ............... 49
Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space
2015-2020 .................................................................................................. 50
Forecast Sales in Grocery Retailers by Channel: Value 2015-2020 .......... 50
Forecast Grocery Retailers Outlets by Channel: Units 2015-2020 ............. 51
Forecast Sales in Grocery Retailers by Channel: % Value Growth
2015-2020 .................................................................................................. 51
Forecast Grocery Retailers Outlets by Channel: % Unit Growth 20152020 ........................................................................................................... 51

Apparel and Footwear Specialist Retailers in Malaysia - Category analysis .............................. 53


Headlines ................................................................................................................................... 53
Trends ........................................................................................................................................ 53
Competitive Landscape .............................................................................................................. 53
Prospects ................................................................................................................................... 54

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Channel Formats ........................................................................................................................ 54


Chart 3

Apparel and Footwear Specialist Retailers: G2000, Apparel and


Footwear Specialist Retailers in Sunway Pyramid Shopping Mall,
Selangor ..................................................................................................... 54

Channel Data ............................................................................................................................. 55


Table 52
Table 53
Table 54
Table 55
Table 56
Table 57
Table 58
Table 59

Apparel And Footwear Specialist Retailers: Value Sales, Outlets and


Selling Space 2010-2015 ........................................................................... 55
Apparel And Footwear Specialist Retailers: Value Sales, Outlets and
Selling Space: % Growth 2010-2015 ......................................................... 55
Apparel And Footwear Specialist Retailers GBO Company Shares: %
Value 2011-2015 ........................................................................................ 56
Apparel And Footwear Specialist Retailers GBN Brand Shares: %
Value 2012-2015 ........................................................................................ 56
Apparel And Footwear Specialist Retailers LBN Brand Shares:
Outlets 2012-2015...................................................................................... 57
Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling
Space 2012-2015 ....................................................................................... 58
Apparel And Footwear Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space 2015-2020 ........................................................ 58
Apparel And Footwear Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space: % Growth 2015-2020 ...................................... 59

Electronics and Appliance Specialist Retailers in Malaysia - Category analysis ........................ 60


Headlines ................................................................................................................................... 60
Trends ........................................................................................................................................ 60
Competitive Landscape .............................................................................................................. 60
Prospects ................................................................................................................................... 61
Channel Formats ........................................................................................................................ 61
Chart 4
Chart 5

Electronics and Appliance Specialist Retailers: SenQ in The Mines


Shopping Mall, Selangor ............................................................................ 61
Electronics and Appliance Specialist Retailers: Harvey Norman in
Sunway Pyramid Shopping Mall, Selangor ................................................ 62

Channel Data ............................................................................................................................. 63


Table 60
Table 61
Table 62
Table 63
Table 64
Table 65
Table 66
Table 67

Electronics and Appliance Specialist Retailers: Value Sales, Outlets


and Selling Space 2010-2015 .................................................................... 63
Electronics and Appliance Specialist Retailers: Value Sales, Outlets
and Selling Space: % Growth 2010-2015 .................................................. 63
Electronics and Appliance Specialist Retailers GBO Company
Shares: % Value 2011-2015 ...................................................................... 64
Electronics and Appliance Specialist Retailers GBN Brand Shares: %
Value 2012-2015 ........................................................................................ 64
Electronics and Appliance Specialist Retailers LBN Brand Shares:
Outlets 2012-2015...................................................................................... 64
Electronics and Appliance Specialist Retailers LBN Brand Shares:
Selling Space 2012-2015 ........................................................................... 65
Electronics and Appliance Specialist Retailers Forecasts: Value
Sales, Outlets and Selling Space 2015-2020 ............................................. 65
Electronics and Appliance Specialist Retailers Forecasts: Value
Sales, Outlets and Selling Space: % Growth 2015-2020 ........................... 65

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Health and Beauty Specialist Retailers in Malaysia - Category analysis .................................... 66


Headlines ................................................................................................................................... 66
Trends ........................................................................................................................................ 66
Competitive Landscape .............................................................................................................. 67
Prospects ................................................................................................................................... 67
Channel Formats ........................................................................................................................ 68
Chart 6
Chart 7
Chart 8

Health and Beauty Specialist Retailers: Guardian,


Parapharmacies/Drugstores in The Mines Shopping Mall, Selangor ......... 68
Health and Beauty Specialist Retailers: Watsons,
Parapharmacies/Drugstores in The Mines Shopping Mall, Selangor ......... 68
Health and Beauty Specialist Retailers: The Body Shop, Beauty
Specialist Retailers in The Mines Shopping Mall, Selangor ....................... 69

Channel Data ............................................................................................................................. 70


Table 68
Table 69
Table 70
Table 71
Table 72
Table 73
Table 74
Table 75
Table 76
Table 77
Table 78
Table 79

Health and Beauty Specialist Retailers: Value Sales, Outlets and


Selling Space 2010-2015 ........................................................................... 70
Sales in Health and Beauty Specialist Retailers by Channel: Value
2010-2015 .................................................................................................. 71
Health and Beauty Specialist Retailers: Value Sales, Outlets and
Selling Space: % Growth 2010-2015 ......................................................... 71
Sales in Health and Beauty Specialist Retailers by Channel: % Value
Growth 2010-2015 ..................................................................................... 71
Health and Beauty Specialist Retailers GBO Company Shares: %
Value 2011-2015 ........................................................................................ 71
Health and Beauty Specialist Retailers GBN Brand Shares: % Value
2012-2015 .................................................................................................. 72
Health and Beauty Specialist Retailers LBN Brand Shares: Outlets
2012-2015 .................................................................................................. 73
Health and Beauty Specialist Retailers LBN Brand Shares: Selling
Space 2012-2015 ....................................................................................... 73
Health and Beauty Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space 2015-2020 ........................................................ 74
Forecast Sales in Health and Beauty Specialist Retailers by Channel:
Value 2015-2020 ........................................................................................ 74
Health and Beauty Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space: % Growth 2015-2020 ...................................... 75
Forecast Sales in Health and Beauty Specialist Retailers by Channel:
% Value Growth 2015-2020 ....................................................................... 75

Home and Garden Specialist Retailers in Malaysia - Category analysis .................................... 76


Headlines ................................................................................................................................... 76
Trends ........................................................................................................................................ 76
Competitive Landscape .............................................................................................................. 76
Prospects ................................................................................................................................... 77
Channel Formats ........................................................................................................................ 77
Chart 9
Chart 10

Home and Garden Specialist retailers: Courts, Homewares and Home


Furnishing Stores in The Mines Shopping Mall, Selangor .......................... 77
Furniture and Homewares Stores: Ace Hardware, Home Improvement
and Gardening Stores in The Mines Shopping Mall, Selangor ................... 78

Channel Data ............................................................................................................................. 79

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Table 80
Table 81
Table 82
Table 83
Table 84
Table 85
Table 86
Table 87
Table 88
Table 89
Table 90
Table 91

Home and Garden Specialist Retailers: Value Sales, Outlets and


Selling Space 2010-2015 ........................................................................... 79
Sales in Home and Garden Specialist Retailers by Channel: Value
2010-2015 .................................................................................................. 79
Home and Garden Specialist Retailers: Value Sales, Outlets and
Selling Space: % Growth 2010-2015 ......................................................... 80
Sales in Home and Garden Specialist Retailers by Channel: % Value
Growth 2010-2015 ..................................................................................... 80
Home and Garden Specialist Retailers GBO Company Shares: %
Value 2011-2015 ........................................................................................ 80
Home and Garden Specialist Retailers GBN Brand Shares: % Value
2012-2015 .................................................................................................. 80
Home and Garden Specialist Retailers LBN Brand Shares: Outlets
2012-2015 .................................................................................................. 81
Home and Garden Specialist Retailers LBN Brand Shares: Selling
Space 2012-2015 ....................................................................................... 81
Home and Garden Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space 2015-2020 ........................................................ 82
Forecast Sales in Home and Garden Specialist Retailers by Channel:
Value 2015-2020 ........................................................................................ 82
Home and Garden Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space: % Growth 2015-2020 ...................................... 82
Forecast Sales in Home and Garden Specialist Retailers by Channel:
% Value Growth 2015-2020 ....................................................................... 82

Leisure and Personal Goods Specialist Retailers in Malaysia - Category analysis .................... 84
Headlines ................................................................................................................................... 84
Trends ........................................................................................................................................ 84
Channel Formats ........................................................................................................................ 85
Chart 11

Chart 12
Chart 13
Chart 14

Chart 15
Chart 16

Leisure and Personal Goods Specialist Retailers: City Chain,


Jewellery and Watch Specialist Retailers in The Mines Shopping Mall,
Selangor ..................................................................................................... 85
Leisure and Personal Goods Specialist Retailers: Tomei, Jewellery
and Watch Specialist Retailers in The Mines Shopping Mall, Selangor ..... 86
Leisure and Personal Goods Specialist Retailers: Toycity, Traditional
Toys and Games in The Mines Shopping Mall, Selangor .......................... 87
Leisure and Personal Goods Specialist Retailers: Toys R Us,
Traditional Toys and Games in Sunway Pyramid Shopping Mall,
Selangor ..................................................................................................... 88
Leisure and Personal Goods Specialist Retailers: Pet Lovers Centre,
Pet Shops and Superstores in The Mines Shopping Mall, Selangor .......... 89
Leisure and Personal Goods Specialist Retailers: Popular, Media
Products Stores in Sunway Pyramid Shopping Mall, Selangor .................. 90

Channel Data ............................................................................................................................. 91


Table 92
Table 93
Table 94

Leisure and Personal Goods Specialist Retailers: Value Sales,


Outlets and Selling Space 2010-2015 ........................................................ 91
Sales in Leisure and Personal Goods Specialist Retailers by Channel:
Value 2010-2015 ........................................................................................ 91
Leisure and Personal Goods Specialist Retailers: Value Sales,
Outlets and Selling Space: % Growth 2010-2015 ...................................... 92

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Table 95
Table 96
Table 97
Table 98
Table 99
Table 100
Table 101
Table 102
Table 103

Sales in Leisure and Personal Goods Specialist Retailers by Channel:


% Value Growth 2010-2015 ....................................................................... 92
Leisure and Personal Goods Specialist Retailers GBO Company
Shares: % Value 2011-2015 ...................................................................... 92
Leisure and Personal Goods Specialist Retailers GBN Brand Shares:
% Value 2012-2015.................................................................................... 93
Leisure and Personal Goods Specialist Retailers LBN Brand Shares:
Outlets 2012-2015...................................................................................... 94
Leisure and Personal Goods Specialist Retailers LBN Brand Shares:
Selling Space 2012-2015 ........................................................................... 94
Leisure and Personal Goods Specialist Retailers Forecasts: Value
Sales, Outlets and Selling Space 2015-2020 ............................................. 95
Forecast Sales in Leisure and Personal Goods Specialist Retailers by
Channel: Value 2015-2020 ........................................................................ 96
Leisure and Personal Goods Specialist Retailers Forecasts: Value
Sales, Outlets and Selling Space: % Growth 2015-2020 ........................... 96
Forecast Sales in Leisure and Personal Goods Specialist Retailers by
Channel: % Value Growth 2015-2020 ........................................................ 96

Mixed Retailers in Malaysia - Category analysis ........................................................................ 98


Headlines ................................................................................................................................... 98
Trends ........................................................................................................................................ 98
Competitive Landscape .............................................................................................................. 99
Prospects ................................................................................................................................... 99
Channel Formats ........................................................................................................................ 99
Chart 17

Mixed Retailers: AEON, Department Stores in Selangor ........................... 99

Channel Data ........................................................................................................................... 100


Table 104
Table 105
Table 106
Table 107
Table 108
Table 109
Table 110
Table 111
Table 112
Table 113
Table 114
Table 115
Table 116
Table 117
Table 118
Table 119

Mixed Retailers: Value Sales, Outlets and Selling Space 2010-2015 ...... 100
Sales in Mixed Retailers by Channel: Value 2010-2015........................... 100
Mixed Retailers Outlets by Channel: Units 2010-2015 ............................. 101
Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth
2010-2015 ................................................................................................ 101
Sales in Mixed Retailers by Channel: % Value Growth 2010-2015 .......... 101
Mixed Retailers Outlets by Channel: % Unit Growth 2010-2015 .............. 101
Mixed Retailers GBO Company Shares: % Value 2011-2015.................. 101
Mixed Retailers GBN Brand Shares: % Value 2012-2015........................ 102
Mixed Retailers LBN Brand Shares: Outlets 2012-2015 .......................... 102
Mixed Retailers LBN Brand Shares: Selling Space 2012-2015 ................ 103
Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space
2015-2020 ................................................................................................ 104
Forecast Sales in Mixed Retailers by Channel: Value 2015-2020 ............ 104
Forecast Mixed Retailers Outlets by Channel: Units 2015-2020 .............. 104
Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2015-2020 ................................................................................... 104
Forecast Sales in Mixed Retailers by Channel: % Value Growth 20152020 ......................................................................................................... 105
Forecast Mixed Retailers Outlets by Channel: % Unit Growth 20152020 ......................................................................................................... 105

Direct Selling in Malaysia - Category analysis .......................................................................... 106


Headlines ................................................................................................................................. 106

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Trends ...................................................................................................................................... 106


Competitive Landscape ............................................................................................................ 107
Prospects ................................................................................................................................. 107
Channel Data ........................................................................................................................... 107
Table 120
Table 121
Table 122
Table 123
Table 124
Table 125

Direct Selling by Category: Value 2010-2015........................................... 107


Direct Selling by Category: % Value Growth 2010-2015 .......................... 108
Direct Selling GBO Company Shares: % Value 2011-2015 ..................... 108
Direct Selling GBN Brand Shares: % Value 2012-2015 ........................... 109
Direct Selling Forecasts by Category: Value 2015-2020 .......................... 109
Direct Selling Forecasts by Category: % Value Growth 2015-2020 ......... 110

Homeshopping in Malaysia - Category analysis ....................................................................... 111


Headlines ................................................................................................................................. 111
Trends ...................................................................................................................................... 111
Internet Retailing in Malaysia - Category analysis .................................................................... 112
Headlines ................................................................................................................................. 112
Trends ...................................................................................................................................... 112
Competitive Landscape ............................................................................................................ 112
Prospects ................................................................................................................................. 113
Channel Data ........................................................................................................................... 114
Table 126
Table 127
Table 128
Table 129
Table 130
Table 131

Internet Retailing by Category: Value 2010-2015 ..................................... 114


Internet Retailing by Category: % Value Growth 2010-2015 .................... 114
Internet Retailing GBO Company Shares: % Value 2011-2015 ............... 115
Internet Retailing GBN Brand Shares: % Value 2012-2015 ..................... 115
Internet Retailing Forecasts by Category: Value 2015-2020 .................... 115
Internet Retailing Forecasts by Category: % Value Growth 2015-2020 ... 116

Vending in Malaysia - Category analysis .................................................................................. 117


Headlines ................................................................................................................................. 117
Trends ...................................................................................................................................... 117
Prospects ................................................................................................................................. 117
Channel Data ........................................................................................................................... 118
Table 133
Table 134
Table 135
Table 136
Table 137

Vending by Category: % Value Growth 2010-2015 .................................. 118


Vending GBO Company Shares: % Value 2011-2015 ............................. 118
Vending GBN Brand Shares: % Value 2012-2015 ................................... 119
Vending Forecasts by Category: Value 2015-2020 .................................. 119
Vending Forecasts by Category: % Value Growth 2015-2020 ................. 119

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RETAILING IN MALAYSIA - INDUSTRY


OVERVIEW
EXECUTIVE SUMMARY
Retailing Sees Stable Growth
In 2015, retailing in Malaysia saw retail value sales growth comparable with that seen the
previous year. Retailing is mainly driven by young consumers, particularly those with disposable
incomes, while some consumers are attracted by the various creative marketing activities from
retailers, such as lucky draws, contests, and scratch and win, amongst others. Nevertheless, the
declining value of the ringgit relative to other major currencies and the introduction of a 6%
goods and sales tax (GST) served to dampen retail value sales growth in 2015. As such,
challenging economic conditions resulted in stable growth.

Internet Retailing Sees the Most Dynamic Performance


Internet retailing recorded the most dynamic pace of growth among the main retail channels in
2015, gaining increasing popularity amongst consumers, particularly younger, IT savvy and
more sophisticated consumers. Most of this demographic have sizable disposable incomes and
are confident in their spending, due to a lack of commitments. In addition to the rapid growth of
pure internet retailers, some store-based retailers also ventured into internet retailing towards
the end of review period. These store-based retailers either set up their own online shopping
portals or opened flagship stores on the leading B2C platforms, such as lazada, Zalora, and
Rakuten.

Grocery Retailers Sees More Dynamic Sales Growth Than Non-grocery


Retailers
Grocery retailers saw more dynamic retail value sales growth than non-grocery retailers in
Malaysia in 2015. The newly implemented GST increased the burden on consumers, with
families with more children, as well as low income families, particularly affected. Given such
budgetary restrictions, consumers gave priority to essential products through grocery retailers
over non-essential items through non-grocery retailers. Nonetheless, non-grocery retailers will
continue to record growth in 2015, with consumers displaying increasing interest in their image
and status, choosing branded products sold through non-grocery retailers.

International Players Act More Aggressively


In 2015, international retailers were aggressive in terms of expanding their outlet networks
and supporting their products with creative marketing campaigns, intended to attract new
customers and retain the loyalty of existing ones. Despite the activity of international players,
domestic retailers were rather cautious about expanding their outlets in urban areas, due to
facing many challenges, such as a lack of capital, high rental rates, shortage of manpower, and
rising crime rates in certain locations, amongst other things. As a result, young consumers
showed more interest in international brands, which remained more expensive, but offered a
guarantee of quality.

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Positive Outlook for Retailing


The outlook for retailing is positive over the forecast period, as the government is taking
measures to address the economic situation in the country. As a consequence, inflation is
expected to rise moderately, thereby allowing most retailers to control their costs and shift focus
to growing their businesses, which will be beneficial to the growth of retailing. In addition, the 6%
GST is slowly coming to be accepted by consumers, whereas, immediately following its
introduction, consumers were frustrated and reacted by reducing expenditure.

KEY TRENDS AND DEVELOPMENTS


Retailing Performance Driven by Economic Conditions
The Malaysian ringgit started on a downtrend in 2013, before recuperating some losses at the
beginning of the 2014. However, the slide began again and it looked like getting worse during
2015, as the Malaysian ringgit weakened significantly against the US Dollar. Furthermore, the
goods and services tax (GST) negatively impacted retailers in Malaysia, following its
introduction in April 2015. The purchasing power of low-to-middle-income consumers was
noticeably affected, which impacted the performance of retailers.
The presence of numerous uncertainties led to a slowdown in spending, albeit offset by the
contribution of foreign tourists. Elderly consumers in Malaysia increasingly sought out products
offering greater value-for-money, due to the prevailing economic uncertainty, whereas younger
consumers limited their expenditure during shopping trips. Nevertheless, Malaysia saw GDP
growth of 5% in 2015. Meanwhile, the unemployment rate stood at 3%, meaning young
consumers in urban areas had disposable income available and, thus, higher spending
capability, which gave them more confidence in spending.
As a consequence, retailing managed to largely replicate 2014 growth rates in 2015, with
store-based retailing seeing retail value sales excluding sales tax grow by 3%, while non-store
retailing saw corresponding growth of 5%. Therefore, it appears that the challenge of weaker
economic conditions did not affect domestic demand in Malaysia to a significant degree.
Younger mid-to-high-income consumers, in particular, were willing to spend significantly on
grocery items, due to their essential nature. Some higher-income consumers remained willing to
invest in premium non-grocery products, such as bags, jewellery and home wares.
Outlook
Malaysia is expected to see stronger GDP growth from 2015 onwards, as it benefits from
improving exports and fixed investments. However, personal consumption will continue to slow
down, as the majority of households prepare for higher debt levels, resulting from the
governments move to reduce budget deficits. Despite this, the low unemployment rate means
consumers will still be willing to trade up to premium and luxury products. Therefore, more
international retailers are likely to enter Malaysia to capitalise on the strong demand for unique
and luxury offerings. This, in turn, will benefit the performance of non-grocery retailing over the
forecast period.
A more challenging business environment is likely over the forecast period, due to the rising
cost of doing business in the country. It is estimated that it will take retailers between six months
and one year to recover from the impact of the implementation of GST. Retailers are expected
to enlarge their product portfolios, in order to increase their attractiveness to consumers, and
are predicted pick up the pace of expansion from 2015 onwards, as they seek to strengthen
their presence across Malaysia. For example, both Mydin and The Store have already revealed

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RETAILING IN MALAYSIA

aggressive expansion plans for East Malaysia, in order to attract consumers and grow their
turnover over the forecast period.
Moreover, retailers are likely to continue to engage in creative marketing activities, such as
seasonal offers and special contests for certain periods. Such activities are mainly intended to
stimulate and encourage consumer demand, and further boost impulse purchases. However,
price competition is likely to increasingly become the norm in retailing, with Malaysian
consumers already accustomed to these strategies and the comparing of offers across multiple
retailers prior to making a purchasing decision.

Traditional Grocery Retailers See Slower Growth Than Modern Grocery


Retailers
Modern grocery retailers enjoyed retail value sales growth of 6% in 2015, compared with the
corresponding growth of 2% seen by traditional grocery retailers. Modern grocery retailers
benefit from the widespread presence of outlets throughout Malaysia and the good reputation
enjoyed by the channel amongst loyal consumers. During 2015, modern grocery retailers saw
consistent improvements in terms of outlet formats, with a move towards modern yet elegant
store designs, as well as the offering of additional services from third parties that were in
accordance with changing consumer demands. Furthermore, modern players are also very
active in terms of further enhancing their business concepts and marketing strategies, while they
consistently look to expand and diversify their product portfolios.
The advent of supermarkets and hypermarkets in Malaysia enabled consumers to do their
shopping in bulk. Consumers are increasingly seeking convenience, due to hectic lifestyles,
especially in urban areas, where traffic conditions are terrible, meaning consumers need to plan
their regular shopping trips in advance. The trend of consumers preferring a one-stop shopping
solution is ongoing, while awareness of the need to allocate a budget and cut down on
expenses is spreading. Therefore, the development of modern grocery retailers and the rapid
expansion of franchising outlets led to flourishing value sales.
Traditional grocery retailers are being inhibited by the rise of modern grocery retailing.
However, in Malaysia these conditions remain limited to urban areas. Independent small grocers
located near residential areas continue to be patronised by consumers for impulse purchases
and instances when products are needed urgently. Some traditional grocery retailers even offer
credit facilities, which makes them attractive to low-income consumers. Such facilities are
extended based on trust and the belief that repayment will be made at the end of the month.
Outlook
Over the forecast period, traditional grocery retailers is expected to experience an ongoing
decline in outlet numbers, due to weak management from largely older owners, lack of educated
staff and slowing sales. Meanwhile, modern grocery retailers are expected to record much
better growth.
Modern grocery retailers are expected to continue growing and drawing consumer attention
away from traditional grocery retailers. The significant number of young urban consumers that
flock to shopping centres during weekends and holidays will further benefit the performance of
modern grocery retailers in the country. On the other hand, traditional grocery retailers, such as
wet markets and independent small grocers, will continue to lose customers.
Over the forecast period, in order to further enhance consumer confidence and purchasing
power in weak economic conditions, all players will need to further stimulate purchases, in order
to drive the growth of retailing in the country. Modern grocery retailers will continue to offer
broader product ranges, higher quality products and multiple payment options, both cash and
credit, whereas more traditional grocery retailers will offer a narrower product range, cheaper
quality products, rarely accept bank cards and remain mostly cash-based. As a consequence,

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traditional grocery retailers is likely to lose further ground to modern grocery retailers over the
forecast period.

Companies Invest in Marketing


During 2015, competition in retailing in Malaysia become more intense, with the entry of
several new players. In mid-2015, Mitsui Outlet Park KLIA Sepang opened and allowed
consumers to purchase off-season items, overstock items, discontinued items, and trial products
at greatly discounted prices. The strategy employed by the mall enabled it to attract a significant
number of consumers interested in branded products of high quality at relatively cheap prices.
Although located relatively far from Malaysias largest cities, consumers proved willing to drive
and spend the whole day there, due to the mall being larger than other malls in the country.
As a result, reactive and outstanding marketing campaigns were needed from both grocery
and non-grocery retailers, to ensure they remained competitive in the face of intense
competition in the category. For example, some players ran creative contests and weekly or
monthly lucky draws with purchases of a certain amount, with players offering a lot of attractive
prizes, in a bid to boost participation. Furthermore, players used flash discounts, seasonal offers
and price markdowns to draw consumers away from rivals, as consumers were increasingly
interested in budgeting, as well as comparing prices across a number of stores, either through
website research or visiting stores personally.
Players also launched marketing campaigns through traditional channels, such as television,
radio, newspaper, magazine and print ads. Furthermore, players actively engaged in marketing
on social media, such as Twitter, Facebook and Instagram. These channels enable two-way
communication and the ability to engage with followers, as well as reach out to younger
consumers. For example, Bata Malaysia organised the Selfie & Win contest in July 2015,
offering prizes for the best selfies, as a means of attracting young consumers.
Outlook
Over the forecast period, competition in retailing will become more intense, due to the entry of
several new players. In addition to local demand, retailing in Malaysia is also supported by
tourists visiting from around the world, particular those from countries with stronger currencies
than the ringgit. Non-grocery specialists tend to invest more in marketing campaigns than
grocery retailers. This is because non-grocery items are mostly purchased by consumers with
significant disposable incomes, whereas low-to-mid income consumers need to be induced into
buying these products, with grocery items remaining the priority for this demographic.
Employing an effective multi-channel marketing strategy will vital be for both grocery retailers
and non-grocery specialists, as players will face intense competition from players in the same
category and even from players in different categories. In addition, players also plan to avoid the
phenomenon of low purchase levels that can result from only showrooming the products. Thus,
marketing campaigns are expected to be key to maintaining retail value sales share and
avoiding a sharp decline in in-store sales. For instance, initiatives such as promoting products
through social media and building a strong brand presence through traditional media like
newspapers, television and radio will be very important to players competing in retailing in
Malaysia.
Lastly, the trend of advertising brands through third-party marketplaces, such as lazada,
Rakuten and Zalora, in attempt to attract consumers, will strengthen over the forecast period.
The support of third-party marketplaces that already have a huge number of loyal members will
allow players to build their reputation and also sell their products easily, helped by the
advertising efforts of these marketplaces to recruit new members.

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RETAILING IN MALAYSIA

Passport

OPERATING ENVIRONMENT
Informal Retailing
Informal retailing accounts for a significant portion of value sales in overall retailing in
Malaysia. This is mainly contributed to by internet retailing, especially given that most
consumers now have access to a Wi-Fi or mobile data connection.
Non-grocery specialists like apparel, personal care and traditional toys and games are
categories which are significantly affected by informal retailing. Young consumers in particular
prefer informal apparel retailers, such as those conducting their business activities through
social media pages like Facebook, Instagram and blogs, in order to reach a huge number of
potential buyers.
Informal retailing can be done anywhere. Most informal retailers use their Facebook page to
display product information, to create interest from potential buyers. Consumers can easily
place their order by leaving a message for the seller and making payment to their personal or
business account. Once payment is made, the seller arranges for the delivery of goods with
the buyer.
Informal retailing mostly targets younger consumers who are IT-savvy and addicted to using
their mobile phones. Younger consumers in Malaysia are constantly logging onto social media
to communicate with their peers, whenever they have the opportunity and wherever they are.

Opening Hours
Standard daily opening hours for most retailers are from 10.00hrs to 22.00hrs from Monday to
Thursday and Sunday, with retailers allowed to operate from 10.00hrs to 24.00hrs on Friday
and Saturday. Only retailers in Kedah, Kelantan and Terengganu have standard operating
hours from 10.00hrs to 22.00hrs on Sunday to Wednesday and Saturday; and 10.00hrs to
24.00hrs on Thursday and Friday, because these two days are considered as the weekend in
these states.
Special retail opening hours are granted on public holidays, whereby retailers can operate
from 10.00hrs to 24.00hrs on public holidays, including the eve of public holidays. For major
festivals, such as Hari Raya Puasa, Chinese New Year, Deepavali, Christmas, Hari Raya
Haji, Gawai Day and Kaamatan Festival, retailers are allowed to operate from 10.00hrs to
24.00hrs for seven days prior to the festival.
There are no restrictions imposed on the number of opening days per year for retailers in
Malaysia. Almost all retail outlets are open on Sundays, due to the large crowds seen, as it is
a non-working day. Retailers opening on Sundays operate without limits on staff working
hours. Most staff working in retailing have shift work, especially for retail channels like
hypermarkets and supermarkets, which require long working hours.
24-hour retailing is only applicable to convenience stores, such as 7- Eleven and KK Mart.
There are no other 24-hour retailers in Malaysia, as most perceive it to be unnecessary and
believe that is does not benefit customers.
Summary 1
Channel

Standard Opening Hours by Channel Type 2015


24-hour
MondayFriday
Saturday
opening?
Thursday

Supermarket
s

No

Euromonitor International

10.0022.00hrs

10.0022.00hrs

10.0024.00hrs

Sunday
10.0024.00hrs

RETAILING IN MALAYSIA

Passport

Hypermarket
s

No

10.0022.00hrs

10.0022.00hrs

10.0024.00hrs

10.0024.00hrs

Chained
Forecourts

No

6.0024.00hrs

6.0024.00hrs

00.0024.00hrs

00.0024.00hrs

Discounters

No

10.0022.00hrs

10.0022.00hrs

10.0022.00hrs

10.0022.00hrs

Convenience
Stores

Yes

00.0024.00hrs

00.0024.00hrs

00.0024.00hrs

00.0024.00hrs

Source:

Euromonitor International

Physical Retail Landscape


Most retailers are present in shopping malls, despite high monthly rental rates and the need to
commit to opening outlet every day. Most retailers accept this situation, due to the high traffic
seen in shopping malls, particularly after work, and during holidays and weekends. However,
certain retailers, such as convenience stores and independent small grocers, tend to be
located in neighbourhood areas that are close to consumers, in order to provide high
accessibility for urgent and impulse purchases.
Major shopping malls are built in major urban cities, particularly places near to tourist spots,
as well as locations that are easily reachable using public transport like LRT, monorail, taxi
and buses. For reasons of convenience, consumers are increasingly visiting malls, as they
can satisfy all of their shopping needs under one roof, thereby saving time and effort.
Besides shopping malls, standalone hypermarkets and supermarkets operated by larger
players, such as AEON, Tesco and Giant, are also increasingly popular in Malaysia.
Supermarkets and hypermarkets tend to be located near housing areas, schools and, in some
cases, commercial centres.
Shopping centres are the primary destination for shopping. Most of the shopping centres in
the country are stand-alone buildings rather than consolidated properties.
Luxury retailers mostly chose locations with a high flow of higher-income consumers. For
instance, Kuala Lumpur, Bangsar and Damansara all have sizeable expatriate populations
that have a good income level, while these areas are also popular amongst tourists and
wealthy consumers from other areas.

Seasonality
Christmas
Date: 25 December.
Shopping season: November-December.
Primary products bought: Fresh food, packaged food, Christmas-themed apparel, home ware,
furnishing, traditional toys and games, etc.
Retailer strategy: Consumers of all ages are targeted; however, children, as the recipients of
the most gifts, are often a focus. Lots of discounts for existing members are offered or
promotions run to attract consumers.
Chinese New Year
Shopping season: Early January to mid-February.
Primary products bought: Fresh food, packaged food, apparel and footwear, electric
appliances, hamper sets, herbs and supplements, etc.

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Retailer strategy: Chinese consumers are attracted to purchase more products through
promotions and certain discounts, especially for bulk products and products that are
perceived as bringing luck. Normally, around this period, consumers receive a bonus or salary
increment, and retailers invest in advertising, in order to further stimulate purchases.

