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This document summarizes research conducted by GroupM on consumer segments within the Malay population in Malaysia. The research identified 5 main segments: Generasi Glokal, Mat Bebas, Pencetus Ummah, Keluarga Rabbani, and Orang Bandar. Generasi Glokal is the largest segment, making up 48% of Malays in 2014. The research found Malays have high rates of digital adoption and are influenced by both global and local trends. The segmentation is meant to help brands better understand diversity within the Malay consumer market.
![#6JULY132015
#7JULY132015centre stage centre stage
GENERASIGLOKALProportion of the Malay
population: 48% in 2014; 31% in
2012
Location: Tend to be in the central,
southern and northern regions of
Peninsular Malaysia
Digital usage: High use of digital
technologies and gadgets
Key characteristics: Generasi
Glokal have a global outlook infused
with local sensitivities. They are
driven towards success. They
hold religious values dear but are
comfortable with expressing them
via technology and fashion.
Consumer preferences: They are
very open to using technology.
They fuse international trends with
local flavours. As consumers, they
can be quite impulsive when it
comes to purchasing things. They
keep abreast of trends and can
afford luxuries compared with the
Mat Bebas, and are more brand
conscious than the Pencetus
Ummah. They dont mind spending
with credit cards.
There are two sub-categories
within the Generasi Glokal segment:
the Social Glokal (34%) and
Conscious Glokal (14%).
Social Glokal
They are fashion-savvy and
would likely carry designer
handbags and wear branded
labels. An example of this would
be the hijabsters or Mipsters
(Muslimah hipsters). They
are active on social media.
For religious knowledge, the
Social Glokal may refer to the
Pencetus Ummah types.
Conscious Glokal
Like Social Glokal, they are
driven by image and success,
but the Conscious Glokal tend
to be more modest. They are
intellectuals and quite affluent.
They are also spiritually hungry
and seek knowledge about
Islam. For religious knowledge,
they tend to seek out views
of international Islamic clerics
such as Mufti Ismail Menk and
Ummar Khan.
MATBEBASProportion of the Malay
population: 19% in 2014; 13% in
2012
Location: Mostly around the central
and northern regions of Peninsular
Malaysia
Digital usage: Their digital usage
has doubled over the recent years
Key characteristics: Mat Bebas
are typically male and slightly
younger. In the previous studies,
this group was called Pasrah as
they were likely to just accept the
circumstances that they were in.
But this is slowly changing, which is
why this group has been renamed
Thedifferenttypesof
The Malays are the largest consumer group in the country but they are by no means
homogenous.GroupMs new research offers incredible insights into the differences in
their mindsets and consumption habits.
by Sophia Halim + Chua Sue-Ann
What?
GroupM conducted this qualitative
and quantitative research to dig
deeper into consumer mindsets
and attitudes. In this case, it
looked at the Malay consumer.
Who?
Respondents were those
who self-identify as being
Malay. GroupM employed
quota sampling to ensure
the respondents mirror the
demographic breakdown of the
wider population.
They were aged 15 to 49 to
capture the majority of consumers
who do buy things or make
financial decisions.
Where?
The respondents came from every
state in Malaysia, from Kedah
right down to Johor in Peninsular
Malaysia, and Sabah and Sarawak.
When?
Fieldwork was conducted from
March to June. The survey took
about nine months to complete
and a few more months to analyse
all the data.
How?
After a lot of preparation, pilot
sessions and training, fieldwork
began.
First,respondentswererecruited
totakepartinthestudy.They
answeredalengthysetofquestions
usingcomputers.Incaseyouwere
wondering,yes,therespondents
werepaidfortheirtime.
The study comprised three
areas consumer relationship
with the brand, attitude and
lifestyle. It covered 400 brands
across 25 categories.
These five consumer
segments were derived from a set
of over 200 attitude statements
where respondents would rate
themselves from strongly
agree to strongly disagree. For
example, an attitude statement
could be I am ambitious or I like
free things.
The data was then analysed
using a proprietary tool called 3D.
The software grouped similar
statements into a cluster and
it was through this process
that the segments emerged. It
required trained analysts to draw
insights from the data, to cluster
and find common profiles across
the groups.
