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Is Brand Loyalty Dead in Malaysia? 6 Lessons for Marketers (2026)

Written by Vase.ai | Oct 22, 2026, 3:27:42โ€ฏAM

Vase.ai Consumer Insights  |  As heard on BFM 89.9 Marketing Mojo  |  Malaysia  |  October 2026

Is brand loyalty dead in Malaysia? 83% of Malaysian shoppers switched a usual brand this year. Most marketers would blame rising prices. Only 12% did. Our CEO Julie Ng joined Richard Bradbury on BFM 89.9 to unpack what is really happening to brand loyalty, and what makes Malaysians switch.

๐ŸŽ™๏ธ Podcast  ยท  BFM 89.9 Marketing Mojo
The New Consumer: Is Brand Loyalty Losing Its Power?
Julie Ng, Co-Founder & CEO, Vase.ai  ยท  with Richard Bradbury  ยท  20 Oct 2026
 
 
0:0031 min
Listen now โ†’

Julie walked through findings from our FMCG Brand Switching Report 2026 and other Vase.ai studies. Here is what that means for your brand, and what to rethink for 2027.

In this article

  1. ๐ŸŽง Listen to the episode
  2. Loyalty was always shared, not single
  3. Fortress or playground: know your category
  4. Price opens the door, promotion walks them through
  5. AI is the new shelf, but reviews close the sale
  6. National averages will mislead your media plan
  7. Sale season and loved ads: two traps
  8. What to rethink for 2027
83.3%
๐Ÿ”„ switched brands in at least 1 grocery category since January 2026
49.6%
๐Ÿท๏ธ tried a new brand because of a promotion
11.9%
๐Ÿ’ธ tried a new brand because their usual one got too expensive
90%+
๐Ÿ’ผ of RM8,001+ households switched, slightly above lower incomes

Base: 486 Malaysian grocery decision-makers, 2026. Source: FMCG Brand Switching Report 2026.

๐Ÿค Lesson 1

Loyalty was always shared, not single

Short answer: only 16.7% of shoppers made no brand change at all this year. Most rotate between a few brands rather than abandoning one for good.

This isn't new. Research from the Ehrenberg-Bass Institute, the team behind How Brands Grow, has long shown that most of your buyers also buy your competitors. Switching rarely means leaving either: in bread, 94.3% of switchers have gone back to their original brand or buy both.

"Loyalty is getting rare. It's more of a shared loyalty. When it comes to shampoo, I have three brands, and that's becoming the norm."
Julie Ng, Co-Founder & CEO, Vase.ai
๐Ÿฐ Lesson 2

Fortress or playground: know your category

Short answer: switching isn't even. Personal care leads at 53.1%, while bread sits at 23.0%.

Changed their usual brand since January 2026, by category (N=486):

๐Ÿงด Personal care
 
53.1%
๐Ÿซ Snacks, biscuits, chocolate
 
35.8%
๐ŸŒพ Rice and grains
 
33.5%
๐Ÿซ™ Sauces and condiments
 
33.5%
โ˜• Coffee
 
33.3%
๐Ÿงน Household cleaning
 
32.3%
๐Ÿฅค Beverages
 
30.2%
๐Ÿœ Instant noodles
 
29.0%
๐ŸงŠ Frozen food
 
27.6%
๐Ÿซ™ Cooking oil
 
26.7%
๐Ÿฅฉ Eggs, meat, poultry
 
26.1%
๐Ÿž Bread and bakery
 
23.0%

12 of the 20 categories in the study shown. Bar widths relative to the highest category. Source: FMCG Brand Switching Report 2026.

  ๐Ÿฐ Fortress ๐ŸŽก Playground
Examples Baby care, anything where a wrong pick is costly Snacks, sauces, coffee
Why people switch They mostly don't. Switching feels risky Trying something new is the fun part
How to win Protect trust and consistency Keep giving them something new
๐Ÿง  What this means

Mister Potato's limited-run Chinese New Year flavours, on shelf for two months, are a playground play done right. You will never see a limited-edition diaper. Work out which game you're in before you copy anyone's playbook.

๐Ÿšช Lesson 3

Price opens the door, promotion walks them through

Short answer: when asked why they switched, 51.6% said better value for money. But only 11.9% tried a new brand because their usual one got too expensive. Promotions, curiosity and social media triggered most trial.

What made shoppers try a new brand since January 2026 (N=486):

๐Ÿท๏ธ Promotion or discount
 
49.6%
๐Ÿค” Curiosity, wanted something new
 
37.0%
๐Ÿ“ฑ Saw it on social media
 
34.6%
๐Ÿ—ฃ๏ธ Recommended by someone I trust
 
27.4%
๐Ÿ‡ฒ๐Ÿ‡พ Wanted to support a Malaysian brand
 
21.0%
๐Ÿ’ธ Usual brand too expensive
 
11.9%
๐Ÿšซ Avoid brand from certain country
 
7.0%

Multiple answers allowed. 11.5% tried no new brand. Source: FMCG Brand Switching Report 2026.

