“Malaysia is a natural market for us to enter into”: Coles GM for exports
Coles has officially entered Malaysia, where it is poised to offer more than 200 products through an exclusive collaboration with Malaysian supermarket chain Jaya Grocer.
The deal will allow Jaya Grocer to offer over 1000 products from Australian brands through its 43 stores and via GrabMart delivery nationwide.
Jaya Grocer’s deputy CEO, Daniel Teng, and Coles’ general manager of exports and fresh food commercials, Will Mulholland, sealed the deal at a symbolic ceremony at Jaya Grocer Starling Mall, witnessed by the Australian Deputy High Commissioner to Malaysia, Clare Gatehouse.
Teng described the partnership as a strategic decision to serve the large community of Australian expats living in Malaysia, while Mulholland said the region is an important one for Coles.
“South East Asia is an overall important market for us and the initial launches in neighbouring countries made Malaysia a natural market to enter into,” Mulholland told Inside Retail.
He went on to say that Coles is excited about Jaya Grocer’s partnership withGrabMart as well, as it gives customers an omnichannel experience, whether they’re purchasing pantry essentials, or the occasional late-night snack.
Mulholland believes that Coles can differentiate itself in the Malaysian marketplace by emphasising its positioning as a trusted brand, and delivering great quality and innovative products to customers.
“We believe in inspiring customers and part of that is leading anytime, anywhere, anyhow shopping – quick commerce deliveries like GrabMart is one such example of that,” he elaborated.
The details
According to Mulholland, Coles, in collaboration with Jaya Grocer and GrabMart, plans to offer an exceptional range of Australian products that reflect the high-quality ingredients and flavours of Australia.
“Through this partnership, Coles grants Jaya Grocer and GrabMart exclusive rights in West Malaysia to our renowned and award-winning own-brand range, encompassing over 1,500 products across grocery, dairy, and liquor categories,” he added.
The items range from popular products, such as Australian cheese, UHT milk, honey and rice crackers, through to Coles Ultimate Choc Chip Cookies and Coles Nut Bars.
Mulholland reiterated that Coles is committed to understanding and meeting the preferences and tastes of Malaysian consumers. The company will collaborate closely with its partners to tailor its product range to the Malaysian market.
“Our goal is to provide a diverse selection of products that not only resonate with and delight Malaysian consumers but also introduce them to new and exciting offerings, as well as an opportunity to ‘Explore the Australian Way’,” he added, referring to Coles’ tagline.
Exciting times ahead
“While specific details regarding the rollout timeline and initial launch locations are not available at this time, we are confident that the Malaysian market will experience an enhanced shopping experience through our collaboration,” he said.
He explained that Coles aims to unlock the full range of its own-brand products through the partnership, offering a wider variety and higher quality selection for Malaysian consumers.
“Additionally, the online presence provided by Grab presents a fantastic opportunity for easier accessibility to Coles products, allowing more consumers to try and enjoy them,” he stressed.
He emphasised the fact that this is a long-term play for Coles, and it has been working on introducing its brand to the Malaysian market for some time.
“Coles has invested significantly in developing our Coles Own Brand capabilities and product ranges, and through our partnership with Jaya and GrabMart we will be bringing these award-winning ranges to consumers in Malaysia,” he said.
Ultimately, Mulholland stated that Coles aspires to be a go-to household brand in Malaysia, as this aligns with the company’s strategy of expanding through new markets and growing through partnerships.
Malaysia’s macroeconomic outlook
In a related development, Retail Group Malaysia recently released its industry report for June, which showed that total retail sales in the first quarter of 2023 were 13.8 per cent higher than the same period last year, which was better than expected.
The strong growth rate was reportedly driven by Lunar New Year celebrations in January, as well as the school holidays in February and March. The report noted that shopping traffic has returned in all major shopping malls across the country.
Nonetheless, the purchasing power of most Malaysians dropped due to higher costs of living, so more consumers were looking for discounts being offered by retailers and food and beverage operators.
Malaysia’s inflation rate has remained steady at 3.9 per cent, but GDP dropped to 5.6 per cent in the first quarter of 2023, compared to 7.0 per cent in the fourth quarter of 2022. The consumer sentiment index also dropped to 99.2 per cent in the first quarter of 2023.
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