VAUDE in MalaysiaGlobal Channel Management
Fachhochschule Vorarlberg
International Marketing & Sales, Winter Semester 2017/18
Supervised by:
Tom Fleerackers
Submitted by:
Snezana Majkic
Ilona Schädler
Maria Thiele
Dornbirn, 22.12.2017
Table of Contents1. Target group.....................................................................................................................1
1.1. Main target group.................................................................................................1
1.2. Second target group............................................................................................11.3. Personas main target group................................................................................1
2. Reasons for Malaysia......................................................................................................2
2.1. Geography...........................................................................................................3
2.2. Doing business....................................................................................................42.3. Market for sportswear..........................................................................................4
2.4. Buying behaviour.................................................................................................52.5. IT infrastructure and incoming tourists.................................................................7
2.6. VAUDE distribution channel (Europe).................................................................7
3. Customer Journey...........................................................................................................9
3.1. Discover...............................................................................................................93.2. Research (consider, explore)...............................................................................9
3.3. Moments of truth (decide, experience)................................................................93.4. Customer Engagement........................................................................................9
3.5. Customer journey overview...............................................................................10
Sources A
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1. Target group
1.1. Main target group
Malaysian, secure income & job, “better-situated” enthusiastic about nature young and modern generation of people interested in sports, healthy and active lifestyle increased online shopping behaviour influence of Western world and values touchpoints: sports store in Kuala Lumpur, adventure/activity clubs and guides, e-
commerce platforms due to lack of time
1.2. Second target group
spontaneous buying behaviour willing to pay more if own equipment needs to be renewed on site renting equipment interesting opportunity as traveling by airplane restricts luggage weight not very price sensitive countries: Singapore, Indonesia, China, Brunei, Thailand touchpoints: activity/adventure travel agencies, guided tours, tour operators, resorts,
airport stores, sport stores in Kuala Lumpur only interesting after successful market entry, no focus right now
Identified need: Individualism and spirit of sustainability
1.3. Personas main target group
John, 32 years old, surgeon t Kuala Lumpur Hospitalo Family father and passionate mountain bikero As a family man, he wants to act as a role model for a healthy and sportive
lifestyleo As a surgeon, he is confronted with diseases on a daily basiso Working hours conflict with store opening hours, preference to shop online
“Mountain biking gives me the opportunity to
compensate the private and professional challenges
and experience adventure and passion connected
with benefits for my health.”
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Sally, 24 years old, sales assistant in an international company, seeking for career opportunities
o No children but and no long-term relationshipo In the international job environment, she is confronted with CSR and sustainability
issues in the Western countrieso As these values correspond to her personal interests, she tries to follow a
sustainable lifestyle in Malaysiao She has got an international network of friends and on the weekends, she loves to
spend time with her family on the countrysideo Closely related with nature and enjoys climbing at Mount Kinabalu
“I love to break out from the everyday working life and leave
everything behind me. While climbing, I am able to discover
new perspectives of things that concern me.”
