Acceptance of Local Product

Malaysia, with a populace of around 27 million, is one of the very most developed countries in Southeast Asia. About 61% of its inhabitants falls into the middle to higher income band of consumers with Gross Domestic Product (GDP) per capita income of over US$6, 000.

The advantages of economic reforms through New Economic Insurance policy (NEP) has produced some well known achievements like the introduction of several successful domestic products with international competitiveness. Local brands such as Air Asia, PETRONAS, MAS and Selangor Pewter have shown some successful testimonies of local entrepreneurs contending in the global markets.

In the view of food product, the Malaysian food and beverage market is becoming more and more sophisticated and comes by both local and imported products. The strong economic growth in the later 80's and early 90's added to major changes in consumer purchases and consumption patterns. Malaysians living in cities are relatively brand conscious, and they prefer to shop in shops, which offer them convenience and good product selections. Malaysia has a big and growing food retail market that comes by local and brought in products. Due to rising wealth and advanced schooling level, Malaysian consumers have become more difficult and demand higher quality for the goods that they purchased.

Supermarkets and hypermarkets are mainly situated in the major metropolitan centers and are continuing to expand in numbers. Foreign-owned retailers functioning locally include Tesco and Carrefour, Makro, Dairy Farms International (owns Large), and Jaya Jusco. These retail stores provide good locations for imported products and usage of the middle and high-income advanced consumers. Pressure is mounting for local retailers such as The Store to maintain competitive prices and hold a good variety of products in order to keep up with the international players.

Malaysian authorities has tried to resolve this issue that consumers can purchase local product to activate the nation's overall economy. Malaysian's consumer have to change our attitude in believing that imported things are more advanced than local goods. We have locally-made goods that are of similar value and quality. Actually a significant range of goods sold overseas, items such as TV, radio, air-conditioner, VCR, shirt, sneaker and automobile are made in Malaysia. We should build up a culture where we do not automatically feel that brought in goods are of superior goods over local goods. Many goods promoted under famous brands such as Religious Dior, Piere Cardin, Levis, etc are in fact made in Malaysia under OEM processing.

(Norman Rajen Abdullah, 2009) Malaysian is apparently more confident of local products, judging from other growing sales at Mydin stores countrywide. Demand for these products, ranging from food to handicrafts and textiles made by small businesses, has grown continuously since 2006. Sales of products made by small and medium corporations (SMEs) have more than tripled to RM55 million in '09 2009 from 2006 That is projected to develop by another 18 per cent to RM65 million this season and struck RM80 million in 2011. He said it was important for local internet marketers to build a strong foundation for their businesses in the local market before going international market.


(Ghazali, Othman, Yahya & Ibrahim, 2008) This newspaper reports on a study of Malaysian consumers' perception towards overseas products, and in particular looks at the way the country of source effect affects their patterns. Results at the stand 1 confirmed that Malaysian consumers are inclined to attribute higher quality to products made in developed countries. The study also showed that the average Malaysian consumer does not consider the country of origin aspect to be their main concern in deciding to get a product. Other product attributes take precedence, particularly its quality, technological prowess and price.

(Asiah M. Zain, 2005) Review a number of factors donate to the present low acceptability of local fishery products listed below are regarded as important are physical appearance, improper packaging, inadequate quality control, behaviour of the buyer and insufficient knowledge of local dishes.

(Raj, 2009) The government launched the Buy Malaysian advertising campaign. Consumers should support this advertising campaign to minimize the impact of the global financial crisis on personnel and consumers. With this gloomy economic environment, exterior demand for our goods has been reduced greatly, leading to companies reducing creation or shutting down. More than 10, 000 employees have apparently lost their jobs. This example is likely to get worse, globally and locally. With diminishing external demand, the give attention to economic growth needs to be on local utilization to reduce the impact of falling exports.


Strategic brand management is one of the factors that donate to the success of a specific product or brand. The circumstance in Malaysia demonstrates product branding is going to be more important especially after realizing that globalization comes with an effect on the economy of Malaysia. The amounts of local brands which have been successful in the international market are still really low. Based on this factor, it implies that the awareness of quite of brand management among local company is not high enough. A local brand could only endure in the market segments if it has got the trust and loyalty from local customers themselves. It seems that many campaigns were intended to raise the patriotic nature among Malaysian consumers toward local products such as "Cintai Barangan Malaysia"(Love Malaysian Goods) ", and "Belilah Barangan Buatan Malaysia (Buy Made in Malaysia Goods)" promotions. These promotions were arranged aggressively; however, this campaign is still insufficient persuade the client to purchase. This issue brought on by the brand itself which is failed to display image, value and self confidence to local customers. Brands that already flourish in the domestic marketplaces should be prompted to enter exterior marketplaces that are larger by straighten up their branding strategy. Selecting appropriate and good brand is one of key success factors for an organization to penetrate foreign markets. Without brand communication, buyer wouldn't normally take note the existence of a particular brand. This technique is vital for an area company which wants to compete in the global markets. As in overseas markets, buyers will usually give attention to country of origin. Therefore, it is necessary for local business owners to assess which kind of image to carry by their products in order to appeal to consumers from various countries to buy their products

In general, it's important for marketers to stress more on product measurements like the product quality, its scientific prowess and its price in marketing their products in the local Malaysian market than its country of source factor. However, marketers should put more emphasis on the united states of source factor if the product is manufactured in developed countries such as Japan, Germany or the united states. On the other hand, if a product is made in growing countries, or

lesser known under expanding economies, the marketing consultancy should emphasize more on the product quality, its technical prowess and its own price as opposed to the country of origins aspect since accentuating the country of origin sizing may be harmful to the marketing work for such a product

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