UM's Wave 5: Impact of Social media on Malaysia

Here are a couple of articles that focus on Malaysia in the Universal McCann Wave 5 report:

 From: http://www.adoimagazine.com/newhome/index.php?option=com_content&view=article&id=6318&catid=1&Itemid=5

Social Media’s impact on consumers and brands

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The fifth instalment of Universal McCann’s Wave research study confirmed that Malaysians used social networking sites such as Facebook, MySpace, and Twitter for making contacts for work, promoting yourself, and changing opinions. The sample size of Wave 5 in West Malaysia was 500 respondents aged 15-54 years. Wave 5 is one of the world’s long-running examinations of the impact of social media on today’s global marketplace.  Prashant Kumar The Universal McCann research study, which has measured the scale and impact of social media since 2006 – the same year Facebook arrived to everyone over 13 years old with an email address – explores changes in communication technology and ways in which social media affects consumer habits. According to the study, at least 50% of the respondents have discovered new brands through social networks. “The research is extremely useful in identifying ways in which clients can utilise the social media landscape to engage and connect with consumers to drive sales,” believes Prashant Kumar, CEO, Universal McCann Malaysia. The most significant shift in social media in recent years is the ability of users, particularly males of a higher socio-economic status, to engage via mobile devices. This finding demystifies the perception that social media is dominated by a younger demographic. Although 38% of social media users are in the 25-34 age bracket, the 35-44 age segment is fast catching up with 24% of them using social media actively. “New conversation tools are emerging daily, and companies must leverage on these developments by saying something meaningful,” Kumar notes. “Even traditional media is shifting to digital. It is imperative that at a minimum, brands must invest in social listening.” Socialisation of brands is a major shift in how brands are communicating with consumers. The Wave 5 study reveals that 80% of the respondents have visited an official company or brand website in the last six months. “There is obviously a huge benefit to engaging consumers in the social space, but the challenge is to identify the type of social experience they want,” explains Kumar. “We must understand consumer needs before we can create compelling and successful social media programs.” Despite a noticeable drop in Europe, blogging in Malaysia has grown from 75.5% in 2008 to 80.4% this year. The study also confirms that Malaysia ranks among the highest in the world in terms of managing a profile on an existing social network. Visiting friends on a social network page is the top social media activity along with watching videos online.

From: http://www.marketing-interactive.com/news/22965

The Social Life Of Brands

By: Staff Writer, Malaysia

Published: Nov 04, 2010

UNIVERSAL MCCANN      SOCIAL MEDIA      MYSPACE     CONSUMER TRENDS 

• Wave 5 - social media is instrumental to consumer decisions formed
• 50% of the respondents discover new brands via social networks
• Malaysians use Facebook, Twitter & MySpace to better engage

Malaysia - Universal McCann's recent Wave 5 study has shown that the role of social media in relation to how Malaysians form decisions about brands has grown significantly. Consumers are heavily reliant on the platform for a variety of reasons.

Local customers utilize sites such as Facebook, MySpace, and Twitter to widen their pool of contacts for work, promote themselves and change or shape opinions. In West Malaysia, the study involved 500 respondents between the ages of 15 and 54.

Based on the data compiled, up to 50% of the respondents have uncovered new brands via social networks.

According to UM, the research exercise is one of the longest-running examinations of the impact of social media on today's global marketplace. The latest instalment served to explore the changes in communication technology and ways in which this element affects consumer habits. It measured trends as far back as 2006 until the present.

"The research is extremely useful in identifying ways in which clients can utilise the social media landscape to engage and connect with consumers to drive sales," said Prashant Kumar, CEO, Universal McCann Malaysia.

The most obvious shift in recent years is the ability of users (males of a higher socio-economic status), to engage using mobile devices - debunking the myth that social media is dominated by a younger demographic.

While 38% of social media users are in the 25-34 age bracket, the 35-44 age segment is fast catching up with 24% of them using social media actively.

Worldwide, Malaysia also ranks among the highest in terms of managing a profile on an existing social network. The study determined that the top social media activities are visiting friends on a social network page and watching videos online. 

 

Wave 5 also revealed that 80% of the respondents have visited an official company or brand website in the last six months.

"New conversation tools are emerging daily, and companies must leverage on these developments by saying something meaningful. Even traditional media is shifting to digital. It is imperative that at a minimum, brands invest in social listening," Kumar added.

Blogging in Malaysia has also grown from 75.5% in 2008 to 80.4% this year, despite a huge drop in Europe. 

"The challenge is to identify the type of social experience customers want. We must understand consumer needs before we can create compelling and successful social media programs," he noted. 

UM's Wave 5: Impact of Social media on Singapore

Here is an article related to the Wave 5 report, in relation to the impact of social media on Singapore:

From: http://www.adasiaonline.com/2010/10/um%E2%80%99s-wave-5-sheds-light-on-impact-of-social-media-on-consumers-brands-in-singapore/

UM’s Wave 5 Sheds Light on Impact of Social Media on Consumers, Brands in Singapore

By admin Published on 14 October 2010

Study background

Singapore, October 14, 2010 – UM today unveils findings from the fifth installment of its Wave study, one of the world’s largest and longest-running examinations on the impact of social media in today’s global marketplace. The UM study has measured the scale and impact of social media since 2006, the same year Facebook became the online destination for everyone over 13 with an email address. Wave 5 explores changes in communication technology as well as the ways in which social media influence consumer habits.

