SNS News : Consumers cautious on spending & Eating more ice cream

Consumers more cautious on spending
By YVONNE TAN

PETALING JAYA: The retail scene will remain competitive for the rest of the year as consumers become more cautious on spending their hard-earned money, according to Aeon Co (M) Bhd finance general manager Poh Ying Loo.

“At the same time, more retail outlets are being established. Everyone wants to capture a piece of the market,” he told StarBiz. Poh Ying LooHowever, all is not bleak as Poh believes the festive season, which coincides with the year-end, would help spur sales of Aeon, the operator of the Jusco chain of stores. “Normally, the year-end is also the festive season when consumer spending is traditionally higher compared with the earlier part of the year,” he added.

Poh believes that consumer spending sentiment should improve, going forward, in line with individuals’ increased standard of living.

“Sure, there are currently concerns over external macroeconomic factors such as inflation, which has dampened consumer buying, but we believe in the long term, as there is still potential for growth in this sector.''

He said Aeon differentiated itself by “developing quality and value products” when addressing competition from other retailers.

“We aim to provide a wide assortment of products at affordable prices,” Poh said. He said the company's target market was the residential market segment, or more generally, the middle-income consumer.

He also said the company spent about RM30mil last year on advertising and promotion activities. “This amount will be increased in line with the rise in our sales projection,” he said.

The festive season, which coincides with the year-end, will help spur retail sales“Jusco is an established name, having been in Malaysia for the past 22 years. Our strengths include the strategic locations of our outlets and our emphasis on customer service,” Poh said.

“Aeon’s recent success in finding reputable partners to take on the risk of owning the land and physical malls means that Aeon can more quickly expand and focus on its core retailing and property management strengths,” the research outfit said.

Meanwhile, The Store Corp Bhd is also positive on the retail sector in the near term.
Its group finance director Chang Yen Huei told StarBiz: “From now until December, there will be the Deepavali, Hari Raya and Christmas festive celebrations, which will undoubtedly give the retail sector a boost.''

Chang Yen HueiRetail activities are also expected to increase with the upcoming Chinese New Year in early 2007.

Chang said traditionally, this was the time of the year when retail sales were the highest. “The demand and supply in the retail market very much depend on the essential needs of the consumer. Hence, despite the circumstances, the prospects of the retail industry are still considered good.”

On how the company addressed competition, Chang said: “The fact that most of The Store’s outlets are based in secondary towns instead of the ultra-competitive Klang Valley has always been one of our strengths.

On expansion plans, Chang said The Store had recently completed the acquisition of the Fajar chain of supermarkets and department stores in Peninsular Malaysia.

News Source : Read more from The Star

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Wall’s wants people to eat more ice cream
By YEOW POOI LING



KUALA LUMPUR: Wall's Ice Cream, a unit of Unilever (M) Holdings Sdn Bhd, aims to increase the country's ice cream consumption per capita, said Wall's Ice Cream business director Joseph Tan.

“Consumption per capita is still low, hence there is a lot of potential
to tap into. We hope to see it increase to six to seven litres per person from the present two litres,” he told StarBiz.
He noted that ice cream consumption per capita in Singapore was up to four litres per person and in the US, 24 litres per person. Thailand, on the other hand, was slightly behind Malaysia at one litre per person.

The size of the Malaysian ice cream market, which is growing at some 5% annually, is estimated at RM400mil to RM500mil at the consumer price level and Wall's owns close to half of the market in terms of sales.

News Source : Read more from The Star

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