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Gearing up for 2011: Malaysia


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A year of Exchange, Expectations and Experience for Malaysians. Prepared by SMG Malaysia

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Gearing up for 2011: Malaysia

  1. 1. Gearing up for 2011A year of Exchange, Expectations andExperience for Malaysians January 2011
  2. 2. Three key overlaying themes emerge that will shapeand shift consumers and business behaviorsExchange Expectations Experience 2
  3. 3. EXCHANGEtakes on new forms in the minds of Malaysians, manifesting in bothvirtual and physical worlds between more parties, opening up newpossibilities while spurring growth in other industries 3
  4. 4. “Like” the new word of mouth Word-of-mouth advertising is taking a new level. Promoting a brand, a product, an occasion, a comment, even a trend has never been easier. In addition, it‟s even easier to get comments and people to „like‟ a certain item. Today more and more people „like‟ almost everything that they feel or deserved to be liked. The social media space has made people more „verbal‟ digitally than before. It‟s easy to „like‟ than to make a fullDuring the World Cup 2010, Barrack Obama posted on his FB comment. More and more people are using „like‟ as astatus to wish the U.S. soccer team, and instantly he received vote measurement or simply to show acceptance.27,000+ „likes‟. According to Wikipedia, „Like‟ refers to a fondness for something or someone. Like is positive. If we see many people like a certain thing, there must be something „right‟ about it. The „Like‟ button has enjoyed its fair share of limelight and whether on the social media universe or during real world interactions, it has become a commonly used word, traded like a currency of intent by brands, products and consumers. „Like‟ has given rise to a whole new Exchange of information while facilitating easy participation. Is it time to take do quick review of your Facebook account and see how many „Likes‟ you have given? 4
  5. 5. Social Commerce hits mainstreamMiniprenuers evolves into Socialpreneurs Social commerce is a subset of e-commerce that involves using social media, online media that supports social interaction and user contributions, to assist in the online buying and selling of products and services. In the next 12 months, social commerce may be gaining further inroads in Malaysia. Miniprenuers who have initially relied on platforms like Ebay, Mudah, 701 panduan, forums to blogs selling clothes and shops and then tagging you on Facebook pages have more options and a larger community to tap into now. Collaborative e-commerce tools are now readily available to be launched and help manage a storefront on existing social networks like Facebook, which will be further spurred on by peer generated advertorial content. Such tools may push e-commerce to a new level that could possibly see more mainstream interest driving new online shopping behaviors. Value and Information Exchange will increase tremendously online. Expect to see a shift from the existing fashion blogs opening up proper shop front with wider payment solutions to further extend their reach.Picture from 5
  6. 6. Driven by need, not demandBrands go direct Brands like AirAsia, Dell, DiGi have always been reaching out directly to consumers yet this direct B2B2C relationship has always been limited to brands that are Brand B2C have built capacities to skip the middle intermediary like distributors/dealers. In a country like Malaysia where rising global Consumer Consumer consciousness has much exceeded national momentum, where consumers bemoan the lack of a change mindset here, and brands continue to rely on tried and tested distribution channels, consumers have C2C often been left to seek deals from distributors or grey importers. It is yet also this rising consciousness, a thrifty minded Asian mindset which will motivated the nation to seek better price transparency and wider choices. Expectations will be high on brands, and especially those more forward ones to plunge in and invest in new sales channels in an attempt to remain in the consideration set throughout the purchase funnel. New and more efficient distribution channels for Exchanges can be expected. 6
  7. 7. EXPECTATIONSare being set higher by consumers on businesses, by businesses onconsumers and even on oneself as everyone strives harder to stayrelevant in their own respective spaces. 7
