05_Preread_StoreStrategy

Specific market insights: Malaysia

Key competitive pressure

Potential response strategy

Price Sensitivity and Value-Seeking Behavior Malaysian consumers remain highly price-sensitive, especially in the mass market segment

Promotions and loyalty programs to attract and retain customers

Competition from lower-priced players such as Econsave and discount stores like Mr. DIY

►

25%

36%

18%

23%

2019

2019

2024

2024

E-commerce and Omnichannel Competition

Keep adopting omnichannel model mobile app + website + physical stores’ “Click & Collect” + express delivery

The rapid growth of e-commerce platforms is reshaping the retail landscape

Shopee and Lazada have gained significant market share, challenging traditional brick-and-mortar retailers

Retail E-Commerce 16.5% 2019-24 CAGR

Retail offline 2.0% 2019-24 CAGR

►

5.6%

1.0%

2019

2024

Technological Innovation and Personalization

Implementing rewards systems and AI-driven customer engagement through apps and social media marketing

Advancements in technology are raising consumer expectations for personalized shopping experiences

► Major retailers are investing in AI-driven product recommendations and mobile loyalty apps to enhance customer engagement

Mall Saturation and Retail Format Shifts

Experiential retail, such as in-store

Malaysia has a high retail space per capita, leading to intense competition among malls

skincare consultations, and setting up pop-up stores in high-traffic areas

► Urban malls like Mid Valley and Pavilion compete fiercely for tenants and foot traffic

25

Source: broker reports, public articles

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