A year of Exchange, Expectations and

Experience for Malaysians

Gearing up for 2011

January 2011

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Three key overlaying themes emerge that will shape

and shift consumers and business behaviors

Exchange

Expectations

Experience

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takes on new forms in the minds of Malaysians, manifesting in both

virtual and physical worlds between more parties, opening up new

possibilities while spurring growth in other industries

EXCHANGE

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“Like” the new word of mouth

Word-of-mouth advertising is taking a new level.

Promoting a brand, a product, an occasion, a comment,

even a trend has never been easier. In addition, it‟s even

easier to get comments and people to „like‟ a certain

item. Today more and more people „like‟ almost

everything that they feel or deserved to be liked. The

social media space has made people more „verbal‟

digitally than before. It‟s easy to „like‟ than to make a full

comment. More and more people are using „like‟ as a

vote measurement or simply to show acceptance.

According to Wikipedia, „Like‟ refers to a fondness for

something or someone. Like is positive. If we see many

people like a certain thing, there must be something

„right‟ about it.

The „Like‟ button has enjoyed its fair share of limelight

and whether on the social media universe or during real

world interactions, it has become a commonly used

word, traded like a currency of intent by brands,

products and consumers.

„Like‟ has given rise to a whole new Exchange of

information while facilitating easy participation.

Is it time to take do quick review of your Facebookaccount and see how many „Likes‟ you have given?

During the World Cup 2010, Barrack Obama posted on his FBstatus to wish the U.S. soccer team, and instantly he received27,000+ „likes‟.

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Social Commerce hits mainstream

Miniprenuers evolves into Socialpreneurs

Social commerce is a subset of e-commerce that

involves using social media, online media that supports

social interaction and user contributions, to assist in the

online buying and selling of products and services.

In the next 12 months, social commerce may be gaining

further inroads in Malaysia. Miniprenuers who have

initially relied on platforms like Ebay, Mudah, 701

panduan, forums to blogs selling clothes and shops and

then tagging you on Facebook pages have more

options and a larger community to tap into now.

Collaborative e-commerce tools are now readily

available to be launched and help manage a storefront

on existing social networks like Facebook, which will be

further spurred on by peer generated advertorial

content.

Such tools may push e-commerce to a new level that

could possibly see more mainstream interest driving

new online shopping behaviors.

Value and Information Exchange will increase

tremendously online. Expect to see a shift from the

existing fashion blogs opening up proper shop front

with wider payment solutions to further extend their

reach.

Picture from www.yoursocialmove.com

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Driven by need, not demand

Brands go directBrands like AirAsia, Dell, DiGi have always been

reaching out directly to consumers yet this direct

relationship has always been limited to brands that

have built capacities to skip the middle intermediary

like distributors/dealers.

In a country like Malaysia where rising global

consciousness has much exceeded national

momentum, where consumers bemoan the lack of a

change mindset here, and brands continue to rely on

tried and tested distribution channels, consumers have

often been left to seek deals from distributors or grey

importers. It is yet also this rising consciousness, a

thrifty minded Asian mindset which will motivate the

nation to seek better price transparency and wider

choices.

Expectations will be high on brands, and especially

those more forward ones to plunge in and invest in new

sales channels in an attempt to remain in the

consideration set throughout the purchase funnel. New

and more efficient distribution channels for Exchanges

can be expected.

Brand

ConsumerConsumer

C2C

B2CB2B2C

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are being set higher by consumers on businesses, by businesses on

consumers and even on oneself as everyone strives harder to stay

relevant in their own respective spaces.

EXPECTATIONS

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NOWism

It seemed like just yesterday when we were still looking

at the „morning after‟ trend where an event will last

longer than the actual party hours. People are starting

to shift from posting pictures the next day from last

night‟s party to posting in real time.

Smartphones have enabled people to be able to snap a

picture now, post it right away. NOWism has amplified

fun in real time. According to Trendwatching 2011,

NOWism is part of a larger social, cultural and

technology trend towards greater spontaneity. This

trend is not entirely new but it has surely taken over the

„morning after‟ trend especially amongst the papparazzi

generation.

