Malaysia introduced the first restricted movement order on March 18, 2020 in response to the coronavirus outbreak. Restrictions on social and economic activities and movements have been issued nationwide and regionally for limited time periods since then up to the time of writing (July 2021)

The movement restriction order imposed restrictions in traveling beyond districts, and restaurants were only permitted to operate take-outs. Companies were required to work from home in general, with exception of certain companies that have obtained permission to resume in-house operations.
Let’s have a look at what changes are happening at retail stores during these restrictions?

We have gathered information from supermarkets and retailers that sell Japanese produce.
 

Prices for supermarket items have increased

There are Japanese supermarkets such as ISETAN and AEON that are located in Kuala Lumpur. There are also other high end supermarket such as Village Grover and Jaya Grocer that also have a wide selection of Japanese produce.

We interviewed Japanese supermarkets, local supermarkets, and health food stores about changes in the market before and after Covid and their prospects.

  Number of foreign visitors in 2020 have dropped by 50%~70% as compared to pre-pandemic when cross border travel was allowed back in 2019.

Relaxation of restrictions have increased number of store visits. Our stores in Kuala Lumpur are mainly currently comprised of local customers as the number of visits from foreign tourists and office workers have reduced significantly. Prices of purchases per visit have been on the rise even though number of visits have been on the low.

  Prices and volume of purchase per visit have been increasing even though number of visits are decreasing. Customers also tend to purchase large quantities each visit.

  Customers tend to buy essentials only. We also offer e-commerce service, and it has been on the rise despite sales at shopping malls have been decreasing.
 

Strong sales in non-perishable items

We interviewed them individually on their current best-selling food products.

  Japanese ramen, curry, microwavable rice packs are popular, We sometimes receive inquiries when these items run out of stock.

  Canned products such as oil, rice, and sardines. I am not in charge of alcoholic products, but I feel that sales of beer has been on the rise.

  Sales of drinks and biscuits have been good.

It is said that it is popular to store items that are easy to prepare and have a longer shelf life.
 

Which Japanese produce are popular even during Covid?

With many Japanese firms considering exporting Japanese sake into Malaysia, will these alcoholic beverages remain in demand during Covid?

  Sales of Japanese sake has been on the rise since December 2020. It is estimated that those who usually travel abroad during the year-end holidays who were unable to do so have decided to purchase Japanese sake to be enjoyed at home. There are some who have allocated some of their travel budget onto Japanese food products and alcoholic beverages.


We also asked about other items that could increase future sales figures in Malaysia.

  Japanese instant noodles are still not as popular as Korean brands and I feel that there are still areas of improvement, Spicy flavors are popular in Malaysia. If the instructions are simple and comes in a pack of 5 like how instant noodles are locally sold here, it would be a little more attractive to customers. Price is also a very important key player.
 

Summary

Trends of food products among Malaysian supermarkets during Covid.

• Shoppers in supermarkets tend to buy all at once during their visits.
• Sale of items that have longer shelf life such as curry, ramen and canned food are strong
• Sales of Japanese sake are expected to increase during the end of the year and during new year holidays. Japanese products can still have better sales channel development.

We hope this article is of assistance to Japanese food producers who are thinking of expanding into Malaysian market.
This report was prepared for the Sapporo Industrial Promotion Foundation.
 

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This article has been prepared in collaboration with ASIA INFONET (M) SDN BHD, provider in support services for food exportation from Japan. Main business profile

Consulting services for Japanese affiliated food companies in exports to Malaysia, marketing・business activity support.

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