This information is collected with the help of the article published on 23-07-2007 under the heading “Giant: We will maintain our number 1 position” by Mr. Tan.
GCH Retail (Malaysia) Sdn. Bhd, which operates the Giant retail chain, is calm with a survey finding that it will lose market leadership in grocery sales to Tesco by mid-2008. “Through the sales figure alone, normal logic will tell you who the market leader is,” Coyle said. He was commenting on a report by international retail consulting firm TNS World panel Malaysia that the Tesco supermarkets were set to emerge as the leading retail chain in terms of fast-moving consumer goods (FMCG) market share of sales in Malaysia by mid-2008. Sales, as it would be easier for those coming from a lower base to have a higher growth rate. GCH Retail’s sales amounted to almost RM3.5 billion in its financial year ended Dec 31, 2006, while filings to the Companies Commission of Malaysia showed that Tesco had operating revenue of RM1.28 billion in its financial year ended Feb 28, 2006. Coyle also highlighted that Giant actually had a 23.9% market share of the FMCG sales among different categories of retailers and 29.1% share among supermarkets and hypermarkets in Malaysia
These market share figures, which were based on the latest report by AC Nielsen, contrasted against TNS World panel’s survey that suggested Giant’s market share was only 9.8% while Tesco was trailing not far behind at 7.1%.
According to TNS World panel, Giant’s FMCG sales only grew by 10% against Tesco’s growth of 37%, while the whole FMCG industry grew by only 5%.
However, AC Nielsen reported that Giant’s FMCG sales had grown by 12.5% while the total growth of all other hypermarkets and supermarkets was 12.3%.
Market share plays a great role in implicating marketing and business strategy for business success. The most important factor to gain its value is because of the great link between the profitability and the relative market share. What do you think the roles of market share?