Why wait when you can share the fun now or tell the

world where to find you in real time. Delayed responses

gives way to our impatience. Expectations are being re-

aligned. Real time pictures of your get-aways, events,

parties, concerts, locations, gatherings and even

feedback from your social universe. Opportunities exist

for brands to jump in and capitalize on this!

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Postal Delivery system sees an upgrade

The growth of consumer to consumer transactions and

exchanges physically will create the demand for a more

cost efficient and transparent delivery system. Existing

delivery services have constantly been under pressure

to improve their services from more demanding

consumers while lowering their costs.

We believe that there will be significant investments

made in the category which could be offset by growing

scale of economies and also improved technological

upgrades to infrastructure. This may also signal more

entrants into the market, providing better delivery and

collection methods creating a possible resurgence in

courier services, essentially an upscaling of the snail

mail to parcel deliveries.

Expect lower delivery costs, more efficient systems, a

nationwide advertising campaign touting better

services, greater price transparency among the service

providers.

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Boys, move aside! Here comes the girls

The latest Malaysian 2010 Census reported

there is 105 males for every 100 females.

While boys may tip the scale a little in terms of

gender composition, the latest statistics on

students enrolment in institutes of higher

education from the Malaysian Ministry of

Education shows that females make up 55.6%

of total enrolment in 2010 up from 54.6% in

2007.

Shifts are already slowly unraveling, where

more educated women are flowing into the

white collar workforce, filling in executive

positions and becoming more empowered, at

home and at work. With more control over their

finances, more spending power and a growing

variety of choices, expectations on their

purchases can only get higher and definitely

more demanding.

This dynamic shift could mean a need to

capture the greater opportunities presented

for marketers, while signaling a relook at

messaging and message delivery. Get ready to

think about new products, new services and

new advertising campaigns targeted

specifically for this rising empowered group –

cars just for ladies anyone?

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will be spurred on by new technologies, growing bandwidth demands,

content and customised applications that may change or motivate

consumers to take on sporadically different media consumption

patterns.

EXPERIENCE

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Group Clout, Friend or Foe of Retail?

Group Clout has become a new retail trend. Now

customers who are online are able to increase their

individual buying power through communal purchases.

This new retail trend creates „temporary‟ communities

that are likeminded and together take advantage of

group discounts made available either through bulk

purchases or special one-off deals by the retailer.

Retailers will also benefit from group buying by studying

purchasing patterns and behaviors, what product

works and what doesn‟t. Offers can also be used to

push slower moving products or even hot items as

„cash cow‟.

Group buying has started to pick up momentum in

Malaysia, mostly on restaurants and spa deals. We

foresee more and more brands that will start to look at

this opportunity. So logically speaking, Malaysians love

discounts. Don‟t we all? Plus there is very low risk on

group buying, because after all you are getting a good

deal! You either buy it or don‟t.

Two key consumer experiences will be the growth of a

more regulated environment to pool resources together

and a definite uplift in the endorsement of impulse

purchases due to the limited timeframe on the deals.

Also, expect to see more retailers from different

categories to join in once they see the viability of this

movement.

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Move Over, FOURSQUARE

Strangely, just when you think coupons are dead, they

are back! Location based services (LBS) will continue

to be huge in the 2011 and will become the modern day

equivalent of a coupon book.

Soon everyone will realize that how not very exciting is

Foursquare is. How many badges do one need? Going

to a place and check in. The more you check in, the

higher chances you will become the mayor of that

location, and perhaps get some benefits. Now isn‟t

there a simpler way to earn these discounts?

Malaysian have always been value focused and love

coupons or vouchers. So imagine the next time you walk

into your favourite store, you will receive a mobile

coupon that entitles you to immediate discount off your

favourite jeans. No more snipping and chasing for

coupons and vouchers. No one really likes to carry

them anyway. If you are a bargain hunter, now imagine

you don‟t need to be seen on the aisle that says 70% off.

Wouldn‟t that be a more uplifting and hassle-free

Experience in itself?

Foursquare is a nice location based social networking

site, enjoy it while it last.

