Home and Garden Specialist Retailers in Malaysia

2021 DEVELOPMENTS

The 2021 IPO of Mr DIY boosts the category leader’s expansion plans

The big news in home and garden specialist retailers in Malaysia in 2021 was the late 2020 IPO of the parent company of category leader Mr DIY. The retailers leadership of home and garden specialist retailers can be attributed mainly to its aggressive and ambitious expansion plans, which saw the number of stores operated under the chain increase by more than fourfold over the course of the review period.

Fella Design shifts towards e-commerce as consumers buy more homewares online

2021 saw Fella Design remain the leading player in homewares and home furnishing stores in terms of the number of outlets, despite the closure of three of its stores in Malaysia over the course of the year. The main reason for the closure of these outlets was that they had proven unviable during the COVID-19 pandemic, with company taking the difficult decision to close them permanently in order to manage the challenging situation that found itself in as outlets were required to remain closed for two months of 2021 as part of measures designed to curb the spread of the COVID-19 virus among the Malaysian population during the lockdown.

IKEA targeting younger generations with highly affordable home furnishings

IKEA remains the leading name in homewares and home furnishing stores in value terms and this strong position can be attributed mainly to the appeal that the company’s minimalist design aesthetic holds for younger consumers. The company’s iconic catalogue has long been a source of interior design inspiration for Malaysian young urban professionals, with the excellent value for money that IKEA’s flat-pack furniture represents making it a very popular option among younger people and price-conscious consumers of all ages.

PROSPECTS AND OPPORTUNITIES

Continued expansion for Mr DIY set to be seen over the forecast period

Following the late 2020 IPO of its parent company, category leader Mr DIY is set to continue pursuing an aggressive and ambitious expansion and growth strategy over the forecast period. While there are already 875 Mr DIY stores currently in operation in Malaysia, the retailer has plans to open even more stores under the Mr DIY banner during the forecast period.

Shift towards e-commerce set to continue building over the forecast period

The importance of e-commerce for the Malaysian retailing industry is expected to increase further over the forecast period, with all of the leading players in home and garden specialist retailers expected to continue building their online presence in an effort to capture rising demand for online retailing. However, e-commerce is unlikely to become as influential in home and garden specialist retailers as it is expected to become in other retailing categories and this is a reflection of the unique status that most homewares and home and garden products have for many consumers.

Smaller players innovate to remain relevant amidst very stiff competition

Home improvement and gardening stores is expected to become a much more competitive retailing category over the forecast period as consumers increasingly prefer e-commerce, which is set to result in pressure on store-based sales for all category players. Within this context, smaller home improvement stores can be expected continue to face the strong pressure and the stiffest competition as major players such as Mr DIY continue to expand their chains throughout the country.