The Malaysian renovation market is witnessing a major shift. In recent years, Chinese renovation companies have started making their presence felt, and the impact is undeniable. Here’s what’s happening and why it matters:
1. Big Presence at Industry Expos
At the latest major renovation industry expo, numerous Chinese players opened booths—and not just small ones. Their booths were large, eye-catching, and packed with innovative products. This signals a strong intention to penetrate the Malaysian market and compete head-on with local businesses.
2. Direct Orders from China = Lower Costs
One of the biggest advantages these players bring? Direct sourcing from China. Malaysian customers can now order goods straight from Chinese manufacturers without going through local suppliers. This cuts out middlemen and significantly reduces costs, making Chinese offerings highly attractive for price-sensitive consumers.
3. 90-Day Visa Policy Boosts Business Mobility
Malaysia’s 90-day visa-on-arrival policy for Chinese nationals has opened doors for more than tourism. It enables Chinese business owners and technicians to come to Malaysia, set up deals, and even handle installations themselves. This flexibility gives them a competitive edge in providing end-to-end solutions.
4. The Challenge for Local Players
This trend raises a critical question: How can local renovation businesses compete?
- Price Pressure: Chinese goods often come at lower prices, and their labor costs can be cheaper than local rates.
- Speed & Integration: With Chinese teams able to install products directly, local players must rethink their value proposition.
Strategies for Local Businesses:
- Focus on Quality & After-Sales Service: Offer warranties, faster support, and personalized customer care.
- Leverage Local Knowledge: Understand Malaysian regulations, cultural preferences, and design trends better than foreign competitors.
- Collaborate, Not Just Compete: Consider partnerships with Chinese suppliers for hybrid solutions that combine affordability with local expertise.