Looking across the total Southeast Asia FMCG landscape, buoyant economic factors coupled with strong consumer confidence levels are fueling consumers’ willingness to spend, resulting in solid overall FMCG growth in the small buy mighty region.
Amidst shifting consumer and market landscapes, supermarkets continue to be the major retail player with grocery sales proving to be indispensable. Last year, supermarkets and hypermarkets contributed to 68.4% of retail sales share, setting a solid retail footprint. This is according to Nielsen’s 2019 Shopper Trends report, which examines grocery retail trends and changing shopping patterns, attitudes and behaviour.
With Southeast Asia’s (SEA) consumer goods market valued at almost US$100 billion, it is rapidly becoming a choice destination for growth opportunities. In 2018 alone, SEA registered sales value growth of +3.4% as compared to 2017, and this growth is nearly double of that for the previous year.
In Singapore, a positive monetary outlook is displayed. About 50% of Singaporeans believe they are better off than five years ago and with rising affluence among Singaporeans, locals have become attuned to premium products and are looking to more avenues to consume them.
There are fewer opportunities to convert a shopper to a sale while in-store. Retailers and manufacturers need to think very deeply about how to best influence each shopping experience to maximise the potential of a sale.
While online has been growing as a channel in several developed markets in recent years, it’s broadening in scope, and is fast becoming a popular shopping destination for consumers around the world, particularly those looking to purchase premium products, as these platforms are able to attract shoppers and generate sales by providing exclusive product ranges and compelling deals.
In Q4 2018, Malaysia's FMCG market grew by 4.9%. This growth did not come easily as companies had to work hard to find pockets of untapped growth. To unlock this potential, companies must answer two questions: Where to grow? And how to grow?
As companies look to break into new markets, they must understand that each market demands its own approach. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims.
Parents everywhere invest in countless resources to provide for their babies’ needs - from the type of milk fed to the brand of diapers purchased. As parents are often willing to spend on quality, these little consumers are providing big market opportunities.