“We are very proud and excited about our Wave research because it is one of the largest global studies delving into the influence of social media. Year after year we continue to track the explosion of emerging technologies and uncover insights on how to harness these changes,” said Huw Griffiths, EVP and Global Director of Research and Analytics for UM. “This year, we feel we have incredible data on how brands can leverage social media to drive sales. We look forward to using the Wave 5 research to help our clients better engage and connect with their consumers.”

Conducted in July 2010, Wave 5 this year expanded to encompass 53 different countries, covering 85% of the world’s Internet population. 36,800 social networkers around the world also took part in the study. Just over 500 active Internet users in Singapore took part in the study (reflecting close to 2.1 million Singaporeans 16+). Importantly, the study allows us to identify local trends and cultural differences as well as similarities. The information gathered is a data goldmine for brands attempting to build stronger relationships with target consumers, giving UM a strategic advantage in accurately forecasting consumer behavior.

Local and global…

An immediate finding of the study is that social media platforms are now firmly ingrained in consumers’ everyday lives, with more people using these networks to connect with friends than even the telephone or email.

Perhaps the most significant shift in social media in recent years has been the ability of users to interact via mobile devices. Nearly 30% of mobile users now frequently access the Internet. Wave 5 reveals that smartphone users, who are primarily male and come from higher socio-economic brackets, frequently access social media sites, tearing down the perception that this medium is dominated by younger demographics.

Still, younger demographics engage more deeply with social media platforms, using them as one-stop shops for interacting with peers. From direct messaging to pictures and information sharing, everything is conducted in a single space. Tapping into that space is therefore increasingly more valuable to brands, with social media communities often proving to be more valuable than traditional brand websites.

“Having a social media presence is a crucial element of the marketing communications mix for brands these days,” said Jeannette Liendo, Global Director, Marketing Excellence, Microsoft. “Brands that aren’t prepared to interact with their target audience through these platforms will suffer. Recent advertising spend through what were traditional routes may be down overall, but digital activity, predominantly through social media, is on an upward trend.”

In fact, of those who joined a brand community, 72% said they felt more positively about the brand, 71% said they are more likely to buy the brand, 66% said they felt more loyal to the brand, and 63% said they recommended others to join. These figures clearly demonstrate that the “socialization of brands” is a major shift in how brands are communicating with consumers, and it is a trend that is likely to continue.

“The survey title, ‘The Socialisation Of Brands’, sums up the current landscape perfectly,” said Clinton Simpson, Managing Director, UM Singapore. “There is a huge benefit to brands that engage with consumers in the social space, but the challenge is to identify the type of social experience consumers actually want. Wave 5 demonstrates that a deep understanding of these consumer needs is the key to creating compelling and successful social media programs.”

Key Facts about Singapore from WAVE 5

Social networking is a form of mass media in Singapore

• Nearly 80% of active Singaporean internet users have managed their existing profile on a social network in the past six months, while around 52% have created a new profile during that same period

(a) Microblogging (Twitter) users have more than tripled in last 12 months

(b) 64% of Singaporeans message friends over social networks

(c) 61% of Singaporeans upload photos to their social network profile

• Contrary to the declining global trend a large number of Singaporeans are still visiting company/brand websites almost 8 out of 10, 74 per cent find them very influential

Changing the way we use social networks

• The gap between young and old age groups in terms of social network usage is narrowing

(a) On a year-on-year basis, the 45 – 54 year-old age group has nearly tripled their social network penetration based on the number of people in this group who actively manage their social network profile

• We are also seeing a gravitational pull to do more and more of other online activities within our own community and chosen host network

(a) Upload videos

(b) Organizing events, etc.

Singaporeans are mature internet users

• Singaporeans are more worried than their global peers on missing out if they don’t regularly visit their social network profile

• More than 50% think social networking sites are an integral part of social life

• Less likely to think more positively about companies that have blogs or to trust bloggers who blog about products and services, partially due to the fact that they realize just about anyone can write a blog

• Though nearly 36% like personalized adverts online, this is still well behind the global average

• Much more likely to join a brand community online (53% did) and some of the strongest reasons for doing so are:

(a) Support a cause they like

(b) Get advance news on products. We like to stay ahead of the curve.

(c) Get free content – free is always welcome here!