2. Reasons for Malaysia
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2.1. Geography
Strait of Malaccao Accounting for 40% of the worlds tradeo One of the world‘s most important shipping laneso Important from an economic and strategic perspective
Proximity to production site in Vietnamo Using existing distribution channelso Malaysia as distribution platform to ASEAN region o Investments in port development: mega-port deep-sea (Kuantan), re-
development, 3rd terminal in Carey Island (new Malacca gateway port)
Digital Free Trade Zone (DFTZ) at Kuala Lumpur International Airport KLIAo Special trading zone designed to promote the growth of e-commerce and to
capitalize the exponential growth of the internet economyo Making Malaysia the regional fulfilment hub for ASEAN consumerso Serves to facilitate seamless cross-border trade and enable local businesses,
especially SME’s to export their goods easily with the help of leading fulfilment service providers
o Comprises a 17.5ha e-fulfilment hub, a 500,000sq ft. satellite services hub in Bandar - Malaysia’s Kuala Lumpur Internet City - and a virtual e-services platform
o KLIA Aeropolis: airport city development of more than 9,000 acres: 20 of the world’s top-25 freight forwarders have operations at KLIA
o Alibaba logistics: investment of 15bn. USD in global logistics network over the next five years
Mountains and national parks:o Peninsula Malaysia and Malaysian Borneo separated by the South China Sea has
become a hotspot for adventure sportso Mount Kinabalu: tallest mountain in Malaysia (4,095m)o The worlds’ largest discovered cave chambero 28 national parks
Sports opportunities (raining season November-February): o Hiking/Trekking/Nordic Walkingo Rock Climbing: Indoor and Outdoor Opportunitieso Mountaineering/Adventure Racing
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2.2. Doing business
Background Information Regarding the Economyo Malaysia is an upper-middle income country, and one of the most developed
economies in the regiono Gross Domestic Product (GDP) per capita of US$9,546o open economy that is highly trade dependent, with trade reaching 161% of annual
GDP according to the World Trade Organizationo The country has progressed from an economy dependent on agriculture and
primary commodities to one that is manufacturing-based, and is now transforming into a service- and knowledge-driven economy
o Malaysia’s real GDP growth has averaged at 6.4% per year since 1970, outperforming most of its regional peers
o During this period, the economy began to diversify into a leading exporter of electrical appliances, electronic parts and components, palm oil, and natural gas
o In 2010, Malaysia launched the New Economic Model (NEM) and the Economic Transformation Program (ETP), which aims at developing the country into a high income nation by 2020
o The NEM and ETP plans to move the economy further up the value-added chain by attracting investments and focusing on a knowledge-based economy
Ease of Doing Businesso Ease of Doing Business Index: 24th of 190 countries (newest index for 2018; since
2011 Malaysia has improved many conditions for doing business, many reforms)o Corruption Perception Index (2016): 55/176 (Score: 55/100)o ASEAN Free Trade Agreement
Malaysia’s import and export policy is to encourage free trade and generally most imports and exports do not require licenses
2.3. Market for sportswear
Current market situationo Competitors: online and offline offer
Decathlon Malaysia – ecommerce platform and store for sports wear My Core Zone (www.mycorezone.com) - climbing and outdoor recreation
equipmento Stores in Kuala Lumpur (=specialized sports stores)
OGM Outdoor Gear Malaysia, outdoor sports store, Selangor: quality outdoor equipment
Evergreen Cheras, camping Store, Kuala Lumpur, store and online offer Mount XPlorer Outdoor Gear, outdoor sports store, Subang Jaya Lafuma Bangsar, outdoor sports store Guide Pro, outdoor sports store Explorer Outfitter, outdoor sports store The Guide Proshop, outdoor equipment store with online store
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Size and structure of marketo Digital economy for sport and outdoor (Revenue 2017): US$ 21m.o Annual growth rate of 20,9%o User penetration of 5% (expected to rise to 6,9% in 2022)o Most revenue generated in the US (Amazon), China, UK, South Korea, Germanyo Adidas leading position: 15% market share of sales value (strong distribution
network with high availability in department stores, sports goods stores and apparel and footwear specialist retailers) no competitor of VAUDE products
o Launching female-positioned sportswear to target women (healthier and active lifestyle due to rising health consciousness)
o Bargaining and negotiations in shops are expectedo Growing number of consumers tend to purchase sportswear during sales and
promotional periods at lower prices instead of non-sales periods (but: in not the target group!)