Payments and Delivery


The primary payment method in retailing in Malaysia is cash. However, a growing number of
consumers use credit card or debit cards, for reasons of safety, given the countrys rising
crime rate, as well as the general movement away from cash. Furthermore, younger
consumers tend to be more impulsive and less averse to using credit cards to finance items
they cannot immediately afford.
As of 2015, the use of mobile payments remains minimal in Malaysia, due to the lack of
necessary infrastructure in retail outlets. It is likely that mobile payments will continue to see
slow development in the country, given lack of consumer knowledge of this payment type, and
the fact that the majority of retailers are yet to adapt to mobile payments in any significant
way.
Consumers mainly use courier services, such as Skynet, Pos Laju, Pos Malaysia, and DHL.
These companies are generally reliable, ensuring delivery in three to five days, with shippers
providing tracking numbers to recipients. Retailers in Malaysia use these services frequently,
especially those involved in internet retailing.
The primary methods of payment for e-commerce transactions are credit cards, online
transfers, and giro transfers. Cash on delivery (COD)) is seldom used, due to lack of trust on
behalf of both parties. Furthermore, the other payment methods are easily traced through
online banking records.

MARKET DATA
Table 1

Sales in Retailing by Store-based vs Non-Store: Value 2010-2015

MYR million

Store-based Retailing
Non-Store Retailing
Retailing
Source:

Table 2

2010

2011

2012

2013

2014

2015

142,542.4
7,634.1
150,176.5

147,900.7
8,010.7
155,911.5

153,534.3
8,382.3
161,916.6

159,982.3
8,935.2
168,917.5

164,909.9
9,416.2
174,326.1

169,730.9
9,842.3
179,573.3

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Sales in Retailing by Store-based vs Non-Store: % Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Store-based Retailing
Non-Store Retailing
Retailing
Source:

2014/15

2010-15 CAGR

2010/15 Total

2.9
4.5
3.0

3.6
5.2
3.6

19.1
28.9
19.6

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

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RETAILING IN MALAYSIA

Table 3

Passport

Sales in Store-based Retailing by Channel: Value 2010-2015

MYR million

Grocery Retailers
Non-Grocery Specialists
Mixed Retailers
Luxury Retailing
Store-based Retailing
Source:
Note:

2010

2011

2012

2013

2014

2015

48,750.5
84,607.0
9,184.9
142,542.4

51,931.1
86,415.0
9,554.7
147,900.7

55,223.1
88,212.5
10,098.7
153,534.3

56,832.9
89,829.3
13,320.0
1,307.9
159,982.3

59,048.1
92,073.3
13,788.5
1,396.9
164,909.9

61,262.1
94,264.9
14,203.9
1,450.0
169,730.9

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.

Table 4

Store-based Retailing Outlets by Channel: Units 2010-2015

outlet

Grocery Retailers
Non-Grocery Specialists
Mixed Retailers
Luxury Retailing
Store-based Retailing
Source:
Note:

2010

2011

2012

2013

2014

2015

74,639.0
140,359.0
228.0
215,226.0

74,533.0
140,902.0
221.0
215,656.0

74,730.0
141,344.0
229.0
216,303.0

74,969.0
141,851.0
238.0
65.0
217,058.0

75,424.0
142,341.0
246.0
68.0
218,011.0

75,869.0
143,044.0
254.0
69.0
219,167.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.

Table 5

Sales in Store-based Retailing by Channel: % Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Grocery Retailers
Non-Grocery Specialists
Mixed Retailers
Luxury Retailing
Store-based Retailing
Source:
Note:

2014/15

2010-15 CAGR

2010/15 Total

3.7
2.4
3.0
3.8
2.9

4.7
2.2
9.1
3.6

25.7
11.4
54.6
19.1

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.

Table 6

Store-based Retailing Outlets by Channel: % Unit Growth 2010-2015

% unit growth

Grocery Retailers
Non-Grocery Specialists
Mixed Retailers

Euromonitor International

2014/15

2010-15 CAGR

2010/15 Total

0.6
0.5
3.3

0.3
0.4
2.2

1.6
1.9
11.4

RETAILING IN MALAYSIA

Passport

Luxury Retailing
Store-based Retailing
Source:
Note:

1.5
0.5

0.4

1.8

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.

Table 7

Sales in Non-Store Retailing by Channel: Value 2010-2015

MYR million

Direct Selling
Homeshopping
Internet Retailing
Vending
Internet Pure Play
Retailers
Mobile Internet Retailing
Non-Store Retailing
Source:
Note 1:
Note 2:

Table 8

2010

2011

2012

2013

2014

2015

6,563.7
809.9
260.6
403.5

6,792.3
944.3
274.1
479.8

7,011.4
1,081.2
289.6
534.7

7,244.5
1,387.0
303.8
736.9

7,476.3
1,622.8
317.1
998.1

7,648.2
1,866.2
327.9
1,273.2

7,634.1

28.3
8,010.7

64.9
8,382.3

111.0
8,935.2

154.2
9,416.2

223.9
9,842.3

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.
Mobile internet retailing and internet pure play retailers not included in non-store retailing total to avoid
double counting as these categories are already accounted for within internet retailing.

Sales in Non-Store Retailing by Channel: % Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Direct Selling
Homeshopping
Internet Retailing
Vending
Internet Pure Play Retailers
Mobile Internet Retailing
Non-Store Retailing
Source:
Note 1:
Note 2:

Table 9

2010-15 CAGR

2010/15 Total

2.3
15.0
3.4
27.6
45.3
4.5

3.1
18.2
4.7
25.8
5.2

16.5
130.4
25.8
215.5
28.9

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.
Mobile internet retailing and internet pure play retailers not included in non-store retailing total to avoid
double counting as these categories are already accounted for within internet retailing.

Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2010-2015

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2014/15

2010

2011

2012

2013

2014

2015

84,607.0
140,359.0
15,287.9

86,415.0
140,902.0
15,457.9

88,212.5
141,344.0
15,573.0

89,829.3
141,851.0
15,723.0

92,073.3
142,341.0
15,882.9

94,264.9
143,044.0
16,026.2

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

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RETAILING IN MALAYSIA

Table 10

Passport

Sales in Non-Grocery Specialists by Channel: Value 2010-2015

MYR million

Apparel and Footwear


Specialist Retailers
Electronics and
Appliance Specialist
Retailers
Health and Beauty
Specialist Retailers
Home and Garden
Specialist Retailers
Leisure and Personal
Goods Specialist
Retailers
Other Non-Grocery
Specialists
Non-Grocery Specialists
Source:

Table 11

2010

2011

2012

2013

2014

2015

13,311.4

13,619.5

13,923.0

14,298.1

15,063.8

15,764.4

29,286.6

30,003.6

30,562.8

30,929.6

31,238.8

31,707.4

7,470.0

7,643.2

7,909.0

8,091.7

8,314.1

8,490.1

8,288.4

8,401.0

8,482.5

8,666.0

8,881.8

9,079.4

12,309.4

12,667.1

12,943.4

13,265.1

13,675.1

14,011.0

13,941.2

14,080.6

14,391.8

14,578.9

14,899.6

15,212.5

84,607.0

86,415.0

88,212.5

89,829.3

92,073.3

94,264.9

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Non-Grocery Specialists Outlets by Channel: Units 2010-2015

outlet

Apparel and Footwear


Specialist Retailers
Electronics and
Appliance Specialist
Retailers
Health and Beauty
Specialist Retailers
Home and Garden
Specialist Retailers
Leisure and Personal
Goods Specialist
Retailers
Other Non-Grocery
Specialists
Non-Grocery Specialists
Source:

Table 12

2010

2011

2012

2013

2014

2015

11,280.0

11,406.0

11,492.0

11,580.0

11,700.0

11,850.0

18,315.0

18,370.0

18,407.0

18,455.0

18,524.0

18,543.0

7,378.0

7,471.0

7,610.0

7,698.0

7,758.0

7,825.0

18,600.0

18,674.0

18,720.0

18,760.0

18,814.0

18,900.0

9,263.0

9,383.0

9,449.0

9,551.0

9,638.0

9,726.0

75,523.0

75,598.0

75,666.0

75,807.0

75,907.0

76,200.0

140,359.0

140,902.0

141,344.0

141,851.0

142,341.0

143,044.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Sales in Non-Grocery Specialists by Channel: % Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Apparel and Footwear Specialist


Retailers

Euromonitor International

2014/15

2010-15 CAGR

2010/15 Total

4.7

3.4

18.4

10

RETAILING IN MALAYSIA

Passport

Electronics and Appliance Specialist


Retailers
Health and Beauty Specialist Retailers
Home and Garden Specialist Retailers
Leisure and Personal Goods Specialist
Retailers
Other Non-Grocery Specialists
Non-Grocery Specialists
Source:

1.5

1.6

8.3

2.1
2.2
2.5

2.6
1.8
2.6

13.7
9.5
13.8

2.1
2.4

1.8
2.2

9.1
11.4

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 13

Non-Grocery Specialists Outlets by Channel: % Unit Growth 2010-2015

% unit growth

Apparel and Footwear Specialist


Retailers
Electronics and Appliance Specialist
Retailers
Health and Beauty Specialist Retailers
Home and Garden Specialist Retailers
Leisure and Personal Goods Specialist
Retailers
Other Non-Grocery Specialists
Non-Grocery Specialists
Source:

Table 14

2014/15

2010-15 CAGR

2010/15 Total

1.3

1.0

5.1

0.1

0.2

1.2

0.9
0.5
0.9

1.2
0.3
1.0

6.1
1.6
5.0

0.4
0.5

0.2
0.4

0.9
1.9

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Retailing GBO Company Shares: % Value 2011-2015

% retail value rsp excl sales tax


Company
Dairy Farm
International Holdings
Ltd
AEON Group
Tesco Plc
Seven & I Holdings Co Ltd
Parkson Holdings Bhd
Store Corp Bhd, The
Econsave Cash & Carry
Sdn Bhd
Poh Kong Holdings Bhd
Senheng Electric (KL)
Sdn Bhd
Hutchison Whampoa Ltd
Amway Corp
Cosway (M) Sdn Bhd
Mydin Mohamed Holdings
Bhd
Herbalife Ltd
Isetan Mitsukoshi
Holdings Ltd
Elken Sdn Bhd
Padini Holdings Bhd

Euromonitor International

2011

2012

2013

2014

2015

4.4

4.5

4.3

4.3

4.3

1.7
2.7
1.0
1.1
1.2
0.8

2.8
2.7
1.1
1.1
1.2
0.8

3.2
2.7
1.1
1.1
1.1
0.8

3.2
2.7
1.2
1.1
1.0
0.8

3.3
2.8
1.3
1.1
1.0
0.8

0.4
0.6

0.5
0.7

0.5
0.7

0.6
0.6

0.7
0.7

0.4
0.5
0.4
0.2

0.5
0.5
0.4
0.3

0.5
0.5
0.4
0.3

0.5
0.5
0.4
0.4

0.5
0.5
0.4
0.4

0.3
0.3

0.3
0.4

0.4
0.4

0.4
0.4

0.4
0.4

0.4
0.3

0.4
0.3

0.3
0.3

0.3
0.3

0.3
0.3

11

RETAILING IN MALAYSIA

Passport

Petronas Dagangan Bhd


Tupperware Brands Corp
Rocket Internet GmbH
Carrefour SA
Others
Total
Source:

0.3
0.3
1.1
81.5
100.0

0.3
0.3
0.2
80.5
100.0

0.3
0.3
0.3
79.9
100.0

Retailing GBN Brand Shares: % Value 2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)
Giant

Dairy Farm
International Holdings Ltd
AEON Group
Tesco Plc
Seven & I Holdings Co Ltd
Parkson Holdings Bhd
AEON Group
Dairy Farm
International Holdings Ltd
Tesco Plc
Econsave Cash & Carry
Sdn Bhd
Store Corp Bhd, The
Poh Kong Holdings Bhd
Senheng Electric (KL)
Sdn Bhd
Hutchison Whampoa Ltd
Amway Corp
Cosway (M) Sdn Bhd
Herbalife Ltd
Isetan Mitsukoshi
Holdings Ltd
Elken Sdn Bhd
Petronas Dagangan Bhd
Inter Ikea Systems BV

AEON
Tesco
7-Eleven
Parkson
Aeon Big
Guardian
Tesco Extra
Econsave
The Store
Poh Kong
SenHeng Electric
Watson's
Amway
Cosway
Herbalife
Isetan
Elken
Kedai Mesra
IKEA
Others
Total

Table 16

0.3
0.3
0.1
80.7
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 15

Source:

0.3
0.3
80.9
100.0

2012

2013

2014

2015

3.5

3.4

3.3

3.3

1.7
2.2
1.0
1.1
1.1
0.9

2.1
2.1
1.0
1.1
1.1
0.9

2.1
2.0
1.1
1.1
1.1
0.9

2.2
1.9
1.2
1.1
1.1
0.9

0.5
0.8

0.6
0.8

0.7
0.8

0.9
0.8

0.8
0.5
0.7

0.8
0.5
0.7

0.7
0.6
0.6

0.7
0.7
0.7

0.5
0.5
0.4
0.3
0.4

0.5
0.5
0.4
0.4
0.4

0.5
0.5
0.4
0.4
0.4

0.5
0.5
0.4
0.4
0.4

0.4
0.3
0.3
82.1
100.0

0.3
0.3
0.3
81.9
100.0

0.3
0.3
0.3
81.8
100.0

0.3
0.3
0.3
81.5
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Store-based Retailing GBO Company Shares: % Value 2011-2015

% retail value rsp excl sales tax


Company
Dairy Farm
International Holdings
Ltd
AEON Group
Tesco Plc
Seven & I Holdings Co Ltd
Parkson Holdings Bhd
Store Corp Bhd, The

Euromonitor International

2011

2012

2013

2014

2015

4.7

4.7

4.6

4.6

4.5

1.8
2.9
1.1
1.2
1.2

2.9
2.9
1.2
1.2
1.2

3.3
2.8
1.1
1.2
1.2

3.4
2.8
1.2
1.1
1.1

3.5
2.9
1.3
1.1
1.0

12

RETAILING IN MALAYSIA

Passport

Econsave Cash & Carry


Sdn Bhd
Poh Kong Holdings Bhd
Senheng Electric (KL)
Sdn Bhd
Hutchison Whampoa Ltd
Mydin Mohamed Holdings
Bhd
Isetan Mitsukoshi
Holdings Ltd
Padini Holdings Bhd
Petronas Dagangan Bhd
Inter Ikea Systems BV
Popular Holdings Ltd
Courts Asia Ltd
Petron Corp
Tomei Consolidated Bhd
H&M Hennes & Mauritz AB
Carrefour SA
Others
Total
Source:

0.9

0.9

0.9

0.8

0.9

0.4
0.6

0.5
0.7

0.6
0.7

0.6
0.6

0.7
0.7

0.5
0.2

0.5
0.3

0.5
0.4

0.6
0.4

0.6
0.4

0.4

0.5

0.4

0.4

0.4

0.3
0.3
0.3
0.3
0.2
1.2
81.6
100.0

0.3
0.3
0.3
0.3
0.2
0.2
0.2
0.0
80.6
100.0

0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.1
80.3
100.0

0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.2
80.0
100.0

0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.2
79.5
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 17

Store-based Retailing GBN Brand Shares: % Value 2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)
Giant
AEON
Tesco
7-Eleven
Parkson
Aeon Big
Guardian
Tesco Extra
Econsave
The Store
Poh Kong
SenHeng Electric
Watson's
Isetan
Kedai Mesra
IKEA
Popular
Courts
Padini
H&M
Others
Total
Source:

Dairy Farm
International Holdings Ltd
AEON Group
Tesco Plc
Seven & I Holdings Co Ltd
Parkson Holdings Bhd
AEON Group
Dairy Farm
International Holdings Ltd
Tesco Plc
Econsave Cash & Carry
Sdn Bhd
Store Corp Bhd, The
Poh Kong Holdings Bhd
Senheng Electric (KL)
Sdn Bhd
Hutchison Whampoa Ltd
Isetan Mitsukoshi
Holdings Ltd
Petronas Dagangan Bhd
Inter Ikea Systems BV
Popular Holdings Ltd
Courts Asia Ltd
Padini Holdings Bhd
H&M Hennes & Mauritz AB

2012

2013

2014

2015

3.7

3.6

3.5

3.5

1.8
2.3
1.1
1.2
1.1
0.9

2.2
2.2
1.0
1.2
1.1
0.9

2.2
2.1
1.1
1.1
1.1
0.9

2.3
2.0
1.2
1.1
1.1
1.0

0.5
0.9

0.6
0.9

0.7
0.8

0.9
0.9

0.9
0.5
0.7

0.8
0.6
0.7

0.8
0.6
0.6

0.7
0.7
0.7

0.5
0.5

0.5
0.4

0.6
0.4

0.6
0.4

0.3
0.3
0.3
0.2
0.2
0.0
82.1
100.0

0.3
0.3
0.3
0.3
0.2
0.1
81.8
100.0

0.3
0.3
0.3
0.3
0.2
0.2
81.6
100.0

0.3
0.3
0.3
0.3
0.3
0.2
81.1
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

13

RETAILING IN MALAYSIA

Table 18

Store-based Retailing LBN Brand Shares: Outlets 2012-2015

sites/outlets
Brand (GBO)
7-Eleven (Seven & I
Holdings Co Ltd)
Kedai Mesra
99 Speedmart
Kedai (Koninklijke
Shell Groep/Royal
Dutch Shell Group)
Guardian (Dairy
Farm International
Holdings Ltd)
On The Run (Petron
Corp)
Shell Select
(Koninklijke Shell
Groep/Royal Dutch
Shell Group)
Watson's (Hutchison
Whampoa Ltd)
Bata (Bata Ltd)
Petron Treats
(Petron Corp)
Kedai Rakyat
1Malaysia
BHP (Boustead
Holdings Bhd)
myNEWS.com
KK Super Mart
SenHeng Electric
Poh Kong
Caring Pharmacy
Giant (Dairy Farm
International
Holdings Ltd)
Eu Yan Sang (Eu Yan
Sang International
Ltd)
Popular (Popular
Holdings Ltd)
Others
Total
Source:

Passport

Company (NBO)

2012

2013

2014

2015

7-Eleven Malaysia Sdn Bhd

1,407

1,559

1,747

1,950

Petronas Dagangan Bhd


99 Speedmart Sdn Bhd
Shell Malaysia Ltd

695
391
450

725
500
523

750
570
593

785
708
607

GCH Retail (M) Sdn Bhd

400

414

420

430

Petron Malaysia Sdn Bhd

351

375

415

420

Shell Malaysia Ltd

335

350

400

420

Watson's Personal Care


Stores Sdn Bhd
Bata (Malaysia) Sdn Bhd
Petron Malaysia Sdn Bhd

270

295

315

332

275
120

280
125

285
200

290
250

85

130

162

222

162

200

215

220

161
125

180
155

195
165

210
195

130

135

130

126

104
76
99

109
85
99

112
95
101

115
108
95

Eu Yan Sang (1959) Sdn


Bhd

92

95

90

88

Popular Book Co (M) Sdn


Bhd
Others
Total

75

76

77

80

210,500
216,303

210,648
217,058

210,974
218,011

211,516
219,167

Mydin Mohamed Holdings


Bhd
Boustead Petroleum
Marketing Sdn Bhd
Bison Stores Sdn Bhd
KK Supermart Holdings
Sdn Bhd
Senheng Electric (KL)
Sdn Bhd
Poh Kong Holdings Bhd
Caring Pharmacy Group Bhd
GCH Retail (M) Sdn Bhd

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 19

Non-Store Retailing GBO Company Shares: % Value 2011-2015

% retail value rsp excl sales tax


Company

2011

2012

2013

2014

2015

Amway Corp

10.2

10.6

9.3

9.4

9.7

Euromonitor International

14

RETAILING IN MALAYSIA

Passport

Cosway (M) Sdn Bhd


Herbalife Ltd
Elken Sdn Bhd
Tupperware Brands Corp
Rocket Internet GmbH
Avon Products Inc
Amazon.com Inc
Hai-O Enterprise Bhd
Nu Skin Enterprises Inc
Forever Living Products
International LLC
Dell Inc
Apple Inc
Coca-Cola Co, The
Thai Beverage PCL
USANA Health Sciences Inc
New Image Group Ltd
Citra Nusa Insan
Cemerlang PT
Fraser & Neave Ltd
Others
Total
Source:
Note:

Table 20

7.2
5.0
7.0
5.1
4.2
2.6
2.0
3.5
3.3

7.1
6.7
6.8
5.8
3.9
3.1
2.2
3.4
3.1

7.7
7.1
6.6
5.8
0.9
4.5
3.4
3.1
3.3
2.9

7.6
7.2
6.3
5.6
2.8
4.9
3.7
3.2
3.2
2.8

7.8
7.3
6.1
5.5
5.3
4.7
4.1
3.1
3.1
2.7

2.2
0.3
1.2
1.1
0.9
1.6

2.3
0.8
1.2
1.0
1.0
0.8
1.4

2.4
1.4
1.1
1.0
1.0
0.6
0.6

2.5
1.6
1.1
1.0
0.9
0.6
0.5

2.6
1.8
1.1
1.0
0.9
0.5
0.5

1.0
41.7
100.0

38.7
100.0

37.3
100.0

35.0
100.0

32.3
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Non-Store Retailing GBN Brand Shares: % Value 2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)

2012

2013

2014

2015

Amway
Cosway
Herbalife
Elken
Tupperware
3rd Party Merchants
Avon
Hai-O
Nu Skin
Forever Living

10.6
7.1
6.7
6.8
5.1
3.9
2.2
3.4
3.1

9.3
7.7
7.1
6.6
5.2
0.3
4.5
3.1
3.3
2.9

9.4
7.6
7.2
6.3
5.1
1.8
4.9
3.2
3.2
2.8

9.7
7.8
7.3
6.1
5.0
4.8
4.7
3.1
3.1
2.7

2.0
2.3
0.7
1.1
1.2
1.0
1.0
0.8
0.6
1.4

2.2
2.4
1.3
1.2
1.1
1.0
1.0
0.6
0.6
0.6

2.4
2.5
1.5
1.3
1.1
1.0
0.9
0.6
0.5
0.5

2.6
2.6
1.6
1.4
1.1
1.0
0.9
0.5
0.5
0.5

38.9
100.0

38.1
100.0

36.1
100.0

32.9
100.0

Amazon
Dell
App Store
3rd Party Merchants
Coca-Cola
F&N
USANA
New Image
Nutrimetics
CNI
Others
Total
Source:

Amway Corp
Cosway (M) Sdn Bhd
Herbalife Ltd
Elken Sdn Bhd
Tupperware Brands Corp
Rocket Internet GmbH
Avon Products Inc
Hai-O Enterprise Bhd
Nu Skin Enterprises Inc
Forever Living Products
International LLC
Amazon.com Inc
Dell Inc
Apple Inc
Amazon.com Inc
Coca-Cola Co, The
Thai Beverage PCL
USANA Health Sciences Inc
New Image Group Ltd
Tupperware Brands Corp
Citra Nusa Insan
Cemerlang PT

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

15

RETAILING IN MALAYSIA

Note:

Passport

Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Table 21

Non-Grocery Specialists GBO Company Shares: % Value 2011-2015

% retail value rsp excl sales tax


Company
Dairy Farm
International Holdings
Ltd
Poh Kong Holdings Bhd
Senheng Electric (KL)
Sdn Bhd
Hutchison Whampoa Ltd
Padini Holdings Bhd
Inter Ikea Systems BV
Popular Holdings Ltd
Courts Asia Ltd
Tomei Consolidated Bhd
H&M Hennes & Mauritz AB
Harvey Norman Holdings
Ltd
Caring Pharmacy Group Bhd
Bonia Group
Bata Ltd
Coach Inc
Kamdar Sdn Bhd
Bison Stores Sdn Bhd
LVMH Mot Hennessy
Louis Vuitton SA
Inditex, Industria de
Diseo Textil SA
Eu Yan Sang
International Ltd
Courts (Singapore) Pte
Ltd
Others
Total
Source:

2011

2012

2013

2014

2015

1.5

1.6

1.6

1.7

1.7

0.8
1.0

0.9
1.2

1.0
1.2

1.2
1.2

1.3
1.3

0.8
0.5
0.4
0.5
0.4
0.3

0.9
0.5
0.5
0.5
0.4
0.4
0.0
0.3

0.9
0.6
0.5
0.5
0.5
0.5
0.1
0.4

1.0
0.6
0.5
0.5
0.5
0.5
0.4
0.4

1.0
0.6
0.5
0.5
0.5
0.5
0.4
0.4

0.3
0.3
0.3
0.2
0.2
0.2
0.2

0.3
0.3
0.3
0.2
0.2
0.2
0.2

0.3
0.3
0.3
0.2
0.3
0.2
0.2

0.3
0.3
0.3
0.2
0.3
0.2
0.2

0.4
0.3
0.3
0.3
0.3
0.2
0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.4

91.4
100.0

90.5
100.0

89.9
100.0

89.2
100.0

88.8
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 22

Non-Grocery Specialists GBN Brand Shares: % Value 2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)
Guardian
Poh Kong
SenHeng Electric
Watson's
IKEA
Popular
Courts
Padini

Euromonitor International

Dairy Farm
International Holdings Ltd
Poh Kong Holdings Bhd
Senheng Electric (KL)
Sdn Bhd
Hutchison Whampoa Ltd
Inter Ikea Systems BV
Popular Holdings Ltd
Courts Asia Ltd
Padini Holdings Bhd

2012

2013

2014

2015

1.6

1.6

1.7

1.7

0.9
1.2

1.0
1.2

1.2
1.2

1.3
1.3

0.9
0.5
0.5
0.4
0.4

0.9
0.5
0.5
0.5
0.4

1.0
0.5
0.5
0.5
0.4

1.0
0.5
0.5
0.5
0.5

16

RETAILING IN MALAYSIA

H&M
Tomei
Harvey Norman
Caring Pharmacy
Bata
Coach
Kamdar
myNEWS.com
Eu Yan Sang

H&M Hennes & Mauritz AB


Tomei Consolidated Bhd
Harvey Norman Holdings Ltd
Caring Pharmacy Group Bhd
Bata Ltd
Coach Inc
Kamdar Sdn Bhd
Bison Stores Sdn Bhd
Eu Yan Sang
International Ltd
L'Oral Groupe
Fast Retailing Co Ltd
Al Ikhsan Sports Sdn Bhd

The Body Shop


Uniqlo
Al Ikhsan Sports
Others
Total
Source:

Passport

0.0
0.3
0.3
0.3
0.3
0.2
0.2
0.2
0.2

0.1
0.4
0.4
0.3
0.3
0.2
0.3
0.2
0.2

0.4
0.4
0.4
0.3
0.3
0.2
0.3
0.2
0.2

0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.2
0.2

0.2
0.1
0.1
91.1
100.0

0.2
0.1
0.2
90.4
100.0

0.2
0.2
0.2
89.7
100.0

0.2
0.2
0.2
89.3
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 23

Non-Grocery Specialists LBN Brand Shares: Outlets 2012-2015

sites/outlets
Brand (GBO)
Guardian (Dairy
Farm International
Holdings Ltd)
Watson's (Hutchison
Whampoa Ltd)
Bata (Bata Ltd)
myNEWS.com
Focus Point
Al Ikhsan Sports
Anakku (Asia Brands
Corp Bhd)
SenHeng Electric
Takasima
Poh Kong
Caring Pharmacy
Giordano (Giordano
International Ltd)
Eu Yan Sang (Eu Yan
Sang International
Ltd)
Popular (Popular
Holdings Ltd)
The Body Shop
(L'Oral Groupe)
Courts (Courts Asia
Ltd)
Sa Sa (Sa Sa
International
Holdings Ltd)
England Optical
Tomei (Tomei
Consolidated Bhd)

Euromonitor International

Company (NBO)

2012

2013

2014

2015

GCH Retail (M) Sdn Bhd

400

414

420

430

Watson's Personal Care


Stores Sdn Bhd
Bata (Malaysia) Sdn Bhd
Bison Stores Sdn Bhd
Focus Point Vision Care
Group Sdn Bhd
Al Ikhsan Sports Sdn Bhd
Asia Brands Assets
Management Sdn Bhd
Senheng Electric (KL)
Sdn Bhd
Takasima Health-Mart
Sdn Bhd
Poh Kong Holdings Bhd
Caring Pharmacy Group Bhd
Giordano (M) Sdn Bhd

270

295

315

332

275
161
146

280
180
143

285
195
145

290
210
152

120
103

135
128

145
138

150
141

130

135

130

126

80

90

110

125

104
76
84

109
85
86

112
95
88

115
108
90

Eu Yan Sang (1959) Sdn


Bhd

92

95

90

88

Popular Book Co (M) Sdn


Bhd
Rampai-Niaga Sdn Bhd

75

76

77

80

66

70

74

76

Courts (Malaysia) Sdn Bhd

58

64

70

70

Hong Kong Sa Sa (M) Sdn


Bhd

49

53

54

56

England Optical Group


(Malaysia) Sdn Bhd
Tomei Retail Sdn Bhd

56

50

50

50

49

52

52

48

17

RETAILING IN MALAYSIA

Esprit
Others
Total
Source:

Esprit Holdings Ltd


Others
Total

34
138,916
141,344

34
139,277
141,851

35
139,661
142,341

35
140,272
143,044

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 24

Non-Grocery Specialists LBN Brand Shares: Selling Space 2012-2015

selling space '000 sq m


Brand (GBO)
Courts (Courts Asia
Ltd)
Popular (Popular
Holdings Ltd)
SenHeng Electric
Watson's (Hutchison
Whampoa Ltd)
Padini
Kamdar
H&M (H&M Hennes &
Mauritz AB)
Guardian (Dairy
Farm International
Holdings Ltd)
Toys "R" Us (Toys
"R" Us Inc)
Harvey Norman
(Harvey Norman
Holdings Ltd)
IKEA (Inter Ikea
Systems BV)
Bata (Bata Ltd)
Uniqlo (Fast
Retailing Co Ltd)
Ace Hardware (Ace
Hardware Corp)
Anakku (Asia Brands
Corp Bhd)
Borders
Caring Pharmacy
Al Ikhsan Sports
Focus Point
MPH (MPH Group
Malaysia Snd Bhd)
Others
Total
Source:

Passport

Company (NBO)

2012

2013

2014

2015

Courts (Malaysia) Sdn Bhd

78.9

87.6

96.1

96.1

Popular Book Co (M) Sdn


Bhd
Senheng Electric (KL)
Sdn Bhd
Watson's Personal Care
Stores Sdn Bhd
Padini Holdings Bhd
Kamdar Sdn Bhd
H&M Retail Sdn Bhd

81.0

82.6

85.0

89.0

83.3

86.7

83.5

81.0

47.5

52.0

55.7

58.8

36.7
41.2
4.0

41.3
44.2
14.0

46.0
44.2
36.0

50.0
48.5
44.0

GCH Retail (M) Sdn Bhd

37.8

40.0

40.7

41.8

Toys 'R' Us (M) Sdn Bhd

25.6

29.3

34.3

37.5

Elitetrax Marketing Sdn


Bhd

32.2

37.0

45.5

36.9

Ikano Corp Sdn Bhd

35.0

35.0

35.0

35.0

Bata (Malaysia) Sdn Bhd


Uniqlo (M) Sdn Bhd

28.4
9.7

29.5
22.0

30.6
25.0

32.0
30.0

Giant Ace Sdn Bhd

21.0

24.0

24.0

25.8

Asia Brands Assets


Management Sdn Bhd
Berjaya Book Sdn Bhd
Caring Pharmacy Group Bhd
Al Ikhsan Sports Sdn Bhd
Focus Point Vision Care
Group Sdn Bhd
MPH Bookstores Sdn Bhd

17.0

21.1

22.9

25.5

15.5
12.6
13.1
16.1

15.5
14.1
14.8
15.7

15.5
15.5
15.9
16.0

19.0
17.5
16.5
16.3

14.4

15.8

15.8

15.8

14,922.1
15,573.0

15,000.9
15,723.0

15,099.7
15,882.9

15,209.2
16,026.2

Others
Total

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 25

Forecast Sales in Retailing by Store-based vs Non-Store: Value 2015-2020

MYR million
2015

Euromonitor International

2016

2017

2018

2019

2020

18

RETAILING IN MALAYSIA

Store-based Retailing
Non-Store Retailing
Retailing
Source:
Note:

Passport

169,730.9
9,842.3
179,573.3

172,002.4
10,170.3
182,172.7

173,974.1
10,498.9
184,473.0

175,685.6
10,835.9
186,521.5

177,118.0
11,172.2
188,290.2

178,271.5
11,498.6
189,770.1

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 26

Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth


2015-2020

% constant value growth, retail value rsp excl sales tax

Store-based Retailing
Non-Store Retailing
Retailing
Source:
Note:

2015/2016

2015-20 CAGR

2015/20 TOTAL

1.3
3.3
1.4

1.0
3.2
1.1

5.0
16.8
5.7

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 27

Forecast Sales in Store-based Retailing by Channel: Value 2015-2020

MYR million

Grocery Retailers
Non-Grocery Specialists
Mixed Retailers
Luxury Retailing
Store-based Retailing
Source:
Note 1:
Note 2:
Note 3:

Table 28

2015

2016

2017

2018

2019

2020

61,262.1
94,264.9
14,203.9
1,450.0
169,730.9

62,244.1
95,411.4
14,346.8
172,002.4

63,184.2
96,341.9
14,447.9
173,974.1

64,057.9
97,106.9
14,520.9
175,685.6

64,874.0
97,679.1
14,564.9
177,118.0

65,597.6
98,093.8
14,580.2
178,271.5

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.
Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.
No forecast data available for luxury retailing.

