Ninja Mart: FMCG brands should pay attention to untapped rural markets

PETALING JAYA: Fast-moving consumer goods (FMCG) brands should pay attention to the untapped markets of rural Malaysia, said Ninja Mart.

It said that despite the rise of modern retail and e-commerce, local small businesses still play a crucial role in rural communities.

“These traditional trade stores have been serving their communities for generations, and rural consumers typically still lack access to modern shops and e-commerce opportunities which leads to very limited access to a variety of goods.

“FMCG products such as F&B, home improvement items, and sanitary and health related products are essential to the survivability of rural communities,” it said.

Additionally, it noted that while urban areas have thrived, rural consumption is still a prominent aspect of the Malaysian economy whereby about 22% of Malaysians live in rural areas.

Ninja Mart pointed out that although there is positive growth in consumption in rural areas, the next important step is to bridge this rural urban gap to ensure that traditional trade stores and brands alike can thrive together.

On challenges, it said that distribution of FMCG products in rural areas pose several challenges for brands, namely the distribution landscape in these areas heavily relies on wholesalers and stockists who provide limited distribution support, there is often a lack of visibility on stock inventory for each store, rural areas have a strong emphasis on personal relationships in business transactions.

In order to connect with rural shops and retailers as well as to extend their footprint, it said that FMCG brands have started to explore new partnership opportunities with third-party distributors.