Identifying the top retail chains in Malaysia where you can sell your products is relatively easy. Approaching and convincing them is a much bigger challenge.
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.
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.
Alfred Griffioen, founder of Exporteers
In the past 15 years me and my colleagues have approached hundreds of agents, distributors, importers and retailers worldwide for brand owners aiming to sell their products abroad. In 2012 a call was enough to get a meeting. Today, you first have to send your pitch — and then hope that someone will answer.
The distributors needed to reach your clients already work with your competitors. They have invested in marketing, stock and sales, and they are making money. Asking them to switch to you means asking them to start all over again.
My experience is that if you only send a website or product catalogue, answers are rare. Numbers make the difference. Show expected volumes, margins, sales effort and investment. Show that there is a business case for them, not just for you.
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.
We 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.
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:
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.