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Interactive TV Experience will slowly but surely invade

the living roomInteractivity here is about the living room TV Experience

taking another big leap forward ever since the birth of the

remote control by placing even more control and choice at

the hands of the viewer. Increasing bandwidth will enable

this experience in the living room, with the national rollout

of fiber optic services from Unifi and Time.

Options to build this experience includes : -

• Over-the-top boxes (think ROKU, Apple TV, Google TV)

by other grey manufacturers, especially those from China

that links up to less regulated websites offering endless

hours of Korean and TVB dramas on demand.

• Other devices like XBOX 360, PS3 are also existing

options

• Internet enabled TVs where manufacturers are

scrambling to build interfaces that integrate with content

providers like YouTube and other video platforms.

Possible tie ups with local providers like TonTon and Maadu

may be something either content provider or product

manufacturer may want to look at to gain first mover

advantages.

Implication: The opportunities and new spaces that

emerge are vast. Imagine branded interactive experiences,

instant product online search side panels, social support

and endorsement systems that affect what you watch and

consume.

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Niche is the biggest mass

In 2011, the Malaysian Digital Association reported that

Facebook was the #1 site visited by Malaysians.

With over 9 million users, accounting for every 1 in 3

Malaysians, one would have thought Malaysians have

become “1Malaysia” in a homogenous way.

The reality is the absolute opposite. As borders tumble,

information flows freely, the dynamic influx has resulted

in a plethora of unique social cliques – connected but

distinct.

From local Malaysian football fans to manga comic

devotees, the rise of social media and the information

highway have made it possible for people across the

globe to find friends with the same passion or absorb

new interests, experiencing meaningful and more

diverse relationships, opportunities to delve deeper into

certain subjects led by the opinion leaders who

influences them in many more ways than it was possible

in the past.

For marketers, well-thought out objectives, deeper

empathy into human understanding and a strong

strategy could make or break a brand - no one solution

fits all.

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Sports and PatriotismWinners gain fans, and brands adore winners that wears

their name like a badge.

National sentiments was high with the celebration of the win

of AFF Suzuki Cup, prompting PM Najib to announce a

holiday. This may seem like an indication of how the country

is in need of national heroes, in need of something

additional to cheer for aside from the annual festivals. While

there have been sporting heroes to emerge from Malaysia,

like Badminton world no. 1, Squash Champions, Cycling and

even weightlifting athletes, what‟s unfortunate is these

sports do not share the same appeal as the massive

spectator sports like football, motorsports or even

basketball.

Malaysians are in need of heroes, in need to feel the pride of

national glory, to bask in positivity over their national heroes

win. The AFF Suzuki cup win has certainly given much to

celebrate and expectations have been stoked, reignited and

showered with much more attention.

While sports marketing has always been restricted to the

major brands (Maxis, CIMB, Proton, 100 Plus) or the brands

with a direct interest in the sports (PETRONAS and

Motorsports) which has a regional presence, we believe that

with the growing national appetite for success and more

structured sports marketing specialist units, local brands

may start to see the benefits of taking the lead in building

goodwill with potential future heroes.

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Wow, that‟s a lot. Let‟s figure out what it all means.

Think about the overarching themes - Value Exchange, Managing

Expectations, Shaping Experiences and how your consumers look at

your brands, ways to stay ahead and maintain relevancy.

What Does

This Mean for

People, your

consumers

The first few paragraphs of each slide details

changes/trends/emerging spaces taking place. Find the ones you

think most relevant and organise your thoughts around it.

What Is

Happening

Use these trends as thoughts starter or the reason for a relook at

what else can we do more in 2011.

What Does

This Mean for

Your Brand

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Human Experience matters .

Today, we want media to go

beyond creating awareness.

Reaching the right target at the

right moment with the right

message has always been

what we do, but is it enough?

Tomorrow, we want to engage

our consumers of today.

Facilitating a real exchange,

meeting new expectations, and

most importantly, delivering

experiences that matters.

.Future proof your business today.

Contact the human experience

people at +603 2059 2600

or email:

youli.hooi@my.smvgroup.com