Shopper Digest: To Go Big or Go Small?

As the cost of living rises and household budgets become tighter, shoppers are seeking ways to stretch their Ringgit further. 

Inflation has a significant impact on consumer behaviour, influencing how people allocate their budgets and make purchasing decisions. In response, shoppers are either increasingly opting for bulk purchases or downsizing as strategies to manage their spending. This paper explores how inflation reshapes consumer preferences regarding pack sizes and examines the strategic responses of different brands. 

The perception of getting more for less drives the preference for larger pack sizes. Bulk packs enable shoppers to stock up on essential items at a more economical rate, reducing shopping frequency and potentially mitigating price increases over time. However, the immediate lower price of smaller pack sizes can also be appealing. While larger packs offer better value per unit, smaller packs often appear more budget-friendly upfront, leading to more frequent shopping trips. Manufacturers must adapt their product offerings to align with these changing preferences.

Brand C provides a compelling case study of how an emerging brand can thrive in a mature category. By leveraging its two distinctive selling points—competitive pricing and a diverse range of pack sizes, such as bulk sizes like the 10kg bottle—Brand C has disrupted the market. This strategic combination enables Brand C not only to attract price-sensitive shoppers but also to incentivise them to make larger purchases in a single transaction. This demonstrates a smart approach to succeeding in a competitive landscape while understanding the evolving preferences and needs of shoppers.

In contrast to Brand C’s bulk pack strategy, market leaders such as Brand A and Brand B have focused on refill packs to align with consumer preferences and maintain their competitive edge. By prioritising refill packs, these brands address the growing demand for both value and sustainability. Refill packs provide a practical alternative to bulk sizes, reducing waste while offering an economical option for frequent purchases. This approach also fosters brand loyalty by combining cost-effectiveness with environmental responsibility. 

As shopping habits and preferences evolve, manufacturers must remain agile in adjusting their product offerings. Providing a range of pack sizes—from refills to bulk quantities—allows manufacturers to cater to diverse consumer needs, whether for convenience, value, or sustainability. Kantar Worldpanel can assist manufacturers in staying attuned to these behaviours by analysing the role of pack sizes for brands, segments, or the overall category. This insight helps brands remain relevant and drive growth.

Source: P6’24 database, Worldpanel Division, Kantar Malaysia