Later on, GroupM conducted
focus groups to gain more in-
depth knowledge. E
Generasi Glokal have a
global outlook infused
with local sensitivities
The hallmark
of Pencetus
Ummah is
their strong
obligation to
preach Islam
In those days,it was more ho-
mogenous.Peoplewouldhavejust
lookedatitasbeingtheMalay,Chi-
neseorIndiansegment.Theshades
hadntstartedappearingyet.People
were much more similar. There
werefarfeweroptionsavailableto
us as consumers But now,there
are more [options] and the data is
even richer, says Girish.
Insights from the 2014 study
GroupM head of insights Ng Tze
Lian says Malay consumers have
been changing at a more dynamic
rate than, say, the Chinese con-
sumers.
Forexample,therehadbeenfour
sub-categoriesofMalayconsumers
until2012.GroupMlaterdiscovered
anewgroup,whichitnamedPence-
tus Ummah.
The hallmark of the Pencetus
Ummahistheirmainobjectiveto
preach the religion.GroupMs in-
sightsteammayhavebeenthefirst
tospotandnamethesub-segment,
just as popular religious teachers
and preachers were gaining a lot
of following in Malaysia.
Althoughtheteamhasspecified
fivesub-segments,GroupMsenior
manager of insights Razlin Johar
cautions that the characteristics
and proportion of each group are
fluid with factors within and out-
sidetheMalaycommunitycoming
into play.
One important factor is con-
text.Razlin says the respondents
would have been affected by the
national or global events that had
taken place prior to the period of
thestudy,fromMarchtoJunelast
year. Significant events include
the MH370 tragedy, flash floods,
water shortage and rising cost
of living.
One thing that caught the
team by surprise was the rapid
growth of Generasi Glokal,from
31% of the Malay population in
2012 to 48% last year.This means
that they are fast becoming
the most important consumer
sub-segment for many brands.
We foresaw the group would
grow but we didnt expect it to
be this quick, says Razlin. The
number of Rabbani is shrinking
but we didnt expect it to shrink
this much.
Thetransitionbetweentheseg-
ments can happen between gen-
erations or within a generation,
and the segments are not static.
Even within a family,there could
be different segments.
Itsafluidthingitsbasedon
thetrendsandthechangingmind-
sets, Razlin explains.
Thistimearound,GroupMfound
that digital adoption across the
Malay consumer segment was as-
tounding.
This sends a strong message
to brands.There is this perception
that digital adoption is still most-
ly by the affluent, urban, educat-
ed people. Its not. It has become
democratisedandthatspartofthe
governments programme as well,
to make the internet accessible to
everybody, says Girish.
So,whatdoesallthisdatamean
for brands?
The message is simple: Know
your target market and know it
well,right down to the details and
intra-group differences. E
Malay consumers
How GroupM got into the
minds of Malays
COVER + BACKGROUND PICTURES BY REUTERS + AFP
PATRICK GOH/THE EDGE
T
hese days,the Malay
consumer dollar is
whatmanybrandsare
trying to court.
Theethnicgroupis
by far the single larg-
estinMalaysiaoneintwopeople
in the countryis Malay.
According to government data,
there were 14.33 million Malays in
the country in 2010.The Depart-
ment of Statistics projects that by
2040, there will be 20.86 million
Malays,making up 54% of the pop-
ulationthen.Thisfaroutstripsthe
other ethnic groups.
Numbers from the Economic
PlanningUnitshowthatthemean
monthlygrosshouseholdincomeof
bumiputeras comprising Malay
andnon-Malaybumiputerashad
tripled over 20years to RM4,457 in
2012.The top 20% of bumiputer-
as earned a mean monthly gross
householdincomeofRM10,666that
year while the middle 40% earned
about RM4,123.
Their sheer size and growing
income mean that they are also
the largest consumer group here.
But advertising industry pro-
fessionals say it was only in the
recent decade or so that brands
beganlookingattheMalayconsum-
er segment.Prior to that,theyhad
been focusing more on what was
seen as the more affluent Chinese
segment.
Media agency GroupM Malay-
sia CEO Girish Menon says there
are a fewfactors at playhere: size,
income and the speed of the shift
driven bytechnology.