Forecast Store-based Retailing Outlets by Channel: Units 2015-2020

outlet

Grocery Retailers
Non-Grocery Specialists
Mixed Retailers
Luxury Retailing
Store-based Retailing
Source:
Note 1:
Note 2:

2015

2016

2017

2018

2019

2020

75,869.0
143,044.0
254.0
69.0
219,167.0

76,400.0
144,018.0
261.0
220,679.0

76,902.0
145,098.0
269.0
222,269.0

77,458.0
146,422.0
277.0
224,157.0

77,991.0
147,945.0
285.0
226,221.0

78,484.0
149,601.0
293.0
228,378.0

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.
No forecast data available for luxury retailing.

Euromonitor International

19

RETAILING IN MALAYSIA

Table 29

Passport

Forecast Sales in Store-based Retailing by Channel: % Value Growth 20152020

% constant value growth, retail value rsp excl sales tax

Grocery Retailers
Non-Grocery Specialists
Mixed Retailers
Luxury Retailing
Store-based Retailing
Source:
Note 1:
Note 2:
Note 3:

2015/2016

2015-20 CAGR

2015/20 TOTAL

1.6
1.2
1.0
1.3

1.4
0.8
0.5
1.0

7.1
4.1
2.6
5.0

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.
Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.
No forecast data available for luxury retailing.

Table 30

Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 20152020

% unit growth

Grocery Retailers
Non-Grocery Specialists
Mixed Retailers
Luxury Retailing
Store-based Retailing
Source:
Note 1:
Note 2:

2015/16

2015-20 CAGR

2015/20 Total

0.7
0.7
2.8
0.7

0.7
0.9
2.9
0.8

3.4
4.6
15.4
4.2

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.
No forecast data available for luxury retailing.

Table 31

Forecast Sales in Non-Store Retailing by Channel: Value 2015-2020

MYR million

Direct Selling
Homeshopping
Internet Retailing
Vending
Internet Pure Play
Retailers
Mobile Internet Retailing
Non-Store Retailing
Source:
Note 1:
Note 2:
Note 3:
Note 4:

2015

2016

2017

2018

2019

2020

7,648.2
1,866.2
327.9
1,273.2

7,747.7
2,090.2
332.5
-

7,832.9
2,330.5
335.5
-

7,911.2
2,586.9
337.8
-

7,974.5
2,858.5
339.2
-

8,014.4
3,144.4
339.9
-

223.9
9,842.3

313.5
10,170.3

384.5
10,498.9

478.6
10,835.9

571.7
11,172.2

691.8
11,498.6

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.
Mobile internet retailing and internet pure play retailers not included in non-store retailing total to avoid
double counting as these categories are already accounted for within internet retailing.
No forecast data available for internet pure play retailers.

Euromonitor International

20

RETAILING IN MALAYSIA

Table 32

Passport

Forecast Sales in Non-Store Retailing by Channel: % Value Growth 20152020

% constant value growth, retail value rsp excl sales tax

Direct Selling
Homeshopping
Internet Retailing
Vending
Internet Pure Play Retailers
Mobile Internet Retailing
Non-Store Retailing
Source:
Note 1:
Note 2:
Note 3:
Note 4:

2015/20 TOTAL

1.3
12.0
1.4
40.0
3.3

0.9
11.0
0.7
25.3
3.2

4.8
68.5
3.6
208.9
16.8

Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space


2015-2020

Value sales MYR million


Outlets
Selling Space '000 sq m

Note:

2015-20 CAGR

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.
Mobile internet retailing and internet pure play retailers not included in non-store retailing total to avoid
double counting as these categories are already accounted for within internet retailing.
No forecast data available for internet pure play retailers.

Table 33

Source:

2015/2016

2015

2016

2017

2018

2019

2020

94,264.9
143,044.0
16,026.2

95,411.4
144,018.0
16,188.4

96,341.9
145,098.0
16,354.2

97,106.9
146,422.0
16,518.2

97,679.1
147,945.0
16,688.7

98,093.8
149,601.0
16,860.1

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Forecast value data in constant terms.

Table 34

Forecast Sales in Non-Grocery Specialists by Channel: Value 2015-2020

MYR million

Apparel and Footwear


Specialist Retailers
Electronics and
Appliance Specialist
Retailers
Health and Beauty
Specialist Retailers
Home and Garden
Specialist Retailers
Leisure and Personal
Goods Specialist
Retailers
Other Non-Grocery
Specialists
Non-Grocery Specialists
Source:

2015

2016

2017

2018

2019

2020

15,764.4

16,111.2

16,417.4

16,696.5

16,913.5

17,082.6

31,707.4

32,024.5

32,312.7

32,538.9

32,701.6

32,832.4

8,490.1

8,547.7

8,591.6

8,626.5

8,645.6

8,647.5

9,079.4

9,207.5

9,258.0

9,299.5

9,322.7

9,336.6

14,011.0

14,216.8

14,381.9

14,519.0

14,638.4

14,721.9

15,212.5

15,303.8

15,380.3

15,426.5

15,457.3

15,472.8

94,264.9

95,411.4

96,341.9

97,106.9

97,679.1

98,093.8

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Euromonitor International

21

RETAILING IN MALAYSIA

Note:

Passport

Forecast value data in constant terms.

Table 35

Forecast Non-Grocery Specialists Outlets by Channel: Units 2015-2020

outlet

Apparel and Footwear


Specialist Retailers
Electronics and
Appliance Specialist
Retailers
Health and Beauty
Specialist Retailers
Home and Garden
Specialist Retailers
Leisure and Personal
Goods Specialist
Retailers
Other Non-Grocery
Specialists
Non-Grocery Specialists
Source:

2015

2016

2017

2018

2019

2020

11,850.0

12,030.0

12,240.0

12,480.0

12,750.0

13,043.0

18,543.0

18,654.0

18,747.0

18,803.0

18,841.0

18,860.0

7,825.0

7,910.0

8,007.0

8,116.0

8,233.0

8,370.0

18,900.0

19,011.0

19,154.0

19,325.0

19,517.0

19,744.0

9,726.0

9,813.0

9,900.0

9,998.0

10,104.0

10,220.0

76,200.0

76,600.0

77,050.0

77,700.0

78,500.0

79,364.0

143,044.0

144,018.0

145,098.0

146,422.0

147,945.0

149,601.0

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 36

Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth


2015-2020

% constant value growth, retail value rsp excl sales tax

Apparel and Footwear Specialist


Retailers
Electronics and Appliance Specialist
Retailers
Health and Beauty Specialist Retailers
Home and Garden Specialist Retailers
Leisure and Personal Goods Specialist
Retailers
Other Non-Grocery Specialists
Non-Grocery Specialists
Source:
Note:

2015/2016

2015-20 CAGR

2015/20 TOTAL

2.2

1.6

8.4

1.0

0.7

3.5

0.7
1.4
1.5

0.4
0.6
1.0

1.9
2.8
5.1

0.6
1.2

0.3
0.8

1.7
4.1

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 37

Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 20152020

% unit growth

Apparel and Footwear Specialist


Retailers
Electronics and Appliance Specialist
Retailers

Euromonitor International

2015/16

2015-20 CAGR

2015/20 Total

1.5

1.9

10.1

0.6

0.3

1.7

22

RETAILING IN MALAYSIA

Health and Beauty Specialist Retailers


Home and Garden Specialist Retailers
Leisure and Personal Goods Specialist
Retailers
Other Non-Grocery Specialists
Non-Grocery Specialists
Source:

Passport

1.1
0.6
0.9

1.4
0.9
1.0

7.0
4.5
5.1

0.5
0.7

0.8
0.9

4.2
4.6

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

DEFINITIONS
This report analyses the market for retailing in Malaysia. For the purposes of the study, the
market has been defined as follows:

Store-based Retailing
Grocery retailers
Modern grocery retailers
Convenience stores
Discounters
Forecourt retailers: chained forecourt retailers; independent forecourt retailers
Hypermarkets
Supermarkets
Traditional grocery retailers
Independent small grocers
Food/drink/tobacco specialists
Other grocery retailers
Non-grocery retailers
Apparel specialist retailers
Electronics and appliance specialist retailers
Health and beauty specialist retailers
Chemists/pharmacies
Drugstores/parapharmacies
Beauty specialist retailers
Other healthcare specialist retailers
Home and garden specialist retailers
Furniture and homewares stores
Home improvement and gardening stores
Leisure and personal goods specialist retailers
Jewellery and watch specialist retailers
Media products stores
Pet shops and superstores
Sports goods stores
Stationers/office supply stores
Traditional toys and games stores
Other leisure and personal goods specialist retailers

Euromonitor International

23

RETAILING IN MALAYSIA

Passport

Mixed retailers
Department stores
Variety stores
Mass merchandisers
Warehouse clubs
Other non-grocery retailers

Non-store Retailing
Vending
Homeshopping
Internet retailing
Direct selling
Explanations of words and/or terminology used in this report are as follows:
Other terminology
GBO refers to global brand owner, which is the ultimate owner of a brand.
NBO refers to national brand owner, which is the company licensed to distribute a brand on
behalf of a GBO. The NBO may be a subsidiary of a GBO or it may be a completely separate
company. Share tables at both GBO and at NBO level are provided in the report. Reference
to shares in the report analysis is at NBO level.

SOURCES
Sources used during the research included the following:
Summary 2
Research Sources
Official Sources

Department of Statistics
Ministry of Tourism Malaysia

Trade Associations

Direct Selling Association of Malaysia


Federation Of Goldsmiths & Jewellers
Associations Of Malaysia
Malaysia Retailers Association
Malaysian Association for Shopping &
Highrise Complex Management
Malaysian Cat Club
Malaysian Direct Distribution Association
(MDDA)
Malaysian Franchise Association
Malaysian Gas Association
Malaysian Petrochemicals Association (MPA)
Malaysian Retailers Chain Association
Petroleum Delers Association of Malaysia (PD
AM)

Trade Press

Euromonitor International

Berita Harian

24

RETAILING IN MALAYSIA

Passport

Bernama
Borneo Post
Business Times
Daily Express
Dow Jones International News
Edge Daily, The
Esso News
Forbes
Japan Today
Malay Mail,The
Malaysian Mirror
New Straits Times
Retail Asia Online
Reuters News
Star, The
Starmetro
Sun, The
The Edge
The Japan Times
Source:

Euromonitor International

Euromonitor International

25

RETAILING IN MALAYSIA

Passport

RETAILING IN MALAYSIA - COMPANY


PROFILES
7-ELEVEN MALAYSIA SDN BHD IN RETAILING (MALAYSIA)
Strategic Direction
Over the forecast period, 7-Eleven Malaysia Sdn Bhd will invest up to RM520mil in expanding
its store network, refurbish existing stores and improving its information technology systems
and distribution capabilities. As part of a move to differentiate its offering from that of its main
competitors. 7-Eleven's new stores in Malaysia offer additional services, such as in-store
dining, new dcor, coffee and freshly prepared meals, whereas existing stores maintain instore services, as it rolls out Touch 'n Go reload services and point-of-sales activated (Posa)
gift cards at its outlets.

Company Background
7-Eleven Malaysia is a privately-owned company, which was established in 1984 and is
headquartered in Kuala Lumpur. During 2009, the company undertook a franchise scheme to
encourage local entrepreneurs to take up franchise licences to operate 7- Eleven
convenience stores in Malaysia.
7-Eleven Malaysia carries over 2,200 products since its incorporation. Since 2009, the
company offers freshly brewed hot coffee and other hot drinks, packaged fresh food and
bakery products to target consumer demand for quick meal solutions.
7-Eleven Malaysia is also expanding its delivery services via local partnerships with third
parties. The company is in negotiation with courier service providers to offer home delivery
before the end of 2015 and will also accelerate m-payments in-store with more telecom
partnerships. Therefore, it manages to maintain its leading position in convenience stores
through improving its product and services portfolio.

Digital Strategy
As of 2015, 7-Eleven Malaysia Sdn Bhd does not offer internet retailing. It does, however,
offer a website that mainly contains information on the latest promotions and corporate news.
Furthermore, consumers can log onto foodpandas website or use its smartphone app to
order delivery from 7-Eleven Malaysia. The company actively engages with consumers via
Facebook.
The player is unlikely to venture into internet retailing over the forecast period. It will
strengthen its leading position by continuing to expand it outlet network across Malaysia,
thereby enhancing accessibility.
Summary 3

7-Eleven Malaysia Sdn Bhd: Share of Sales Generated by Internet Retailing


2013-2015
2013
2014
2015

Net sales: Retailing

Euromonitor International

MYR1,672.0 million

MYR1,893.0 million

MYR2,110.0 million

26

RETAILING IN MALAYSIA

Passport

Net sales: Internet


retailing

0.0

0.0

0.0

Internet retailings %
share of total
company net sales

0.0

0.0

0.0

Source:

Euromonitor International from company reports, company research, trade press, trade sources

Private Label
As of 2015, 7-Eleven Malaysia only offers Aktif private label bottled water. The player did not
focus on private label over the review period, as it concentrated instead on enlarging its
product portfolio, as well as increasing its range of in-store services.
Summary 4
7-Eleven Malaysia Sdn Bhd: Private Label Portfolio
Private label brand
Category/ies
Notes
Aktif
Source:

Bottled water

Budget range

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

Competitive Positioning
7-Eleven Malaysia Sdn Bhd ranks fourth in retailing in Malaysia, with a retail value sales
share of 1%. The company is only present in convenience stores only, where it is the leading
player, accounting for a dominant retail value sales share of 62% in 2015. The company has
the largest outlet network of any player in retailing in Malaysia, standing at 1,950 in 2015. The
company looks to continuously strengthen its position through the opening of new outlets
under its unique franchising programme.
Other than offering a comprehensive product portfolio, 7-Eleven offers a wide variety of
services, such as bill payment, mobile reloads, MOL points, MOL pay, Touch n Go reload, gift
cards, delivery service and other services, such as faxing and photocopying of documents, as
well as 24 hour Wi-Fi to cater to the ever-changing needs and demands of consumers.
To provide it with a competitive advantage over other players like 99 Speedmart and KK
Supermart, 7-Eleven Malaysia periodically organises contests, such as Scratch & Win and
Pesta Merdeka, as well as lucky draw contests.
7-Eleven Malaysia is well-positioned in modern grocery retailers in store-based retailing. It
benefits from rising consumer demand for convenience, due to their hectic schedules. Shorter
checkout times and longer operating hours that enable them to shop late at night or early in
the morning are just some of the advantages offered by convenience stores, including 7Eleven, over other channels.
Summary 5
Channel

7-Eleven Malaysia Sdn Bhd: Competitive Position 2015


% value share
Rank

Retailing

1.2

Convenience stores

61.5

Euromonitor International

27

RETAILING IN MALAYSIA

Source:

Passport

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

AEON CO (M) BHD IN RETAILING (MALAYSIA)


Strategic Direction
Over the forecast period, AEON Co (M) Bhd is expected to continue expanding its outlet
network across Malaysia, especially AEON department stores, in order to maximise consumer
accessibility to its outlets in both urban and rural areas.

Company Background
AEON Co (M) Bhd was established in Malaysia in 1984 and subsequently listed on the Kuala
Lumpur Stock Exchange in 1996. AEON Co (M) Bhd was set up in response to the Malaysian
governments invitation to AEON Japan to help modernise the retailing industry in Malaysia.
The AEON name is now well-established among Malaysians, as well as foreigners, especially
due to its association with the international AEON Group of Companies.
AEON has established itself as a leading chain of General Merchandise Stores (GMS) and
supermarkets. In addition to its core GMS and supermarket operations, AEON is also active in
specialty store operations, shopping centre development and operations, credit card business
and services.
The AEON Group of Companies is an integrated Japanese retailer and is active not only in
Japan but also throughout ASEAN and China. AEONs chain of stores across peninsular
Malaysia strives to satisfy the ever changing needs and desires of consumers with their
Customer First philosophy. With its tagline AEON Enriching Your Lifestyle, AEON
surpasses consumers expectations by enhancing their shopping experience.

Digital Strategy
AEON Co (M) Bhd offers internet retailing, but only during special occasions, such as Chinese
New Year and Hari Raya, when it sold hampers during 2015. Its corporate website is aimed to
provide company information, as well as the latest news and promotions for its AEON retail
brand. Over the short-term forecast period, AEON Co (M) Bhd is unlikely to offer internet
retailing, as it will instead focus on expanding its outlet and product range.
Summary 6

AEON Co (M) Bhd: Share of Sales Generated by Internet Retailing 2013-2015


2013
2014
2015

Net sales: Retailing

MYR3,514.0 million

MYR3,705.0 million

MYR3,900.0 million

Net sales: Internet


retailing

Internet retailings %
share of total
company net sales

Source:

Euromonitor International from company reports, company research, trade press, trade sources

Euromonitor International

28

RETAILING IN MALAYSIA

Passport

Private Label
AEON Co (M) Bhd offers a wide private label portfolio in apparel, including Agenda, Arcadia,
Chic Avenue, Crme, Jeans Studio, Orange Sorbet, Sam, Suave, iQ Kids, JBaby, JKids,
Scarlet and Cleef, as well as Topvalu in packaged food and other lifestyle products, which
range from budget to mid-priced items, thereby offering consumers a wide variety of choice.
Currently, Topvalu, a leading private label in AEON Japan consists of three lines: Topvalu
Select, Topvalu and Topvalu Bestprice. These private labels are aimed to appeal to
consumers of all income levels in Malaysia.
Summary 7
AEON Co (M) Bhd: Private Label Portfolio
Private label brand
Category/ies

Notes

Topvalu Select

Packaged food etc

Premium range

Topvalu

Packaged food etc

Mid-priced range

Topvalu Bestprice

Packaged food etc

Budget range

Agenda

Apparel

Mid-priced range

Arcadia

Apparel

Mid-priced range

Chic Avenue

Apparel

Budget range

Crme

Apparel

Mid-priced range

Jeans Studio

Apparel

Budget range

Orange Sorbet

Apparel

Mid-priced range

Sam

Apparel

Mid-priced range

Suave

Apparel

Mid-priced range

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

Competitive Positioning
AEON Co (M) Bhd is the third leading player in retailing in Malaysia, accounting for a retail
value sales share of 2% in 2015. This is mainly based on the companys strength in
hypermarkets, where it accounted for retail value sales share of 28% in 2015. The company
also accounted for a retail value sales share of 1% in supermarkets in 2015. The player saw a
marginal increase in retail value sales share in retailing in Malaysia in 2015. This was driven
by the one percentage point gain in value share it recorded in department stores, as a result
of its competitive prices and huge product portfolio.
Weak economic and unstable politic conditions affected the players expansion plans over the
review period, so the plans were implemented slowly. The player was also more aggressive
with promotions in order to attract consumer attentions. Furthermore, increasing saturation
saw the player looking for new growth opportunities, by constantly reviewing its product
portfolio to ensure consumer demand can be fulfilled.
AEON Co (M) Bhd also operates the MaxValu brand in supermarkets, which is positioned as
offering maximum value to consumers, through product quality, prices and customer service.
Due to facing strong competition in supermarkets, it is important for the player to follow a clear

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direction and marketing strategy. MaxValu ranks sixth in supermarkets, on a retail value sales
share of 1% in 2015.
AEON Co (M) Bhd also offers a loyalty card scheme, AEON Member, with consumers paying
RM12 for one-year membership. Consumers can earn rebates of 3% or 5% for each purchase
that can be converted into gift vouchers bi-annually. Loyalty points are also awarded for each
purchase and consumers can redeem these points for gifts. Other benefits of the card include
special priced items, birthday rewards, exclusive invites to AEON Member Day, discounts at
partner merchants and more.
Summary 8
Channel

AEON Co (M) Bhd: Competitive Position 2015


% value share
Rank

Retailing

2.2

Supermarkets

0.5

Department stores

27.9

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

ECART SERVICES MALAYSIA SDN BHD IN RETAILING (MALAYSIA)


Strategic Direction
Over the forecast period, lazada is expected to gain more retail value sales shares by offering
a fast, secure and convenient online shopping experience with a broad product offering.
Lazada is always striving to offer its customers the best services, including multiple payment
options, free returns and extensive customer service and warranty commitments. The
company will constantly expand its product range and attract customers with new offers and
deals periodically.

Company Background
Lazada Malaysia was launched in 2012 and is headquartered in Kuala Lumpur. It is a part of
lazada Group, which operates Southeast Asias number one online shopping and selling
destination in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
Pioneering ecommerce in the region, lazada provides customers with an effortless shopping
experience and retailers with simple and direct access to the largest customer base in
Southeast Asia.
Lazada Malaysia is poised to be the single largest online mall that is part of a global cyber
chain already established in Europe. Lazada Malaysia changed the face of shopping by
offering a user-friendly, convenient and trusted e-commerce platform.
Lazada is intended for people who want a secure, reliable and effortless shopping experience.
Consumers can get the best deals through lazada mobile apps and websites anytime,
anywhere, and avail of multiple payment options including cash-on-delivery, as well as
extensive customer care, and buyer protection.
Summary 9

Ecart Services Sdn Bhd: Share of Sales Generated by Internet Retailing


2013-2015

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2013

2014

2015

Net sales: Retailing

MYR56.9 million

MYR87.6 million

MYR42.1 million

Net sales: Internet


retailing

MYR56.9 million

MYR87.6 million

MYR42.1 million

Internet retailings %
share of total
company net sales

100.0

100.0

100.0

Source:

Euromonitor International from company reports, company research, trade press, trade sources

Competitive Positioning
Lazada is only active in internet retailing, holding a 2% value share in 2015.
Weak economic and unstable politic conditions in the country slowed down the growth of
internet retailing. The player is aggressive in running promotions to attract consumer
attention. Furthermore, competition between players in the category means it is always
looking for new growth opportunities through constantly reviewing its product portfolio, thereby
ensuring consumer demand is satisfied.
Compared with other players in internet retailing, which only offer limited product lines, lazada
offers the widest selection of international, local, unique and exclusive products across 13
categories, including mobiles and tablets, computers and laptops, consumer electronics,
cameras, home appliances, home and living, toys, products for children and babies, health
and beauty, fashion, travel and luggage, sports and outdoors, media, games and music, and
watches.
Summary 10
Channel

Ecart Services Sdn Bhd: Competitive Position 2015


% Retail Value Share
Rank

Retailing

neg

Internet retailing

2.3

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

GCH RETAIL (M) SDN BHD IN RETAILING (MALAYSIA)


Strategic Direction
GCH Retail (M) Sdn Bhd is expected to be more aggressive in opening new Guardian outlets
across Malaysia, particularly in rural areas, over the forecast period. The player will expand its
outlet network further to get closer to consumers and increase accessibility. The company is
also expected to focus on diversifying its product portfolio, in order to enhance its
differentiation from other drugstores/pharmacies.

Company Background

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In 1967, Guardian was a mere 200sq ft pharmacy at the Weld in Jalan Raja Chulan, catering
to the expatriate community. Today Guardian is transformed into the largest chained health
and beauty specialist retailer in Malaysia; offering goods and services to more than 27 million
Malaysian consumers.
Guardian is truly recognised and acclaimed by customers as per its motto: "The One You
Trust". Guardian also brought entered an agreement with University Kebangsaan Malaysia
and The International Medical University to facilitate a community pharmacy attachment
programme to develop working skills and abilities required to pursue a career as a pharmacist
in today's ever changing healthcare environment.
Guardian is an advocate of corporate philanthropy, giving back to the community through
getting involved in efforts that help to provide and promote the care, development and wellbeing of local communities and supporting programmes that are dedicated towards those in
need, namely women and children. Among the organisations its helps to raise funds are the
National Cancer Council Malaysia (Makna), PRIDE Foundation, Women's Aid Organisation
(WAO), and The Malaysian Parkinson's Disease Association, amongst others.

Digital Strategy
GCH Retail (M) Sdn Bhd provides online retailing for its Guardian brand, with orders of over
RM150 entitled to free delivery. However, no delivery services are available on Sundays and
public holidays. The player entered internet retailing, due to increasing acceptance and rising
popularity of the channel amongst Malaysian consumers.
Summary 11

GCH Retail (M) Sdn Bhd: Share of Sales Generated by Internet Retailing
2013-2015
2013
2014
2015

Net sales: Retailing

MYR1,463.0 million

MYR1,560.0 million

MYR1,630.0 million

Net sales: Internet


retailing
Internet retailings %
share of total
company net sales
Source:

Euromonitor International from company reports, company research, trade press, trade sources

Private Label
GCH Retail (M) Sdn Bhd is relatively strong in manufacturing private label lines in Malaysia.
Its Guardian private label line covers many product categories from accessories, beauty and
skin care, wellness, personal care, and general merchandise to babies and children, and
cosmetics.
Its private label managed to enhance its retail value sales share towards the end of the review
period. This was driven by the lacklustre economic conditions that encouraged consumers to
look for bargains among branded products or trade down to cheaper private label products for
necessity items.
Summary 12
GCH Retail (M) Sdn Bhd: Private Label Portfolio
Private label brand
Category/ies
Notes

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Guardian

Source:

Passport

Beauty specialists,
drugstores/parapharmacies,
other leisure, etc

Budget to mid-priced range

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

Competitive Positioning
GCH Retail (M) Sdn Bhd is the leading player in retailing in Malaysia, accounting for a retail
value sales share of 4% in 2015. It is also the leading player in hypermarkets, with a 43%
value share in 2015, as well as the number two player in supermarkets, with an 8% value
share. The player saw a slight decline in value share as it used competitive prices as a
marketing tool.
The companys Guardian chain leads parapharmacies/drugstores, with a retail value sales
share of 28% in 2015. Rising health-and-image-consciousness is boosting consumer
willingness to invest in consumer healthcare, and beauty and personal care products. Their
rising sophistication is seeing them become much more willing to self-medicate for minor
illnesses. As the leading health and beauty specialist retailer in the country, Guardian benefits
from these trends.
These positive trends mean Guardian is positioned in a dynamic category. The Guardian
chain is also exploring importing more niche brands from overseas. Furthermore, it offers
member rewards, in return for support and loyalty throughout the year.
Summary 13
Channel

GCH Retail (M) Sdn Bhd: Competitive Position 2015


% value share
Rank

Retailing

4.1

Hypermarkets

43.0

Supermarkets

7.9

Drugstores/parapharmacies

27.9

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

JADE ESERVICES MALAYSIA SDN BHD IN RETAILING (MALAYSIA)


Strategic Direction
Over the forecast period, Zalora will enlarge its product portfolio to meet consumers everchanging fashion demands and tastes on fashion. The company will continuously employ
creative marketing activities, in order to achieve differentiation in the competitive environment
of apparel and footwear internet retailing.

Company Background

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Zalora is Asias leading online fashion destination and the largest and fastest growing fashion
focused e-commerce site in Southeast Asia. Founded in early 2012, the company is present
in Singapore, Indonesia, Malaysia, Brunei, the Philippines, Thailand, Vietnam and Hong
Kong.
On Zaloras website, consumers can access an extensive collection of over 500 top
international and local brands and designers. Consumers can choose from among thousands
of products across mens and womens fashion apparel, shoes, accessories, and beauty
categories, including leading brands such as Nike, American Apparel, New Look, River Island
and many more.
The company offers a thirty-day free returns policy, speedy deliveries within one to three
working days, free delivery for purchases over a certain amount, and multiple payment
methods, including cash-on-delivery.
Summary 14

Jade EServices Malaysia Sdn Bhd: Share of Sales Generated by Internet


Retailing 2013-2015
2013
2014
2015

Net sales: Retailing

MYR2.2 million

MYR6.0 million

MYR9.9 million

Net sales: Internet


retailing

MYR2.2 million

MYR6.0 million

MYR9.9 million

Internet retailings %
share of total
company net sales

100.0

100.0

100.0

Source:

Euromonitor International from company reports, company research, trade press, trade sources

Competitive Positioning
Zalora is only active in internet retailing, in which it accounted for a retail value sales share of
1% and ranked sixth in 2015.
The player is aggressive in running promotions, in order to attract consumer away attention
from retail outlets in the country. The company particularly targets technologically-savvy
teenagers, who are confident in the security of internet retailing.
Zaloras website offers easy and intuitive navigation, simple and safe shopping, fast shipping,
free delivery on purchases over a certain amount, comprehensive and personal service, as
well as a diverse product range.
Summary 15

Jade EServices Malaysia Sdn Bhd: Competitive Position 2015

Channel

% value share

Rank

Retailing

neg

Internet retailing

0.5

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

PARKSON HOLDINGS BHD IN RETAILING (MALAYSIA)

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Strategic Direction
Parkson Holdings Bhd is likely to be more cautious with its store expansion plans over the
forecast period, due to the mature department store environment in the country. Parkson will
be more concerned about boosting the turnover of existing outlets, such as through improving
its product portfolio and the standard of its trained professional staff. The player will also focus
on improving its online retailing platform to better attract consumers.

Company Background
Parkson Holdings Bhd was established in 1982 as a private limited liability company under the
name Amalgamated Cement Mills. In August 1988, the company was renamed Amalgamated
Containers, before becoming publicly listed in August 1992. It was further renamed Parkson
Holdings Bhd in September 2007.
Currently it is a publicly listed company on the Malaysia Stock Exchange. Parkson Holdings
Bhd acts as an investment holding company, with stakes in Parkson Retail Asia (PRA) and
Parkson Retail Group Limited (PGRL), which are listed on the Singapore Stock Exchange and
Hong Kong Stock Exchange, respectively.
The company is mainly involved in retailing activities through its Parkson department stores,
with different stores being customised to provide goods to different consumer groups
depending on the market segmentation. The majority of its outlets are located in shopping
malls.

