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It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.
In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.
Our local consultant will help you find the right distributors or retailers and convince them to work with you.
Malaysia has a population of about 33 million as of 2023. Known for its diverse culture, Malaysia is a melting pot of Malay, Chinese, Indian, and indigenous cultures.
Malaysia’s economy, with a GDP per capita around $11,400 USD in 2023, is well-diversified. Major sectors include manufacturing, especially electronics and automotive; palm oil and rubber production; and services, including tourism and finance.
The country’s main imports include electronics, machinery, petroleum products, plastics, and vehicles, supporting its diversified economy.
Major cities include Kuala Lumpur, the dynamic capital and economic center; George Town, known for its colonial architecture; and Johor Bahru, a rapidly growing urban area.
In Malaysia, some of the leading supermarket and hypermarket chains include AEON, AEON BiG, Lotus’s (formerly Tesco), Giant, and MYDIN.
AEON, a major player in the retail sector, operates both supermarkets and shopping malls across Malaysia and AEON BiG, emerging from the rebranding of Carrefour, provides a range of consumer goods in its hypermarket format.
Lotus’s, under the ownership of Thailand’s CP Group, offers a wide selection of products in its numerous stores.
Giant, a well-known name in the Malaysian retail landscape, offers both hypermarket and supermarket formats.
MYDIN caters largely to the Malay consumer market, known for its halal offerings and extensive reach across the nation.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
Where it comes to hotels, research shows that if you check these platforms, in 80% of the cases you have the lowest room rates.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:
Getting your products imported and delivered in a specific country can be a challenge. I have good experience with Tecex, who can act as your importer of record and even physical distributor. If you leave your details, they will contact you.
I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Be well prepared. All retailers expect you to prove why they are going to make more money with your product than with their current assortment. So you must know the competition.
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