  8. 8. NOWism It seemed like just yesterday when we were still looking at the „morning after‟ trend where an event will last longer than the actual party hours. People are starting to shift from posting pictures the next day from last night‟s party to posting in real time. Smartphones have enabled people to be able to snap a picture now, post it right away. NOWism has amplified fun in real time. According to Trendwatching 2011, NOWism is part of a larger social, cultural and technology trend towards greater spontaneity. This trend is not entirely new but it has surely taken over the „morning after‟ trend especially amongst the papparazzi generation. Why wait when you can share the fun now or tell the world where to find you in real time. Delayed responses gives way to our impatience. Expectations are being re- aligned. Real time pictures of your get-aways, events, parties, concerts, locations, gatherings and even feedback from your social universe. Opportunities exist for brands to jump in and capitalize on this! 8
  9. 9. Postal Delivery system sees an upgrade The growth of consumer to consumer transactions and exchanges physically will create the demand for a more cost efficient and transparent delivery system. Existing delivery services have constantly been under pressure to improve their services from more demanding consumers while lowering their costs. We believe that there will be significant investments made in the category which could be offset by growing scale of economies and also improved technological upgrades to infrastructure. This may also signal more entrants into the market, providing better delivery and collection methods creating a possible resurgence in courier services, essentially an upscaling of the snail mail to parcel deliveries. Expect lower delivery costs, more efficient systems, a nationwide advertising campaign touting better services, greater price transparency among the service providers. 9
  10. 10. Boys, move aside! Here comes the girls The latest Malaysian 2010 Census reported there is 105 males for every 100 females. While boys may tip the scale a little in terms of gender composition, the latest statistics on students enrolment in institutes of higher education from the Malaysian Ministry of Education shows that females make up 55.6% of total enrolment in 2010 up from 54.6% in 2007. Shifts are already slowly unraveling, where more educated women are flowing into the white collar workforce, filling in executive positions and becoming more empowered, at home and at work. With more control over their finances, more spending power and a growing variety of choices, expectations on their purchases can only get higher and definitely more demanding. This dynamic shift could mean a need to capture the greater opportunities presented for marketers, while signaling a relook at messaging and message delivery. Get ready to think about new products, new services and new advertising campaigns targeted specifically for this rising empowered group – cars just for ladies anyone? 10
  11. 11. EXPERIENCEwill be spurred on by new technologies, growing bandwidth demands,content and customised applications that may change or motivateconsumers to take on sporadically different media consumptionpatterns. 11
  12. 12. Group Clout, Friend or Foe of Retail? Group Clout has become a new retail trend. Now customers who are online are able to increase their individual buying power through communal purchases. This new retail trend creates „temporary‟ communities that are likeminded and together take advantage of group discounts made available either through bulk purchases or special one-off deals by the retailer. Retailers will also benefit from group buying by studying purchasing patterns and behaviors, what product works and what doesn‟t. Offers can also be used to push slower moving products or even hot items as „cash cow‟. Group buying has started to pick up momentum in Malaysia, mostly on restaurants and spa deals. We foresee more and more brands that will start to look at this opportunity. So logically speaking, Malaysians love discounts. Don‟t we all? Plus there is very low risk on group buying, because after all you are getting a good deal! You either buy it or don‟t. Two key consumer experiences will be the growth of a more regulated environment to pool resources together and a definite uplift in the endorsement of impulse purchases due to the limited timeframe on the deals. Also, expect to see more retailers from different categories to join in once they see the viability of this movement. 12
  13. 13. Move Over, FOURSQUARE Strangely, just when you think coupons are dead, they are back! Location based services (LBS) will continue to be huge in the 2011 and will become the modern day equivalent of a coupon book. Soon everyone will realize that how not very exciting is Foursquare is. How many badges do one need? Going to a place and check in. The more you check in, the higher chances you will become the mayor of that location, and perhaps get some benefits. Now isn‟t there a simpler way to earn these discounts? Malaysian have always been value focused and love coupons or vouchers. So imagine the next time you walk into your favourite store, you will receive a mobile coupon that entitles you to immediate discount off your favourite jeans. No more snipping and chasing for coupons and vouchers. No one really likes to carry them anyway. If you are a bargain hunter, now imagine you don‟t need to be seen on the aisle that says 70% off. Wouldn‟t that be a more uplifting and hassle-free Experience in itself? Foursquare is a nice location based social networking site, enjoy it while it last. 13
