Acceptance of Local Product

Acceptance of Local Product Malaysia, with a population of around 27 million, is one of the most developed nations in Southeast Asia. About 61% of its population falls into the middle to upper income group of consumers with Gross Domestic Product (GDP) per capita income of over US$6,000. The introduction of economic reforms through New Economic Policy (NEP) has produced some notable achievements such as the emergence of several successful domestic products with international competitiveness. Local brands such as Air Asia, PETRONAS, MAS and Selangor Pewter have reflected some successful stories of local entrepreneurs competing in the global markets. In the view of food product, the Malaysian food and beverage market is becoming more and more sophisticated and is supplied by both local and imported products. The strong economic growth in the late 80’s and early 90’s contributed to major changes in consumer purchases and consumption patterns. Malaysians living in urban areas are relatively brand con scious, and they prefer to shop in stores, which offer them convenience and good product selections. Malaysia has a large and growing food retail market that is supplied by local and imported products. Due to rising prosperity and higher education level, Malaysian consumers have become more difficult and demand higher quality for the goods that they purchased. Supermarkets and hypermarkets are mainly located in the major urban centers and are continuing to grow in numbers. Foreign-owned retailers operating locally include Tesco and Carrefour, Makro, Dairy Farms International (owns Giant), and Jaya Jusco. These retail stores provide good venues for imported products and access to the middle and high-income sophisticated consumers. Pressure is mounting for local retailers such as The Store to maintain competitive prices and carry a good variety of products in order to keep up with the international players. Malaysian government has tried to solve this problem that consumers should buy local product to stimulate the nation’s economy. Malaysian’s consumer have to change our attitude in believing that imported things are superior to local goods. We have locally-made goods which are of similar value and quality. Actually a significant number of goods sold overseas, items such as TV, radio, air-conditioner, VCR, shirt, shoe and automobile are made in Malaysia. We should build up a culture where we do not automatically think that imported goods are of superior goods over local goods. Many goods marketed under famous brand names such as Christian Dior, Piere Cardin, Levis, etc are actually made in Malaysia under OEM manufacturing. (Norman Rajen Abdullah, 2009) Malaysian appears to be more confident of local products, judging from their rising sales at Mydin stores nationwide. Demand for these products, ranging from food to handicrafts and textiles made by small businesses, has grown steadily since 2006. Sales of products made by small and medium enterpris es (SMEs) have more than tripled to RM55 million in 2009 from 2006 This is projected to grow by another 18 per cent to RM65 million this year and hit RM80 million in 2011. He said it was important for local entrepreneurs to build a strong foundation for their businesses in the local market before going international market.