Shopper Digest: Beyond Promotions

Malaysia’s inflation rate, recorded at 1.4% in March 2025, is expected to trend upward. This projection stems from volatile global economic conditions and recent domestic policy shifts. With electricity tariffs set to rise in July and fuel subsidies gradually phasing out in the latter half of 2025, market competition will intensify. As companies are likely to face increased costs, price hikes and reduced promotional frequency or depth may become necessary. In this context, how else can brands drive sales and grow their shopper base?

Shopper behaviour is evolving. Consumers today are more open to exploring a wider range of product categories compared to the past.

In April 2025, Malaysian shoppers bought an average of 53 categories—up from 49 in 2023. This expansion is especially evident in the food segment. The shift reflects changing needs: for example, liquid milk may be preferred over powdered milk for convenience, while rising purchases of chicken essence and cheese suggest increasing health awareness. Consumers are showing a willingness to spend when products meet their specific needs.

So, how can companies capitalise on this behaviour? How can brands encourage new shoppers to discover their products?

To harness this trend, companies must first identify the key triggers behind product purchases. Understanding what truly drives consumers’ decisions—and which needs matter most—is essential. By addressing these needs, brands can differentiate themselves and reduce reliance on price-based competition.

Traditional promotional tools like influencer campaigns and media advertising remain effective but are often costly. A more cost-efficient strategy may lie in leveraging adjacent categories to attract new shoppers. For instance, placing oral care displays near confectionery aisles can subtly suggest a connection between sweet consumption and dental hygiene—benefiting both categories. Some brands have already embraced this approach through “gift with purchase” offers, using related products to capture shopper attention.

But critical questions remain: Do we really understand the most influential needs of our shoppers? Which adjacent categories offer the greatest opportunity for growth?

At Worldpanel Division, we track shopper behaviour every four weeks, delivering key metrics—including penetration, frequency, basket size, and volume/value sales—so you can monitor performance trends at both category and brand level.

Source: P4 2025 database, Worldpanel Malaysia