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Overview of Malaysia FMCG Retail Scene – Modern Trade

by Master Fool

If you are not familiar with the FMCG retail scene here in Malaysia, this would be a great read for you to gain some insights into how does the FMCG retail in Malaysia works. What I’m about to cover would be an overview into Malaysia’s FMCG retail scene that helps you to understand better about the Malaysia market if you are not from Malaysia or not familiar with the industry. Malaysia’s FMCG retail scene is pretty diverse and very different compared to even her neighbor Singapore.

To begin with, Malaysia’s FMCG retail scene is mainly divided into 2 main channels. The GT channel (also known as General Trade and MT channel (also known as the Modern Trade). Within these 2 main channels, there are splits of different types of retail establishments depending on how each company classifies them. Most companies here in Malaysia especially those MNC or Multinational companies such as  Nestle, Unilever, Colgate would follow the definition classified by Nielsen Malaysia. Nielsen Malaysia is a research company that provides data inputs on the brand’s market share in Malaysia’s FMCG retail scene. However, what I will be sharing may differ from Nielsen’s definition and are the observations I have over the years of working in this industry

Under the Modern Trade channel, the a few of the various types of retail establishments found under this channel are as follows but a quick definition of what retail establishment classifies under the Modern Trade channels are retail outlets with a proper buying system and headquarters that control all its branches under one umbrella. I won’t go into detail on what defines these retail establishments but would name a few of the outlets instead. Here are some of the retail outlets and types of retail establishments under Modern Trade.

Modern Trade – Hypermarket

Modern Trade Hypermarkets are typically outlets with a huge layout and well organised display. Retailers found under this type of retail establishment are such as Giant, Tesco, Aeon Big, Mydin, Econsave

Modern Trade – Supermarket

Modern Trade Supermarket are similar with hypermarkets except they have a smaller selling space. Retailers found under this type of retail establishment are such as local retailers such as Sunshine Group, TF Value, Jaya Grocer along with international key chains such as Giant, Tesco, Aeon, Aeon Big which also has supermarket formats under their umbrella

Modern Trade – Minimarket

Modern Trade Minimarkets also have the similar setup as a hypermarket and supermarket. However, one distinguishing factor of mini market is not only is would the selling space be smaller, these retail outlets may or may be air-conditioned. A difference with the hypermarket and supermarket, as both previous store formats must be air-conditioned to be considered  either a hypermarket or supermarket. Retailers found under this type of retail establishment are such as 99 Speedmart and KK Mart

Modern Trade – Convenience Store

Modern Trade Convenience stores or also known as CVS in short are outlets with 24 hour services. Pretty easy to identify compared to the rest of the other store formats. Retailers found under this type of retail establishment are such as Family Mart, 7-Eleven, MyNews and gas stations with retail outlets such as Shell, Petron, Petronas to name a few.

Modern Trade – Pharmacy / Drugstore

Modern Trade Pharmacy are outlets that sells a wide range of health and beauty products along with over the counter medicines. Retailers found under this type of retail establishment are such as Guardian, Watsons, Caring Pharmacy

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