"Her usual brand went up by a ringgit. She's annoyed, but she's not leaving. Then she sees a buy-one-free-one on the other side, and her friend posted about it. Price opens the door. The promotion walks her right through it."
Julie Ng

It isn't about affordability either. Switching runs from 79% to 91% across income groups, and households earning RM8,001 and above switch slightly more. Shoppers are trading around, not down: premium coffee, budget tissue, same person.

๐Ÿค– Lesson 4

AI is the new shelf, but reviews close the sale

Short answer: AI helps shoppers narrow the shortlist, but people still make the final call, and reviews from people they trust tip the decision.

On air, Julie shared that close to 4 in 10 Malaysians now use an AI assistant when researching products. The catch: AI answers lean on what other people say about you, such as reviews, comparison lists, forums and third-party articles. Publishing your own content is no longer enough.

"It's getting harder to buy your way into AI answers. You need to earn it."
Julie Ng
๐Ÿง  What this means

Don't ditch search yet, good SEO feeds AI answers too. The cheapest next step, especially for SMEs: ask every buyer for one specific line of review. "Good with rice. Spicy enough." Done consistently, it compounds.

๐Ÿ“บ Lesson 5

National averages will mislead your media plan

Short answer: TikTok is Malaysia's top brand discovery platform at 64%. But for Gen X, Facebook is almost level, and for Gen Z it doesn't make the top three.

Generation Where they first discover brands (top 3)
Gen Z TikTok 72% ยท Instagram 55% ยท YouTube 35%
Millennials TikTok 64% ยท Facebook 58% ยท YouTube 45%
Gen X TikTok 58% ยท Facebook 56% ยท YouTube 37%

Source: Media Consumption Across Generations report and its generation cuts, N=962, 2025.

The same goes for search. 31% of Gen X still discover brands through search engines, so dropping search for an older audience would cost you reach.

๐ŸŽง Julie went deeper on brand discovery in an earlier Marketing Mojo episode: Date on TikTok, Marry on Instagram? Brand Discovery in 2026

"The job isn't to do more of everything. It's to find where your brand is weakest and fix that."
Julie Ng
๐ŸŽฌ Lesson 6

Sale season and loved ads: two traps

Short answer: 94% of Malaysians wait for Double-Digit Sales at least sometimes. And even PETRONAS, Raya's most-recalled advertiser, was correctly linked to its own ad by fewer than half of viewers.

94%
๐Ÿ›๏ธ wait for Double-Digit Sales like 11.11 at least sometimes (37% usually)
22%
๐ŸŒ™ named PETRONAS unprompted as a Raya advertiser, the highest of any brand
49%
๐Ÿ”— correctly linked PETRONAS' Raya ad to PETRONAS

Sources: Double-Digit Sales & Payday study (N=416, 2025); Post-Raya 2026 Advertising Analysis (N=420, 2026).

Brands can't opt out of sale season, but price can't be the only reason people buy you. The good news: 39% respond to limited-time exclusives, so urgency doesn't have to mean a deeper discount.

๐Ÿง  What this means

Use limited editions, exclusives and collectibles to create urgency without cutting margin. And before any big campaign airs, cover the logo. Would people still know it's you?

What to rethink for 2027

๐Ÿงบ Measure share of basket

Switching is fine as long as you stay in the rotation. Stop chasing exclusivity.

๐Ÿค Partner with what else they buy

Find out which brands your buyers pick up alongside yours, then run joint promotions. Sambal brand, meet the crackers.

๐ŸŽฏ Plan media by segment

Know who your best customers are and where they actually discover brands, not the national average.

๐Ÿ” Check your AI visibility

Ask AI assistants about your category. If you're missing, earn your way in with reviews and third-party coverage.

Losing buyers to the brand next to yours on the shelf?

Brand switching is 1 of the 14 decisions in our Brand Plan Compass. See which research tells you why buyers leave and how to win them back, before your 2027 plan locks.

Find your decision โ†’

FAQ

Is brand loyalty declining in Malaysia?

Brand loyalty in Malaysia is shared rather than dead. 83.3% of Malaysian grocery shoppers switched brands in at least one category since January 2026, and only 16.7% made no change. But most switchers still go back to their old brand at least occasionally.

Why do Malaysians switch brands?

Better value for money (51.6%) and better quality (44.7%) are the top reasons. Trial is mostly triggered by promotions (49.6%), curiosity (37.0%) and social media (34.6%). Only 11.9% tried a new brand because their usual one got too expensive.

Which grocery categories do Malaysians switch the most?

Personal care leads at 53.1%, followed by snacks, biscuits and chocolate (35.8%). Bread and bakery has the lowest switching rate measured, at 23.0%.

Do Malaysians wait for 11.11 and 12.12 sales to buy?

Yes. 94% wait for Double-Digit Sales at least sometimes, and 37% usually do. Only 6% shop any time.

Read the full reports