Values and lifestyleo Brands like Adidas, Nike, Puma are popular among sportswear consumerso become a popular and common category among young people o identification with a more relaxed lifestyle, greater versatility and comforto Mainly Muslim consumer marketo Happiness Index:
Year Rank
2017 42
2016 47
2015 61
2013 56
2.4. Buying behaviour
Online vs. offline buying behaviouro 90% of the Malaysians purchase online frequently, 56% of these frequently, the
other 34% purchased in the last one to three monthso validates the rise of the online purchase scene in Malaysia
Expectationso The concept and idea of online presence has shifted consumer behaviour in each
of the phases of their own customer journeyo Nowadays, 90% of consumers expect offline stores to have online websites for
their product information browsing option and to purchase directly fromo People who prefer online shopping (55%) vs. those who prefer to shop offline
(45%)o Aim: leveraging online presence and create seamless path-to-purchase for
consumers online
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Stimulio Malaysians get the first stimuli to shop when they surf social media (66%)o one of the most social-media savvy in South-East Asia that spend an average of 5
hours on social mediao direct influence from friends and family is still relevant as 49% agree that their first
thought about shopping stems from their close relativeso Social media and e-commerce websites are both effective online stimuli
(both 72%), followed by brand related websites/apps and video websites such as YouTube, Twitch and Vimeo
Content preferenceso Consumers activities and content preferences in consideration stageo Malaysian multichannel shoppers tend to rely on articles and blogs (56%) as a
source of information, followed by infographics (56%) and videos (40%)o The type of online information they look for are product reviews (70%), product
comparison with other alternatives (57%) and product launch updates (39%)
Payment methodo Across Malaysia, bank transfer is the most preferred payment methodo Credit card is the most preferred payment method in Penang (28%), Perlis (40%),
Selangor (25%) and WP Kuala Lumpur (34%)
Price sensitivity: Price matterso 77% of shoppers agree that promotions such as discounts influences themo Word-of-mouth remains as a relevant factor as 47% of them agree that
recommendations from close relatives trigger them to buyo switching to another brand in the same product category will be more likely due to
promotions, and recommendations from friends and family
Pain pointso Unsure about the product’s authenticity (87%)o The actual product quality is not as promised (81%)o Delivery cost too pricey sometimes (80%)o Suspicious of payment system security (79%)o Delivery takes too long (75%)o Uncertainty of the website’s genuineness (73%)o Limited information about the product on the website (69%)
Online shopping usageo E-commerce in Malaysia provides huge opportunities for businesseso Rate of multichannel customers or multichannel shoppers is increasingo Utilization of online channels in any stage of the purchasing processo Online purchasing is also more diverse, from clothing and footwear, to tech &
gadget accessories up until household products
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The stimuli, consideration, purchase and post-purchase phases can all happen online. Therefore, businesses should craft their online presence to be more seamless and ‘believable’, addressing that there are many consumers with concerns in buying online because they are uncertain of the authenticity or that the products offered are not authentic.
While price proves to be a priority, businesses can diversify its unique selling proposition on their website online. Make it more personal, and engaging, because people do not necessarily buy things online. They have the option to browse the product online and buy it in the offline store. Emphasize on important matters and provide the product information in a detailed fashion. The best thing that could happen from having a seamless, detailed information and at the same time providing a unique user-experience, is word-of-mouth - the purest and most convincing form of persuasion.
2.5. IT infrastructure and incoming tourists
Individuals using the internet Arrival of Tourists Mobile Cellular Subscription
2.6. VAUDE distribution channel (Europe)
VAUDE delivers only to (specialized) retailerso applies also to orders placed on vaude.como retailer acts as shipping partner
VAUDE Franchise Storeso Outlets (four) run by VAUDE o Difference between online and offline sales is lowo Mountain sports is their most important segment
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Year %
2016 78,5
2015 71.1
2014 63.7
Year Per 100
2016 141.2
2015 143.9
2014 148.8
Year Mio.
