Malaysians Dive into Digital Spending for Aidilfitri: Embracing Local Brands
KUALA LUMPUR – With Hari Raya Aidilfitri drawing near, a recent survey conducted by market research company Milieu Insight reveals that Malaysians are progressively leaning towards cashless payments, online shopping, and supporting local brands as they prepare for the celebrations.
The research, carried out with 501 Malaysians over the age of 16, revealed that although conventional practices like family get-togethers and exchanging gifts continued to be important, factors such as convenience, cost efficiency, and digital payment methods influenced contemporary purchasing behaviors.
According to Milieu Insight’s findings released in a press statement, Malaysians are shifting toward cashless payments, with 53 percent preferring e-wallets over cash when buying festive attire. The primary factors driving this change include convenience and enhanced security.
In the meantime, Buy Now, Pay Later (BNPL) services are becoming increasingly popular, especially amongst younger customers.
The study indicates that 18 percent of Malaysians, particularly those from the younger generation, are embracing BNPL as a versatile payment option according to the report.
E-commerce remains dominant during festive seasons, with 83 percent of Malaysians preferring platforms like Shopee for purchasing their Raya necessities.
Moreover, 33 percent are shifting towards social commerce platforms such as TikTok Shop, attracted by the interactive and engaging aspect of live shopping sessions.
Initial Purchasing Habits and Brand Choices
The survey further reveals that Malaysians are beginning their Raya preparations sooner compared to previous years.
"According to the survey, out of those purchasing clothes for Hari Raya, 36 percent initiate their shopping in March, whereas 23 percent start as early as January or February," it stated.
Surprisingly, 18 percent have already finished their holiday shopping, and 22 percent plan to recycle outfits they already own rather than purchasing new clothes.
Brand allegiance continues to be robust, yet there is an increasing receptiveness towards alternative choices.
Although 38 percent of customers—including many from Generation Z—are venturing into trying out new brands this year, 37 percent still favor well-known labels.
The study pointed out that "a substantial 60 percent of Malaysians favor domestic brands when making purchases, indicating an increasing admiration for local artisanship, genuine cultural elements, and sustainable economics."
Budget-Conscious Spending
As Malaysians gear up for Raya, they are prioritizing quality rather than quantity in their expenditures.
Our research indicates that 25 percent of consumers plan to allocate between RM101 and RM200 for new attire, whereas 26 percent intend to set aside RM201 to RM300 for hampers and presents.
As more people opt for digital transactions and online shopping, Milieu Insight noted that companies need to adjust to shifting customer habits.
The survey found that for businesses aiming to connect with Malaysian consumers, they should embrace digital-focused approaches like offering early-bird discounts, user-friendly online shopping sites, and versatile payment methods.