The realityhas changed in the
last fewyears.Prettymuch all the
big brands are very clear now that
the focus is on the affluent and
urbansegments,andthemassesas
well.If brands want to grow,they
havetofindnewconsumerswilling
to use their brands.
Of course, from a numbers
point of view,you cannot ignore
the rising Malay middle class any-
more, he says.
GroupM has long-running in-
depthconsumerstudiesthatfocus
on different consumer segments,
beitbylifespan,ethnicityorother
factors.It recently completed one
ontheMalayconsumerinthecoun-
trypossiblythelargestconsumer
analysis of its kind here.
ThemediaagencysstudyonMa-
layconsumersoffersanincredibly
detailed view of the diversity that
existswithin the ethnic group.
Whats for sure is that the Ma-
lays are not a homogenous or a
rigidly defined group. For exam-
ple, the GroupM study divides
Malay consumers into five main
groups: Generasi Glokal,Mat Be-
bas, Pencetus Ummah, Keluarga
Rabbani and Orang Bandar (see
accompanying story for details
of each category).
Brands have come to realise
that their knowledge of the seg-
mentisnotasmuchasitshouldbe.
TheytendtolumpMalaystogether
in one group or just look at it (the
segment) based on occupation or
income, not realising that there
aremanyothershadestoit,Girish
points out.
GroupMs study takes a slight-
ly different approach. It looks at
Malay consumers based on their
mindset,insteadofthetraditional
gender,age,occupationandlocation
factors.
Weve segmented them based
on their mindsets because thats
what influences consumers re-
sponse towards a brand.You cant
just make a commercial thinking
thatitwillappealtoallMalayssim-
plybecauseitsproducedinBahasa
Malaysia, says Girish.
There is a need for a more nu-
ancedviewinordertohelpclients
appeal to the different sub-seg-
ments within the larger ethnic
group.
Therecentstudy,conductedlast
year,is the seventh such analysis
undertaken by the media agency.
The study first began in the early
2000s and has provided valuable
insights.
Themajorchangeseenoverthe
years is that the consumer groups
are less homogeneous now.
From left:
Ng, Girish
and Razlin
Mat Bebas. They are carefree but they
are also strivers. They will work to
get what they want and can be quite
rebellious. They are quite communal
in nature and enjoy hanging out in
groups. A typical example of this
group would be the Mat Rempit who
like to modify their cars and bikes.
Consumer preferences: There is
some overlap between Mat Bebas and
Generasi Glokal in terms of lifestyle
and desires. But a key differentiating
factor is the Mat Bebas may not be
able to afford all the designer labels
and luxuries they want. Thus, they will
modify their consumption habits. For
example, Mat Bebas are likely to shop
at whats known as uptown bazaars
(underground night markets) to
purchase cheaper knock-offs.
PENCETUSUMMAHProportion of the Malay population:
5% in 2014; 10% in 2012
Location: Mostly in the east coast
(44%) and central region (26%) of
Peninsular Malaysia
Digital usage: Adept at using
technology
Key characteristics: The hallmark of
this group is their strong obligation
to preach Islam. The group surfaced
in 2012, a time when there was a
rise in celebrity preachers think
religious teachers like Ustaz Don
or Ustaz Azhar Idrus who have a
huge following. Another interesting
point is the gender balance.
Previously, Pencetus Ummah were
predominantly male. But in recent
years, there have been slightly more
females in this category.
Consumer preferences: They have no
problems using technology to spread
the word about religion. They see the
brand value of gadgets and things, but
if they cannot afford, say, an iPhone,
they will go for a Samsung or a
close alternative. They believe it is
important to have a second source
of income, likely due to the rising
cost of living.
KELUARGA
RABBANIProportion of the Malay
population: 18% in 2014; 38%
in 2012. This group is shrinking
as some of them are becoming
Generasi Glokal or Pencetus
Ummah.
Location: Mostly in the east coast
(32%) and southern region (25%) of
Peninsular Malaysia
Digital usage: Starting to adopt
digital technologies
Key characteristics: This is the
more mature group, between 30
and 49 years of age. Keluarga
Rabbani are very religious,
traditional and grounded in Islamic
values.