2016 --
2015 25,7
2014 77.4
Customer service has a high priority for VAUDE They call themselves “VAUDEpedia”
o to help the customer in different situations as for example they recommend to make the cloths waterproof and offer even a service for everyone, who has bought it at VAUDE, to make them waterproof if the customer has not enough time
CSR team as driving force for sustainability Working conditions are very important for VAUDE, they believe that time spent at work is
also time spent living very high commitment in social aspects Very strong corporate values
Advertisemento Social Media Strategy: Facebook, Youtube, Vimeoo Blogs: (Freiluft, Bergzeit)o Green Shape Eco Products VAUDEo Trade fairs Outdoor
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3. Customer Journey
3.1. Discover
The Customer has no concrete intention to buy yet, information about products and brands are collected by the way through experience, observation, storiesFacebook – English (target group Malaysia)
Youtube Channel, Vimeo: MTB, Trails
Blogs: Outdoor Mountain Activity- Outdoor Gear Malaysia ogm.my
VAUDE Trail Running Event: Testimonials and experts Helmut Kotter (climber), Stefan Keck
(extreme mountain climber), promote nature and sustainability values, raise brand
awareness
Provider of guided mountain activities: Equipment testing
SEA Search Engine Advertising (Adwords, Affiliate - Partner)
3.2. Research (consider, explore)
Customer develops need, collection of information, comparison of alternativesConsultation of website VAUDE information about products
Visits flagship store or other specialized sports stores to gather information
3.3. Moments of truth (decide, experience)
Customer has chosen to buy at VAUDE and orders its products via e-commerce platform. Experience of product shows weather decision was good or bad.Partnering with retailers and specialized sports stores outside the capital:
OGM Outdoor Gear Malaysia, Outdoor sports store, Selangor: quality outdoor equipment
Mount XPlorer Outdoor Gear, Outdoor Sports Store, Subang Jaya
Lafuma Bangsar, Outdoor Sports Store / Guide Pro, Outdoor Sports Store / Explorer
Outfitter, Outdoor Sports Store / The Guide Proshop: Outdoor Equipment Store with Online
Store
Supplement to packaging: Thank you note for buying VAUDE product, future events and
further information about the topic sustainability, tips how to self-repair VAUDE products
3.4. Customer Engagement
Interaction of the customer with the company or other customers because of its positive (or negative) experienceNewsletter: information about sustainability issues, upcoming events, new products etc.
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Integration of the customer in the community:
Interaction through selfie “VAUDE in action” on own social media channel (incl. hashtag)
Invitation to rate and promote company and products
3.5. Customer journey overview
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Sources
Ease of Doing Business (2017): Rankings; Online: http :// www . doingbusiness . org / rankings .
Last access 05.11.2017.
Transparency (2017): Corruption Perception Index; Online:
https :// www . transparency . org / country / MYS . Last access 05.11.2017.
Vaude (2017): CSR Report: Online: http://csr-report.vaude.com/gri-en/vaude/our-brand.php.
Last access 05.11.2017.
Country Economy (2017): Malaysia – World Happiness Index. Online:
https://countryeconomy.com/demography/world-happiness-index/malaysia. Last access
05.11.2017.
News 18 (2016): 8 exciting sports you should definitely try in Malaysia. Online:
http://www.news18.com/news/lifestyle/travel-8-exciting-sports-you-should-definitely-try-in-
malaysia-1059235.html . Last access 05.11.2017.
PWC (2017): Doing Business in Malaysia. Online:
https://www.pwc.com/my/en/assets/publications/2017-doing-business-in-msia.pdf. Last
access 05.11.2017.
Rough Guides (n.A.): Sports Outdoor Activies. Online:
https://www.roughguides.com/destinations/asia/malaysia/sports-outdoor-activities/ . Last
access 05.11.2017.
Statista (2017): Sports and Outdoor. Online:
https://www.statista.com/outlook/259/122/sports-outdoor/malaysia#market-arpu . Last access
05.11.2017.
The Load Star (2917): Malaysia Upgrades Logistics and Infrastructure To Support E-
Commerce Ambitions. Online: https://theloadstar.co.uk/malaysia-upgrades-logistics-
infrastructure-support-e-commerce-ambitions/ . Last access 05.11.2017.
World Bank (2017): World Development Indicators. Online:
http://databank.worldbank.org/data/reports.aspx?source=2&country=THA. Last access
05.11.2017.
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