Page 57 - Malaysian Dietary Supplement Industry Status and Outlook Report 2019-2020 Preview

Nevertheless, online platforms are Figure 3.6: Forecasted Retail Channel
expected to maintain their above Market Share Compounded Annual Growth
average growth rate over the next 2 Rates, Malaysia, 2018-2020.

years, fuelled by consumers’ deal- Source: Eigis Analysis.

seeking behaviour.

Despite its small share of the market, online platforms are
gradually rising in importance and certainly significant
enough to warrant attention. Over the next 2 years, revenue
growth through online platforms is expected to hit nn%,
faster than brick-and-mortar (n.n%) and direct selling (n.n%).
Like other consumer products, an enlarging user base of
digital natives, diversification of platforms by traditional
brick-and-mortar channels, borderless shopping (e.g.
purchasing of dietary supplement products directly from
overseas markets, bypassing intermediary costs), and wider
variety of promotional mixes are driving platform growth.

Whether online channels can rise to dominance remains to
be seen. Numerous barriers may prove insurmountable, at
least in the present landscape. Direct selling channels, being
the dominant distribution channel, are not actively pursuing
online strategies to prevent market substitution and channel
erosion. And while access to information has never been
easier, the reliability of information that is freely
disseminated online is a major point of concern for
Malaysian consumers. Brick-and-mortar channels fill the in-
between gaps nicely, but will have to compete to sustain
recurring revenues against online channels.

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