Franchise Brands Reshape Ramadan Bazaar Landscape, Balanced Approach Urged - Expert

By Samantha Tan Chiew Tieng

PUTRAJAYA, March 4 (Bernama) -- The presence of large-scale food and beverage chain brands at Ramadan bazaars marks a significant structural shift in the small business ecosystem that has long been the backbone of these locations.

From a consumer perspective, the participation of major brands offers added value such as more competitive pricing, consistent product quality, and greater confidence in operational standards and food safety. This situation aligns with the principles of an open market that provides wider choices to buyers.

However, for micro traders, the competition is asymmetrical as they operate with limited capital, face higher raw material procurement costs, and rely on seasonal sales during Ramadan.

Director of the Institute for Small and Medium Enterprises (ISME) at Universiti Malaysia Kelantan (UMK), Dr Mohd Ikhwan Aziz, likened the situation to a super league team playing in a village league.

“From the customers’ perspective, it is something attractive. However, for micro traders, the clear advantage lies with the big brands,” he told Bernama.

According to him, the ability of large-scale companies to leverage economies of scale, strong capital backing, and aggressive marketing strategies creates a competitive advantage that is difficult for micro traders to match.

However, he views the situation as also reflecting the realities of the actual market.

“It provides micro traders with insight into the importance of branding, strategic pricing, managing sales targets, and adopting more effective approaches to engaging customers,” he said.

In this regard, Mohd Ikhwan suggested the introduction of clearer guidelines in the management of Ramadan bazaars, including aspects such as price structures and the arrangement of sales categories to ensure the ecosystem remains fair.

He also stressed the importance of the roles played by hawkers’ associations, bazaar organisers, and local authorities (PBT) in coordinating the participation of industry players so that the original objective of the bazaar as a microeconomic platform is not sidelined.

Meanwhile, a consumer, Samiha Mohamed, 45, said that franchise participation could be considered if emphasis is placed on local products at reasonable prices.

She said such an approach could reduce the significant gap between micro traders and large brands, while preserving the bazaar’s identity as a space for small-scale entrepreneurs to earn a livelihood.

She also saw potential for collaboration between both parties, including opportunities for micro traders to supply raw materials and to share expertise in marketing and branding.

“A collaborative model can create a win-win situation without undermining the role of the bazaar as a platform to empower the people’s economy,” she said.

For Lathifah Abdulah Hamid, 43, she said large brands naturally have the advantage of being well-known and widely trusted, but micro traders possess their own unique strengths that should not be underestimated.

“Micro traders have their own uniqueness. I personally buy hard-to-find food or traditional cakes at the bazaar because they are difficult to find elsewhere. Micro brands that offer quality products can also attract loyal customers - for example, soy drinks; I prefer village-style,” she said.

Lathifah added that the diversity of options between large brands and small traders actually gives consumers room to make choices based on their individual tastes.

Ultimately, she said, a balance between consumer interests and the sustainability of micro traders must remain the main consideration to ensure Ramadan bazaars continue to function as the heart of the community economy, rather than merely a large-scale commercial battleground.

-- BERNAMA