  14. 14. Interactive TV Experience will slowly but surely invadethe living room Interactivity here is about the living room TV Experience taking another big leap forward ever since the birth of the remote control by placing even more control and choice at the hands of the viewer. Increasing bandwidth will enable this experience in the living room, with the national rollout of fiber optic services from Unifi and Time. Options to build this experience includes : - • Over-the-top boxes (think ROKU, Apple TV, Google TV) by other grey manufacturers, especially those from China that links up to less regulated websites offering endless hours of Korean and TVB dramas on demand. • Other devices like XBOX 360, PS3 are also existing options • Internet enabled TVs where manufacturers are scrambling to build interfaces that integrate with content providers like YouTube and other video platforms. Possible tie ups with local providers like TonTon and Maadu may be something either content provider or product manufacturer may want to look at to gain first mover advantages. Implication: The opportunities and new spaces that emerge are vast. Imagine branded interactive experiences, instant product online search side panels, social support and endorsement systems that affect what you watch and consume. 14
  15. 15. Niche is the biggest mass In 2011, the Malaysian Digital Association reported that Facebook was the #1 site visited by Malaysians. With over 9 million users, accounting for every 1 in 3 Malaysians, one would have thought Malaysians have become “1Malaysia” in a homogenous way. The reality is the absolute opposite. As borders tumble, information flows freely, the dynamic influx has resulted in a plethora of unique social cliques – connected but distinct. From local Malaysian football fans to manga comic devotees, the rise of social media and the information highway have made it possible for people across the globe to find friends with the same passion or absorb new interests, experiencing meaningful and more diverse relationships, opportunities to delve deeper into certain subjects led by the opinion leaders who influences them in many more ways than it was possible in the past. For marketers, well-thought out objectives, deeper empathy into human understanding and a strong strategy could make or break a brand - no one solution fits all. 15
  16. 16. Sports and Patriotism Winners gain fans, and brands adore winners that wears their name like a badge. National sentiments was high with the celebration of the win of AFF Suzuki Cup, prompting PM Najib to announce a holiday. This may seem like an indication of how the country is in need of national heroes, in need of something additional to cheer for aside from the annual festivals. While there have been sporting heroes to emerge from Malaysia, like Badminton world no. 1, Squash Champions, Cycling and even weightlifting athletes, what‟s unfortunate is these sports do not share the same appeal as the massive spectator sports like football, motorsports or even basketball. Malaysians are in need of heroes, in need to feel the pride of national glory, to bask in positivity over their national heroes win. The AFF Suzuki cup win has certainly given much to celebrate and expectations have been stoked, reignited and showered with much more attention. While sports marketing has always been restricted to the major brands (Maxis, CIMB, Proton, 100 Plus) or the brands with a direct interest in the sports (PETRONAS and Motorsports) which has a regional presence, we believe that with the growing national appetite for success and more structured sports marketing specialist units, local brands may start to see the benefits of taking the lead in building goodwill with potential future heroes. 16
  17. 17. Wow, that‟s a lot. Let‟s figure out what it all means. The first few paragraphs of each slide detailsWhat Is changes/trends/emerging spaces taking place. Find the ones youHappening think most relevant and organise your thoughts around it.What Does Think about the overarching themes - Value Exchange, ManagingThis Mean for Expectations, Shaping Experiences and how your consumers look atPeople, your your brands, ways to stay ahead and maintain relevancy.consumersWhat Does Use these trends as thoughts starter or the reason for a relook atThis Mean for what else can we do more in 2011.Your Brand 17
  18. 18. Today, we want media to go beyond creating awareness. Reaching the right target at the right moment with the right message has always been what we do, but is it enough? Tomorrow, we want to engage our consumers of today. Facilitating a real exchange, meeting new expectations, and most importantly, delivering experiences that matters.Future proof your business today. Contact the human experience . people at +603 2059 2600 or email: Human Experience matters . 18