Digital Strategy
Parkson Holdings Bhd offers internet retailing through its main website, after realising the
rising consumer demand for online shopping, due to its convenience. Consumers can
purchase from its huge product portfolio, including beauty, apparel and sports equipment via
Parksons online retailing site.
In addition to slowly expanding its outlet network, the company will also focus on online
retailing by enhancing its sites interface, as well as broadening the range of product
categories it offers through online retailing.
Summary 16

Parkson Holdings Bhd: Share of Sales Generated by Internet Retailing 20132015


2013
2014
2015

Net sales: Retailing

MYR1,850.0 million

MYR1,895.0 million

MYR1,940.0 million

Net sales: Internet


retailing

Internet retailings %
share of total
company net sales

Source:

Euromonitor International from company reports, company research, trade press, trade sources

Private Label

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Parkson Holdings Bhd only offers private label in apparel, which is targeted at mid-to-highincome consumers. Over the forecast period, the company is unlikely to expand its private
label offerings, focusing on retail brands instead to ensure they are well marketed.
Summary 17
Parkson Holdings Bhd: Private Label Portfolio
Private label brand
Category/ies

Notes

Linea

Apparel

Mid-priced range

Weekenders

Apparel

Mid-priced range

Alexander

Apparel

Mid-priced to premium range

Dis Direction

Apparel

Mid-priced to premium range

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

Competitive Positioning
Parkson Holdings Bhd ranks fifth in retailing in Malaysia, with a retail value sales share of 1%
in 2015. Its saw a marginal loss of retail value sales share in retailing in 2015, as a result of
department stores facing more competition from other retailing channels, such as apparel and
footwear specialist retailers.
Parkson Holdings Bhd is the second leading player in department stores in Malaysia, with a
retail value sales share of 14% in 2015. Its value share slightly dropped, due to intensifying
competition from AEON, which accounted for a retail value sales share of 27%, helped by its
membership day competition and membership rewards.
Parkson Holdings Bhd faces a strong challenge in department stores as Malaysian
consumers continue to switch to specialist retailers, such as apparel and footwear specialist
retailers. This trend is mainly because international brands are keen to expand their presence
in Malaysia in order to meet the growing consumer demand.
Parkson also offers a consumer loyalty scheme under the Bonus Link network, where
consumers can earn points from their purchases through both the companys physical and
online stores. Once enough points are accumulated, points can be redeemed for Parkson gift
vouchers and other products.
Summary 18
Channel

Parkson Holdings Bhd: Competitive Position 2015


% value share
Rank

Retailing

1.1

Department stores

13.9

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

POH KONG HOLDINGS BHD IN RETAILING (MALAYSIA)


Strategic Direction

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Passport

Poh Kong Holdings Berhad is planning to open another five stores with an estimated total
capital expenditure of about RM16mil in 2015. Mainly because the company noted that the
domestic demand for gold and jewellery is still there, as they are perceived as safe assets.
Besides, the company also focussed on its online store at Rakuten portal and re-launched its
websites with more user-friendly interface.

Company Background
Poh Kong Holdings Berhad was established on 26 March 1976 by one of the founders Dato'
Eddie Choon, with its first outlet at Jalan 52/4, Petaling Jaya. This business address still
houses Poh Kongs headquarters. Since 2014, the company is listed on Bursa Malaysia. The
company has its own manufacturing facility, located in Shah Alam. In 2011, the company
reached 100 outlets in Malaysia, thus earning it the position of Malaysias largest jewellery
retail chain store.
Poh Kong has succeeded in developing and promoting its own brand, and being the sole
Malaysian distributor for many renowned international brands. Its in-house brands include
Tranz, Happy Love, Anggun, The Art of Auspicious and many more. Poh Kong is the licensee
for Disney Collection; the sole distributor for Schoeffel luxury pearls from Germany, and the
Luca Carati and Moraglione brands from Italy. In addition, Poh Kong offers Bunga Raya Gold
Bar and Auspicious Gold Coin. Both are exclusively designed and made by Poh Kong.
Poh Kong leverages the image differentiation of its brands and retail concept stores to meet
the needs of different customers. Other than Poh Kong and Diamond & Gold outlets, the
company operates retail concept stores, such as Diamond Boutique, Jade Gallery, Gold
Boutique and Oro Bianco.

Digital Strategy
As of 2015, Poh Kong Holdings Berhad does not offer internet retailing, but has a website that
mainly contains information of its latest collections and corporate news. However, the
company has an online store at Rakuten.
The player is unlikely to venture into internet retailing over the forecast period. It will
strengthen its leading position by expanding its outlet network across Malaysia, in order to
enhance accessibility for consumers.
Summary 19

Poh Kong Holdings Berhad: Share of Sales Generated by Internet Retailing


2013-2015
2013
2014
2015

Net sales: Retailing

MYR912.0 million

MYR1,060.0million

MYR1,220.0 million

Net sales: Internet


retailing

Internet retailings %
share of total
company -net sales

Source:

Euromonitor International from company reports, company research, trade press, trade sources

Competitive Positioning

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Passport

Poh Kong Holdings Berhad is the ninth leading player in retailing in Malaysia, accounting for a
retail value sales share of 1% in 2015. The companys position is underpinned by its large
outlet network across Malaysia. However, the player faces strong competition from a lot small
players, such as Tomei, City Chain, Tiffany & Co, and Sincere, amongst others.
Poh Kong Holdings Berhad held a retail value sales share of 17% in jewellery and watch
specialist retailers in Malaysia in 2015, far ahead of the second leading player, Tomei Retail
Sdn Bhd on a 6% value share. Poh Kong offers quality gold pieces, as well as unique patterns
and designs, which helps it in attracting consumer interest. Moreover, its staff are well-trained
and able to provide professional advice to consumers.
Poh Kong Holdings Berhad continues to expand its outlet network across Malaysia, opening
new outlets every year. The company added a further three outlets for a total of 115 in 2015.
Furthermore, it carries a wide range of jewellery products, including rings, bracelets, and
pendants, as well as diamond, pearl and jade collections, and gifts suitable for weddings,
different occasions and festivals. As well as offering his and her collections, it also stocks
products suited to babies and children.
Poh Kong Holdings Berhad saw ongoing gains in retail value sales share in jewellery and
watch specialist retailers over the review period, recording a nine percentage point increase in
total from 8% in 2010 to 17% in 2015. Over the review period, the company benefitted from
ongoing consumer demand for gold, either for collection or investment, with the company
offering a wide range of choice through its large product portfolio. In line with intensifying
competition in jewellery and watch specialist retailers, the company also offers seasonal
promotions and unique free gifts, in order to maintain its strong leading position in the
category.
Summary 20
Channel

Poh Kong Holdings Berhad: Competitive Position 2015


% value share
Rank

Retailing

0.7

Jewellery and watch specialist


retailers

16.6

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

TESCO STORES (MALAYSIA) SDN BHD IN RETAILING (MALAYSIA)


Strategic Direction
Tesco Stores (Malaysia) Sdn Bhd is likely to expand its outlet network across Malaysia over
the forecast period. In addition, Tesco Malaysia has chosen to introduce NCR self-checkouts
into its hypermarket outlets, to provide a faster and more convenient checkout option.

Company Background
Tesco Stores (Malaysia) Sdn Bhd is a joint venture company between Tesco Plc and Sime
Darby Berhad, established in 2001. Sime Darby Berhad holds a 30% stake in the jointventure. It commenced operations in February 2002, with the opening of its first hypermarket
in Puchong, Selangor.

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Passport

Tesco maintains its strong presence with regional coverage, mainly concentrated in Peninsula
Malaysia. The company solely operates in hypermarkets, whereby it markets a wide array of
products, including groceries, electronic appliances, apparel, packaged food and home wares.
The company utilises two store formats in Malaysia, namely Tesco Hypermarkets and Tesco
Extra Hypermarkets. Products are sourced locally from over 162 business partners and the
company conducts regular checks on quality and safety parameters, to ensure products are
hygienic and safe for consumption.

Digital Strategy
In line with the rising popularity of internet retailing, Tesco Stores (Malaysia) Sdn Bhd
introduced its online ordering platform in April 2013. To ensure that chilled and temperaturecontrolled items stay fresh, Tesco Online delivery trucks are properly chilled and delivery
services are available from 10.00hrs to 22.00hrs.
The company continues to tweak its online ordering, delivery fulfilment and service level. After
receiving an overwhelming response and slowly perfecting the whole delivery service, it is
expanding the regions in Malaysia where the service is available.
Summary 21

Tesco Stores (Malaysia) Sdn Bhd: Share of Sales Generated by Internet


Retailing 2013-2015
2013
2014
2015

Net sales: Retailing

MYR4,537.0 million

MYR4,667.0 million

MYR4,940.0 million

Net sales: Internet


retailing

Internet retailings %
share of total
company net sales

Source:

Euromonitor International from company reports, company research, trade press, trade sources

Private Label
Tesco Stores (Malaysia) Sdn Bhd operates some successful private label lines in Malaysia.
For instance, Tesco Everyday Value Tesco (making every Ringgit count), Finest (passionate
about food), Tesco (big brand quality for less), and Tesco Loves Baby (great quality at lower
prices).
Over the end review period, Tesco private labels saw increasing popularity, driven by the
increasing cost of living in Malaysia, the onset of the global financial crisis, increasing
unemployment and uncertainty surrounding the countrys economic recovery. These factors
drove most Malaysians to become more budget-conscious, which hypermarkets looked to
exploit the opportunity by introducing private label lines and expanding existing ones.
Summary 22
Tesco Stores (Malaysia) Sdn Bhd: Private Label Portfolio
Private label brand
Category/ies
Notes
Tesco Value

Personal care products,


packaged food, non-alcoholic
drinks, etc

Budget range

Tesco Choice

Packaged food, facial tissues,

Mid-priced range

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etc
Tesco Light Choices

Better-for-you packaged food

Premium range

Tesco Finest

Packaged food

Premium range

F&F

Apparel

Budget to mid-priced range

Assign

Apparel

Budget range

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

Competitive Positioning
Tesco Stores (Malaysia) Sdn Bhd is the second leading player in retailing in Malaysia,
accounting for a retail value sales share of 3% in 2015. The player faces strong competition
from GCH Retail (M) and AEON Co (M), with the latter gaining share over the review period,
driven by expansion of its outlet network.
Tesco Stores (Malaysia) is the second leading player in hypermarkets in Malaysia, accounting
for a retail value sales share of 39% in 2015. This left it four percentage point adrift of the
leading player GCH Retail (M) Sdn Bhd, with the Giant brand. Tesco offers low prices and
strong customer service, in order to attract consumers to its outlets. Moreover, it is active in
enlarging its product portfolio and enhancing its internet retailing operations, in order to better
serve consumers in the country.
Tesco Stores (Malaysia) also offers a loyalty scheme, entitled Tesco Club Card. Purchases at
Tesco stores and food courts earn loyalty points for members, that can be converted into
shopping vouchers. In addition to this, the player is putting effort into providing a comfortable
shopping environment and quick checkout times, to maintain customer loyalty.
Tesco Stores (Malaysia) increased its share in hypermarkets over the review period, helped
by growing consumer demand for a convenient one-stop shopping experience. With
intensifying competition in hypermarkets, the leading players also regularly engage in prices
war, through offering seasonal promotions and special price markdowns.
Summary 23
Channel

Tesco Stores (Malaysia) Sdn Bhd: Competitive Position 2015


% value share
Rank

Retailing

2.8

Hypermarkets

39.2

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

Euromonitor International

40

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GROCERY RETAILERS IN MALAYSIA CATEGORY ANALYSIS


HEADLINES
Grocery retailers sees sales growth of 4% in 2015 to reach RM61,262 million
The essential nature of grocery products contributes to the performance of grocery retailers
GCH Retail (M) Sdn Bhd remains the leading player in grocery retailers, with a retail value
sales share of 10% in 2015
Sales of grocery retailers are expected to grow at a CAGR of 1% at constant 2015 prices over
the forecast period

TRENDS
Grocery retailers record slightly slower current value growth during 2015 than in 2014.
Although essential and basic needs continue to support category performance, soft economic
conditions in Malaysia, due to unstable politic conditions and the declining value of the
Malaysian ringgit, further affected consumer confidence and spending in 2015. In response,
grocery retailers organised price reduction activities, in order to stimulate demand amongst
consumers.
Malaysian consumers increasingly demand convenience, preferring a one-stop shopping
experience, due to their hectic schedules. This trend supports modern grocery retailers, such
as convenience stores, hypermarkets and supermarkets, all of which have wide outlets
networks across the region, which eases accessibility for consumers. On the other hand,
some small independent small grocers, which struggled to handle the challenge of GST
implementation and competition from modern grocery retailers, chose to shut down their
businesses in 2015.
Hypermarkets enjoyed current value sales growth of 4% in 2015, as it remained the leading
channel in modern grocery retailers. However, aggressive price competition, involving such
promotions as buy-one-get-one and flash price markdowns, between the top players like
Giant and Tesco, served to limit the current value sales growth of hypermarkets in 2015.
Non-grocery specialists saw retail value sales growth of 2% in 2015, slightly less dynamic
than the corresponding growth of 4% recorded by grocery retailers. With increasing consumer
demand for the convenience of one-stop shopping, consumers are increasingly willing to pick
up non-grocery products during their grocery shopping trips, while grocery products continue
to take priority over non-grocery items, due to the essential nature of the former.
Among grocery retailers, discounters recorded the most dynamic retail value sales growth of
37% in 2015, driven by aggressive outlet network expansion. The project of Kedai Rakyat
1Malaysia is mainly targeted at Malaysian consumers in rural areas. It gained significant
consumer support, due to its cheaper pricing, as it is not really focused on branding, while is
appealing to those with larger families by enabling them to reduce their spending on essential
items significantly.
Convenience stores recorded current value sales growth of 18% in 2015, slightly more
dynamic than the corresponding growth of 16% seen in 2014. The 24/7 opening hours of
convenience stores in the country continue to attract consumers, as this enables them to shop

Euromonitor International

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41

RETAILING IN MALAYSIA

at any time, which is appreciated given their hectic lifestyles. Furthermore, the reduced time
spent queueing to checkout in these outlets compared with hypermarkets and supermarkets
is also contributing to the growing popularity of convenience stores.
Internet retailing of grocery products continued to account for a minimal share of retail value
sales in 2015, as only a few players like Tesco, Presto, and Sams Groceria offered this
option in Malaysia at the end of the review period. In order to grow internet retailing of grocery
products, players will need to invest more effort in promoting their web stores. Furthermore,
consumers prefer to pick up fresh and packaged products from physical stores, as it enables
them to choose the freshest products, check expiry dates and examine products in person
prior to making their selection. Consequently, as of 2015, the internet retailing of grocery
products in Malaysia mainly appeals to more technologically-savvy young consumers.

TRADITIONAL VS MODERN
Traditional grocery retailers continues to lead grocery retailers in Malaysia, with a retail value
sales share of 57% in 2015. Nonetheless, it faces tough competition from modern grocery
retailers, seeing ongoing losses of retail value sale share over the review period. The leading
position of traditional grocery retailers is mainly based on the channels vast outlet network,
the location of outlets in close proximity to consumers homes, and the good reputation these
outlets enjoy in the country. Nevertheless, modern grocery retailers continued to see stronger
retail value sales growth than traditional grocery retailers over the review period, due to
offering a convenient one-stop shopping solution and a significantly wider product portfolio
than traditional grocer retailers.
While traditional grocery retailers saw positive current value sales growth of 2% in 2015, this
was almost entirely driven by food/drink/tobacco specialists. Traditional grocery retailers saw
a further decline in outlet numbers in 2015, with a net loss of 114 outlets. This was driven by
the inability of some outlets to deal with the implementation of GST, as well as fierce
competition from modern grocery retailers.
Although independent small grocers saw a further 1% decline in outlet numbers in 2015, it
nonetheless managed to record positive current value sales growth of 1%. This was
underpinned by the long-established presence of these outlets in neighbourhood areas, which
allows consumers to make impulse and emergency purchases within walking distance of their
homes. However, these outlets are unable to compete with supermarkets and hypermarkets
on price or in terms of rewards given to loyal customers.
Other grocery retailers saw current value sales growth of 3% in 2015. Despite seeing positive
growth, the channel suffered a further marginal loss of retail value sales share, due to growing
at a less dynamic rate than grocery retailers as a whole. The fast emergence of modern
grocery retailers that provide a better and more comfortable shopping experience, continues
to attract consumers away from other grocery retailers.

COMPETITIVE LANDSCAPE
GCH Retail (M) Sdn Bhd is the leading grocery retailer in Malaysia, accounting for a retail
value sales share of 10% in 2015. With a strong management and marketing team across
Giant supermarkets and hypermarkets, and Cold Storage supermarkets, the player
successfully enjoys a significant base of loyal consumers in Malaysia. Giant is established as

Euromonitor International

Passport

42

RETAILING IN MALAYSIA

the top brand in retailing in the country, due to offering the lowest-priced products and its
aggressive weekly promotions, which help in luring consumers away from competing players.
Tesco Stores (Malaysia) Sdn Bhd is the second leading grocery retailer in Malaysia,
accounting for a retail value sales share of 8% in 2015. Fierce competition from the leading
hypermarket, Giant, which owns a wider outlet network than Tesco, relegates Tesco to
second place in the category. However, creative ideas, such as self-checkout counters and
check-out counters reserved for those buying less than a certain amount of items, are helping
Tesco to attract consumers.
Given the implementation of a 6% GST in 2015, consumers tended to be more careful in their
spending on daily expenses, particularly low-to-mid-income consumers. As a result, domestic
grocery retailers saw some growth in 2015, as they competed aggressively on pricing. For
example, Mydin, which participated in the Kedai Rakyat 1Malaysia programme initiated by the
government, enjoyed strong growth in value sales during 2015.
During 2015, pricing was the main factor affecting the performance of grocery retailers in the
country. Price wars were seen on a monthly or even weekly basis throughout the year. Other
than frequently reviewing their product portfolios according to consumer demand, players also
proved keen to recruit new members, in order to boost their performance during members
day.

PROSPECTS
Sales of grocery retailers are expected to grow at a CAGR of 1% at constant 2015 prices over
the forecast period. The channel will see ongoing positive growth, helped by the fact that
grocery products are a basic need for all consumers. Modern grocery retailers is expected to
continue to see more dynamic retail value sales growth than traditional grocery retailers, due
to the convenient one-stop shopping experience the channel offers, the wide range of
products carried by outlets, low prices, and the 24/7 opening hours of conveniences stores.
The convenient one-stop shopping experience offered by hypermarkets will be the key driver
of this channels performance over the forecast period. Other than offering a wide portfolio of
grocery products, hypermarkets in the country will continue to expand the range of nongrocery products they carry, in order to better meet consumer demands. Furthermore, the
negotiating strength of players in the channel will allow hypermarket outlets to keep their
prices below those of the competition.
Traditional grocery retailers is expected to see a stagnation of retail value sales, with limited
growth of 1% at constant 2015 prices expected over the entire forecast period. In the face of
intense competition from modern grocery retailers, it is expected that independent small
grocers will see ongoing outlet closures, leading to the channel seeing sales decline at a
CAGR of 1% at constant 2015 prices over the forecast period. Independent small grocers will
continue to struggle with low profitability and the difficulty of implementing GST.
Internet retailing is likely to receive more attention from consumers over the forecast period, in
line with their growing sophistication. Consumers are likely to prove more willing to invest in
premium grocery products, such as imported brands and organic products. This trend is likely
to mostly benefit premium supermarkets, such as Cold Storage, with other grocery players
benefitting to a lesser degree.

CHANNEL FORMATS

Euromonitor International

Passport

43

RETAILING IN MALAYSIA

Chart 1

Source:

Chart 2

Modern Grocery Retailers: Giant, Hypermarkets in Selangor

Euromonitor International

Modern Grocery Retailers: Cold Storage, Supermarkets in Sunway Pyramid


Shopping Mall

Euromonitor International

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44

RETAILING IN MALAYSIA

Passport

CHANNEL DATA
Table 38

Grocery Retailers: Value Sales, Outlets and Selling Space 2010-2015

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2010

2011

2012

2013

2014

2015

48,750.5
74,639.0
7,822.4

51,931.1
74,533.0
8,143.4

55,223.1
74,730.0
8,376.7

56,832.9
74,969.0
8,544.2

59,048.1
75,424.0
8,764.9

61,262.1
75,869.0
8,989.4

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 39

Sales in Grocery Retailers by Channel: Value 2010-2015

MYR million

Modern Grocery Retailers


- Convenience Stores
- Discounters
- Forecourt Retailers
-- Chained Forecourts
-- Independent Forecourts
- Hypermarkets
- Supermarkets
Traditional Grocery
Retailers
- Food/Drink/Tobacco

Euromonitor International

2010

2011

2012

2013

2014

2015

18,675.8
1,540.7
1,221.4
1,221.4
10,500.9
5,412.8
30,074.7

20,900.8
1,803.4
42.5
1,261.8
1,261.8
11,297.8
6,495.4
31,030.3

22,753.5
2,103.3
145.0
1,406.9
1,406.9
11,628.7
7,469.7
32,469.7

23,755.1
2,505.0
222.6
1,512.4
1,512.4
11,791.5
7,723.6
33,077.9

24,997.7
2,913.0
277.6
1,633.4
1,633.4
12,125.8
8,048.0
34,050.4

26,412.7
3,430.0
380.2
1,690.5
1,690.5
12,588.3
8,323.7
34,849.4

13,434.0

14,448.0

15,689.0

16,002.8

16,706.9

17,308.4

45

RETAILING IN MALAYSIA

Specialists
- Independent Small
Grocers
- Other Grocery Retailers
Grocery Retailers
Source:

Table 40

Passport

14,675.9

14,529.1

14,645.4

14,865.0

15,058.3

15,189.3

1,964.8
48,750.5

2,053.2
51,931.1

2,135.3
55,223.1

2,210.1
56,832.9

2,285.2
59,048.1

2,351.8
61,262.1

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Grocery Retailers Outlets by Channel: Units 2010-2015

outlet

Modern Grocery Retailers


- Convenience Stores
- Discounters
- Forecourt Retailers
-- Chained Forecourts
-- Independent Forecourts
- Hypermarkets
- Supermarkets
Traditional Grocery
Retailers
- Food/Drink/Tobacco
Specialists
- Independent Small
Grocers
- Other Grocery Retailers
Grocery Retailers
Source:

Table 41

2010

2011

2012

2013

2014

2015

4,810.0
1,549.0
2,007.0
2,007.0
138.0
1,116.0
69,829.0

5,157.0
1,743.0
26.0
2,043.0
2,043.0
154.0
1,191.0
69,376.0

5,723.0
1,961.0
85.0
2,283.0
2,283.0
158.0
1,236.0
69,007.0

6,312.0
2,261.0
130.0
2,498.0
2,498.0
160.0
1,263.0
68,657.0

6,942.0
2,532.0
162.0
2,784.0
2,784.0
166.0
1,298.0
68,482.0

7,501.0
2,863.0
222.0
2,907.0
2,907.0
174.0
1,335.0
68,368.0

31,540.0

31,780.0

31,890.0

31,943.0

32,105.0

32,300.0

27,030.0

26,900.0

26,870.0

26,815.0

26,735.0

26,600.0

11,259.0
74,639.0

10,696.0
74,533.0

10,247.0
74,730.0

9,899.0
74,969.0

9,642.0
75,424.0

9,468.0
75,869.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Sales in Grocery Retailers by Channel: % Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Modern Grocery Retailers


- Convenience Stores
- Discounters
- Forecourt Retailers
-- Chained Forecourts
-- Independent Forecourts
- Hypermarkets
- Supermarkets
Traditional Grocery Retailers
- Food/Drink/Tobacco Specialists
- Independent Small Grocers
- Other Grocery Retailers
Grocery Retailers
Source:

Table 42

2014/15

2010-15 CAGR

2010/15 Total

5.7
17.7
37.0
3.5
3.5
3.8
3.4
2.3
3.6
0.9
2.9
3.7

7.2
17.4
6.7
6.7
3.7
9.0
3.0
5.2
0.7
3.7
4.7

41.4
122.6
38.4
38.4
19.9
53.8
15.9
28.8
3.5
19.7
25.7

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Grocery Retailers Outlets by Channel: % Unit Growth 2010-2015

Euromonitor International

46

RETAILING IN MALAYSIA

Passport

% unit growth

Modern Grocery Retailers


- Convenience Stores
- Discounters
- Forecourt Retailers
-- Chained Forecourts
-- Independent Forecourts
- Hypermarkets
- Supermarkets
Traditional Grocery Retailers
- Food/Drink/Tobacco Specialists
- Independent Small Grocers
- Other Grocery Retailers
Grocery Retailers
Source:

Table 43

2010-15 CAGR

2010/15 Total

8.1
13.1
37.0
4.4
4.4
4.8
2.9
-0.2
0.6
-0.5
-1.8
0.6

9.3
13.1
7.7
7.7
4.7
3.6
-0.4
0.5
-0.3
-3.4
0.3

55.9
84.8
44.8
44.8
26.1
19.6
-2.1
2.4
-1.6
-15.9
1.6

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Grocery Retailers GBO Company Shares: % Value 2011-2015

% retail value rsp excl sales tax


Company
Dairy Farm
International Holdings
Ltd
Tesco Plc
Seven & I Holdings Co Ltd
AEON Group
Econsave Cash & Carry
Sdn Bhd
Mydin Mohamed Holdings
Bhd
Petronas Dagangan Bhd
Petron Corp
Koninklijke Shell Groep/
Royal Dutch Shell Group
KK Supermart Holdings
Sdn Bhd
99 Speedmart Sdn Bhd
Store Corp Bhd, The
Chevron Corp
Suiwah Corp Bhd
Boustead Holdings Bhd
QSR Brands Sdn Bhd
Billion Shopping Centre
Sdn Bhd
Carrefour SA
Exxon Mobil Corp
Foong Foong Emporium
Sdn Bhd
Others
Total
Source:

2014/15

2011

2012

2013

2014

2015

10.9

10.7

10.3

10.1

9.9

8.2
2.8
0.1
2.5

8.0
2.9
3.2
2.4

8.0
2.9
3.2
2.4

7.9
3.2
3.2
2.4

8.1
3.5
3.2
2.4

0.7

0.9

1.0

1.1

1.2

0.9
0.5

0.9
0.7
0.6

0.9
0.7
0.6

0.9
0.8
0.6

0.9
0.8
0.6

0.3

0.5

0.5

0.6

0.6

0.3
0.4
0.3
0.2
0.2
0.1
0.1

0.4
0.4
0.2
0.2
0.2
0.1
0.1

0.5
0.3
0.2
0.2
0.2
0.1
0.1

0.5
0.3
0.2
0.2
0.2
0.1
0.1

0.6
0.3
0.2
0.2
0.2
0.1
0.1

3.4
0.5
-

67.5
100.0

67.7
100.0

67.7
100.0

67.5
100.0

66.9
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

47

RETAILING IN MALAYSIA

Table 44

Passport

Grocery Retailers GBN Brand Shares: % Value 2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)

2012

2013

2014

2015

Giant

10.3

10.0

9.8

9.6

6.5
2.9
3.1
1.5
2.4

6.2
2.9
3.1
1.8
2.4

5.8
3.2
3.1
2.1
2.4

5.5
3.5
3.1
2.5
2.4

0.9
0.5

0.9
0.5

0.9
0.6

0.9
0.6

0.3

0.4

0.5

0.6

0.4
0.6
0.5
0.3

0.5
0.6
0.5
0.4

0.5
0.6
0.6
0.4

0.6
0.6
0.6
0.4

0.4
0.3

0.3
0.3

0.3
0.3

0.3
0.3

0.2

0.2

0.2

0.2

0.2
0.2
0.0
0.2
68.2
100.0

0.2
0.2
0.0
0.2
68.2
100.0

0.2
0.2
0.1
0.2
68.0
100.0

0.2
0.2
0.2
0.2
67.3
100.0

Dairy Farm
International Holdings Ltd
Tesco Plc
Seven & I Holdings Co Ltd
AEON Group
Tesco Plc
Econsave Cash & Carry
Sdn Bhd
Petronas Dagangan Bhd
KK Supermart Holdings
Sdn Bhd
Mydin Mohamed Holdings
Bhd
99 Speedmart Sdn Bhd
Mydin Mohamed Holdings Bhd
Petron Corp
Koninklijke Shell Groep/
Royal Dutch Shell Group
Store Corp Bhd, The
Dairy Farm
International Holdings Ltd
Koninklijke Shell Groep/
Royal Dutch Shell Group
Suiwah Corp Bhd
Boustead Holdings Bhd
Chevron Corp
Petron Corp

Tesco
7-Eleven
Aeon Big
Tesco Extra
Econsave
Kedai Mesra
KK Super Mart
Kedai Rakyat
1Malaysia
99 Speedmart
My Mydin
On The Run
Shell Select
Pacific
Cold Storage
Kedai
Suiwah
BHP
Xpress Point
Petron Treats
Others
Total
Source:

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 45

Grocery Retailers LBN Brand Shares: Outlets 2012-2015

sites/outlets
Brand (GBO)
7-Eleven (Seven & I
Holdings Co Ltd)
Kedai Mesra
99 Speedmart
Kedai (Koninklijke
Shell Groep/Royal
Dutch Shell Group)
On The Run (Petron
Corp)
Shell Select
(Koninklijke Shell
Groep/Royal Dutch
Shell Group)
Petron Treats
(Petron Corp)

Euromonitor International

Company (NBO)

2012

2013

2014

2015

7-Eleven Malaysia Sdn Bhd

1,407

1,559

1,747

1,950

Petronas Dagangan Bhd


99 Speedmart Sdn Bhd
Shell Malaysia Ltd

695
391
450

725
500
523

750
570
593

785
708
607

Petron Malaysia Sdn Bhd

351

375

415

420

Shell Malaysia Ltd

335

350

400

420

Petron Malaysia Sdn Bhd

120

125

200

250

48

RETAILING IN MALAYSIA

Kedai Rakyat
1Malaysia
BHP (Boustead
Holdings Bhd)
KK Super Mart
Xpress Point
(Chevron Corp)
Giant (Dairy Farm
International
Holdings Ltd)
Ayamas (QSR Brands
Sdn Bhd)
My Mydin
Econsave
Mart (Chevron Corp)
Billion
Tesco (Tesco Plc)
Giant Superstore
(Dairy Farm
International
Holdings Ltd)
Aeon Big (AEON Group)
Others
Total
Source:

Passport

Mydin Mohamed Holdings


Bhd
Boustead Petroleum
Marketing Sdn Bhd
KK Supermart Holdings
Sdn Bhd
Chevron Malaysia Ltd

85

130

162

222

162

200

215

220

125

155

165

195

30

38

50

150

GCH Retail (M) Sdn Bhd

99

99

101

95

Ayamas Food Corp Sdn Bhd

85

82

80

81

Mydin Mohamed Holdings Bhd


Econsave Cash & Carry
Sdn Bhd
Chevron Malaysia Ltd
Billion Shopping Centre
Sdn Bhd
Tesco Stores (Malaysia)
Sdn Bhd
GCH Retail (M) Sdn Bhd

54
54

54
55

56
55

63
61

140
42

160
42

159
42

50
42

37

37

37

37

32

30

30

32

27
70,009
74,730

28
69,702
74,969

28
69,569
75,424

30
69,451
75,869

AEON Big (M) Sdn Bhd


Others
Total

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 46

Grocery Retailers LBN Brand Shares: Selling Space 2012-2015

selling space '000 sq m


Brand (GBO)
Giant (Dairy Farm
International
Holdings Ltd)
Tesco (Tesco Plc)
Econsave
Aeon Big (AEON Group)
7-Eleven (Seven & I
Holdings Co Ltd)
Giant Superstore
(Dairy Farm
International
Holdings Ltd)
99 Speedmart
Tesco Extra (Tesco
Plc)
Kedai Rakyat
1Malaysia
Pacific
Kedai Mesra
On The Run (Petron
Corp)

Euromonitor International

Company (NBO)

