Malaysians are Southeast Asia's most price-sensitive shoppers

The Nielsen Shopper Trends survey is an annual study on consumer shopping behaviour. In Malaysia, over 2,400 respondents aged 15-65 were surveyed between 1 November and 29 December last year via face-to-face interviews.

Malaysians, the study found, keep a close watch on grocery store prices, with 13 per cent of shoppers claiming to know all the prices of items they buy regularly. More than half (55 per cent) know the prices of 'most' items and actively track price changes. In 2009, only 46 per cent of shoppers kept such a close eye on store prices. Across Asia Pacific, India has the most price-sensitive shoppers.

The study also found that 86 per cent of hypermarket and supermarket shoppers in Malaysia were driven by retail promotions and 20 per cent say they will change stores in search of the best promotions. In Vietnam, the figure is 87 per cent, compared with the regional average of 68 per cent.

In Malaysia, store loyalty is entirely based on prices and not to the brand itself, noted the study. The number of shoppers who said they only visit one or two stores (53 per cent) plunged to 33 per cent this year. Now, 46 per cent visit three to six stores on a hunt for regular bargains.

"In an inflationary environment, shoppers are exercising more caution when it comes to spending on
everyday household items," said Teoh Choon Keat, associate director of retail measurement services, Nielsen Malaysia. The result, he added, is a loyalty crisis for retailers and manufacturers.

The intensified competition among hypermarkets translated into an increase in advertising spending
in newspapers over 2010, up 14.6 per cent year-on-year to US$42 million based on published rate cards, according to Nielsen’s Advertising Information Services.

"Retailers have had to develop more active strategies, such as cash vouchers, to protect or grow their market shares. Longer-term constructs such as rewards-based redemption programmes
may also help to build stronger shopper loyalty,” said Teoh

Overall, consumers are still spending the bulk of their money in hypermarkets (37 per cent) and supermarkets (33 per cent). However, they're not above visiting the corner grocery store or mini-market, with a third surveyed having visited such a store over the month before the survey. Spending in mini-markets is also increasing with six per cent of resondents, doubled from the year before, saying they actually spend more at mini-markets.

"The new outlets have made mini-markets more accessible by shoppers. Mini-markets are also very competitive in pricing and have simple store layouts. This emerging channel is going to become a strong force to contend with in 2011 and beyond,” said Teoh.