Mobile E-Commerce (Goods) in Malaysia

2021 DEVELOPMENTS

High smart phone penetration supports very strong growth in mobile e-commerce

By the time the COVID-19 pandemic hit Malaysia, more than four-fifths of the country’s population was in possession of a smartphone. With mobile devices the preferred option for accessing the internet among much of the Malaysian population, there were thus very strong opportunities for mobile e-commerce to gain ground quickly as the COVID-19 pandemic took hold in the country during 2020, with very strong growth recorded during 2021 as well.

Rising demand for convenience supports growth in mobile e-commerce

One of the most important factors underpinning the very rapid adoption of mobile e-commerce among the population of Malaysia is the rising demand for convenience that has been seen among the population in recent years. As the lifestyles of Malaysian busy urban professionals become increasingly hectic, it has become more common for them to rely on mobile e-commerce as a way of saving time when accessing a wide range of goods and services.

Advertising and marketing increasingly moves online

Digital marketing has come into its own in Malaysia in recent years and this has increasingly taken the form of advertising content that is optimised for mobile devices, a reflection of the dominance of smartphones and tablets, as opposed to laptops and desktops, among Malaysia’s internet users. One of the most common advertising strategies involves offering various incentives to both customers and partner merchants and this has been particularly common among the major e-commerce players such as Lazada and Shopee, which are primarily interested in driving traffic into their respective apps.

PROSPECTS AND OPPORTUNITIES

Mobile e-commerce set to increase in importance due to increasing digitalisation

The forecast period is expected to see further growth in the use of mobile e-commerce among the Malaysian population. With the nation embarking on the Industry 4.

The penetration of apparel and footwear set to increase in mobile e-commerce

International apparel and footwear players were among the first major retail businesses to realise the huge potential that mobile e-commerce has for opening up new sales opportunities and, in some respects, completely revolutionise their approach to online sales. Japanese-origin player Uniqlo launched its mobile e-commerce app as early as 2014 for instance, years before players in other retailing categories took the step of developing their own mobile e-commerce apps.

Live streaming and the gamification of marketing campaigns set to emerge strongly

With the future of mobile e-commerce looking increasingly positive, huge investment is currently being seen in the development of new technologies and potentially revolutionary digital infrastructure with the potential to dramatically improve the online shopping experience and support the rapid development of mobile e-commerce during the forecast period. In particular, the use of live streaming to attract the attention of consumers and create links between the virtual and real-life realms has already proven very successful, especially during the COVID-19 pandemic when many consumers were unable to go outside for extended periods or travel very far from their homes.