Merchandising Trends: Zus Coffee, Chagee and other Brands are Winning Malaysian Hearts
If you’re a Millennial or Gen X (1965 – 1980), you probably remember begging your parents for the McDonald’s Happy Meal because you wanted that toy from that movie you like. That’s the success of merchandising despite the absence of social media back in the day. At the time, global spending on advertising reached around $200 billion annually, with brands primarily focusing on traditional media and physical merchandise as brand-building tools rather than direct sales drivers. So, we’re going to explore how merchandising trends are not only making a comeback but are stronger than ever.
Merchandising Before Social Media
Unlike the precise metrics we have today with digital marketing, back then it was all about high consumer engagement with brand merchandise and events. In the 1980s and 1990s, large brands like Coca-Cola, Nike, and Disney dedicated significant portions of their marketing budgets—sometimes as high as 10-20%—to merchandising.
Disney leveraged its extensive merchandising partnerships to promote its movies, creating highly recognisable products. There was once a time in the late 90s and early 2000s where for each Disney movie, you’d bet there will be a McDonald’s Happy Meal toy that will make parents open their wallet. Coca-Cola’s iconic polar bear displays or Nike’s experiential stores, helped brands maintain visibility and relevance in consumers’ lives. Despite the lack of agility and measurable ROI that digital strategies provide, these strategies worked well to create memorable brand identities and foster consumer loyalty. So much so, merchandising help these brands become iconic.
Merchandising in Malaysia
The merchandising trend in Malaysia has seen shifts over the past decade, especially with the rise of e-commerce and changes in consumer behaviour influenced by technology. Merchandising efforts, such as store displays, in-person promotional events, and traditional advertising, saw a decline as online platforms took centre stage. In recent years, merchandising trends seem to be on the rise again. Effective merchandising now goes beyond placing logos on products; it represents a brand’s lifestyle, creating items that tell a story or appeal directly to customer identities.
Leveraging limited-edition items, brand collaborations, and even nostalgia, brands are capturing the market with more meaningfully designed products. Local and regional brands have popularised this trend, each with their own unique twists to ensure that their logos and aesthetic reach beyond the respective outlets and into the Malaysian homes. So, let’s look into how McDonald’s, FamilyMart, Zus Coffee, and Chagee have won Malaysian hearts with their merchandising strategies.
McDonald’s Happy Meal: Surviving on Nostalgia
You can’t talk about merchandising by omitting the OG of this strategy. McDonald’s pioneered the trend of collectible merchandise in Malaysia with its Happy Meal toys, which have been a staple for over three decades. These toys, often themed around popular movies, TV shows, or seasonal events, sparked the craze for collectible items, making McDonald’s a go-to brand for both children and adults. The appeal of McDonald’s merchandise lies in its nostalgic value; many Malaysians grew up collecting Happy Meal toys, which hold sentimental value even into adulthood.
In recent years, McDonald’s has re-released popular toy collections, such as the “Minions” and “Pokemon” series, targeting the sense of nostalgia among young adults and rekindling childhood memories. This strategy has proven successful, drawing long queues and encouraging people to make repeat purchases to complete their collections. The continued popularity of Happy Meal toys shows that nostalgia can be a powerful tool in merchandising, evoking positive memories and reinforcing brand familiarity.
But McDonald’s never limits themselves to just toys. They also released mix cd’s you can buy with every purchase of a menu item. This merchandising appeals specifically for adults. For instance, in 2005 you could get Big Mac’s Best Female Hit with every purchase of the burger. The cd contains hits from the early 2000s and certainly brought a lot of nostalgia. McDonald’s range of merchandising and partnerships have proven that their strategy helped them stay relevant to their customers.
FamilyMart: Collaboration is Key
Despite being a Japanese mart chain that has been in Malaysia for less than a decade, they have extended their brand through unique merchandise that appeals to the local market. Malaysia always has a healthy amount of Japanese media consumers like anime fans, manga readers, and Cosplayers, all reflected with seasonal local events like Bon Odori and conventions.
They often collaborate with Sanrio, Pokemon and other beloved Japanese IP to attract the community, especially Gen Z. FamilyMart’s merchandise resonates with younger audiences who are already fans of its Japanese-inspired offerings, helping create a lifestyle around the brand. This creates virality on social media which influences more people to recognise their brand, encourage more footfall and position themselves as a lifestyle brand.
They also collaborate with other brands like Binggrae, the flavoured milk brand from Korea. Binggrae released a limited edition mug that you can get by purchasing minimum RM20 of Binggrae products at FamilyMart. Despite the stated availability until December, the mug is now sold out within the first 2-days of promotions! This is all thanks to the mug’s cute design, Binggrae’s popularity among Malaysian consumers as well as the merch’s virality on social media.