2012

2013

2014

2015

GCH Retail (M) Sdn Bhd

475.4

479.6

500.0

497.2

Tesco Stores (Malaysia)


Sdn Bhd
Econsave Cash & Carry
Sdn Bhd
AEON Big (M) Sdn Bhd
7-Eleven Malaysia Sdn Bhd

269.1

269.1

275.0

275.0

227.3

235.0

235.0

261.0

183.5
126.7

198.1
150.4

198.1
175.2

230.0
196.5

GCH Retail (M) Sdn Bhd

158.4

147.7

147.7

158.0

67.3
92.7

82.6
103.9

95.3
118.9

121.0
118.9

35.7

54.6

68.0

93.5

77.4
70.5
54.0

77.4
73.4
57.8

88.2
75.8
64.0

88.2
79.8
64.9

99 Speedmart Sdn Bhd


Tesco Stores (Malaysia)
Sdn Bhd
Mydin Mohamed Holdings
Bhd
Store Corp Bhd, The
Petronas Dagangan Bhd
Petron Malaysia Sdn Bhd

49

RETAILING IN MALAYSIA

Billion
Shell Select
(Koninklijke Shell
Groep/Royal Dutch
Shell Group)
Cold Storage (Dairy
Farm International
Holdings Ltd)
Mart (Chevron Corp)
Kedai (Koninklijke
Shell Groep/Royal
Dutch Shell Group)
My Mydin
Petron Treats
(Petron Corp)
KK Super Mart
Others
Total
Source:

57.7

57.7

57.7

57.7

29.5

30.8

35.3

37.1

GCH Retail (M) Sdn Bhd

39.2

36.8

36.8

36.8

Chevron Malaysia Ltd


Shell Malaysia Ltd

13.2
20.3

15.4
24.8

24.6
27.0

31.0
27.8

Mydin Mohamed Holdings Bhd


Petron Malaysia Sdn Bhd

21.6
18.5

21.6
20.0

22.4
21.4

25.0
21.8

KK Supermart Holdings
Sdn Bhd
Others
Total

12.1

13.1

15.2

18.0

6,326.7
8,376.7

6,394.4
8,544.2

6,483.4
8,764.9

6,550.2
8,989.4

Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 20152020

Value sales MYR million


Outlets
Selling Space '000 sq m

Note:

Billion Shopping Centre


Sdn Bhd
Shell Malaysia Ltd

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 47

Source:

Passport

2015

2016

2017

2018

2019

2020

61,262.1
75,869.0
8,989.4

62,244.1
76,400.0
9,211.8

63,184.2
76,902.0
9,442.9

64,057.9
77,458.0
9,692.8

64,874.0
77,991.0
9,956.0

65,597.6
78,484.0
10,230.4

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 48

Forecast Sales in Grocery Retailers by Channel: Value 2015-2020

MYR million

Modern Grocery Retailers


- Convenience Stores
- Discounters
- Forecourt Retailers
-- Chained Forecourts
-- Independent Forecourts
- Hypermarkets
- Supermarkets
Traditional Grocery
Retailers
- Food/Drink/Tobacco
Specialists
- Independent Small
Grocers
- Other Grocery Retailers
Grocery Retailers

Euromonitor International

2015

2016

2017

2018

2019

2020

26,412.7
3,430.0
380.2
1,690.5
1,690.5
12,588.3
8,323.7
34,849.4

27,315.4
3,807.3
509.5
1,741.2
1,741.2
12,767.2
8,490.1
34,928.7

28,192.0
4,150.0
664.9
1,788.2
1,788.2
12,945.9
8,643.0
34,992.2

29,035.2
4,482.0
837.8
1,833.0
1,833.0
13,101.3
8,781.2
35,022.7

29,819.7
4,750.9
1,037.2
1,873.3
1,873.3
13,245.4
8,913.0
35,054.3

30,514.8
4,940.9
1,265.4
1,910.7
1,910.7
13,377.8
9,019.9
35,082.8

17,308.4

17,516.1

17,673.7

17,779.7

17,868.6

17,904.4

15,189.3

15,037.4

14,917.1

14,812.7

14,723.8

14,679.6

2,351.8
61,262.1

2,375.3
62,244.1

2,401.4
63,184.2

2,430.3
64,057.9

2,461.9
64,874.0

2,498.8
65,597.6

50

RETAILING IN MALAYSIA

Source:
Note:

Passport

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 49

Forecast Grocery Retailers Outlets by Channel: Units 2015-2020

outlet

Modern Grocery Retailers


- Convenience Stores
- Discounters
- Forecourt Retailers
-- Chained Forecourts
-- Independent Forecourts
- Hypermarkets
- Supermarkets
Traditional Grocery
Retailers
- Food/Drink/Tobacco
Specialists
- Independent Small
Grocers
- Other Grocery Retailers
Grocery Retailers
Source:

2015

2016

2017

2018

2019

2020

7,501.0
2,863.0
222.0
2,907.0
2,907.0
174.0
1,335.0
68,368.0

8,094.0
3,206.0
278.0
3,052.0
3,052.0
182.0
1,376.0
68,306.0

8,670.0
3,526.0
328.0
3,199.0
3,199.0
192.0
1,425.0
68,232.0

9,229.0
3,826.0
377.0
3,343.0
3,343.0
203.0
1,480.0
68,229.0

9,739.0
4,079.0
415.0
3,483.0
3,483.0
217.0
1,545.0
68,252.0

10,202.0
4,283.0
448.0
3,623.0
3,623.0
232.0
1,616.0
68,282.0

32,300.0

32,540.0

32,790.0

33,150.0

33,550.0

33,986.0

26,600.0

26,440.0

26,228.0

25,966.0

25,680.0

25,346.0

9,468.0
75,869.0

9,326.0
76,400.0

9,214.0
76,902.0

9,113.0
77,458.0

9,022.0
77,991.0

8,950.0
78,484.0

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 50

Forecast Sales in Grocery Retailers by Channel: % Value Growth 2015-2020

% constant value growth, retail value rsp excl sales tax

Modern Grocery Retailers


- Convenience Stores
- Discounters
- Forecourt Retailers
-- Chained Forecourts
-- Independent Forecourts
- Hypermarkets
- Supermarkets
Traditional Grocery Retailers
- Food/Drink/Tobacco Specialists
- Independent Small Grocers
- Other Grocery Retailers
Grocery Retailers
Source:
Note:

2015/2016

2015-20 CAGR

2015/20 TOTAL

3.4
11.0
34.0
3.0
3.0
1.4
2.0
0.2
1.2
-1.0
1.0
1.6

2.9
7.6
27.2
2.5
2.5
1.2
1.6
0.1
0.7
-0.7
1.2
1.4

15.5
44.0
232.8
13.0
13.0
6.3
8.4
0.7
3.4
-3.4
6.2
7.1

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 51

Forecast Grocery Retailers Outlets by Channel: % Unit Growth 2015-2020

% unit growth
2015/16

Euromonitor International

2015-20 CAGR

2015/20 Total

51

RETAILING IN MALAYSIA

Modern Grocery Retailers


- Convenience Stores
- Discounters
- Forecourt Retailers
-- Chained Forecourts
-- Independent Forecourts
- Hypermarkets
- Supermarkets
Traditional Grocery Retailers
- Food/Drink/Tobacco Specialists
- Independent Small Grocers
- Other Grocery Retailers
Grocery Retailers
Source:

Passport

7.9
12.0
25.2
5.0
5.0
4.6
3.1
-0.1
0.7
-0.6
-1.5
0.7

6.3
8.4
15.1
4.5
4.5
5.9
3.9
0.0
1.0
-1.0
-1.1
0.7

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Euromonitor International

36.0
49.6
101.8
24.6
24.6
33.3
21.0
-0.1
5.2
-4.7
-5.5
3.4

52

RETAILING IN MALAYSIA

APPAREL AND FOOTWEAR


SPECIALIST RETAILERS IN MALAYSIA
- CATEGORY ANALYSIS
HEADLINES
Apparel and footwear specialist retailers see sales growth of 5% in 2015 to reach MYR15,764
million
Growing consumer sophistication contributes to the performance apparel and footwear
specialist retailers
Padini Holdings Bhd remains the leading player, accounting for a retail value sale share of 4%
in 2015
Sales of apparel and footwear specialist retailers are expected to grow at a CAGR of 2% at
constant 2015 prices over the forecast period

TRENDS
In line with rising sophistication, consumers in Malaysia are becoming more fashionable and
following international fashion trends more closely. Consumers stay informed of the latest
fashion news and trends via the internet and overseas travel. Greater exposure to fashion is
also increasing consumer acceptance of foreign fashion labels, particularly high street fashion
brands, which are both fashionable and affordable.
Foreign brands such, as Uniqlo and H&M, continue to expand their presence across
Malaysia, with consumers increasingly appreciating their products, which are of high-quality
yet reasonably priced. Price reductions during various times of the year, including festivals,
peak shopping seasons and school holidays, are encouraging consumers to purchase more
apparel and footwear products.
In Malaysia, adult clothing and footwear accounts for a higher retail value sales share than
childrens clothing and footwear, due to the fact that adults tend to be more image-conscious
and have disposable incomes. Nevertheless, higher-income parents tend to be willing to
invest in premium childrens clothing and footwear.
Internet retailing continues to account for a relatively limited retail value sales share in apparel
and footwear in Malaysia. However, young consumers that follow the latest trends and are
highly fashionable utilise this channel to buy brands that are not available in Malaysia. The
free delivery offered by some internet retailers, such as ASOS, further attracts consumers to
this channel. As a result of these factors, apparel and footwear through internet retailing saw
dynamic retail value sales growth over the review period, with a CAGR of 16% recorded.

COMPETITIVE LANDSCAPE
Padini Holdings Bhd remains the leading apparel and footwear specialist retailer in Malaysia,
accounting for a retail value sales share of 4% in 2015. The company has a wide product

Euromonitor International

Passport

53

RETAILING IN MALAYSIA

portfolio, spanning from casual wear to work and dinner wear, while its extensive outlet
network across the country means that it is highly accessible to consumers.
H&M Retail Sdn Bhd accounted for a retail value sales share of 3% in 2015 and ranked
second. The companys outlet network increased by four units to 22 in 2015, while its
popularity amongst younger consumers also contributed to its strong performance. The
players ability to offer fashionable products at affordable prices is the main factor behind its
strong position in Malaysia.
International apparel and footwear specialist retailers account for a leading share of retail
value sales in the category. Besides being perceived as offering more fashionable products
than their domestic counterparts, international players also utilise good quality materials and
are seen as providing an assurance of quality.
Despite facing strong competition from international apparel and footwear specialist retailers,
the leading domestic apparel and footwear specialist retailer Padini Holdings Bhd managed to
maintain its leading position over the review period, due to its long-established presence in
the country.

PROSPECTS
Apparel and footwear specialist retailers is expected to see positive retail value sales growth
over the forecast period, with sales predicted to grow at a CAGR of 2% at constant 2015
prices. The increasing image-consciousness of consumers, growing exposure to international
fashion trends, and the perception that apparel and footwear products are reflective of status
will all contribute to the category seeing good performance.
Fast fashion brands, such as H&M and Zara, are expected to see strong performance over
the forecast period. This will be underpinned by their strategic store locations and wellplanned market segmentation, which is focused more on fashionable teenagers that are more
willing to spend significant amounts on apparel and footwear. Furthermore, increasing
penetration through ongoing outlet expansion will further contribute to the positive
performance of fast fashion brands.
The leading domestic apparel and footwear specialist retailer, Padini Holdings Bhd, will face
increasing competition from international players over the forecast period. Therefore, it will
need to review its existing portfolio and to continue to invest in marketing, in order to maintain
its base of loyal customers.
Over the review period, most apparel and footwear specialist retailers in the country did not
actively engage in internet retailing, as consumers showed an ongoing preference for
shopping at physical stores. However, young consumers rely on internet retailing to make
impulse purchases and also to purchase international brands with a negligible presence in
Malaysia. It is likely that players in the category will increase their focus on internet retailing
over the forecast period, to capture this demand.

CHANNEL FORMATS
Chart 3

Apparel and Footwear Specialist Retailers: G2000, Apparel and Footwear


Specialist Retailers in Sunway Pyramid Shopping Mall, Selangor

Euromonitor International

Passport

54

RETAILING IN MALAYSIA

Source:

Passport

Euromonitor International

CHANNEL DATA
Table 52

Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling
Space 2010-2015

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2010

2011

2012

2013

2014

2015

13,311.4
11,280.0
1,650.3

13,619.5
11,406.0
1,684.2

13,923.0
11,492.0
1,709.5

14,298.1
11,580.0
1,737.7

15,063.8
11,700.0
1,768.4

15,764.4
11,850.0
1,802.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 53

Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling
Space: % Growth 2010-2015

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2014/15

2010-15 CAGR

2010/15 TOTAL

4.7
1.3
1.9

3.4
1.0
1.8

18.4
5.1
9.2

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

55

RETAILING IN MALAYSIA

Table 54

Passport

Apparel And Footwear Specialist Retailers GBO Company Shares: % Value


2011-2015

% retail value rsp excl sales tax


Company
Padini Holdings Bhd
H&M Hennes & Mauritz AB
Bonia Group
Bata Ltd
Kamdar Sdn Bhd
Inditex, Industria de
Diseo Textil SA
Fast Retailing Co Ltd
Gap Inc, The
Royal Sporting House
(RSH) Ltd
Esprit Holdings Ltd
Giordano International
Ltd
Ralph Lauren Corp
Burberry Group Plc
Arcadia Group Ltd
Punto Fa SL (Mango)
G2000 (Apparel) Ltd
Levi Strauss & Co
Kering SA
Salvatore Ferragamo SpA
Tod's SpA
PPR SA
Others
Total
Source:

2011

2012

2013

2014

2015

3.2
1.6
2.2
1.6
1.1

3.4
0.3
1.7
2.1
1.6
1.3

3.6
0.9
1.9
2.1
1.6
1.4

3.7
2.2
2.0
2.0
1.6
1.5

3.7
2.5
1.9
1.9
1.6
1.3

0.2
1.3
0.9

0.4
1.3
0.9

0.9
1.1
0.9

1.0
1.0
0.9

1.1
1.0
0.9

0.8
0.6

0.8
0.7

0.8
0.6

0.7
0.6

0.7
0.6

0.7
0.8
0.4
0.4
0.3
0.4
0.2
0.2
0.2
82.9
100.0

0.5
0.8
0.4
0.4
0.3
0.4
0.2
0.2
0.2
82.1
100.0

0.5
0.8
0.4
0.4
0.3
0.4
0.2
0.2
0.2
80.7
100.0

0.5
0.8
0.4
0.4
0.3
0.4
0.2
0.2
0.2
79.6
100.0

0.5
0.5
0.4
0.4
0.4
0.4
0.2
0.2
0.2
79.8
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 55

Apparel And Footwear Specialist Retailers GBN Brand Shares: % Value


2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)
Padini
H&M
Bata
Kamdar
Uniqlo
Bonia
Gap
Zara
Esprit
Giordano
Ralph Lauren
Burberry
Mango
G2000
Levi's
Studio R

Euromonitor International

Padini Holdings Bhd


H&M Hennes & Mauritz AB
Bata Ltd
Kamdar Sdn Bhd
Fast Retailing Co Ltd
Bonia Group
Gap Inc, The
Inditex, Industria de
Diseo Textil SA
Esprit Holdings Ltd
Giordano International Ltd
Ralph Lauren Corp
Burberry Group Plc
Punto Fa SL (Mango)
G2000 (Apparel) Ltd
Levi Strauss & Co
Royal Sporting House
(RSH) Ltd

2012

2013

2014

2015

2.5
0.3
2.1
1.6
0.4
0.8
1.1
0.7

2.6
0.9
2.1
1.6
0.9
0.9
1.0
0.7

2.6
2.2
2.0
1.6
1.0
0.9
0.8
0.8

2.7
2.5
1.9
1.6
1.1
0.8
0.8
0.8

0.8
0.7
0.5
0.8
0.4
0.3
0.4
0.4

0.8
0.6
0.5
0.8
0.4
0.3
0.4
0.4

0.7
0.6
0.5
0.8
0.4
0.3
0.4
0.4

0.7
0.6
0.5
0.5
0.4
0.4
0.4
0.3

56

RETAILING IN MALAYSIA

Massimo Dutti
Dorothy Perkins
Salvatore Ferragamo
Tod's
Others
Total
Source:

Inditex, Industria de
Diseo Textil SA
Arcadia Group Ltd
Salvatore Ferragamo SpA
Tod's SpA

0.4

0.4

0.4

0.3

0.2
0.2
0.2
85.3
100.0

0.2
0.2
0.2
84.2
100.0

0.2
0.2
0.2
83.1
100.0

0.2
0.2
0.2
83.2
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 56

Apparel And Footwear Specialist Retailers LBN Brand Shares: Outlets 20122015

sites/outlets
Brand (GBO)
Bata (Bata Ltd)
Giordano (Giordano
International Ltd)
Levi's (Levi
Strauss & Co)
Esprit
Kamdar
Padini Concept Store
G2000 (G2000
(Apparel) Ltd)
Bonia (Bonia Group)
Uniqlo (Fast
Retailing Co Ltd)
H&M (H&M Hennes &
Mauritz AB)
Bossini
Mango (Punto Fa SL
(Mango))
Charles & Keith
(Charles & Keith
Holdings Pte Ltd)
Dorothy Perkins
(Arcadia Group Ltd)
Gap
Hang Ten (Hang Ten
Group Holdings Ltd)
Zara
Topshop & Topman
(Arcadia Group Ltd)
Massimo Dutti
Studio R (Royal
Sporting House
(RSH) Ltd)
Others
Total
Source:

Passport

Company (NBO)

2012

2013

2014

2015

Bata (Malaysia) Sdn Bhd


Giordano (M) Sdn Bhd

275
84

280
86

285
88

290
90

Levi Strauss (M) Sdn Bhd

40

40

40

46

Esprit Holdings Ltd


Kamdar Sdn Bhd
Padini Holdings Bhd
Generation Two Thousand
Apparel Sdn Bhd
Bonia Corp Bhd
Uniqlo (M) Sdn Bhd

34
30
24
20

34
32
27
20

35
32
30
21

35
35
33
29

23
7

24
17

25
20

26
24

H&M Retail Sdn Bhd

18

22

Bossini International
Holdings Ltd
Jerasia Capital Bhd

18

18

18

19

18

19

19

18

Envico Enterprises Sdn


Bhd

14

16

16

17

DNP Clothing Sdn Bhd

13

14

14

14

Gap Inc, The


Hang Ten Enterprises
Sdn Bhd
Inditex, Industria de
Diseo Textil SA
DNP Clothing Sdn Bhd

9
9

9
9

9
9

9
9

Inditex, Industria de
Diseo Textil SA
RSH (Malaysia) Sdn Bhd

10,846
11,492

10,902
11,580

10,995
11,700

11,109
11,850

Others
Total

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

57

RETAILING IN MALAYSIA

Table 57

Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling Space
2012-2015

selling space '000 sq m


Brand (GBO)
Padini Concept Store
Kamdar
H&M (H&M Hennes &
Mauritz AB)
Bata (Bata Ltd)
Uniqlo (Fast
Retailing Co Ltd)
Esprit
Giordano (Giordano
International Ltd)
Gap
Zara
Bonia (Bonia Group)
Mango (Punto Fa SL
(Mango))
Studio R (Royal
Sporting House
(RSH) Ltd)
Levi's (Levi
Strauss & Co)
G2000 (G2000
(Apparel) Ltd)
Charles & Keith
(Charles & Keith
Holdings Pte Ltd)
Dorothy Perkins
(Arcadia Group Ltd)
Bossini
Yves Saint Laurent
Topshop & Topman
(Arcadia Group Ltd)
Massimo Dutti
Others
Total
Source:

Table 58

Note:

Company (NBO)

2012

2013

2014

2015

Padini Holdings Bhd


Kamdar Sdn Bhd
H&M Retail Sdn Bhd

36.7
41.3
4.0

41.3
44.2
14.0

46.0
44.2
36.0

50.0
48.5
44.0

Bata (Malaysia) Sdn Bhd


Uniqlo (M) Sdn Bhd

28.4
9.7

29.5
22.0

30.6
25.0

32.0
30.0

Esprit Holdings Ltd


Giordano (M) Sdn Bhd

12.5
8.6

12.5
8.9

13.7
9.4

13.8
9.4

Gap Inc, The


Inditex, Industria de
Diseo Textil SA
Bonia Corp Bhd
Jerasia Capital Bhd

8.2
7.6

8.2
7.6

8.2
7.6

8.2
7.6

6.2
4.8

6.5
5.1

6.8
5.1

6.8
5.0

RSH (Malaysia) Sdn Bhd

4.4

4.4

4.4

4.4

Levi Strauss (M) Sdn Bhd

3.6

3.6

3.6

4.0

Generation Two Thousand


Apparel Sdn Bhd
Envico Enterprises Sdn
Bhd

2.5

2.5

2.6

3.6

2.6

3.0

3.0

3.2

DNP Clothing Sdn Bhd

2.7

2.9

3.1

3.1

Bossini International
Holdings Ltd
Kering SA
DNP Clothing Sdn Bhd

2.6

2.6

2.6

2.7

1.9

0.2
2.0

0.2
2.0

2.0
2.0

Inditex, Industria de
Diseo Textil SA
Others
Total

1.5

1.5

1.5

1.2

1,519.8
1,709.5

1,515.4
1,737.7

1,513.0
1,768.4

1,520.6
1,802.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets


and Selling Space 2015-2020

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

Passport

2015

2016

2017

2018

2019

2020

15,764.4
11,850.0
1,802.0

16,111.2
12,030.0
1,839.8

16,417.4
12,240.0
1,880.3

16,696.5
12,480.0
1,923.5

16,913.5
12,750.0
1,977.4

17,082.6
13,043.0
2,036.7

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms

Euromonitor International

58

RETAILING IN MALAYSIA

Table 59

Passport

Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets


and Selling Space: % Growth 2015-2020

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:
Note:

2015/16

2015-20 CAGR

2015/20 TOTAL

2.2
1.5
2.1

1.6
1.9
2.5

8.4
10.1
13.0

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms

Euromonitor International

59

RETAILING IN MALAYSIA

ELECTRONICS AND APPLIANCE


SPECIALIST RETAILERS IN MALAYSIA
- CATEGORY ANALYSIS
HEADLINES
Electronics and appliance specialist retailers see current value sales growth of 2% to reach
MYR31,707 million in 2015
Poor economic conditions in the country limit category growth
Senheng Electric (KL) Sdn Bhd remains the leading player, accounting for a retail value sales
share of 4% in 2015
Sales of electronics and appliance specialist retailers are expected to grow at a CAGR of 1%
at constant 2015 prices over the forecast period

TRENDS
A GST of 6% was introduced in Malaysia in April 2015 and was met by negativity amongst
consumers. This resulted in a decline in consumer confidence and saw them become more
careful in their spending. This served to restrict the performance of electronics and appliance
specialist retailers, which saw limited current value sales growth of 2% in 2015, which was
boosted by a strong increase in unit price in 2015 compared with a year earlier.
The channel saw ongoing positive, albeit marginal, growth in outlet numbers in 2015, as
players looked to ensure that their outlets were accessible to the maximum number of
consumers. However, a number of players in the channel closed some of their outlets, as they
looked to improve profitability, in the face of strong competition.
Consumer shopping behaviour remained similar to previous years in 2015, although
Malaysians were more mindful of budgeting and more likely to engage in price comparisons at
a number of stores before committing to a purchase. For example, consumers showed a
growing preference for purchasing electronics and appliances during seasonal offers, and
stock and warehouse clearance events.

COMPETITIVE LANDSCAPE
Senheng Electric (KL) Sdn Bhd is the leading player in electronics and appliance specialist
retailers, with a retail values sales share of 4% in 2015. Furthermore, it saw the largest
increase in retail value sales share in 2015, up from 3% in 2014. This was driven by its strong
brand presence and its wide outlet network ensuring easy access for consumers across
Malaysia. Furthermore, its long-standing presence in the country means that its enjoys high
levels of consumer loyalty, while its prices are very competitive. These factors, allied to
incentives, such as cash rebate vouchers, help the company in attracting new customers.
Hock Sin Leong Group Bhd, with its HSL brand, only accounted for a marginal retail value
sales share in 2014 and suffered a further loss of share in 2015. The company struggled to
compete with larger players over the review period, forcing it to continually close outlets. In

Euromonitor International

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60

RETAILING IN MALAYSIA

2015, it closed a further eight outlets, leaving it with just two in Malaysia at the end of the
review period, down from 35 in 2010.
Domestic electronics and appliance specialist retailers continue to lead the channel in
Malaysia. Domestic chained electronics and appliance specialist retailers enjoy significant
bargaining power, which enables them to offer competitive prices and regular promotions,
which helps in attracting consumers.
With consumer appliances commanding relatively high prices, the majority of consumers
prefer to visit a few physical stores where they can test products and compare prices prior to
committing to a purchase.
Other than Senheng Electric (KL), no other players in the channel took a major step towards
investing, and becoming involved, in internet retailing, despite the fact that demand for
internet retailing is increasing in Malaysia. This is due to the fact that most consumers still
prefer to inspect products in person prior to making a purchase. For example, when buying a
television, consumers prefer to visit physical stores to check the picture quality in person,
rather than basing their decision on product specifications found on the internet.

PROSPECTS
Electronics and appliance specialist retailers is expected to register positive retail value sales
growth over the forecast period, with sales predicted to grow at a CAGR of 1% at constant
2015 prices. Sales through this channel will be negatively affected by modern grocery
retailers like hypermarkets and supermarkets increasing the range of consumer electronics
and appliances they carry.
Leading electronics and appliance specialist retailers, such as Senheng Electric and Elitetrax
Marketing, are expected to see stronger performance over the forecast period. These players
will continue to expand their outlet networks across Malaysia, choosing strategic, heavy traffic
areas that can attract new customers.
In addition, leading players are likely to invest more in intensive marketing and promotional
campaigns, in order to attract more consumers and marginalise small and independent
players. Finally, it is expected that players will actively engage with consumers on social
networks like Instagram and Facebook, thereby enabling them to build stronger relationships
with existing customers, as well as attract new ones.

CHANNEL FORMATS
Chart 4

Electronics and Appliance Specialist Retailers: SenQ in The Mines Shopping


Mall, Selangor

Euromonitor International

Passport

61

RETAILING IN MALAYSIA

Source:

Chart 5

Euromonitor International

Electronics and Appliance Specialist Retailers: Harvey Norman in Sunway


Pyramid Shopping Mall, Selangor

Euromonitor International

Passport

62

RETAILING IN MALAYSIA

Source:

Passport

Euromonitor International

CHANNEL DATA
Table 60

Electronics and Appliance Specialist Retailers: Value Sales, Outlets and


Selling Space 2010-2015

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2010

2011

2012

2013

2014

2015

29,286.6
18,315.0
3,341.0

30,003.6
18,370.0
3,358.0

30,562.8
18,407.0
3,366.0

30,929.6
18,455.0
3,379.5

31,238.8
18,524.0
3,403.1

31,707.4
18,543.0
3,409.9

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 61

Electronics and Appliance Specialist Retailers: Value Sales, Outlets and


Selling Space: % Growth 2010-2015

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2014/15

2010-15 CAGR

2010/15 TOTAL

1.5
0.1
0.2

1.6
0.2
0.4

8.3
1.2
2.1

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

63

RETAILING IN MALAYSIA

Table 62

Passport

Electronics and Appliance Specialist Retailers GBO Company Shares: %


Value 2011-2015

% retail value rsp excl sales tax


Company
Senheng Electric (KL)
Sdn Bhd
Harvey Norman Holdings
Ltd
Yamada Denki Co Ltd
HLK (Chain-Store) Sdn Bhd
Hock Sin Leong Group Bhd
Best Denki Co Ltd
Others
Total
Source:

2011

2012

2013

2014

2015

3.0

3.5

3.6

3.4

3.8

0.8

1.0

1.1

1.3

1.0

0.3
0.2
0.4
95.3
100.0

0.4
0.2
0.2
94.7
100.0

0.4
0.2
0.1
94.6
100.0

0.4
0.2
0.1
94.6
100.0

0.4
0.2
0.0
94.6
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 63

Electronics and Appliance Specialist Retailers GBN Brand Shares: % Value


2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)
SenHeng Electric

Senheng Electric (KL)


Sdn Bhd
Harvey Norman Holdings Ltd
Yamada Denki Co Ltd
HLK (Chain-Store) Sdn Bhd
Hock Sin Leong Group Bhd
Best Denki Co Ltd

Harvey Norman
Best Denki
HLK
HSL
Best Denki
Others
Total
Source:

2012

2013

2014

2015

3.5

3.6

3.4

3.8

1.0
0.4
0.2
0.2
94.7
100.0

1.1
0.4
0.2
0.1
94.6
100.0

1.3
0.4
0.2
0.1
94.6
100.0

1.0
0.4
0.2
0.0
94.6
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 64

Electronics and Appliance Specialist Retailers LBN Brand Shares: Outlets


2012-2015

sites/outlets
Brand (GBO)
SenHeng Electric
HLK
Harvey Norman
(Harvey Norman
Holdings Ltd)
Best Denki (Yamada
Denki Co Ltd)
HSL
Best Denki (Best
Denki Co Ltd)
Others
Total

Euromonitor International

Company (NBO)

2012

2013

2014

2015

Senheng Electric (KL)


Sdn Bhd
HLK (Chain-Store) Sdn Bhd
Elitetrax Marketing Sdn
Bhd

130

135

130

126

21
10

19
13

21
16

20
13

Best Denki Malaysia Sdn


Bhd
Hock Sin Leong Group Bhd
Best Denki Malaysia Sdn
Bhd
Others
Total

11

12

12

10

25
-

16
-

10
-

2
-

18,210
18,407

18,260
18,455

18,335
18,524

18,372
18,543

64

RETAILING IN MALAYSIA

Source:

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 65

Electronics and Appliance Specialist Retailers LBN Brand Shares: Selling


Space 2012-2015

selling space '000 sq m


Brand (GBO)
SenHeng Electric
Harvey Norman
(Harvey Norman
Holdings Ltd)
Best Denki (Yamada
Denki Co Ltd)
HLK
HSL
Best Denki (Best
Denki Co Ltd)
Others
Total
Source:

2012

2013

2014

2015

Senheng Electric (KL)


Sdn Bhd
Elitetrax Marketing Sdn
Bhd

83.3

86.7

83.5

81.0

32.2

37.0

45.5

36.9

Best Denki Malaysia Sdn


Bhd
HLK (Chain-Store) Sdn Bhd
Hock Sin Leong Group Bhd
Best Denki Malaysia Sdn
Bhd
Others
Total

15.4

16.9

16.9

14.1

12.0
14.8
-

10.9
9.0
-

12.1
5.6
-

11.6
1.1
-

3,208.4
3,366.0

3,219.0
3,379.5

3,239.5
3,403.1

3,265.2
3,409.9

Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets


and Selling Space 2015-2020

Value sales MYR million


Outlets
Selling Space '000 sq m

Note:

Company (NBO)

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 66

Source:

Passport

2015

2016

2017

2018

2019

2020

31,707.4
18,543.0
3,409.9

32,024.5
18,654.0
3,437.2

32,312.7
18,747.0
3,461.3

32,538.9
18,803.0
3,478.6

32,701.6
18,841.0
3,492.5

32,832.4
18,860.0
3,503.0

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms

Table 67

Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets


and Selling Space: % Growth 2015-2020

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:
Note:

2015/16

2015-20 CAGR

2015/20 TOTAL

1.0
0.6
0.8

0.7
0.3
0.5

3.5
1.7
2.7

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms

Euromonitor International

65

RETAILING IN MALAYSIA

HEALTH AND BEAUTY SPECIALIST


RETAILERS IN MALAYSIA CATEGORY ANALYSIS
HEADLINES
Health and beauty specialist retailers sees sales growth of 2% to reach MYR8,490 million in
2015
Increasing image-and-health-consciousness contributes to category performance
Beauty specialist retailers sees the most dynamic retail value sales growth of 3% in 2015
GCH Retail (M) Sdn Bhd remains the leading player, accounting for a retail value sales share
of 19% in 2015
Sales of health and beauty specialist retailers are expected to see limited growth of 2% at
constant 2015 prices over the forecast period

TRENDS
Health and beauty specialist retailers saw current value sales growth of 2% in 2015, as the
channel benefitted from the rising health-and-image-consciousness of consumers. Malaysian
consumers are becoming increasingly sophisticated, showing increasing willingness to visit
beauty specialist retailers, in order to obtain a young look and enhance their beauty.
In addition, the hectic lifestyles of consumers mean that they are increasingly interested in
supplements, such as Vitamin C and collagen, to ensure they meet all their nutritional
requirements and maintain good health. Furthermore, health and beauty specialist retailers
are aggressively expanding their outlet networks in the country, thereby improving
accessibility for consumers.
Beauty specialist retailers saw the most dynamic retail value sales growth of 3% in 2015. This
was driven by the increasing image-consciousness of consumers, especially white collar
females and women working in urban areas. This trend is resulting in increasing willingness to
allocate a budget towards beauty and personal care products. To cater to ever-changing
consumer demand and Malaysian consumers following of trends in other countries, players
like Sasa are introducing more Japanese and Korean beauty products to Malaysia, to tap into
growing demand.
Optical goods stores saw current value sales growth of 2% in 2015. Young consumers in the
country are showing a growing preference for contact lenses and colour contact lenses.
Furthermore, children constantly playing 3C products is contributing to the degradation of
vision and boosting demand for new spectacles.
Beauty and personal care internet retailing is gaining popularity in Malaysia, with the category
seeing positive retail value sales growth in 2015. However, the majority of consumers are still
not accustomed to purchasing beauty and personal care products online, due to concerns
over fake products and the possibility that their personal information might be obtained. Such
consumers display an ongoing preference for physical stores, where they can test, smell and
touch products in person.

