Increasing acceptance in Malaysia

The Malaysian home improvement sector is likely to grow by 10.9 per cent annually between 2018 and 2023, even as buyers gravitate towards cheap but high-value goods. This is the verdict of Frost & Sullivan, a consultancy firm. In market research released as part of the public listing prospectus submitted by Mr. DIY to the Malaysian stock exchange, Frost & Sullivan estimates that the country's home improvement retail sector, which was valued at MYR 6.9 bn ( Malaysian ringgit; EUR 1.5 bn) in 2018, will grow into an MYR 11.6 bn (EUR 2.6 bn) market by 2023.
Average sales per person, while lower than those of developed countries and Southeast Asian neighbours at USD 51.4 (EUR 46.1) in 2018, is expected to grow by 9.5 per cent annually during the same period.
Frost & Sullivan's report categorises Malaysia's home improvement sector into two areas - hardware and electrical items, and household and furnishings, which include accessories for home living.
The researchers note that despite rising prices for home improvement products, demand for these products is steady. Prices for furnishing, household equipment and routine maintenance, as measured by the consumer price index, rose to 114.8 points in 2018 from 104.1 points in 2012. Meanwhile, average monthly household spending on home improvement went up by 9.2 per cent annually to an estimated MYR 192 (Malaysian ringgit, EUR 41) in 2018 from an estimated MYR 113 (EUR 24) in 2012. "The trend underscores the resilient demand for home improvement products irrespective of economic conditions or price increase," the researchers state.
Growth drivers include a population that is becoming richer and spending more; more urban residential and commercial areas being constructed; and new products and increasing e-commerce participation by both buyers and retailers.

Though still dominant, traditional, single-product, family-owned home improvement businesses are giving way to multi-product, omnichannel retail chains. The research company observes that from 6 064 stores in 2015, independent businesses have decreased to an estimated 5 830 outlets in 2018. Overall, it estimates that there were 6 860 home improvement stores in Malaysia as of 2018.
Opportunities are plentiful in the home improvement…