Mobile Internet Retailing in Malaysia

PROSPECTS

Mobile internet retailing leads growth

Mobile internet retailing registered high double-digit current value growth in 2018, even higher than the robust performance by overall internet retailing. Mobile shopping is expected to continue accelerating over the forecast period, supported by the government’s Digital Malaysia Initiative.

Mobile usage and digital payments drive mobile internet retailing

Malaysia has the second highest mobile penetration in Southeast Asia after Singapore. In 2018, Malaysia had over 31 million mobile internet subscribers, while smartphone penetration stood at above 70%, and is expected to increase.

Mobile shopping is set to thrive

Leading categories that contribute significantly to mobile shopping include home and living, health and beauty as well as fashion and accessories. As disposable incomes increase, Malays are spending more on discretionary items.

COMPETITIVE LANDSCAPE

Shopee aims to lead mobile shopping

Shopee has grown to become one of the leading e-commerce platforms in Southeast Asia. Like Lazada, Shopee is another e-commerce marketplace in Malaysia.

Last mile delivery poses challenges and opportunities

With the substantial growth in e-commerce in Malaysia, and the massive prospects of the government-led Digital Free Trade Zone (DFTZ) with strong support from Alibaba Group, demand for logistics operators is rising. As an increasing number of retailers flock to open online stores, both independently and on e-commerce marketplaces, competition increases.

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