Consumer preferences: They are
by nature not materialistic and
spend within their means. They are
good at saving money and believe
it is important to have a second
source of income. They are more
loyal to local brands. They place a
high importance on education and
are likely to send their children to
religious boarding schools.
ORANGBANDARProportion of the Malay
population: 10% in 2014
Location: Mostly in the central
region, around Kuala Lumpur and
the Klang Valley
Digital usage: Technology and
digital media are part of their
everyday lives
Key characteristics: This is a very
niche segment. Orang Bandar are
typically described as the ultra-
modern Malays. They speak
mostly English at home and are
rather international in their views.
Consumer preferences: They
are affluent and have spending
power. They like luxury labels and
branded goods. E
#6JULY132015
#7JULY132015centre stage centre stage
THE
5types of Malay
consumers](https://image.slidesharecdn.com/30547345-0902-4b3c-b949-1ad25231623b-160526020448/85/MGY_6n7_1075-1-320.jpg)
MGY_6n7_1075
- 1. #6JULY132015 #7JULY132015centre stage centre stage GENERASIGLOKALProportion of the Malay population: 48% in 2014; 31% in 2012 Location: Tend to be in the central, southern and northern regions of Peninsular Malaysia Digital usage: High use of digital technologies and gadgets Key characteristics: Generasi Glokal have a global outlook infused with local sensitivities. They are driven towards success. They hold religious values dear but are comfortable with expressing them via technology and fashion. Consumer preferences: They are very open to using technology. They fuse international trends with local flavours. As consumers, they can be quite impulsive when it comes to purchasing things. They keep abreast of trends and can afford luxuries compared with the Mat Bebas, and are more brand conscious than the Pencetus Ummah. They dont mind spending with credit cards. There are two sub-categories within the Generasi Glokal segment: the Social Glokal (34%) and Conscious Glokal (14%). Social Glokal They are fashion-savvy and would likely carry designer handbags and wear branded labels. An example of this would be the hijabsters or Mipsters (Muslimah hipsters). They are active on social media. For religious knowledge, the Social Glokal may refer to the Pencetus Ummah types. Conscious Glokal Like Social Glokal, they are driven by image and success, but the Conscious Glokal tend to be more modest. They are intellectuals and quite affluent. They are also spiritually hungry and seek knowledge about Islam. For religious knowledge, they tend to seek out views of international Islamic clerics such as Mufti Ismail Menk and Ummar Khan. MATBEBASProportion of the Malay population: 19% in 2014; 13% in 2012 Location: Mostly around the central and northern regions of Peninsular Malaysia Digital usage: Their digital usage has doubled over the recent years Key characteristics: Mat Bebas are typically male and slightly younger. In the previous studies, this group was called Pasrah as they were likely to just accept the circumstances that they were in. But this is slowly changing, which is why this group has been renamed Thedifferenttypesof The Malays are the largest consumer group in the country but they are by no means homogenous.GroupMs new research offers incredible insights into the differences in their mindsets and consumption habits. by Sophia Halim + Chua Sue-Ann What? GroupM conducted this qualitative and quantitative research to dig deeper into consumer mindsets and attitudes. In this case, it looked at the Malay consumer. Who? Respondents were those who self-identify as being Malay. GroupM employed quota sampling to ensure the respondents mirror the demographic breakdown of the wider population. They were aged 15 to 49 to capture the majority of consumers who do buy things or make financial decisions. Where? The respondents came from every state in Malaysia, from Kedah right down to Johor in Peninsular Malaysia, and Sabah and Sarawak. When? Fieldwork was conducted from March to June. The survey took about nine months to complete and a few more months to analyse all the data. How? After a lot of preparation, pilot sessions and training, fieldwork began. First,respondentswererecruited totakepartinthestudy.They answeredalengthysetofquestions usingcomputers.Incaseyouwere wondering,yes,therespondents werepaidfortheirtime. The study comprised three areas consumer relationship with the brand, attitude and lifestyle. It covered 400 brands across 25 categories. These five consumer segments were derived from a set of over 200 attitude statements where respondents would rate themselves from strongly agree to strongly disagree. For example, an attitude statement could be I am ambitious or I like free things. The data