Euromonitor International

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RETAILING IN MALAYSIA

COMPETITIVE LANDSCAPE
GCH Retail (M) Sdn Bhd, with Guardian chain, remains the leading health and beauty
specialist retailer in Malaysia, accounting for a retail value sales share of 19% in 2015. While
it remains focused on consumer healthcare products, GCH Retail is also strengthening its
portfolio of beauty and personal care products. The player is bringing in more niche brands
from overseas, in order to better meet disparate consumer needs.
Watsons Personal Care Stores Sdn Bhd, the second leading player in health and beauty
personal retailers in Malaysia, accounted for a retail value sales share of 11% in 2015. Its
strength is mainly based on the strong position its holds in parapharmacies/drugstores. To
cater to changing consumer needs, the player continues to import niche brands, especially
beauty brands from Korea, which are seeing increasing popularity amongst Malaysian
females.
Guardian by GCH Retail (M) Sdn Bhd is aggressively entering online retailing, as it looks to
extend its presence across Malaysia. Its web store offers a variety of products, with
promotional prices available to members and non-members alike. Furthermore, the internet
retailing platform is helping to attract consumers to purchase items that they are usually
embarrassed to buy in physical stores, such as condoms or feminine wash.
International health and beauty specialist retailers outperformed domestic health and beauty
specialist retailers in 2015. International retailers have more outlets, ensuring high
accessibility for consumers, while they also carry a significant number of international brands
that are not stocked by domestic retailers.

PROSPECTS
While health and beauty specialist retailers is expected to see positive retail value sales
growth over the forecast period, limited growth of 2% at constant 2015 prices is expected.
Beauty specialist retailers is expected to see the most dynamic growth, with sales predicted to
grow at a CAGR of 1% at constant 2015 prices over the forecast period. It is anticipated that
more players will enter the channel, while existing beauty specialist retailers will pursue
aggressive expansion plans, to profit from the growing image-and-health-consciousness of
consumers.
Optical goods stores are expected to see positive development over the forecast period, with
sales expected to grow at a CAGR of 1% at constant 2015 prices. Optical goods are seeing
increasing demand amongst young Malaysian consumers, who see such products as forming
an integral part of their overall image. This means they are more willing to invest in luxury
sunglasses, contact lenses and spectacle frames.
Drugstores/parapharmacies will enjoy positive sales growth over the forecast period, at a
predicted CAGR of 1% at constant 2015 prices. All players in the channel will continue to
improve their product portfolios, in order to foster and push the buying intention. This will be
especially true in relation to health and beauty products, given the increasing imageconsciousness of consumers.
Internet retailing will continue to account for a very limited share of retail value sales in beauty
and personal care in Malaysia over the forecast period. Consumers will show an ongoing
preference for purchasing these products in physical stores, thereby enabling them to try out
products before purchasing. However, in the case of repeat purchases of their favourite

Euromonitor International

Passport

67

RETAILING IN MALAYSIA

products, consumers may turn to internet retailing provided the products are available at a
cheaper price online.

CHANNEL FORMATS
Chart 6

Source:

Chart 7

Health and Beauty Specialist Retailers: Guardian,


Parapharmacies/Drugstores in The Mines Shopping Mall, Selangor

Euromonitor International

Health and Beauty Specialist Retailers: Watsons,


Parapharmacies/Drugstores in The Mines Shopping Mall, Selangor

Euromonitor International

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68

RETAILING IN MALAYSIA

Source:

Chart 8

Euromonitor International

Health and Beauty Specialist Retailers: The Body Shop, Beauty Specialist
Retailers in The Mines Shopping Mall, Selangor

Euromonitor International

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69

RETAILING IN MALAYSIA

Source:

Passport

Euromonitor International

CHANNEL DATA
Table 68

Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling
Space 2010-2015

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2010

2011

2012

2013

2014

2015

7,470.0
7,378.0
618.6

7,643.2
7,471.0
633.6

7,909.0
7,610.0
649.4

8,091.7
7,698.0
661.6

8,314.1
7,758.0
671.3

8,490.1
7,825.0
680.5

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

70

RETAILING IN MALAYSIA

Table 69

Passport

Sales in Health and Beauty Specialist Retailers by Channel: Value 2010-2015

MYR million

Beauty Specialist
Retailers
Chemists/Pharmacies
Optical Goods Stores
Drugstores/Parapharmacies
Other Healthcare
Specialist Retailers
Health and Beauty
Specialist Retailers
Source:

2010

2011

2012

2013

2014

2015

594.8

610.1

638.2

667.5

688.9

711.6

707.1
930.6
5,144.7
92.8

659.8
1,002.9
5,273.7
96.7

650.0
1,117.0
5,411.6
92.2

648.1
1,143.8
5,541.5
90.8

637.0
1,180.4
5,718.8
89.0

639.3
1,206.4
5,844.6
88.1

7,470.0

7,643.2

7,909.0

8,091.7

8,314.1

8,490.1

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 70

Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling
Space: % Growth 2010-2015

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2014/15

2010-15 CAGR

2010/15 TOTAL

2.1
0.9
1.4

2.6
1.2
1.9

13.7
6.1
10.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 71

Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth


2010-2015

% current value growth, retail value rsp excl sales tax

Beauty Specialist Retailers


Chemists/Pharmacies
Optical Goods Stores
Drugstores/Parapharmacies
Other Healthcare Specialist Retailers
Health and Beauty Specialist Retailers
Source:

2014/15

2010-15 CAGR

2010/15 Total

3.3
0.4
2.2
2.2
-1.0
2.1

3.7
-2.0
5.3
2.6
-1.0
2.6

19.6
-9.6
29.6
13.6
-5.1
13.7

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 72

Health and Beauty Specialist Retailers GBO Company Shares: % Value


2011-2015

% retail value rsp excl sales tax


Company

2011

2012

2013

2014

2015

Dairy Farm

16.5

17.4

18.1

18.8

19.2

Euromonitor International

71

RETAILING IN MALAYSIA

Passport

International Holdings
Ltd
Hutchison Whampoa Ltd
Caring Pharmacy Group Bhd
Eu Yan Sang
International Ltd
L'Oral Groupe
Sa Sa International
Holdings Ltd
Focus Point Vision Care
Group Sdn Bhd
England Optical Group
(Malaysia) Sdn Bhd
L'Occitane
International SA
General Nutrition
Centers Inc
Crabtree & Evelyn Ltd
LG Household & Health
Care Ltd
Faceshop Co Ltd, The
Others
Total
Source:

8.8
3.0
2.5

9.7
3.5
2.5

10.5
3.7
2.5

10.9
3.7
2.5

11.4
3.9
2.4

1.8
1.3

1.9
1.6

2.1
1.7

2.2
1.7

2.2
1.7

1.6

1.6

1.6

1.6

1.6

1.8

1.4

1.2

1.1

1.1

0.7

0.7

0.8

0.8

0.8

0.7

0.7

0.8

0.8

0.8

0.3
0.3

0.3
0.4

0.4
0.4

0.4
0.4

0.4
0.4

60.7
100.0

58.2
100.0

56.4
100.0

55.2
100.0

54.1
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 73

Health and Beauty Specialist Retailers GBN Brand Shares: % Value 20122015

% retail value rsp excl sales tax


Brand
Company (GBO)

2012

2013

2014

2015

Guardian

17.4

18.1

18.8

19.2

9.7
3.5
2.5

10.5
3.7
2.5

10.9
3.7
2.5

11.4
3.9
2.4

1.9
1.6

2.1
1.7

2.2
1.7

2.2
1.7

1.4

1.2

1.1

1.1

0.9

0.9

1.0

0.9

0.7

0.8

0.8

0.8

0.7

0.8

0.8

0.8

0.3
0.4

0.4
0.4

0.4
0.4

0.4
0.4

58.8
100.0

57.1
100.0

55.9
100.0

54.7
100.0

Watson's
Caring Pharmacy
Eu Yan Sang
The Body Shop
Sa Sa
England Optical
Focus Point
L'Occitane
GNC
Crabtree & Evelyn
The Face Shop
The Face Shop
Others
Total
Source:

Dairy Farm
International Holdings Ltd
Hutchison Whampoa Ltd
Caring Pharmacy Group Bhd
Eu Yan Sang
International Ltd
L'Oral Groupe
Sa Sa International
Holdings Ltd
England Optical Group
(Malaysia) Sdn Bhd
Focus Point Vision Care
Group Sdn Bhd
L'Occitane
International SA
General Nutrition
Centers Inc
Crabtree & Evelyn Ltd
LG Household & Health
Care Ltd
Faceshop Co Ltd, The

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

72

RETAILING IN MALAYSIA

Table 74

Health and Beauty Specialist Retailers LBN Brand Shares: Outlets 2012-2015

sites/outlets
Brand (GBO)

Company (NBO)

Guardian (Dairy
Farm International
Holdings Ltd)
Watson's (Hutchison
Whampoa Ltd)
Focus Point
Caring Pharmacy
Eu Yan Sang (Eu Yan
Sang International
Ltd)
GNC (General
Nutrition Centers
Inc)
The Body Shop
(L'Oral Groupe)
Sa Sa (Sa Sa
International
Holdings Ltd)
England Optical
The Face Shop
L'Occitane
(L'Occitane
International SA)
Crabtree & Evelyn
(Crabtree & Evelyn
Ltd)
The Body Shop
(L'Oral Groupe)
The Body Shop
(L'Oral Groupe)
L'Occitane
(L'Occitane
International SA)
The Face Shop
Others
Total
Source:

Table 75

Passport

2012

2013

2014

2015

GCH Retail (M) Sdn Bhd

400

414

420

430

Watson's Personal Care


Stores Sdn Bhd
Focus Point Vision Care
Group Sdn Bhd
Caring Pharmacy Group Bhd
Eu Yan Sang (1959) Sdn
Bhd

270

295

315

332

146

143

145

152

76
92

85
95

95
90

108
88

Victoria House Sdn Bhd

76

82

84

87

Rampai-Niaga Sdn Bhd

66

70

74

76

Hong Kong Sa Sa (M) Sdn


Bhd

49

53

54

56

England Optical Group


(Malaysia) Sdn Bhd
LG Household & Health
Care Ltd
L'Occitane Malaysia Sdn
Bhd

56

50

50

50

44

46

48

50

16

18

18

19

Crabtree & Evelyn (M)


Sdn Bhd

14

15

17

17

Sasinma Sdn Bhd

17

17

16

16

Banworth Sdn Bhd

Clarins Sdn Bhd

6,282
7,610

6,307
7,698

6,324
7,758

6,336
7,825

Faceshop Co Ltd, The


Others
Total

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Health and Beauty Specialist Retailers LBN Brand Shares: Selling Space
2012-2015

selling space '000 sq m


Brand (GBO)
Watson's (Hutchison
Whampoa Ltd)
Guardian (Dairy
Farm International

Euromonitor International

Company (NBO)

2012

2013

2014

2015

Watson's Personal Care


Stores Sdn Bhd
GCH Retail (M) Sdn Bhd

47.5

52.0

55.6

58.8

37.8

40.0

40.7

41.8

73

RETAILING IN MALAYSIA

Holdings Ltd)
Caring Pharmacy
Focus Point
Sa Sa (Sa Sa
International
Holdings Ltd)
The Body Shop
(L'Oral Groupe)
Eu Yan Sang (Eu Yan
Sang International
Ltd)
GNC (General
Nutrition Centers
Inc)
England Optical
The Face Shop
L'Occitane
(L'Occitane
International SA)
Crabtree & Evelyn
(Crabtree & Evelyn
Ltd)
The Body Shop
(L'Oral Groupe)
The Body Shop
(L'Oral Groupe)
L'Occitane
(L'Occitane
International SA)
The Face Shop
Others
Total
Source:

12.6
16.1

14.1
15.7

15.5
16.0

17.5
16.3

5.3

5.7

5.8

6.1

Rampai-Niaga Sdn Bhd

4.2

4.6

4.8

5.0

Eu Yan Sang (1959) Sdn


Bhd

4.9

5.1

4.8

4.6

Victoria House Sdn Bhd

3.6

3.9

4.1

4.3

England Optical Group


(Malaysia) Sdn Bhd
LG Household & Health
Care Ltd
L'Occitane Malaysia Sdn
Bhd

4.1

3.5

3.5

3.5

2.8

3.0

3.1

3.2

1.3

1.5

1.5

1.6

Crabtree & Evelyn (M)


Sdn Bhd

1.1

1.3

1.4

1.4

Sasinma Sdn Bhd

1.0

1.0

1.0

1.0

Banworth Sdn Bhd

0.4

0.5

0.5

0.5

506.6
649.4

509.8
661.6

512.8
671.3

514.8
680.5

Clarins Sdn Bhd

Faceshop Co Ltd, The


Others
Total

Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and
Selling Space 2015-2020

Value sales MYR million


Outlets
Selling Space '000 sq m

Note:

Caring Pharmacy Group Bhd


Focus Point Vision Care
Group Sdn Bhd
Hong Kong Sa Sa (M) Sdn
Bhd

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 76

Source:

Passport

2015

2016

2017

2018

2019

2020

8,490.1
7,825.0
680.5

8,547.7
7,910.0
689.8

8,591.6
8,007.0
699.7

8,626.5
8,116.0
709.7

8,645.6
8,233.0
719.7

8,647.5
8,370.0
729.9

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 77

Forecast Sales in Health and Beauty Specialist Retailers by Channel: Value


2015-2020

MYR million

Beauty Specialist

Euromonitor International

2015

2016

2017

2018

2019

2020

711.6

720.9

729.5

736.8

742.7

747.2

74

RETAILING IN MALAYSIA

Retailers
Chemists/Pharmacies
Optical Goods Stores
Drugstores/Parapharmacies
Other Healthcare
Specialist Retailers
Health and Beauty
Specialist Retailers
Source:
Note:

Passport

639.3
1,206.4
5,844.6
88.1

626.5
1,218.4
5,897.2
84.6

613.4
1,229.4
5,938.5
80.8

599.3
1,239.2
5,974.2
77.0

584.9
1,246.7
5,998.1
73.3

570.3
1,250.4
6,010.0
69.6

8,490.1

8,547.7

8,591.6

8,626.5

8,645.6

8,647.5

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 78

Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and
Selling Space: % Growth 2015-2020

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:
Note:

Table 79

2015/16

2015-20 CAGR

2015/20 TOTAL

0.7
1.1
1.4

0.4
1.4
1.4

1.9
7.0
7.3

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Forecast Sales in Health and Beauty Specialist Retailers by Channel: %


Value Growth 2015-2020

% constant value growth, retail value rsp excl sales tax

Beauty Specialist Retailers


Chemists/Pharmacies
Optical Goods Stores
Drugstores/Parapharmacies
Other Healthcare Specialist Retailers
Health and Beauty Specialist Retailers
Source:
Note:

2015/2016

2015-20 CAGR

2015/20 TOTAL

1.3
-2.0
1.0
0.9
-4.0
0.7

1.0
-2.3
0.7
0.6
-4.6
0.4

5.0
-10.8
3.7
2.8
-21.0
1.9

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Euromonitor International

75

RETAILING IN MALAYSIA

HOME AND GARDEN SPECIALIST


RETAILERS IN MALAYSIA CATEGORY ANALYSIS
HEADLINES
Home and garden specialist retailers sees sales growth of 2% to reach MYR9,079 million in
2015
Home improvement and gardening stores sees the most dynamic retail value sales growth of
3% in 2015
Ikano Corp Sdn Bhd, owner of the IKEA brand, leads home and garden specialist retailers,
with a retail value sales share of 6% in 2015
Sales of home and garden specialist retailers are expected to grow at a CAGR of 1% at
constant 2015 prices over the forecast period

TRENDS
Home improvement and gardening stores saw current value sales growth of 3% in 2015. The
implementation of GST in Malaysia in April 2015 saw consumers repairing or upgrading their
homes themselves, rather than using professional services that charge a higher service fee.
Home improvement and gardening stores are also facing a challenge in the form of modern
grocery retailers selling products that they traditionally specialise in.
Homewares and home furnishing stores saw current value sales growth of 1% in 2015, slower
than the corresponding growth of 3% seen by home improvement and gardening stores. In
Malaysia, home improvement and gardening stores face competition from modern grocery
retailers, especially supermarkets and hypermarkets. These retailers are enlarging the range
of non-grocery products they carry, including products that home improvement and gardening
stores specialise in, in order to enhance the one-stop shopping experience they offer to
consumers.
As a reflection of their social status, higher-income Malaysian consumers are willing to invest
in premium furniture and homeware products, for greater comfort and as part of their luxury
lifestyles. This group of consumers tends not to embrace the DIY concept, preferring instead
to invest in expensive, unique products reflective of their social status.

COMPETITIVE LANDSCAPE
Ikano Corp Sdn Bhd, with its IKEA outlets, leads home and garden specialist retailers in
Malaysia, accounting for a retail value sales share of 6% in 2015. The company also
witnessed the largest increase in retail value sales share in 2015, up from 5% in 2014. The
company attracts consumers with its concept showroom that provides consumers with ideas
on how best to use the space available when decorating their houses. It also provides
computers that consumers can use to design their space, thereby ensuring the products they

Euromonitor International

Passport

76

RETAILING IN MALAYSIA

buy are the best fit for their tastes and living area. Furthermore, the company offers home
delivery for larger pieces, which consumers find convenient.
Courts (Malaysia) Sdn Bhd is the second leading player in the channel, accounting for a retail
value sales share of 5% in 2015. The player is aggressive in its use of promotions to attract
consumers during holiday periods, with its customer base mainly consisting of low-to-midincome consumers. It also provides zero per cent instalment plans, which are attractive to a
significant number of consumers.
International home and garden specialist retailers lead the category. The rising sophistication
of consumers means that they increasingly prefer everything in their homes to be purchased
from concept stores like IKEA. While some products are available cheaper from domestic
players, most consumers remain loyal to international players, due to the higher quality
products they offer.
As of 2015, internet retailing accounts for a negligible share of sales in this category. High
accessibility across the countrys major cities, means that it is easier for consumers to visit a
physical store. Furthermore, players in the channel have not, thus far, invested any significant
effort or resources in internet retailing.

PROSPECTS
Home and garden specialist retailers is expected to register positive retail value sales growth
over the forecast period, with sales predicted to grow at a CAGR of 1% at constant 2015
prices. As economic conditions in Malaysia are expected to improve over the forecast period,
consumers will become more willing to invest in premium products, in line with rising
disposable income levels, increasing sophistication and the desire to lead a more luxuriant
lifestyle.
Homewares and home furnishing stores is expected to record more dynamic retail value sales
growth over the forecast period, with growth of 3% at constant 2015 prices predicted.
Consumers will be more willing to invest in premium products to improve their homes, as
economic conditions in the country improve. Players are also likely to create interest amongst
consumers, with uniquely designed homeware products intended to drive impulse purchases.
Ikano Corp Sdn Bhd is expected to remain the leading home and garden specialist retailer in
Malaysia over the forecast period. The player will continue to introduce chic yet affordable
products, and regularly review its prices and lower them whenever possible. Continuing
weekly promotions for select items will also help in attracting consumer attention.
The average unit price in home and garden specialist retailers, especially in homewares and
home furnishing stores, is expected to increase slightly over the forecast period, due to
growing consumer willingness to invest in more premium items to improve their lifestyle
quality and enhance their homes.

CHANNEL FORMATS
Chart 9

Home and Garden Specialist retailers: Courts, Homewares and Home


Furnishing Stores in The Mines Shopping Mall, Selangor

Euromonitor International

Passport

77

RETAILING IN MALAYSIA

Source:

Chart 10

Euromonitor International

Furniture and Homewares Stores: Ace Hardware, Home Improvement and


Gardening Stores in The Mines Shopping Mall, Selangor

Euromonitor International

Passport

78

RETAILING IN MALAYSIA

Source:

Passport

Euromonitor International

CHANNEL DATA
Table 80

Home and Garden Specialist Retailers: Value Sales, Outlets and Selling
Space 2010-2015

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2010

2011

2012

2013

2014

2015

8,288.4
18,600.0
6,108.0

8,401.0
18,674.0
6,178.0

8,482.5
18,720.0
6,216.0

8,666.0
18,760.0
6,269.6

8,881.8
18,814.0
6,327.7

9,079.4
18,900.0
6,378.8

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 81

Sales in Home and Garden Specialist Retailers by Channel: Value 2010-2015

MYR million

Home Improvement and


Gardening Stores
Homewares and Home
Furnishing Stores
Home and Garden
Specialist Retailers
Source:

2010

2011

2012

2013

2014

2015

3,867.0

3,944.3

4,003.5

4,155.6

4,321.9

4,460.2

4,421.4

4,456.7

4,479.0

4,510.4

4,560.0

4,619.2

8,288.4

8,401.0

8,482.5

8,666.0

8,881.8

9,079.4

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

79

RETAILING IN MALAYSIA

Table 82

Passport

Home and Garden Specialist Retailers: Value Sales, Outlets and Selling
Space: % Growth 2010-2015

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

Table 83

2014/15

2010-15 CAGR

2010/15 TOTAL

2.2
0.5
0.8

1.8
0.3
0.9

9.5
1.6
4.4

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Sales in Home and Garden Specialist Retailers by Channel: % Value Growth


2010-2015

% current value growth, retail value rsp excl sales tax

Home Improvement and Gardening Stores


Homewares and Home Furnishing Stores
Home and Garden Specialist Retailers
Source:

Table 84

2010/15 Total

3.2
1.3
2.2

2.9
0.9
1.8

15.3
4.5
9.5

Home and Garden Specialist Retailers GBO Company Shares: % Value


2011-2015

Inter Ikea Systems BV


Courts Asia Ltd
Ace Hardware Corp
Signature International
Bhd
Fella Design Sdn Bhd
Courts (Singapore) Pte
Ltd
Courts Mammoth Sdn Bhd
KLW Holdings Ltd
Others
Total

Table 85

2010-15 CAGR

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

% retail value rsp excl sales tax


Company

Source:

2014/15

2011

2012

2013

2014

2015

4.6
1.1
0.6

5.0
4.3
1.2
0.6

5.0
4.7
1.4
0.7

5.2
5.1
1.4
0.7

5.5
5.3
1.5
0.7

0.3
4.0

0.3
-

0.3
-

0.3
-

0.3
-

89.5
100.0

88.6
100.0

87.9
100.0

87.4
100.0

86.7
100.0

2014

2015

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Home and Garden Specialist Retailers GBN Brand Shares: % Value 20122015

% retail value rsp excl sales tax


Brand
Company (GBO)

Euromonitor International

2012

2013

80

RETAILING IN MALAYSIA

IKEA
Courts
Ace
Signature Kitchen

Inter Ikea Systems BV


Courts Asia Ltd
Ace Hardware Corp
Signature International
Bhd
Fella Design Sdn Bhd
Courts (Singapore) Pte Ltd
Courts Mammoth Sdn Bhd
KLW Holdings Ltd

Fella Design
Courts
Courts
Barang Barang
Others
Total
Source:

5.0
4.7
1.4
0.7

5.2
5.1
1.4
0.7

5.5
5.3
1.5
0.7

0.3
88.6
100.0

0.3
87.9
100.0

0.3
87.4
100.0

0.3
86.7
100.0

Home and Garden Specialist Retailers LBN Brand Shares: Outlets 2012-2015

sites/outlets
Brand (GBO)

Company (NBO)

Courts (Courts Asia


Ltd)
Signature Kitchen
(Signature
International Bhd)
Ace Hardware (Ace
Hardware Corp)
Fella Design
IKEA (Inter Ikea
Systems BV)
Barang Barang (KLW
Holdings Ltd)
Courts (Courts
(Singapore) Pte Ltd)
Courts
Others
Total

Table 87

5.0
4.3
1.2
0.6

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 86

Source:

Passport

2012

2013

2014

2015

Courts (Malaysia) Sdn Bhd

58

64

70

70

Signature Kitchen Sdn Bhd

25

26

26

28

Giant Ace Sdn Bhd

14

16

16

17

Fella Design Sdn Bhd


Ikano Corp Sdn Bhd

15
1

15
1

15
1

15
1

Barang Barang Lifestyle


Sdn Bhd
Courts (Malaysia) Sdn Bhd

Courts Mammoth Sdn Bhd


Others
Total

18,607
18,720

18,638
18,760

18,686
18,814

18,769
18,900

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Home and Garden Specialist Retailers LBN Brand Shares: Selling Space
2012-2015

selling space '000 sq m


Brand (GBO)
Courts (Courts Asia
Ltd)
IKEA (Inter Ikea
Systems BV)
Ace Hardware (Ace
Hardware Corp)
Fella Design
Signature Kitchen
(Signature
International Bhd)
Barang Barang (KLW
Holdings Ltd)

Euromonitor International

Company (NBO)

2012

2013

2014

2015

Courts (Malaysia) Sdn Bhd

78.9

87.6

96.1

96.1

Ikano Corp Sdn Bhd

35.0

35.0

35.0

35.0

Giant Ace Sdn Bhd

21.0

24.0

24.0

25.8

Fella Design Sdn Bhd


Signature Kitchen Sdn Bhd

13.6
7.0

13.6
7.3

13.6
7.3

13.6
8.0

Barang Barang Lifestyle


Sdn Bhd

81

RETAILING IN MALAYSIA

Courts (Courts
(Singapore) Pte Ltd)
Courts
Others
Total
Source:

Courts Mammoth Sdn Bhd


Others
Total

6,060.6
6,216.0

6,102.2
6,269.6

6,151.7
6,327.7

6,200.3
6,378.8

Home and Garden Specialist Retailers Forecasts: Value Sales, Outlets and
Selling Space 2015-2020

Value sales MYR million


Outlets
Selling Space '000 sq m

Note:

Courts (Malaysia) Sdn Bhd

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 88

Source:

Passport

2015

2016

2017

2018

2019

2020

9,079.4
18,900.0
6,378.8

9,207.5
19,011.0
6,419.2

9,258.0
19,154.0
6,454.2

9,299.5
19,325.0
6,483.6

9,322.7
19,517.0
6,504.4

9,336.6
19,744.0
6,517.1

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 89

Forecast Sales in Home and Garden Specialist Retailers by Channel: Value


2015-2020

MYR million

Home Improvement and


Gardening Stores
Homewares and Home
Furnishing Stores
Home and Garden
Specialist Retailers
Source:
Note:

2015

2016

2017

2018

2019

2020

4,460.2

4,495.8

4,522.8

4,545.4

4,559.1

4,568.2

4,619.2

4,711.6

4,735.2

4,754.1

4,763.6

4,768.4

9,079.4

9,207.5

9,258.0

9,299.5

9,322.7

9,336.6

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Forecast value data in constant terms.

Table 90

Home and Garden Specialist Retailers Forecasts: Value Sales, Outlets and
Selling Space: % Growth 2015-2020

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:
Note:

Table 91

2015/16

2015-20 CAGR

2015/20 TOTAL

1.4
0.6
0.6

0.6
0.9
0.4

2.8
4.5
2.2

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms

Forecast Sales in Home and Garden Specialist Retailers by Channel: %


Value Growth 2015-2020

% constant value growth, retail value rsp excl sales tax

Euromonitor International

82

RETAILING IN MALAYSIA

Home Improvement and Gardening Stores


Homewares and Home Furnishing Stores
Home and Garden Specialist Retailers
Source:
Note:

Passport

2015/2016

2015-20 CAGR

2015/20 TOTAL

0.8
2.0
1.4

0.5
0.6
0.6

2.4
3.2
2.8

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Forecast value data in constant terms.