Once FamilyMart strengthened their presence with collaborations, you finally see them releasing their own merchandise like tote bags, building blocks, and stickers which have received lots of love and attention. FamilyMart’s choice of merchandising shows they clearly know their audience who favours lifestyle, aesthetic and quality.
Zus Coffee: Improving Starbucks Merchandise Formula
To discuss Zus Coffee means also comparing them to Starbucks. While Starbucks have their own line of merchandise and focus on sustainability, the exorbitant price is what’s stopping their merchandise from going fully viral. The price tag might be due to the cost, design and materials whereas Zus posits that quality doesn’t have to be expensive; just as good coffee is not a luxury but a necessity 😉.
Zus takes Starbucks merchandise formula with the same quality but uses a more diverse product range and a lower price tag. Starbucks’ cheapest tumbler made of plastic or silicone will cost you at least RM95. Meanwhile at Zus, you can get a high quality insulated steel tumbler for RM67.
While Starbucks mostly focuses on their line of tumblers, cups and thermos, Zus takes it to the next level with tote bags, and collaborations with beauty brands like Hygr and local artists like Izzati Suza. These products are often released as limited editions, creating excitement around each launch. For instance, Zus Coffee once released their Coffee Cuddle plushies that sold out within one day! It not only boosts the sale of their new menu item but boosts their brand image and social media presence.
Chagee: Melding Tradition and Modern Design
Chagee is another brand that is challenging Starbucks’ position as a lifestyle brand in Malaysia. Despite their first step into the Malaysian market being only 2 year ago, they quickly won over our hearts with their menu and merch. Inspired by traditional Chinese tea culture, Chagee’s merchandise, such as glassware and tea sets, includes traditional design motifs. By combining cultural heritage with modern aesthetics, Chagee’s merchandise appeals not only as a product but as a collector’s item, emphasising its premium image and connecting with consumers who like modern tea.
Their most recent menu item; Gardenia Green Milk Tea not only comes with a brand new premium cup design but with a line of premium-feel merchandise like the Gardenia Shawl. You guessed it; the shawl is now sold out. They also constantly have seasonal enamel pins that draw collectors to get them. Even if you don’t use those pins, you would want them just because they look good.
3 Key Merchandising Trends You Can Steal
1. Limited-Edition Drops and Seasonal Merchandising
Brands like Zus Coffee, FamilyMart, and McDonald’s use limited-edition items to generate excitement and urgency. For instance, FamilyMart’s seasonal items and McDonald’s re-release of iconic toys create hype and encourage quick purchases. By using FOMO (Fear of Missing Out), brands capitalise on limited availability to drive consumer engagement and sales. For Halloween, you can come up with seasonal merchandise that suit the season and draw Gen Z to buy more. To learn more on how to attract consumers for Halloween, you can read this article.
2. Sustainable Products
With sustainability becoming a priority, brands are emphasising reusable and eco-friendly products. Zus Coffee’s reusable tumblers align with this trend, appealing to Malaysia’s environmentally conscious consumers who prioritise sustainable options when making purchase decisions. Studies showed that around 60% of Malaysians now prefer eco-friendly products. Aligning your brand with sustainability will not only be good for sales but will also greatly boost brand image.
3. Nostalgia and Cultural Identity
McDonald’s and Chagee have successfully tapped into nostalgia and cultural pride. McDonald’s Happy Meal toys bring back memories for adult consumers, while Chagee’s tea sets integrate cultural themes with a modern setting, creating strong emotional connections with customers. This trend shows that tapping into nostalgia and cultural identity can foster a loyal customer base. A report on global consumer loyalty found consumers are more likely to buy from a brand with a strong legacy or nostalgic appeal. This is especially true in categories like food and beverages, where sensory triggers (such as taste or smell) can evoke childhood memories, enhancing brand loyalty.
Final Thoughts
Malaysian brands like Zus Coffee, Chagee, and Tealive, alongside popular chains like FamilyMart and McDonald’s, have set the standard for effective merchandising strategies. By focusing on limited editions, sustainability, collaborations, and nostalgia, these brands engage customers in meaningful ways, extending their influence beyond their primary products. This approach not only enhances brand loyalty but also provides customers with items that represent a lifestyle or memory.
Want to boost your brand with awesome merchandising? Let’s chat. But you need to find the very rare and elusive Binggrae mug for us first.
Chinese 
English 