was then analysed using a proprietary tool called 3D. The software grouped similar statements into a cluster and it was through this process that the segments emerged. It required trained analysts to draw insights from the data, to cluster and find common profiles across the groups. Later on, GroupM conducted focus groups to gain more in- depth knowledge. E Generasi Glokal have a global outlook infused with local sensitivities The hallmark of Pencetus Ummah is their strong obligation to preach Islam In those days,it was more ho- mogenous.Peoplewouldhavejust lookedatitasbeingtheMalay,Chi- neseorIndiansegment.Theshades hadntstartedappearingyet.People were much more similar. There werefarfeweroptionsavailableto us as consumers But now,there are more [options] and the data is even richer, says Girish. Insights from the 2014 study GroupM head of insights Ng Tze Lian says Malay consumers have been changing at a more dynamic rate than, say, the Chinese con- sumers. Forexample,therehadbeenfour sub-categoriesofMalayconsumers until2012.GroupMlaterdiscovered anewgroup,whichitnamedPence- tus Ummah. The hallmark of the Pencetus Ummahistheirmainobjectiveto preach the religion.GroupMs in- sightsteammayhavebeenthefirst tospotandnamethesub-segment, just as popular religious teachers and preachers were gaining a lot of following in Malaysia. Althoughtheteamhasspecified fivesub-segments,GroupMsenior manager of insights Razlin Johar cautions that the characteristics and proportion of each group are fluid with factors within and out- sidetheMalaycommunitycoming into play. One important factor is con- text.Razlin says the respondents would have been affected by the national or global events that had taken place prior to the period of thestudy,fromMarchtoJunelast year. Significant events include the MH370 tragedy, flash floods, water shortage and rising cost of living. One thing that caught the team by surprise was the rapid growth of Generasi Glokal,from 31% of the Malay population in 2012 to 48% last year.This means that they are fast becoming the most important consumer sub-segment for many brands. We foresaw the group would grow but we didnt expect it to be this quick, says Razlin. The number of Rabbani is shrinking but we didnt expect it to shrink this much. Thetransitionbetweentheseg- ments can happen between gen- erations or within a generation, and the segments are not static. Even within a family,there could be different segments. Itsafluidthingitsbasedon thetrendsandthechangingmind- sets, Razlin explains. Thistimearound,GroupMfound that digital adoption across the Malay consumer segment was as- tounding. This sends a strong message to brands.There is this perception that digital adoption is still most- ly by the affluent, urban, educat- ed people. Its not. It has become democratisedandthatspartofthe governments programme as well, to make the internet accessible to everybody, says Girish. So,whatdoesallthisdatamean for brands? The message is simple: Know your target market and know it well,right down to the details and intra-group differences. E Malay consumers How GroupM got into the minds of Malays COVER + BACKGROUND PICTURES BY REUTERS + AFP PATRICK GOH/THE EDGE T hese days,the Malay consumer dollar is whatmanybrandsare trying to court. Theethnicgroupis by far the single larg- estinMalaysiaoneintwopeople in the countryis Malay. According to government data, there were 14.33 million Malays in the country in 2010.The Depart- ment of Statistics projects that by 2040, there will be 20.86 million Malays,making up 54% of the pop- ulationthen.Thisfaroutstripsthe other ethnic groups. Numbers from the Economic PlanningUnitshowthatthemean monthlygrosshouseholdincomeof bumiputeras comprising Malay andnon-Malaybumiputerashad tripled over 20years to RM4,457 in 2012.The top 20% of bumiputer- as earned a mean monthly gross householdincomeofRM10,666that year while the middle 40% earned about RM4,123. Their sheer size and growing income mean that they are also the largest consumer group here. But advertising industry pro- fessionals say it was only in the recent decade or so that brands beganlookingattheMalayconsum- er segment.Prior to that,theyhad been focusing more on what was seen as the more affluent Chinese segment. Media agency GroupM Malay- sia CEO Girish Menon says there are a fewfactors at playhere: size, income and the speed of the shift driven bytechnology. The realityhas changed in the last fewyears.Prettymuch all the big brands are very clear now that the focus is on the affluent and urbansegments,andthemassesas well.If brands want to grow,they havetofindnewconsumerswilling to use their brands. Of course, from a numbers point of view,you cannot ignore the rising Malay middle class any- more, he says. GroupM has long-running in- depthconsumerstudiesthatfocus