PepsiCo Taps Into Gen Z And E-Commerce to Drive Growth In Malaysia, Eyes Digital Market Domination
PepsiCo goes all-in on e-commerce.
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As every click and scroll gains importance in the current age, global food and beverage giant PepsiCo is proactively mapping out a new strategy to engage with Generation Z, the most influential consumers of today.
PepsiCo has acknowledged that individuals in their early teens to mid-twenties are crucial influencers of digital trends and enthusiastic online shoppers. As a result, the company is redirecting its marketing efforts toward e-commerce channels, with social media platforms like TikTok playing a vital role.
In a recent media roundtable discussion, PepsiCo has exclusively shared its strategy to illuminate this focus, represented by General Manager for PepsiCo Malaysia and the Philippines, Aditya Ahuja.
PepsiCo’s innovative growth driver: E-Commerce
The onset of the COVID-19 crisis resulted in a transformation of consumer spending habits worldwide, including those in Malaysia. The crisis hastened the acceptance of e-commerce as a shopping alternative among Malaysian consumers. PepsiCo took proactive measures to leverage this change through its portfolio of iconic brands such as Pepsi, Lay’s, Quaker, and Tropicana.
In Malaysia, their e-commerce strategy extends beyond merely listing products on online shopping platforms; it also encompasses a more profound integration into the digital ecosystem.
As an example, in April of last year, Lay’s introduced a UEFA Jumbo Pack that showcased football legend Lionel Messi. This limited edition drew in users by creating real-time interaction during a TikTok Shop livestream. PepsiCo’s data indicates that one livestream session made up 70% of the group’s Gross Merchandise Value (GMV).
Moreover, recent surveys indicate that PepsiCo manages to draw in over 30,000 monthly purchasers on the platform, with a notable achievement of 25 hours of livestreaming each month. This performance is fueled not just by product visibility, but also enhanced through collaborations that provide a range of rewards and quick sales tactics, thereby heightening demand among Malaysian consumers.
Gen Z are more than consumers – they form a digital community
As digital natives who were among the first to experience and interact with internet platforms, Generation Z is more than just a consumer demographic. The market has expanded into the digital sphere as a direct result of this, changing the economic landscape.
According to PepsiCo, Gen Z prioritizes accessibility on the platforms they use on a daily basis in addition to product quality. PepsiCo’s e-commerce strategy has therefore changed from traditional advertising to a more natural, neighborhood-based, and health-conscious manner.
Values are important to today’s consumers; products are not enough. PepsiCo’s approach in Malaysia demonstrates a twin focus: promoting healthier daily choices and improving the neighborhood.
PepsiCo is still dedicated to addressing food insecurity despite dominance in the digital market
Addressing food insecurity domestically and internationally is one of its top priorities. In honor of World Food Day in 2024, PepsiCo and The Assembly Soup Kitchen (TASK) collaborated to provide 1,000 food packets to underprivileged areas in Kuala Lumpur’s Chow Kit neighborhood, which benefited B40 families, homeless people, and refugee schoolchildren.
It is a component of a broader worldwide initiative in which the corporation has donated more than USD 14 million (about RM59 million) to the World Food Programme so far.
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