Retail in Asia

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Malaysia: Local retailers face stiff competition from abroad

The influx of foreign retailers have brought it more choice for consumers and more competition for the local retail scene, according to independent retail research firm Retail Group Malaysia managing director Tan Hai Hsin.

“For example, the arrival and expansion of the likes of Zara and Cotton On have affected sales of local national chain fashion retailers such as Padini, Voir, Nichii, YFS. The expansion of these foreign retailers has also affected sales of other foreign retailers who have established themselves in Malaysia since the 1990s, including Giordano, Hang Ten, G2000,” he told SunBiz recently.

He said buying fashion items from local and overseas online stores are also becoming popular and this has affected brick-and-mortar fashion stores as well.

“The liberalisation of the Malaysian retail sector in recent years continues to encourage more foreign retailers to invest and set-up their retail stores within shopping malls in Malaysia.”

New fashion retailers opened first outlets in Malaysia during the last two years include Blackbarrett, Desigual, MCM, Tory Burch, Halston, Pisidia, Under Armour, Piquadro, Palladium, SPAO, MIXXO, WHO.A.U.

New food and beverage outlets that opened first outlets in Malaysia in the last two years include Nana’s Green Tea, Johnny Rockets, Red Lobster, Fatburger, Quiznos, Jamaica Blue, Longhorn Steakhouse, Olive Garden, Coco Ichibanya, t-Lounge, Ilao Ilao, 4Fingers.

Other overseas retailers that opened their first store in this country include Spotlight, Hamley’s, innisfree, Kare, Index Furniture Mall, HomePro, Tony Moly, Yubiso and several others.

(Source: The Sun Daily)