Online shopping sphere in Malaysia thriving
Based on the findings of our survey, we can conclude that the online shopping sphere in Malaysia is thriving, fueled by potentials for it to mature and grow.
KUCHING: The continued rise of the e- commerce industry in Malaysia is laying the foundation for a prosperous online retail sector ahead, according to 11street.
Through its recent nationwide survey from November 15 to 21, in which 3,507 respondents par t icipated, the onl ine marketplace laid out key takeaways for the Malaysian onl ine market in 2016 and predicted five leading trends for the year ahead.
11street’s chief executive officer Hoseok Kim, explained: “Based on the findings of our survey, we can conclude that the online shopping sphere in Malaysia is thriving, fueled by potentials for it to mature and grow.
“The survey revealed the psyche of Malaysian consumers who shop online, and provide us with nuggets of information to outline our predictions for the Malaysian e- commerce scene in 2017.”
According to 11street, based on its survey, over 80 per cent of its respondents revealed that they have shopped online and out of this number, 59 per cent shop online at least once a month or more frequently.
“However, despi te the avai labi l ity of a myriad of product categories, Malaysian consumers are still experimental in their purchasing behaviour by largely sticking to lifestyle and fast- moving products such as electronics, fashion and beauty, and sports and hobbies,” it said.
Based on its survey, it also noted that shopping online via smartphones is still Malaysian consumers’ preferred method of shopping.
“This revelat ion echoes 11street’s belief that Malaysia is equipped with an apt IT infrastructure to pave the way for the e- commerce ecosystem to grow in the country,” it said.
Aside from that, from the survey, 95 per cent of the respondents rated a ‘five’ and above when asked about their satisfaction level with online shopping, and summarises the fact that Malaysian online shoppers are more than happy with their online shopping experience.
According to 11street, online shopping is a driver for Malaysians to save money, in line with the rising costs of living – a premise for the online marketplace to set the tone for what is in store for the e- commerce industry moving forward.
Looking ahead, 11street predicted that existing online shoppers would continue to buy more frequently, and non- online shoppers would start to explore ecommerce in the next 12 months.
This is based on the results of the survey, in which out of the 17 per cent of respondents who said they had not shopped online before, 85 per cent expressed interest in seeking out online shopping within the next year.
“Their interest is likely encouraged by the satisfaction of existing online shoppers, as well as the good prices they can find online. This revelation will further bring the barrier down between online and non- online shoppers, thus making online shopping the way forward for consumers come 2017,” it said.
While cash is king, 11street foreseesthatMalaysianconsumers would be open to the idea of exploring non- cash payment methods such as online transfer, and through credit and debit cards, led by 90 per cent of the survey respondents who pay cashondelivery being willing to try other non- cash payment methods in the next 12 months.
“As such, with the expected increase in frequency of online purchase, the usage of credit or debit card for online payments will grow as consumers gain more trust in buying online over time,” it added.
As consumers gain familiarity with online shopping and with increased logistics coverage and affordability, 11street envisioned consumers to shop online for daily essentials, fresh produce and personal items, for these product categories can be easily browsed on their smartphones and conveniently delivered to their doorsteps.
11street also predicted that the market and online sellers are expected to gear up and offer better services and faster delivery.
“As it is, consumers are aware of the cost-saving benefits from shopping online; therefore moving forward, sellers will have to up their game and go the extra mile to deliver better services by familiarising themselves with the processes of managing growing sales volume, rising expectations on logistics, and delivering impeccable customer service.
“This is on the back of 11street’s survey, in which respondents listed ‘ timely delivery’ and ‘ positive customer review’, among others, as their key considerations when it comes to online shopping,” it said.
“In 2017, we expect to see a substantial shift in the marketing plans of many businesses, whereby they will transcend from being device-focussed to more peoplefocussed. After all, consumers these days are not only on the look- out for the best deals, but also other factors that meet their needs and cater to their demands.
On top of online deals, good customer service and excellent logistics will set the path for online businesses moving forward,” said Kim.
Hoseok Kim, 11street’s chief executive officer