KUALA LUMPUR: Malaysia will continue to be the key market for Philips Domestic Appliances in the Asia Pacific (APAC), and the company will continue to enhance product offerings to suit the growing number of Malaysian consumers.
Country manager (Singapore, Malaysia and Emerging Markets) Ipek Akinci said consumer buying behaviour in Malaysia has also seen a boom in e-commerce which is evident from the increasing number of online purchases, especially during the Movement Control Orders (MCO).
"Even today, as Malaysia is stepping into the endemic stage, this trend continues and is here to stay.
"We are focusing on continuing to strengthen our e-commerce channels for the more seamless and connected shopping experience for our consumers," she told The New Straits Times.
She said that, unlike pre-pandemic days when consumers juggled between work and life, the work-from-home (WFH) and hybrid work models will now be a norm for the future.
"This is an important consideration for us because our focus has always been to provide products which fulfil our consumers' changing preferences and tastes.
"We have seen increased sales across all our categories during the pandemic from 2019 to 2021 in Malaysia, with sales of air fryers (over 85 per cent), air purifiers (over 110 per cent), coffee machines (close to 80 per cent) and
stick vacuums (over 450 per cent).
"These are proof of how consumers seek healthy and convenient alternatives to improve their quality of life," Ipek said.
Looking at the concept of 'blended life', Ipek said people are adopting the hybrid working model, which leads them to emphasise their homes as they accept the permanent way of working.
She said people are seeking opportunities that provide them with the comfort of working remotely, and as a result, consumers are purchasing products to enhance their homes.
"We also believe that consumers have more disposable incomes because they could not travel overseas. So those who wanted to 'touch-and-feel' the products before buying, with fewer movement restrictions, are visiting retail stores and spending," she said.
Ipek said that despite the recent economic downturn attributed to the pandemic and other issues, the company had seen a significant boost in sales through e-commerce and digital platforms.
Ipek also pointed out that by 2025, the e-commerce channel is projected to account for more than 60 per cent of total retail in APAC.
"We are confident that with our forward-looking, innovative approach, we will be able to sustain our performance as the APAC region has the fastest growing and most prominent share of retail for e-commerce.
"For Malaysia, we are already focusing on strengthening our eCommerce and digital presence to ensure that we can provide Malaysian consumers with tailored solutions.
"To top this, almost all the APAC countries where we have a presence have seen a higher online shopping penetration than the global average, and it is growing rapidly," she said further.
Ipek also noted that Philips Domestic Appliances is one of the strongest small domestic appliances brands in Malaysia, with market dominance in the kitchen appliances (air fryer) and the garment care (irons) categories.
"We expect to continue to keep our leadership in these categories and grow in the floor care (vacuum cleaners) and air (air purifiers) categories.
"Pre-pandemic, the compounded annual growth rate (CAGR) in Malaysia was above 10 per cent and was slightly less during the pandemic. After that, however, there was a slight slowing down as offline still makes the bigger part of the total channel mix, and MCOs have impacted offline growth," Ipek noted.