Introduction
Malaysia’s dependency on promotions has grown.
Worldpanel continuously tracks shoppers and their purchasing behaviour across more than 120 FMCG categories for in-home consumption. The panel consists of 4000 shoppers who continuously record their purchases using the Kantar Scope app on their smartphones.
One of the aspects we track from our panellists is how shoppers purchase in terms of promotions. Thus, we are able to see across time that shoppers in Malaysia are getting more promotion driven. Last year, 25.8% of value sales were spent on promotions but this has increased to 28.6% this year. Besides the value share increase, the promoted items share has increased from 20.0% to 21.6%, whereas the share of trips with promotions grew from 28.9% to 34.5%, and penetration of shoppers who have purchased on promotion increased from 93.6% to 97.5%.
We are also able to track the types of promotion mechanisms, thus showing which mechanisms shoppers favour more than others. There is strong growth for most of the promotion mechanisms but only three mechanisms grew their value share of total spend. Price-Offs remain the key promotional mechanism with 21.0% value share. However, Multi Promos and Products with Free Giftsgrew significantly to increase their value share along with Price-Offs.
Not only did more shoppers purchase their groceries through these mechanisms, but the number of trips shoppers go on to purchase via these promotion mechanisms has increased as well.