Euromonitor International

83

RETAILING IN MALAYSIA

LEISURE AND PERSONAL GOODS


SPECIALIST RETAILERS IN MALAYSIA
- CATEGORY ANALYSIS
HEADLINES
Leisure and personal goods specialist retailers sees sales growth of 3% to reach MYR14,011
million in 2015
Consumers show increasing interest in leisure and personal goods, as they consider them
reflective of their image and social status
In 2015, bags and luggage specialist retailers sees the most dynamic retail value sales growth
of 7%
Poh Kong Holdings Bhd remains the leading player, with a retail value sales share of 9% in
2015
Sales of leisure and personal goods specialist retailers are expected to grow at a CAGR of
1% at constant 2015 prices over the forecast period

TRENDS
Bag and luggage specialist retailers recorded the most dynamic current value sales growth of
7% in 2015. While the soft economic conditions impacted consumer willingness to spend,
young consumers remained brand-conscious and willing to treat themselves to such products.
Coach Inc is the leading bag and luggage specialist in Malaysia, accounting for a retail value
sales share of 20% in 2015, with Prada SPA and Louis Vuitton Malaysia Sdn Bhd following on
respective shares of 13% and 9%. Female consumers are willing to purchase these brands,
as they are well-known for their superior quality, while they also serve to enhance the image
of consumers.
Jewellery and watch specialist retailers saw current value sales growth of 2% in 2015.
Retailers in this channel are putting more effort into marketing campaigns, in order to attract
consumer attention. Furthermore, consumers are willing to invest in these products, as they
see them as reflective of their social status and image.
Poh Kong Holdings Berhad is the leading player in jewellery and watch specialist retailers in
Malaysia, accounting for a retail value sales share of 17% in 2015. Besides building a strong
brand presence through existing outlets, the player also plans to expand its outlet network in
the near future. Furthermore, its good reputation in the country contributes to its strong
performance within jewellery and watch specialist retailers.
Media products stores recorded current value sales growth of 1% in 2015. Movies, television
series, music and books can be searched for online and through mobile apps, with consumers
able to download these products for free or at a minimal cost. This trend is negatively
impacting demand for media products in Malaysia and hindering the performance of media
products stores.
Popular Book Co (M) Sdn Bhd is the leading player in media products stores in Malaysia,
accounting for a retail values sales share of 14% in 2015. The Popular brand is long-

Euromonitor International

Passport

84

RETAILING IN MALAYSIA

established in Malaysia, while its huge product portfolio, ranging from textbooks, assessment
books, magazines, and novels, to CDs, VCDs, and stationery, makes it attractive to a wide
range of consumers. Bison Stores Sdn Bhd, with the myNEWS.com brand, is the second
leading player in the category, with a retail value sales share of 7% in 2015.
Pet shops and superstores saw a 2% increase in current value sales in 2015. Due to the
hectic and high-pressure lifestyle in urban areas of the country, most consumers delay the
decision to get married and start a family until later in life. As a result, many younger
Malaysians adopt pets for companionship and treat them like family members. These pet
owners are willing to purchase premium pet food and pet care products, in order to pamper
their pets, which is the main factor driving the performance of pet shops and superstores in
the country.
Plc Pet Safari (KL) Sdn Bhd, with the Pet Lovers Centre and The Pet Safari brands, is the
leading player in pet shops and superstores in Malaysia, with a retail value sales share of
12% in 2015. Following is Pets More Sdn Bhd, with the PetsMore.com brand, on a retail value
sales share of 10% in 2015. The provision of additional services, such as pet grooming and
pet training, are key contributors to the leading positions of these players, as they meet
consumer demand for convenience.
Sports goods stores recorded a 4% increase in current value sales in 2015, as consumers
continued to visit these stores, due to the assurance of high-quality products and their
international reputation. The rising health-consciousness of consumers is driving demand for
sports goods, with consumers looking to enhance their performance during exercise.
Al Ikhsan Sports Sdn Bhd is the leading player in sports goods stores in Malaysia, accounting
for a retail value sales share of 19% in 2015. It saw a further marginal gain in value share in
2015, to consolidate its leading position. The company offers lower prices than most of its
competitors, which makes it attractive to consumers looking for bargains, particularly amidst
the weak economic conditions in 2015.
Stationers/office supply stores saw current value sales growth of 3% in 2015, as the products
in these outlets are considered cheap and remain important for consumers, especially for
students or office usage. In addition, more companies setting up offices and shops also
contributed to the performance of stationers/office supply stores in 2015.
Traditional toys and games stores saw retail value sales growth of 5% in 2015. Although
smartphones and tablets, which enjoy high penetration rates in Malaysia, had a negative
impact on sales of traditional toys and games, these products remain popular amongst both
children and adults interested in collectibles.
Toys 'R' Us (M) Sdn Bhd is the leading player in traditional toys and games stores in
Malaysia, with a retail value sales share of 44% in 2015. Toys 'R' Us has the largest outlet
network of any player in the category, while it also offers a wide range of products in its
stores, which its ensures its enduring popularity amongst consumers.

CHANNEL FORMATS
Chart 11

Leisure and Personal Goods Specialist Retailers: City Chain, Jewellery and
Watch Specialist Retailers in The Mines Shopping Mall, Selangor

Euromonitor International

Passport

85

RETAILING IN MALAYSIA

Source:

Chart 12

Euromonitor International

Leisure and Personal Goods Specialist Retailers: Tomei, Jewellery and Watch
Specialist Retailers in The Mines Shopping Mall, Selangor

Euromonitor International

Passport

86

RETAILING IN MALAYSIA

Source:

Chart 13

Euromonitor International

Leisure and Personal Goods Specialist Retailers: Toycity, Traditional Toys


and Games in The Mines Shopping Mall, Selangor

Euromonitor International

Passport

87

RETAILING IN MALAYSIA

Source:

Chart 14

Euromonitor International

Leisure and Personal Goods Specialist Retailers: Toys R Us, Traditional


Toys and Games in Sunway Pyramid Shopping Mall, Selangor

Euromonitor International

Passport

88

RETAILING IN MALAYSIA

Source:

Chart 15

Euromonitor International

Leisure and Personal Goods Specialist Retailers: Pet Lovers Centre, Pet
Shops and Superstores in The Mines Shopping Mall, Selangor

Euromonitor International

Passport

89

RETAILING IN MALAYSIA

Source:

Chart 16

Euromonitor International

Leisure and Personal Goods Specialist Retailers: Popular, Media Products


Stores in Sunway Pyramid Shopping Mall, Selangor

Euromonitor International

Passport

90

RETAILING IN MALAYSIA

Source:

Passport

Euromonitor International

CHANNEL DATA
Table 92

Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and
Selling Space 2010-2015

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2010

2011

2012

2013

2014

2015

12,309.4
9,263.0
1,207.9

12,667.1
9,383.0
1,228.0

12,943.4
9,449.0
1,243.1

13,265.1
9,551.0
1,268.8

13,675.1
9,638.0
1,292.2

14,011.0
9,726.0
1,317.9

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 93

Sales in Leisure and Personal Goods Specialist Retailers by Channel: Value


2010-2015

MYR million

Bags and Luggage


Specialist Retailers
Jewellery and Watch
Specialist Retailers
Media Products Stores
Pet Shops and Superstores
Sports Goods Stores

Euromonitor International

2010

2011

2012

2013

2014

2015

965.0

1,050.2

1,141.0

1,191.2

1,292.5

1,380.3

6,529.4

6,700.9

6,810.4

6,980.7

7,204.1

7,362.6

3,207.9
258.0
689.5

3,267.1
259.7
713.6

3,299.7
261.2
737.9

3,326.1
265.9
780.6

3,346.1
270.0
814.5

3,369.5
275.7
843.2

91

RETAILING IN MALAYSIA

Stationers/Office
Supply Stores
Traditional Toys and
Games Stores
Other Leisure and
Personal Goods
Specialist Retailers
Leisure and Personal
Goods Specialist
Retailers
Source:

Passport

209.2

212.3

214.7

220.0

227.0

232.9

305.0

315.0

326.0

333.0

344.0

361.2

145.4

148.4

152.4

167.5

176.9

185.6

12,309.4

12,667.1

12,943.4

13,265.1

13,675.1

14,011.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 94

Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and
Selling Space: % Growth 2010-2015

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

Table 95

2014/15

2010-15 CAGR

2010/15 TOTAL

2.5
0.9
2.0

2.6
1.0
1.8

13.8
5.0
9.1

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Sales in Leisure and Personal Goods Specialist Retailers by Channel: %


Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Bags and Luggage Specialist Retailers


Jewellery and Watch Specialist Retailers
Media Products Stores
Pet Shops and Superstores
Sports Goods Stores
Stationers/Office Supply Stores
Traditional Toys and Games Stores
Other Leisure and Personal Goods
Specialist Retailers
Leisure and Personal Goods Specialist
Retailers
Source:

Table 96

2014/15

2010-15 CAGR

2010/15 Total

6.8
2.2
0.7
2.1
3.5
2.6
5.0
4.9

7.4
2.4
1.0
1.3
4.1
2.2
3.4
5.0

43.0
12.8
5.0
6.9
22.3
11.4
18.4
27.6

2.5

2.6

13.8

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Leisure and Personal Goods Specialist Retailers GBO Company Shares: %


Value 2011-2015

% retail value rsp excl sales tax


Company
Poh Kong Holdings Bhd
Popular Holdings Ltd
Tomei Consolidated Bhd

Euromonitor International

2011

2012

2013

2014

2015

5.1
3.1
2.6

6.0
3.3
2.9

6.9
3.3
3.2

7.8
3.3
3.4

8.7
3.4
3.2

92

RETAILING IN MALAYSIA

Passport

Coach Inc
Bison Stores Sdn Bhd
LVMH Mot Hennessy
Louis Vuitton SA
Prada SpA
Al Ikhsan Sports Sdn Bhd
Toys "R" Us Inc
Takasima Health-Mart
Sdn Bhd
MPH Group Malaysia Snd
Bhd
Herms International SCA
Stelux Holdings
International Ltd
Kering SA
Nike Inc
Richemont SA, Cie
Financire
Tiffany & Co
Asia Brands Corp Bhd
Sincere Watch Ltd
Royal Sporting House
(RSH) Ltd
PPR SA
Others
Total
Source:

1.3
1.4
1.4

1.3
1.4
1.4

1.3
1.5
1.4

1.6
1.5
1.4

2.0
1.6
1.3

0.9
0.7
0.8
0.6

1.1
0.9
0.9
0.8

1.3
1.1
1.0
0.8

1.3
1.1
1.0
0.9

1.3
1.1
1.1
1.0

0.8

0.8

0.8

0.8

0.8

0.3
0.7

0.3
0.8

0.5
0.7

0.5
0.7

0.8
0.7

0.6
0.5

0.6
0.5

0.7
0.6
0.5

0.7
0.6
0.5

0.7
0.6
0.5

0.5
0.4
0.5
0.4

0.5
0.3
0.4
0.4

0.5
0.4
0.4
0.4

0.5
0.4
0.4
0.4

0.5
0.5
0.4
0.4

0.8
76.5
100.0

0.8
74.7
100.0

72.7
100.0

71.0
100.0

69.2
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 97

Leisure and Personal Goods Specialist Retailers GBN Brand Shares: % Value
2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)
Poh Kong
Popular
Tomei
Coach
myNEWS.com
Al Ikhsan Sports
Toys "R" Us
Takasima
Louis Vuitton
Prada
MPH
Herms
Nike
Tiffany & Co
City Chain
Gucci
Anakku
Miu Miu
Sincere
Samsonite
Gucci

Euromonitor International

Poh Kong Holdings Bhd


Popular Holdings Ltd
Tomei Consolidated Bhd
Coach Inc
Bison Stores Sdn Bhd
Al Ikhsan Sports Sdn Bhd
Toys "R" Us Inc
Takasima Health-Mart
Sdn Bhd
LVMH Mot Hennessy
Louis Vuitton SA
Prada SpA
MPH Group Malaysia Snd Bhd
Herms International SCA
Nike Inc
Stelux Holdings
International Ltd
Kering SA
Asia Brands Corp Bhd
Prada SpA
Sincere Watch Ltd
Samsonite International SA
PPR SA

2012

2013

2014

2015

6.0
3.3
2.4
1.3
1.4
0.9
0.9
0.8

6.9
3.3
2.7
1.3
1.5
1.1
1.0
0.8

7.8
3.3
2.9
1.6
1.5
1.1
1.0
0.9

8.7
3.4
2.8
2.0
1.6
1.1
1.1
1.0

1.0

1.0

0.9

0.9

0.9
0.8
0.3
0.6
0.5
0.5

0.9
0.8
0.5
0.6
0.5
0.5

0.9
0.8
0.5
0.6
0.5
0.5

0.9
0.8
0.8
0.6
0.5
0.5

0.3
0.3
0.4
0.4
0.6

0.5
0.4
0.4
0.4
0.4
-

0.5
0.4
0.4
0.4
0.4
-

0.5
0.5
0.4
0.4
0.3
-

93

RETAILING IN MALAYSIA

Passport

Others
Total
Source:

76.5
100.0

71.0
100.0

Leisure and Personal Goods Specialist Retailers LBN Brand Shares: Outlets
2012-2015

sites/outlets
Brand (GBO)

Company (NBO)

myNEWS.com
Al Ikhsan Sports
Anakku (Asia Brands
Corp Bhd)
Takasima
Poh Kong
Popular (Popular
Holdings Ltd)
City Chain (Stelux
Holdings
International Ltd)
Tomei (Tomei
Consolidated Bhd)
Nike (Nike Inc)
MPH (MPH Group
Malaysia Snd Bhd)
Habib (Habib Corp
Sdn Bhd)
Toys "R" Us (Toys
"R" Us Inc)
PetsMore.com
Royal Sporting
House (Royal
Sporting House
(RSH) Ltd)
Pet Lovers Centre
(Pet Lovers Centre
Pte Ltd)
Global Pets
Swatch (Swatch
Group Ltd, The)
Golf House (Royal
Sporting House
(RSH) Ltd)
Coach
Samsonite
(Samsonite
International SA)
Others
Total

Table 99

72.8
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 98

Source:

74.5
100.0

2012

2013

2014

2015

161
120
103

180
135
128

195
145
138

210
150
141

80

90

110

125

104
75

109
76

112
77

115
80

53

53

53

53

Tomei Retail Sdn Bhd

49

52

52

48

Nike Sales (M) Sdn Bhd


MPH Bookstores Sdn Bhd

37
29

37
33

38
33

38
33

Habib Jewels Sdn Bhd

26

28

31

33

Toys 'R' Us (M) Sdn Bhd

21

24

28

30

Pets More Sdn Bhd


RSH (Malaysia) Sdn Bhd

19
22

22
22

25
22

27
22

14

15

19

Global Pets Sdn Bhd


Swiss Luxury Watch &
Jewelry Sdn Bhd
RSH (Malaysia) Sdn Bhd

8
10

11
10

13
13

17
17

16

16

16

16

Coach Inc
Samsonite Malaysia Sdn
Bhd

10
15

10
16

13
16

16
14

8,483
9,449

8,485
9,551

8,493
9,638

8,522
9,726

Bison Stores Sdn Bhd


Al Ikhsan Sports Sdn Bhd
Asia Brands Assets
Management Sdn Bhd
Takasima Health-Mart
Sdn Bhd
Poh Kong Holdings Bhd
Popular Book Co (M) Sdn
Bhd
City Chain (M) Sdn Bhd

Plc Pet Safari (KL) Sdn


Bhd

Others
Total

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Leisure and Personal Goods Specialist Retailers LBN Brand Shares: Selling
Space 2012-2015

Euromonitor International

94

RETAILING IN MALAYSIA

selling space '000 sq m


Brand (GBO)
Popular (Popular
Holdings Ltd)
Toys "R" Us (Toys
"R" Us Inc)
Anakku (Asia Brands
Corp Bhd)
Borders
Al Ikhsan Sports
MPH (MPH Group
Malaysia Snd Bhd)
Poh Kong
Royal Sporting
House (Royal
Sporting House
(RSH) Ltd)
myNEWS.com
Takasima
Nike (Nike Inc)
Tomei (Tomei
Consolidated Bhd)
Times The Bookshop
(Thai Beverage PCL)
PetsMore.com
City Chain (Stelux
Holdings
International Ltd)
Coach
Pet Lovers Centre
(Pet Lovers Centre
Pte Ltd)
Global Pets
Habib (Habib Corp
Sdn Bhd)
Pets Wonderland
Others
Total
Source:

2012

2013

2014

2015

Popular Book Co (M) Sdn


Bhd
Toys 'R' Us (M) Sdn Bhd

81.0

82.6

85.0

89.0

25.6

29.3

34.3

37.5

Asia Brands Assets


Management Sdn Bhd
Berjaya Book Sdn Bhd
Al Ikhsan Sports Sdn Bhd
MPH Bookstores Sdn Bhd

17.0

21.1

22.9

25.5

15.5
13.1
14.4

15.5
14.8
15.8

15.5
15.9
15.8

19.0
16.5
15.8

Poh Kong Holdings Bhd


RSH (Malaysia) Sdn Bhd

10.6
9.5

11.5
9.5

11.9
9.5

12.2
9.5

Bison Stores Sdn Bhd


Takasima Health-Mart
Sdn Bhd
Nike Sales (M) Sdn Bhd
Tomei Retail Sdn Bhd

7.4
4.9

8.4
5.5

8.7
6.7

9.0
7.7

5.0
5.2

5.0
5.5

5.1
5.5

5.1
5.1

Pansing Marketing Sdn Bhd

5.3

5.3

5.3

4.8

Pets More Sdn Bhd


City Chain (M) Sdn Bhd

3.2
4.1

3.7
4.1

4.2
4.1

4.5
4.1

Coach Inc
Plc Pet Safari (KL) Sdn
Bhd

2.5
1.3

2.5
2.3

3.2
2.5

4.0
3.2

Global Pets Sdn Bhd


Habib Jewels Sdn Bhd

1.3
2.3

1.8
2.5

2.2
2.8

3.1
3.1

1.9
1,012.1
1,243.1

1.9
1,020.4
1,268.8

2.3
1,028.7
1,292.2

3.0
1,036.2
1,317.9

Pets Wonderland Sdn Bhd


Others
Total

Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales,


Outlets and Selling Space 2015-2020

Value sales MYR million


Outlets
Selling Space '000 sq m

Note:

Company (NBO)

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 100

Source:

Passport

2015

2016

2017

2018

2019

2020

14,011.0
9,726.0
1,317.9

14,216.8
9,813.0
1,343.3

14,381.9
9,900.0
1,370.1

14,519.0
9,998.0
1,399.3

14,638.4
10,104.0
1,430.9

14,721.9
10,220.0
1,463.4

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Euromonitor International

95

RETAILING IN MALAYSIA

Table 101

Passport

Forecast Sales in Leisure and Personal Goods Specialist Retailers by


Channel: Value 2015-2020

MYR million

Bags and Luggage


Specialist Retailers
Jewellery and Watch
Specialist Retailers
Media Products Stores
Pet Shops and Superstores
Sports Goods Stores
Stationers/Office
Supply Stores
Traditional Toys and
Games Stores
Other Leisure and
Personal Goods
Specialist Retailers
Leisure and Personal
Goods Specialist
Retailers
Source:
Note:

2015

2016

2017

2018

2019

2020

1,380.3

1,456.3

1,505.8

1,550.9

1,592.8

1,632.6

7,362.6

7,436.2

7,503.1

7,555.6

7,601.0

7,623.8

3,369.5
275.7
843.2
232.9

3,399.8
277.9
853.3
234.8

3,427.0
279.8
861.9
236.0

3,447.6
281.2
869.6
236.9

3,464.8
282.1
875.7
237.4

3,475.2
282.3
879.2
237.6

361.2

368.4

374.7

379.9

384.5

388.3

185.6

190.0

193.7

197.1

200.1

202.7

14,011.0

14,216.8

14,381.9

14,519.0

14,638.4

14,721.9

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 102

Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales,


Outlets and Selling Space: % Growth 2015-2020

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:
Note:

2015/16

2015-20 CAGR

2015/20 TOTAL

1.5
0.9
1.9

1.0
1.0
2.1

5.1
5.1
11.0

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 103

Forecast Sales in Leisure and Personal Goods Specialist Retailers by


Channel: % Value Growth 2015-2020

% constant value growth, retail value rsp excl sales tax

Bags and Luggage Specialist Retailers


Jewellery and Watch Specialist Retailers
Media Products Stores
Pet Shops and Superstores
Sports Goods Stores
Stationers/Office Supply Stores
Traditional Toys and Games Stores
Other Leisure and Personal Goods
Specialist Retailers
Leisure and Personal Goods Specialist

Euromonitor International

2015/2016

2015-20 CAGR

2015/20 TOTAL

5.5
1.0
0.9
0.8
1.2
0.8
2.0
2.4

3.4
0.7
0.6
0.5
0.8
0.4
1.5
1.8

18.3
3.5
3.1
2.4
4.3
2.0
7.5
9.2

1.5

1.0

5.1

96

RETAILING IN MALAYSIA

Retailers
Source:
Note:

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Euromonitor International

Passport

97

RETAILING IN MALAYSIA

MIXED RETAILERS IN MALAYSIA CATEGORY ANALYSIS


HEADLINES
Mixed retailers sees current value sales growth of 3% to reach MYR14,204 million in 2015
Rapid expansion of variety stores in recent years attracts consumers
AEON Co (M) Bhd remains the leading player in mixed retailers, with a retail value sales
share of 28% in 2015
Sales of mixed retailers are expected to grow at a CAGR of 1% at constant 2015 prices over
the forecast period

TRENDS
The growing sophistication of young consumers is driving them to look for branded products.
This trend is being driven by increasing exposure to international brands and trends, via the
internet and overseas travel, which is positively impacting the performance of mixed retailers
in the country.
Mixed retailers saw current value sales growth of 3% in 2015, which is slightly slower than the
corresponding growth of 4% witnessed in 2014. Specialist retailers and internet retailing are
providing strong competition for the channel. Nevertheless, the ability of players in the
channel to offer a complete shopping experience under one roof means that consumers are
still attracted to mixed retailers.
In Malaysia, mixed retailers, especially department stores, continue to be mainly located in
shopping malls. However, players in the channel remain cautious with their expansion plans,
engaging in significant market research, in order to ensure the most suitable locations for new
outlets. In this channel, the strategic location of outlets is one factor that can significantly
impact company performance.
Of the two active channels in the category, department stores saw slightly slower current
value sales growth of 3% in 2015, compared to the corresponding growth of 4% witnessed by
variety stores. Weak economic conditions in the country, as a result of the depreciation of the
Malaysian ringgit and implementation of the 6% GST, affected consumer willingness to spend
in 2015. As a result, department stores put more effort into marketing strategies, such as
rebate vouchers and members days, to stimulate consumer demand.
Fixed price stores are more popular within variety stores in Malaysia, as the pricing strategy of
outlets of this type is attractive, while they offer a wide product portfolio, such as packaged
food and homewares, amongst other things. Although the quality of the products is not always
very high, outlets of this type remain important for low-to-mid-income families.
Luxury department stores have a negligible presence in Malaysia, due to weak economic
conditions in the country. However, a number of department stores, such as Parkson and
Metrojaya, bring in premium brands to satisfy demand from some higher-income consumers.

Euromonitor International

Passport

98

RETAILING IN MALAYSIA

COMPETITIVE LANDSCAPE
AEON Co (M) Bhd remains the leading mixed retailer in Malaysia, with a retail value sales
share of 28% in 2015. The company also saw the largest increase in retail value sales share
of one percentage point in 2015, up from 27% in 2014. The companys leading position in
mixed retailers is based on its strong leadership of departments stores, the dominant channel
in the category. The company targets a wide consumer base through its outlets, offering
products from the low-to-mid-price segments, which are affordable to the majority of
consumers.
Mixed retailers in Malaysia aim to open stores at strategic locations, which have high footfall
traffic or are situated near to public transportation. In addition, benefits that are provided to
store members, such as lucky draws, contests, cash rebates and free gifts, are also important
in retaining customer loyalty.
Mixed retailers do not affect the business or performance of other retailer types, as grocery
retailers, non-grocery specialists and non-store retailing have their own marketing strategies
and different ways of operating. However, the international mixed retailers that dominate the
channel look to draw consumers away from other non-grocery specialists.

PROSPECTS
Mixed retailers is projected to register slower sales growth at constant 2015 prices over the
forecast period compared to the review period. However, the convenience of one-stop
shopping and the wider product portfolio carried by outlets in this channel will continue to
support the performance of mixed retailers, especially in light of hectic consumer lifestyles
and growing demand for international brands. Players in the category will continue to focus on
improving their product portfolios, in order to cater to evolving consumer demands and needs.
Variety stores is expected to see the most dynamic sales growth over the forecast period, with
a CAGR of 1% at constant 2015 prices predicted. Fixed dollar stores are expected to gain
popularity amongst low-to-mid-income consumers, due to still weak economic conditions and
the implementation of GST. As a result, consumers are expected to reduce their budget for
daily expenses, quality of products allowing.
Internet retailing, including third party merchants and online shopping platforms, is likely to
have a greater impact on the performance of department stores in Malaysia over the forecast
period. This is what motivated Parkson Holdings Bhd to invest in an online shopping platform
towards the end of the review period. Although the site is not being promoted aggressively,
thus far, it represents the first step in the player protecting itself from the aggressive
encroachment of internet retailing. Furthermore, internet retailing allows consumers to
purchase products from anywhere in the world, thereby further stimulating the growth of the
channel and providing an additional challenge to department stores.

CHANNEL FORMATS
Chart 17

Mixed Retailers: AEON, Department Stores in Selangor

Euromonitor International

Passport

99

RETAILING IN MALAYSIA

Source:

Passport

Euromonitor International

CHANNEL DATA
Table 104

Mixed Retailers: Value Sales, Outlets and Selling Space 2010-2015

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2010

2011

2012

2013

2014

2015

9,184.9
228.0
1,298.3

9,554.7
221.0
1,332.5

10,098.7
229.0
1,408.0

13,320.0
238.0
1,495.2

13,788.5
246.0
1,571.0

14,203.9
254.0
1,620.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 105

Sales in Mixed Retailers by Channel: Value 2010-2015

MYR million

Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Mixed Retailers
Source:

2010

2011

2012

2013

2014

2015

9,031.1
153.8
9,184.9

9,392.9
161.8
9,554.7

9,904.5
194.2
10,098.7

13,113.6
206.4
13,320.0

13,572.6
215.9
13,788.5

13,979.8
224.1
14,203.9

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

100

RETAILING IN MALAYSIA

Table 106

Passport

Mixed Retailers Outlets by Channel: Units 2010-2015

outlet

Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Mixed Retailers
Source:

2010

2011

2012

2013

2014

2015

176.0
52.0
228.0

178.0
43.0
221.0

181.0
48.0
229.0

186.0
52.0
238.0

193.0
53.0
246.0

200.0
54.0
254.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 107

Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 20102015

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:

2014/15

2010-15 CAGR

2010/15 TOTAL

3.0
3.3
3.1

9.1
2.2
4.5

54.6
11.4
24.8

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 108

Sales in Mixed Retailers by Channel: % Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Mixed Retailers
Source:

2014/15

2010-15 CAGR

2010/15 Total

3.0
3.8
3.0

9.1
7.8
9.1

54.8
45.7
54.6

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 109

Mixed Retailers Outlets by Channel: % Unit Growth 2010-2015

% unit growth

Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Mixed Retailers
Source:

2014/15

2010-15 CAGR

2010/15 Total

3.6
1.9
3.3

2.6
0.8
2.2

13.6
3.8
11.4

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 110

Mixed Retailers GBO Company Shares: % Value 2011-2015

Euromonitor International

101

RETAILING IN MALAYSIA

Passport

% retail value rsp excl sales tax


Company
AEON Group
Parkson Holdings Bhd
Store Corp Bhd, The
Isetan Mitsukoshi
Holdings Ltd
Metrojaya Sdn Bhd
Al Futtaim Group LLC
Seven & I Holdings Co Ltd
Suiwah Corp Bhd
Seria Co Ltd
Marks & Spencer Plc
ECI Co Ltd
Daiso Sangyo Co Ltd
Debenhams Retail Plc
Isetan Co Ltd
Robinson & Co Ltd
Others
Total
Source:

2011

2012

2013

2014

2015

26.9
18.3
17.0
5.5

27.2
17.9
16.6
7.0

26.4
13.9
12.7
5.3

26.9
13.7
11.4
5.1

27.5
13.7
10.9
5.0

2.2
2.0
1.6
1.8
1.1
0.7
0.5
0.1
0.0
22.3
100.0

2.5
1.8
1.5
1.6
1.0
0.8
0.7
0.2
0.0
21.1
100.0

1.9
1.3
1.2
1.2
0.8
0.6
0.6
0.2
0.0
33.9
100.0

1.8
1.3
1.2
1.2
0.8
0.6
0.6
0.2
0.0
35.2
100.0

1.8
1.2
1.1
1.1
0.8
0.6
0.6
0.2
0.0
35.5
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 111

Mixed Retailers GBN Brand Shares: % Value 2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)

2012

2013

2014

2015

AEON
Parkson
The Store
Isetan

27.2
17.9
13.2
7.0

26.4
13.9
10.1
5.3

26.9
13.7
9.0
5.1

27.5
13.7
8.7
5.0

3.5
2.5
1.8
1.5
1.6
1.0
0.8
0.7
0.2
0.0
21.1
100.0

2.7
1.9
1.3
1.2
1.2
0.8
0.6
0.6
0.2
0.0
33.9
100.0

2.4
1.8
1.3
1.2
1.2
0.8
0.6
0.6
0.2
0.0
35.2
100.0

2.3
1.8
1.2
1.1
1.1
0.8
0.6
0.6
0.2
0.0
35.5
100.0

AEON Group
Parkson Holdings Bhd
Store Corp Bhd, The
Isetan Mitsukoshi
Holdings Ltd
Store Corp Bhd, The
Metrojaya Sdn Bhd
Al Futtaim Group LLC
Seven & I Holdings Co Ltd
Suiwah Corp Bhd
Seria Co Ltd
Marks & Spencer Plc
ECI Co Ltd
Daiso Sangyo Co Ltd
Debenhams Retail Plc
AEON Group
Isetan Co Ltd
Robinson & Co Ltd
Store Corp Bhd, The

Milimewa
Metrojaya
Robinsons
Sogo
Suiwah
100 Yen Shop
Marks & Spencer
TokuTokuya
Daiso
Debenhams
Jusco
Isetan
Robinsons
Fajar
Others
Total
Source:

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 112

Mixed Retailers LBN Brand Shares: Outlets 2012-2015

sites/outlets

Euromonitor International

102

RETAILING IN MALAYSIA

Passport

Brand (GBO)

Company (NBO)

The Store
Parkson
AEON (AEON Group)
100 Yen Shop (Seria
Co Ltd)
Milimewa (Store
Corp Bhd, The)
Daiso (Daiso Sangyo
Co Ltd)
TokuTokuya
Metrojaya
Marks & Spencer
(Marks & Spencer Plc)
Isetan (Isetan
Mitsukoshi Holdings
Ltd)
Debenhams
Suiwah
Robinsons (Al
Futtaim Group LLC)
Sogo (Seven & I
Holdings Co Ltd)
Jusco (AEON Group)
Fajar (Store Corp
Bhd, The)
Isetan (Isetan Co
Ltd)
Robinsons
Others
Total
Source:

2012

2013

2014

2015

Store Corp Bhd, The


Parkson Holdings Bhd
AEON Co (M) Bhd
100 Yen Shop Sdn Bhd

48
39
26
30

48
40
30
30

48
41
34
30

49
42
36
29

Milimewa Superstore Sdn


Bhd
Daiso Industries Co Ltd

17

17

17

17

10

14

15

17

ECI Co Ltd
Metrojaya Sdn Bhd
Robinson & Co Ltd

8
7
5

8
7
5

8
7
5

8
7
5

Isetan (M) Sdn Bhd

Debenhams Retail Plc


Suiwah Corp Bhd
Robinson & Co Ltd

2
2
1

3
2
1

3
2
1

3
2
1

Sogo (KL) Department


Store Sdn Bhd
AEON Co (M) Bhd
Fajar Retail Enterprise
Sdn Bhd
Isetan (M) Sdn Bhd

29
229

28
238

30
246

33
254

Robinson & Co Ltd


Others
Total

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 113

Mixed Retailers LBN Brand Shares: Selling Space 2012-2015

selling space '000 sq m


Brand (GBO)
AEON (AEON Group)
Parkson
The Store
Milimewa (Store
Corp Bhd, The)
Metrojaya
Isetan (Isetan
Mitsukoshi Holdings
Ltd)
Sogo (Seven & I
Holdings Co Ltd)
Suiwah
Daiso (Daiso Sangyo
Co Ltd)
Robinsons (Al
Futtaim Group LLC)
Marks & Spencer
(Marks & Spencer Plc)
100 Yen Shop (Seria

Euromonitor International

Company (NBO)

2012

2013

2014

2015

AEON Co (M) Bhd


Parkson Holdings Bhd
Store Corp Bhd, The
Milimewa Superstore Sdn
Bhd
Metrojaya Sdn Bhd
Isetan (M) Sdn Bhd

419.5
361.0
240.1
102.7

498.5
373.1
240.1
102.7

565.0
383.0
240.1
102.7

590.0
392.5
241.0
102.7

95.0
52.1

95.0
52.1

95.0
52.1

95.0
52.1

Sogo (KL) Department


Store Sdn Bhd
Suiwah Corp Bhd
Daiso Industries Co Ltd

33.0

33.0

33.0

33.0

18.1
6.0

18.1
8.4

18.1
9.0

18.1
10.3

Robinson & Co Ltd

10.2

10.2

10.2

10.2

Robinson & Co Ltd

10.1

10.1

10.1

10.1

7.3

7.3

7.3

7.1

100 Yen Shop Sdn Bhd

103

RETAILING IN MALAYSIA

Co Ltd)
Debenhams
TokuTokuya
Jusco (AEON Group)
Fajar (Store Corp
Bhd, The)
Isetan (Isetan Co
Ltd)
Robinsons
Others
Total
Source:

Robinson & Co Ltd


Others
Total

4.5
4.7
-

6.8
4.7
-

6.8
4.7
-

6.8
4.7
-

43.6
1,408.0

35.1
1,495.2

33.9
1,571.0

46.6
1,620.0

Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2015-2020

Value sales MYR million


Outlets
Selling Space '000 sq m

Note:

Debenhams Retail Plc


ECI Co Ltd
AEON Co (M) Bhd
Fajar Retail Enterprise
Sdn Bhd
Isetan (M) Sdn Bhd

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 114

Source:

Passport

2015

2016

2017

2018

2019

2020

14,203.9
254.0
1,620.0

14,346.8
261.0
1,663.1

14,447.9
269.0
1,703.9

14,520.9
277.0
1,744.1

14,564.9
285.0
1,781.6

14,580.2
293.0
1,818.2

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms

Table 115

Forecast Sales in Mixed Retailers by Channel: Value 2015-2020

MYR million

Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Mixed Retailers
Source:
Note:

2015

2016

2017

2018

2019

2020

13,979.8
224.1
14,203.9

14,119.6
227.3
14,346.8

14,218.4
229.5
14,447.9

14,289.5
231.4
14,520.9

14,332.4
232.5
14,564.9

14,346.7
233.5
14,580.2

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms

Table 116

Forecast Mixed Retailers Outlets by Channel: Units 2015-2020

outlet

Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Mixed Retailers
Source:

2015

2016

2017

2018

2019

2020

200.0
54.0
254.0

206.0
55.0
261.0

212.0
57.0
269.0

217.0
60.0
277.0

221.0
64.0
285.0

224.0
69.0
293.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 117

Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth
2015-2020

Euromonitor International

104

RETAILING IN MALAYSIA

Passport

% growth

Value sales MYR million


Outlets
Selling Space '000 sq m
Source:
Note:

2015/16

2015-20 CAGR

2015/20 TOTAL

1.0
2.8
2.7

0.5
2.9
2.3

2.6
15.4
12.2

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms

Table 118

Forecast Sales in Mixed Retailers by Channel: % Value Growth 2015-2020

% constant value growth, retail value rsp excl sales tax

Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Mixed Retailers
Source:
Note:

2015/2016

2015-20 CAGR

2015/20 TOTAL

1.0
1.4
1.0

0.5
0.8
0.5

2.6
4.2
2.6

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 119

Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2015-2020

% unit growth

Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Mixed Retailers
Source:

2015/16

2015-20 CAGR

2015/20 Total

3.0
1.9
2.8

2.3
5.0
2.9

12.0
27.8
15.4

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Euromonitor International

105

RETAILING IN MALAYSIA

DIRECT SELLING IN MALAYSIA CATEGORY ANALYSIS


HEADLINES
Direct selling sees sales grow by 2% to reach MYR7,648 million in 2015
Increasing awareness and acceptance of direct selling positively impacts category
performance
Amway (M) Sdn Bhd leads direct selling in Malaysia, with a retail value sales share of 12% in
2015
Direct selling sales are expected to grow at a CAGR of 1% at constant 2015 prices over the
forecast period

TRENDS
Direct selling registered slightly slower current value sales growth of 2% in 2015 compared to
the growth of 3% witnessed in 2014. Nonetheless, the channel remains popular amongst a
wide range of Malaysian consumers, from the young to the elderly. This is mainly based on
the efforts of direct selling agents to push their brands, incentivised by attractive commission
packages. The direct selling companies, Amway, Herbalife and Cosway are long-established
in Malaysia and enjoy high levels of consumer loyalty in the country.
Consumer healthcare direct selling, the largest category in direct selling, continued to record
current value sales growth in 2015. The products offered by these direct sellers, such as
supplements and medicine, continue to see high interest amongst consumers, in line with
increasing health-consciousness, particularly among the elderly that have health problems.
Furthermore, growing awareness and acceptance of a preventative approach to healthcare is
driving demand for these products amongst younger consumers.
Apparel and footwear direct selling is still a small category in direct selling. This is mainly due
to the fact that apparel and footwear products sold through direct selling tend not to be in
keeping with the latest fashion trends. As a result, consumers interested in fashion prefer to
buy these products through apparel and footwear specialist retailers or over the internet. The
most popular products in this category are anti-static and slimming wear.
Direct selling does not have a significant impact on the performance of store-based retailers in
Malaysia. Most of the products offered by direct sellers are unique and products similar to
those offered under direct selling in-house brands generally cannot be found in physical
stores.
Person-to-person remains a more popular direct selling format than party plans in Malaysia.
This is because consumers can gain product knowledge, as well as information pertaining to
company background and benefits directly from agents more readily in the former approach.
Agent are also more concentrated on serving the needs of the individual consumer in a
person-to-person approach. However, party plans are also gaining popularity in the country,
with some consumers preferring the opportunity to share experiences and hear product
testimonials in a group setting.

Euromonitor International

Passport

106

RETAILING IN MALAYSIA

Passport

COMPETITIVE LANDSCAPE
Amway (M) Sdn Bhd remains the leading direct seller in Malaysia, with a retail value sales
share of 12% in 2015, with Cosway and Herbalife following on respective shares of 10% and
9%. Amway is well-known for its comprehensive product portfolio, which covers beauty and
personal care, consumer healthcare, household care, and consumer appliances, amongst
many other categories. In addition, the player takes an active approach to launching new
products and widening its existing product portfolio.
Amway also witnessed the largest increase in retail value sales share in 2015. As a result of
the players dominance in beauty and personal care and consumer healthcare it is benefitting
from rising consumer health-and-image-consciousness in Malaysia. Furthermore, its new
agent recruitment plans are attracting young consumers and enabling the company to grow its
team of direct selling agents.
By serving different needs, direct selling does not have a significant impact on other non-store
or store-based channels in Malaysia. This is mainly due to the fact that these channels sell
different products and have a different target audience.
International direct sellers lead direct selling in Malaysia. International direct sellers benefit
from their long-established presence both globally and in Malaysia, with these players
enjoying high levels of consumer loyalty as a result. Moreover, the comprehensive product
portfolios of international players enable them to achieve superior segmentation, as well as
target a wider audience.

PROSPECTS
Over the forecast period, direct selling sales are expected to grow at a CAGR of 1% at
constant 2015 prices, slightly more dynamic growth than was seen over the review period.
Direct selling will continue to enjoy popularity in the country. The active efforts of agents will
ensure that the leading players continue to enjoy a strong brand presence and that
consumers remain loyal to the unique products offered at competitive prices by these
companies.
Aside from other direct selling, consumer healthcare will continue to account for a leading
share of sales in direct selling in Malaysia over the forecast period. Supplements that prevent
sickness and promote good health will see a further increase in popularity, in line with growing
consumer health-consciousness. Meanwhile, consumers interested in fashion will show little
interest in purchasing such products through direct selling, as more fashionable pieces are
available through both apparel and footwear specialist retailers, and online retailers.
Internet retailing will increasingly impact on direct selling in Malaysia over the forecast period.
Consumers can shop without borders on the internet at any time and anywhere, while
consumers can easily access reviews and other product information online, all of which
makes the channel highly convenient and appealing.

CHANNEL DATA
Table 120

Direct Selling by Category: Value 2010-2015

MYR million
2010

Euromonitor International

2011

2012

2013

2014

2015

107

RETAILING IN MALAYSIA

Apparel and Footwear


Beauty and Personal Care
Consumer Electronics
Consumer Healthcare
Consumer Appliances
Food and Drink
Home Care
Home Improvement and
Gardening
Housewares and Home
Furnishings
Media Products
Personal Accessories
and Eyewear
Pet Care
Traditional Toys and
Games
Video Games Hardware
Other Direct Selling
Direct Selling
Source:

Passport

109.8
648.3
1,145.7
64.8
102.8
97.8
0.0

113.8
699.3
1,312.5
72.7
115.1
102.8
0.0

121.4
738.5
1,444.1
76.6
128.6
105.9
0.0

130.0
786.9
1,620.7
89.9
141.2
119.7
0.0

106.5
838.5
1,840.4
103.8
156.2
124.6
0.0

102.4
813.9
1,854.6
104.3
170.8
123.2
0.0

401.1

476.7

533.8

569.1

611.5

615.0

15.2
8.9

15.7
9.9

16.1
10.7

16.6
11.5

17.2
11.9

17.7
11.8

3,969.4
6,563.7

3,873.8
6,792.3

3,835.6
7,011.4

3,758.9
7,244.5

3,665.6
7,476.3

3,834.5
7,648.2

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 121

Direct Selling by Category: % Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Apparel and Footwear


Beauty and Personal Care
Consumer Electronics
Consumer Healthcare
Consumer Appliances
Food and Drink
Home Care
Home Improvement and Gardening
Housewares and Home Furnishings
Media Products
Personal Accessories and Eyewear
Pet Care
Traditional Toys and Games
Video Games Hardware
Other Direct Selling
Direct Selling
Source:

2014/15

2010-15 CAGR

2010/15 Total

-3.8
-2.9
0.8
0.5
9.4
-1.2
-3.3
0.6
2.9
-0.3
4.6
2.3

-1.4
4.7
10.1
10.0
10.7
4.7
1.8
8.9
3.0
5.7
-0.7
3.1

-6.7
25.6
61.9
61.0
66.1
25.9
9.4
53.3
16.2
32.2
-3.4
16.5

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 122

Direct Selling GBO Company Shares: % Value 2011-2015

% retail value rsp excl sales tax


Company

2011

2012

2013

2014

2015

Amway Corp
Cosway (M) Sdn Bhd
Herbalife Ltd

12.0
8.5
5.9

12.7
8.5
8.1

11.5
9.5
8.7

11.8
9.6
9.1

12.4
10.1
9.4

Euromonitor International

108

RETAILING IN MALAYSIA

Passport

Elken Sdn Bhd


Tupperware Brands Corp
Avon Products Inc
Hai-O Enterprise Bhd
Nu Skin Enterprises Inc
Forever Living Products
International LLC
USANA Health Sciences Inc
New Image Group Ltd
Citra Nusa Insan
Cemerlang PT
Yves Rocher SA
Others
Total
Source:

8.2
6.0
4.9
2.4
4.1
3.8

8.2
6.9
4.6
2.6
4.1
3.7

8.1
7.1
5.5
3.8
4.0
3.6

7.9
7.1
6.2
4.0
4.0
3.5

7.8
7.0
6.1
4.0
4.0
3.4

1.3
1.0
1.9

1.2
0.9
1.7

1.2
0.8
0.7

1.2
0.7
0.6

1.2
0.7
0.6

0.1
39.8
100.0

0.1
36.8
100.0

0.1
35.4
100.0

0.1
34.2
100.0

0.1
33.2
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 123

Direct Selling GBN Brand Shares: % Value 2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)

2012

2013

2014

2015

Amway
Cosway
Herbalife
Elken
Tupperware
Avon
Hai-O
Nu Skin
Forever Living

12.7
8.5
8.1
8.2
6.1
4.6
2.6
4.1
3.7

11.5
9.5
8.7
8.1
6.4
5.5
3.8
4.0
3.6

11.8
9.6
9.1
7.9
6.4
6.2
4.0
4.0
3.5

12.4
10.1
9.4
7.8
6.4
6.1
4.0
4.0
3.4

1.2
0.9
0.7
1.7

1.2
0.8
0.7
0.7

1.2
0.7
0.6
0.6

1.2
0.7
0.6
0.6

0.1
36.8
100.0

0.1
35.4
100.0

0.1
34.2
100.0

0.1
33.2
100.0

Amway Corp
Cosway (M) Sdn Bhd
Herbalife Ltd
Elken Sdn Bhd
Tupperware Brands Corp
Avon Products Inc
Hai-O Enterprise Bhd
Nu Skin Enterprises Inc
Forever Living Products
International LLC
USANA Health Sciences Inc
New Image Group Ltd
Tupperware Brands Corp
Citra Nusa Insan
Cemerlang PT
Yves Rocher SA

USANA
New Image
Nutrimetics
CNI
Yves Rocher
Others
Total
Source:

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 124

Direct Selling Forecasts by Category: Value 2015-2020

MYR million

Apparel and Footwear


Beauty and Personal Care
Consumer Electronics
Consumer Healthcare
Consumer Appliances
Food and Drink
Home Care
Home Improvement and
Gardening

Euromonitor International

2015

2016

2017

2018

2019

2020

102.4
813.9
1,854.6
104.3
170.8
123.2
0.0

101.3
821.1
1,903.0
114.2
179.4
126.9
0.0

97.9
846.8
1,948.6
125.2
185.7
130.5
0.0

94.6
866.3
1,992.0
136.8
189.9
134.6
0.0

92.9
884.6
2,030.9
143.6
191.8
138.7
0.0

91.3
903.3
2,052.3
149.1
193.6
143.0
0.0

109

RETAILING IN MALAYSIA

Housewares and Home


Furnishings
Media Products
Personal Accessories
and Eyewear
Pet Care
Traditional Toys and
Games
Video Games Hardware
Other Direct Selling
Direct Selling
Source:
Note:

Passport

615.0

639.2

661.8

684.0

705.7

728.2

17.7
11.8

17.8
12.5

18.0
12.8

18.2
13.5

18.4
14.3

18.6
15.2

3,834.5
7,648.2

3,832.3
7,747.7

3,805.6
7,832.9

3,781.4
7,911.2

3,753.5
7,974.5

3,719.8
8,014.4

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 125

Direct Selling Forecasts by Category: % Value Growth 2015-2020

% constant value growth, retail value rsp excl sales tax

Apparel and Footwear


Beauty and Personal Care
Consumer Electronics
Consumer Healthcare
Consumer Appliances
Food and Drink
Home Care
Home Improvement and Gardening
Housewares and Home Furnishings
Media Products
Personal Accessories and Eyewear
Pet Care
Traditional Toys and Games
Video Games Hardware
Other Direct Selling
Direct Selling
Source:
Note:

2015/2016

2015-20 CAGR

2015/20 TOTAL

-1.0
0.9
2.6
9.5
5.0
3.0
0.6
3.9
0.8
5.5
-0.1
1.3

-2.3
2.1
2.0
7.4
2.5
3.0
1.1
3.4
1.0
5.2
-0.6
0.9

-10.8
11.0
10.7
43.0
13.3
16.1
5.5
18.4
5.1
28.6
-3.0
4.8

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Euromonitor International

110

RETAILING IN MALAYSIA

HOMESHOPPING IN MALAYSIA CATEGORY ANALYSIS


HEADLINES
Homeshopping sales remain negligible in Malaysia in 2015.

TRENDS
Homeshopping remains insignificant in Malaysia, with the channel continuing to lack
popularity and interest compared to internet retailing and store-based channels. Other than a
lack of public awareness, homeshopping also has lower accessibility, marginalising it further.
Homeshopping is expected to remain negligible in Malaysia over the forecast period, since
internet retailing is enjoying rapid growth, due to providing a wider product portfolio,
competitive prices, member discounts and home delivery, amongst other advantages.

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INTERNET RETAILING IN MALAYSIA CATEGORY ANALYSIS


HEADLINES
Internet retailing sales increase by 15% to reach MYR1,866 million in 2015
Internet retailing sees increasing popularity, due to the convenience the channel offers
3rd Party Merchants lead internet retailing in Malaysia, with a retail value sales share of 33%
in 2015
Internet retailing sales are expected to grow at a CAGR of 11% at constant 2015 prices over
the forecast period

TRENDS
In 2015, internet retailing witnessed strong current value sales growth of 15%, as it gained
popularity amongst consumers, due to the convenience it offers. The ability to purchase
products at anytime and anywhere without borders is appealing to consumers. Furthermore,
Malaysian consumers are keen to use internet retailing to make price comparisons, with
markdowns and special deals commonly offered online during certain periods of the year.
Malaysian consumers are increasingly trusting of internet retailing. This is particularly true of
younger, more technologically-savvy consumers. Nevertheless, store-based retailers are able
to retain consumer interest, due to offering consumers the chance to see, touch and interact
with products in person, prior to purchasing.
Consumer appliances, consumer electronics and media appliances all saw strong current
value sales growth in 2015, with consumers purchasing new products instantly online
following their release, in order to avoid long queues in stores and the possibility of products
selling out.
Most internet retailers offer free delivery for orders over a certain amount, with delivery usually
taking two to three days. Customers can generally choose from among a range of payment
options, including bank transfers, interbank transfers, PayPal, debit cards, credit cards or
even cash on delivery. Of these, credit card is the preferred payment option for most
consumers.
Mobile internet retailing continues to gain share, reaching a 12% share of overall internet
retailing value sales in 2015. Consumers often use mobile internet retailing to make instant
purchases, such as movie tickets or beauty products.

COMPETITIVE LANDSCAPE
3rd Party Merchants continue to lead internet retailing in Malaysia, accounting for a retail
value sales share of 33% in 2015, followed by Amazon.com Inc with a 14% share.
Amazon.com Inc experienced a two percentage point decline in retail value sales share from
2012 through to the end of the review period, as consumers purchased a wide variety of items

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through other websites, which were unavailable to purchase from local stores. Despite this, it
overtook Dell as the second leading player in the category in 2015.
As of 2015, Dell Asia Pacific Sdn Bhd is the third leading player in internet retailing in
Malaysia, on a retail value sales share of 14%. The company suffered a further one
percentage point loss of retail value sales share in 2015, which resulted in it losing second
position in the category to Amazon.com Inc. This was due to the rising popularity of other
brands, such as Apple and Lenovo, resulting in consumers increasingly switching away from
Dell products. Furthermore, other brands like MSI and Origin, that are not available in
Malaysia, are available through other internet retailers.
Internet retailers mainly look to differentiate themselves from the competition through pricing
strategy, wide product portfolios, high quality products, and customer service quality. Although
more store-based retailers are entering internet retailing in Malaysia, in most cases the online
sales portals of these players merely serve to complement their physical stores.
Malaysian consumers remain reliant on physical stores, being accustomed to trying out new
products prior to purchase and reluctant to purchase totally new brands with which they have
no previous experience over the internet. However, due to the poor economic climate in the
country, consumers increasingly compare store prices through the internet and purchase
them online if they can obtain a further price discount through this channel.
Tesco Stores (Malaysia) Sdn Bhd entered internet retailing in 2013, looking to meet consumer
demand for convenience. However, as it has an extensive outlet network in Malaysia, Tescos
online retailing platform will mainly serve to complement its physical stores and allow busier
consumers to shop at their convenience outside of regular opening hours.

PROSPECTS
Over the forecast period, internet retailing is expected to continue to see dynamic retail value
sales growth, with sales predicted to grow at a CAGR of 11% at constant 2015 prices. Due to
their hectic schedules, consumers will increasingly choose internet retailing, due to its
convenience and the offering of home delivery. Growing consumer awareness, trust and
acceptance of internet retailing will ensure the category continues to see strong positive
development.
Over the forecast period, consumer electronics internet retailing will be the strongest
performing category, with consumers looking to avail of the special discounts and point
rewards offered by internet retailers. This will be mainly driven by more technologically-savvy
young consumers.
On the other hand, apparel and footwear internet retailing will see much slower retail value
sales growth over the forecast period. Some consumers still prefer to purchase apparel and
footwear abroad, in order to obtain international brands that have a negligible presence in
Malaysia. Furthermore, marketing strategies are also important in gaining retail value sales
share.
Mobile internet retailing is expected to see continued strong development over the forecast
period, with sales predicted to grow at a CAGR of 25% at constant 2015 prices. This will be
underpinned by tablet and smartphone penetration rates continuing to increase. Malaysian
consumers are becoming increasingly reliant on their smartphones and tablets, making it
likely that they will embrace mobile internet retailing, as it offers the ability to browse and
purchase products immediately when they are available.
Over the forecast period, consumers will continue to look for cheaper products, as they look to
reduce their expenditure, while they will also increasingly seek convenience, due to their

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Passport

hectic schedules. Both of these factors will favour the continued positive development of
internet retailing in Malaysia.
Competition in internet retailing will become more intense over the forecast period, due to
more small-and-medium-sized players entering the channel, looking to gain retail value sales
share. Therefore, reputation will be important to leading players in attracting new consumers,
as well as retaining existing ones. Furthermore, value-added services and fast delivery will be
other factors that contribute to the growth of internet retailing in Malaysia, with consumers
attracted to the channel by its promise of convenience.

CHANNEL DATA
Table 126

Internet Retailing by Category: Value 2010-2015

MYR million

Apparel and Footwear


Beauty and Personal Care
Consumer Appliances
Consumer Electronics
Consumer Health
Food and Drink
Home Care
Home Improvement and
Gardening
Homewares and Home
Furnishings
Media Products
Personal Accessories
and Eyewear
Pet Care
Traditional Toys and
Games
Video Games Hardware
Other Internet Retailing
Internet Retailing
Source:

2010

2011

2012

2013

2014

2015

296.3
5.5
11.9
105.6
4.6
69.8
0.3
-

377.8
7.7
13.0
113.9
5.4
75.3
0.5
-

443.2
8.5
15.7
133.6
6.2
81.5
0.7
-

512.6
9.3
18.1
142.8
7.2
92.5
0.9
-

608.0
10.8
19.7
176.1
8.2
103.8
1.1
-

618.0
11.0
21.9
201.2
8.3
119.3
1.2
-

120.1
12.4

133.3
16.7

149.3
21.8

165.0
26.4

181.7
31.5

203.5
37.1

4.2
3.3

4.6
3.5

5.2
3.8

5.8
4.1

6.6
4.3

7.2
4.3

0.7
175.3
809.9

0.9
191.7
944.3

1.1
210.6
1,081.2

1.3
401.2
1,387.0

1.5
469.5
1,622.8

1.5
631.7
1,866.2

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 127

Internet Retailing by Category: % Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Apparel and Footwear


Beauty and Personal Care
Consumer Appliances
Consumer Electronics
Consumer Health
Food and Drink
Home Care
Home Improvement and Gardening
Homewares and Home Furnishings
Media Products

Euromonitor International

2014/15

2010-15 CAGR

2010/15 Total

1.6
2.2
11.4
14.3
0.6
15.0
7.7
12.0

15.8
15.0
13.0
13.8
12.4
11.3
34.5
11.1

108.6
101.2
84.4
90.6
79.1
70.9
340.2
69.5

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Personal Accessories and Eyewear


Pet Care
Traditional Toys and Games
Video Games Hardware
Other Internet Retailing
Internet Retailing
Source:

17.8
8.7
0.1
1.7
34.5
15.0

24.6
11.3
5.8
14.8
29.2
18.2

200.0
70.5
32.6
99.0
260.4
130.4

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 128

Internet Retailing GBO Company Shares: % Value 2011-2015

% retail value rsp excl sales tax


Company

2011

2012

2013

2014

2015

Rocket Internet GmbH


Amazon.com Inc
Dell Inc
Apple Inc
Others
Total

22.0
18.3
3.0
56.7
100.0

24.0
18.1
6.4
51.5
100.0

6.1
22.0
15.7
9.1
47.1
100.0

16.5
21.6
14.5
9.3
38.1
100.0

27.9
21.4
13.7
9.3
27.7
100.0

Source:

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 129

Internet Retailing GBN Brand Shares: % Value 2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)

2012

2013

2014

2015

3rd Party Merchants


Amazon
Dell
App Store
3rd Party Merchants
lazada
Apple.com
Zalora
Others
Total

15.6
18.1
5.6
8.4
0.9
51.5
100.0

1.9
14.3
15.7
8.4
7.7
4.1
0.7
0.2
47.1
100.0

10.7
14.0
14.5
8.6
7.5
5.4
0.7
0.4
38.1
100.0

25.1
13.9
13.7
8.7
7.5
2.3
0.6
0.5
27.7
100.0

Source:

Rocket Internet GmbH


Amazon.com Inc
Dell Inc
Apple Inc
Amazon.com Inc
Rocket Internet GmbH
Apple Inc
Rocket Internet GmbH

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 130

Internet Retailing Forecasts by Category: Value 2015-2020

MYR million

Apparel and Footwear


Beauty and Personal Care
Consumer Appliances
Consumer Electronics
Consumer Health
Food and Drink
Home Care
Home Improvement and
Gardening

Euromonitor International

2015

2016

2017

2018

2019

2020

618.0
11.0
21.9
201.2
8.3
119.3
1.2
-

648.9
11.7
24.1
247.5
8.6
134.4
1.5
-

678.8
12.4
26.2
295.3
8.9
151.9
1.7
-

713.6
13.2
28.4
339.4
9.1
172.4
1.9
-

749.6
14.2
30.6
398.4
9.3
196.4
2.0
-

787.4
15.2
31.7
470.6
9.5
223.9
2.0
-

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Homewares and Home


Furnishings
Media Products
Personal Accessories
and Eyewear
Pet Care
Traditional Toys and
Games
Video Games Hardware
Other Internet Retailing
Internet Retailing
Source:
Note:

Passport

203.5
37.1

221.8
42.8

241.5
47.4

262.9
53.5

286.0
58.9

310.9
64.8

7.2
4.3

8.1
4.6

9.1
4.8

10.0
4.9

10.9
5.2

11.5
5.4

1.5
631.7
1,866.2

1.5
734.7
2,090.2

1.6
850.9
2,330.5

1.7
975.8
2,586.9

1.8
1,095.1
2,858.5

2.0
1,209.4
3,144.4

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

Table 131

Internet Retailing Forecasts by Category: % Value Growth 2015-2020

% constant value growth, retail value rsp excl sales tax

Apparel and Footwear


Beauty and Personal Care
Consumer Appliances
Consumer Electronics
Consumer Health
Food and Drink
Home Care
Home Improvement and Gardening
Homewares and Home Furnishings
Media Products
Personal Accessories and Eyewear
Pet Care
Traditional Toys and Games
Video Games Hardware
Other Internet Retailing
Internet Retailing
Source:
Note:

2015/2016

2015-20 CAGR

2015/20 TOTAL

5.0
5.9
10.1
23.0
4.5
12.7
26.5
9.0
15.1
12.9
5.2
3.5
16.3
12.0

5.0
6.7
7.7
18.5
2.8
13.4
11.0
8.8
11.8
9.8
4.6
6.2
13.9
11.0

27.4
38.3
44.7
133.9
14.6
87.7
68.9
52.8
74.4
59.9
25.3
35.1
91.4
68.5

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms.

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VENDING IN MALAYSIA - CATEGORY


ANALYSIS
HEADLINES
Vending sales grow by 3% to reach MYR328 million in 2015
Vending faces growing competition from modern grocery retailers
Coca-Cola Bottlers (M) Sdn Bhd continues to lead vending, with a retail value sales share of
34% in 2015
Vending sales are expected to grow at a CAGR of 1% at constant 2015 prices over the
forecast period

TRENDS
The rapid expansion of modern grocery retailers, especially convenience stores, continued to
have an impact on vending sales in 2015. This is mainly because modern grocery retailers
provide quick checkout times and also offer wide product variety. Players such as 7-Eleven
are also enthusiastic in gaining exclusive new product launches, while Tesco continues to
offer special discounts to attract its members to buy in bulk quantities.
Vending saw slower current value sales growth of 3% in 2015 compared with the CAGR of
5% recorded over the review period. While vending continues to see strong competition from
modern grocer retailers, vending still attracts consumers at specific locations, such as within
tourist attractions or large factories, where staff eat meals inside the plant.
Packaged drinks vending, which includes soft drinks, saw more dynamic current value sales
growth than hot drinks vending in 2015. Soft drinks are the most common drinks in Malaysia,
proving particularly popular as a thirst-quencher during warm weather. The growing
accessibility of packaged drinks vending machines at public areas, such as train stations,
shopping malls and tourist attractions, further contributed to the categorys performance in
2015.
In Malaysia, vending machines are located in places with high traffic flow, such as shopping
malls, train stations, and tourist attractions. Semi-captive locations, such as schools and
hospitals, are also popular. Such placement is intended to drive impulse purchases amongst
consumers looking for snacks or drinks for refreshment purposes or to ward off hunger pangs.

PROSPECTS
Vending in Malaysia is expected to see relatively slow sales growth over the forecast period,
with a CAGR of 1% at constant 2015 prices predicted. Modern grocery retailers, such as
hypermarkets and convenience stores, which offer high accessibility and a wider product
portfolio, will continue to represent strong competition for vending. As a consequence,
vending machine operators will need to monitor competitors prices to ensure they retain their
customer base.

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Pricing will be the most important factor driving vending in Malaysia over the forecast period
to 2020. This is because the cheapest drink offered in some machines stands at MYR1 per
can, compared with other drinks that cost between MYR1.50 and MYR3. The weak economy
is driving consumers to be smarter and more calculating in their spending.

CHANNEL DATA
Table 132

Vending by Category: Value 2010-2015

MYR million

Packaged Drinks
Personal Hygiene Products
Packaged Foods
Tobacco Products
Hot Drinks
Traditional Toys and
Games
Other Products Vending
Vending
Source:
Note:

2010

2011

2012

2013

2014

2015

176.1
-

185.5
-

197.3
-

213.2
-

231.3
0.0
-

235.5
0.0
-

84.5
260.6

88.6
274.1

92.2
289.6

90.5
303.8

85.8
317.1

92.4
327.9

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Table 133

Vending by Category: % Value Growth 2010-2015

% current value growth, retail value rsp excl sales tax

Packaged Drinks
Personal Hygiene Products
Packaged Foods
Tobacco Products
Hot Drinks
Traditional Toys and Games
Other Products Vending
Vending
Source:
Note:

2014/15

2010-15 CAGR

2010/15 Total

1.8
0.1
7.7
3.4

6.0
1.8
4.7

33.7
9.4
25.8

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Table 134

Vending GBO Company Shares: % Value 2011-2015

% retail value rsp excl sales tax


Company

2011

2012

2013

2014

2015

Coca-Cola Co, The


Thai Beverage PCL
Fraser & Neave Ltd
Others

34.3
29.7
36.0

34.0
30.0
36.0

33.7
30.4
35.9

33.9
30.7
35.4

34.1
30.8
35.1

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Total
Source:
Note:

100.0

100.0

100.0

100.0

100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Table 135

Vending GBN Brand Shares: % Value 2012-2015

% retail value rsp excl sales tax


Brand
Company (GBO)

2012

2013

2014

2015

Coca-Cola
F&N
F&N Coca-Cola
F&N
Others
Total

34.0
30.0
36.0
100.0

33.7
30.4
35.9
100.0

33.9
30.7
35.4
100.0

34.1
30.8
35.1
100.0

Source:
Note:

Coca-Cola Co, The


Thai Beverage PCL
Coca-Cola Co, The
Fraser & Neave Ltd

Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Table 136

Vending Forecasts by Category: Value 2015-2020

MYR million

Packaged Drinks
Personal Hygiene Products
Packaged Foods
Tobacco Products
Hot Drinks
Traditional Toys and
Games
Other Products Vending
Vending
Source:
Note 1:
Note 2:

2015

2016

2017

2018

2019

2020

235.5
0.0
-

249.6
0.0
-

265.7
0.0
-

279.0
0.0
-

296.7
-

315.5
-

92.4
327.9

82.9
332.5

69.8
335.5

58.9
337.8

42.5
339.2

24.4
339.9

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Table 137

Vending Forecasts by Category: % Value Growth 2015-2020

% constant value growth, retail value rsp excl sales tax

Packaged Drinks
Personal Hygiene Products
Packaged Foods
Tobacco Products
Hot Drinks
Traditional Toys and Games
Other Products Vending
Vending

Euromonitor International

2015/2016

2015-20 CAGR

2015/20 TOTAL

6.0
4.2
-10.3
1.4

6.0
-23.4
0.7

34.0
-73.6
3.6

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Source:
Note 1:
Note 2:

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.

Euromonitor International

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