Distribution Networks in Malaysia
Types of Outlet
- Department stores
- Foodstuffs, household items, furniture, clothes, games and toys.
Parkson, Mydin, Jaya Jusco, Metrojaya, Isetan, Sogo, Robinsons, Tangs
- Supermarkets and hypermarkets
Giant, Jaya Jusco, Tesco, Carrefour
- Local shops, minimarkets
- Shops with a limited range of products. Most of them are open 24/24, 7/7.
Mobil, Shell, BHP, Esso, Caltex, Petronas, 7-Eleven
- Street markets
- These traditonal markets take place in each residential district one night a week. They offer all sorts of products including fresh foodstuffs (fish, fruit and vegetables) as well as household items, clothes and costume jewelry.
Evolution of the Retail Sector
- Growth and Regulation
- The Chinese are commercially powerful and dominate the distribution network. Trade is the center of small family businesses and operates from a complicated structure of suppliers, entrepreneurs and sub-entrepreneurs.
The most influential persons in the economic activity are the public administrators, the Malaysian entrepreneurs (not many) and the Chinese entrepreneurs (who hold the most important private groups of the country).
To sell your products in the country you should call on importers/distributors (who may be a local company), foreign trading companies (which offer better specialization and more technical services than local companies) or medium sized local trading companies. Other alternatives are commission agents, setting up a representative office or making a local alliance with a Malaysian company; the last two are the most recommended options.
- Market Shares
- Supply stores: 85.7%, Chinese medical shops: 6.4%, groceries: 3.8%, drugstores: 2.7%, supermarkets: 1.3%, hypermarkets: 0.08%, cash and carry: 0.02%. Although hypermarkets, supermarkets and department stores are dominant in urban areas, local retailers and small traders represent 57% of the local market in terms of sales income. Hypermarkets represent 10% of total retail sales. Groceries and service stations represent about 9% of total retail sales and are located in the main urban centers.
- Organizations in the Retail Sector
Malaysia retailers association
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