on different consumer segments, beitbylifespan,ethnicityorother factors.It recently completed one ontheMalayconsumerinthecoun- trypossiblythelargestconsumer analysis of its kind here. ThemediaagencysstudyonMa- layconsumersoffersanincredibly detailed view of the diversity that existswithin the ethnic group. Whats for sure is that the Ma- lays are not a homogenous or a rigidly defined group. For exam- ple, the GroupM study divides Malay consumers into five main groups: Generasi Glokal,Mat Be- bas, Pencetus Ummah, Keluarga Rabbani and Orang Bandar (see accompanying story for details of each category). Brands have come to realise that their knowledge of the seg- mentisnotasmuchasitshouldbe. TheytendtolumpMalaystogether in one group or just look at it (the segment) based on occupation or income, not realising that there aremanyothershadestoit,Girish points out. GroupMs study takes a slight- ly different approach. It looks at Malay consumers based on their mindset,insteadofthetraditional gender,age,occupationandlocation factors. Weve segmented them based on their mindsets because thats what influences consumers re- sponse towards a brand.You cant just make a commercial thinking thatitwillappealtoallMalayssim- plybecauseitsproducedinBahasa Malaysia, says Girish. There is a need for a more nu- ancedviewinordertohelpclients appeal to the different sub-seg- ments within the larger ethnic group. Therecentstudy,conductedlast year,is the seventh such analysis undertaken by the media agency. The study first began in the early 2000s and has provided valuable insights. Themajorchangeseenoverthe years is that the consumer groups are less homogeneous now. From left: Ng, Girish and Razlin Mat Bebas. They are carefree but they are also strivers. They will work to get what they want and can be quite rebellious. They are quite communal in nature and enjoy hanging out in groups. A typical example of this group would be the Mat Rempit who like to modify their cars and bikes. Consumer preferences: There is some overlap between Mat Bebas and Generasi Glokal in terms of lifestyle and desires. But a key differentiating factor is the Mat Bebas may not be able to afford all the designer labels and luxuries they want. Thus, they will modify their consumption habits. For example, Mat Bebas are likely to shop at whats known as uptown bazaars (underground night markets) to purchase cheaper knock-offs. PENCETUSUMMAHProportion of the Malay population: 5% in 2014; 10% in 2012 Location: Mostly in the east coast (44%) and central region (26%) of Peninsular Malaysia Digital usage: Adept at using technology Key characteristics: The hallmark of this group is their strong obligation to preach Islam. The group surfaced in 2012, a time when there was a rise in celebrity preachers think religious teachers like Ustaz Don or Ustaz Azhar Idrus who have a huge following. Another interesting point is the gender balance. Previously, Pencetus Ummah were predominantly male. But in recent years, there have been slightly more females in this category. Consumer preferences: They have no problems using technology to spread the word about religion. They see the brand value of gadgets and things, but if they cannot afford, say, an iPhone, they will go for a Samsung or a close alternative. They believe it is important to have a second source of income, likely due to the rising cost of living. KELUARGA RABBANIProportion of the Malay population: 18% in 2014; 38% in 2012. This group is shrinking as some of them are becoming Generasi Glokal or Pencetus Ummah. Location: Mostly in the east coast (32%) and southern region (25%) of Peninsular Malaysia Digital usage: Starting to adopt digital technologies Key characteristics: This is the more mature group, between 30 and 49 years of age. Keluarga Rabbani are very religious, traditional and grounded in Islamic values. Consumer preferences: They are by nature not materialistic and spend within their means. They are good at saving money and believe it is important to have a second source of income. They are more loyal to local brands. They place a high importance on education and are likely to send their children to religious boarding schools. ORANGBANDARProportion of the Malay population: 10% in 2014 Location: Mostly in the central region, around Kuala Lumpur and the Klang Valley Digital usage: Technology and digital media are part of their everyday lives Key characteristics: This is a very niche segment. Orang Bandar are typically described as the ultra- modern Malays. They speak mostly English at home and are rather international in their views. Consumer preferences: They are affluent and have spending power. They like luxury labels and branded goods. E #6JULY132015 #7JULY132015centre stage centre stage THE 5types of Malay consumers