Higher income shoppers are focusing on value, while low-income shoppers are prioritising purchases.
Malaysia’s FMCG market is expected to become more polarised, due to the distinct behaviour demonstrated by different income groups in response to the market dynamics.
For example, despite paying more, high-income shoppers’ baskets are shrinking faster which means they’re focusing more on cutting down their repertoire and spending on products that they perceive to be more valuable. Low-income shoppers, on the other hand, are forced to pay the inflated prices, which will lead them to prioritise spending on essentials or look out for cheaper alternatives to cater to their needs.
This means that there’s no ‘one size fits all’ strategy for product offerings, the messages to be communicated, media buying, in-trade strategy and so on. Different shopper groups and profiles will be triggered by different reasons to buy. Knowing who their shoppers are, and who they are talking to, can help brands to strategise and execute successfully by leveraging the different needs they have from the category.