(d) Learn more about the brand

• When it comes to finding advertising influential, Singaporeans put in-person recommendations first, be it from an expert or a friend

(a) TV commercials come next

(b) Recommendations from a social network friend or a retail site feature in the top 10 influential sources

(c) Reflection of the fact that we Singaporeans lean the most on advice from “tried and tested” sources

• Singaporeans are willingly seeking social networks to connect with brands with 53 per cent joining an online brand community and 38 per cent already a fan of a brand

• Interestingly, almost half of the people we surveyed discovered brands through social networking sites.  User activity on these sites is not confined to connecting with known brands

To see more specifics on the findings of the study, please see the full Wave 5 report at http://www.umww.com/wave5

Click image to view pdf

McCann Wave 5 Report 2011

Here is the 2011 Universal-McCann Wave 5 report that tracks development in social media usage across the globe.  This edition of the report is called Socialization of Brands, which focuses on the impact of social media (including blogs) on commerce.

http://www.universalmedia.nl/files/Wave_5-The_Socialisation_Of_Brands-Report.pdf

This is another version, with editorials:
http://www.ecr-baltic.org/f/K.Gedrovics_The_Socialization_of_Brands.pdf

How Shopaholics created the blogshop universe

This blogshop review blog explains how shopaholics have created the blogshop universe.

Blogshops emerged because fashion conscious individuals (fashionistas) discover gaps in the local fashion scene and opportunities for them to become sellers.

Blogshops need to be linked and found by others, so other individuals step in and fill a variety ofrelated online shopping needs.  In this blog, the owner decided to become a reviewer, as well as to provide links to blogshops.

Thus, owning a blogshop is only one way to participate in the fashion hobby.  You can also provide blogshop reviews, a site that lists blogshops (directory), and a variety of otherroles that support blogshops.

http://diaryofane-shopaholic.blogspot.com/

In The Beginning..

There was a girl.
There were online boutiques.
A medium did not exist to connect her with all these online boutiques with a single click.

Hence, she decided to create a blog specially for girls just like her :)
To be able to connect with all the online boutiques via one medium.
For comfort;
For ease;
For convenience.

To make online shopping a breeze.

And Then..

She thought there must be more than just collecting the links of online boutiques.

And so, this online shopaholic decided to review items daily as well as highlight pieces of clothing or accessories (bags & belts) or shoes she oh-so-loves!

Last of all, she does hope that you will enjoy your stay here :)

To owners of online boutiques:
Drop her a mail if she hasn't linked you yet, or to inform her of updates.

To shoppers:
At this site, you'll be able to find everything you need about online shopping ;)
From latest updates, to over three hundred links to local online boutiques!
Everything you need, one place, one stop ;D
Updates at your fingertips!

Malaysian Consumers are Spending More Online! RM1.8 billion Spent in 2010

This piece of news confirms my suspicion that blogshops are opening up online shopping to the masses.

Where previous studies have claimed that Malaysia shoppers have been reluctant to buy online, things have been changing quite rapidly. 

From: http://www.mofew.com.my/2011/malaysian-consumers-are-spending-more-online-rm1-8-billion-spent-in-2010/ 

A recent report revealed that Malaysians spent RM1.8 billion in online shopping last year, which marked a 3x increase compared to reports 3 years ago. Although half of the amount goes towards travel and bill payments, this also comes in as good news.

What does this mean to online fashion entrepreneurs?

1. Increased Customer Confidence in Online Purchases

Customers are opening up to the idea of online shopping. The usual excuses of being skeptical of the products, security threats or not knowing how-to is on a decline. Although security issues (e.g. payment) is still a concern but it is good to know that they are still willing to purchase (RM181 million comes from Fashion and Beauty alone)!

2. More Opportunities for New Online Fashion Entrepreneurs

The cake is growing in size thus allowing newer entrepreneurs to be a part of it and the only limitation is creativity. Whether it is handmade products, self designed apparels, handbags or accessories, there is room for all and this is a great year to get started!

3. It is Time to Step Up Your Game

More entrepreneurs also means that competition will be stiffer than ever and online entrepreneurs will have to compete beyond just price, quality and service. It comes also comes down to various online marketing strategies using Search Engine Optimization (SEO), social media, videos and more to stand out from the rest.

Moving Forward

These are exciting times for every online fashion entrepreneurs and aspiring ones and MOFEW is proud to be able to be a part of introducing Malaysian online fashion entrepreneurs to the consumers. Looking forward to an awesome year for the online fashion industry in Malaysia!

Ecommerce Around the World

Here are some more updates about the state of e-commerce worldwide.

From: http://mashable.com/2011/03/25/e-commerce-infographic/

Ecommerce Around the World [INFOGRAPHIC]

5 days ago by Lauren Indvik9

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Ecommerce is a booming business in the U.S. and across the globe — and it’s not slowing down anytime soon.

This infographic, from online coupon aggregator My Coupon Codes, shows the online buying market, illustrating what, where and just how much people are buying online.

The data is based on a 2010 Nielsen survey of more than 27,000 Internet users from North America, South America, Asia Pacific, Europe and the Middle East.

The study revealed that online reviews are playing an increasingly important role in purchasing decisions; 57% of online respondents consider reviews prior to purchase, particularly for cars, software and consumer electronics; and 40% of participants said they would not even buy electronics without consulting online reviews beforehand.

[via My Coupon Codes]

Etsy and Social Commerce

A couple of things jump up at me in terms of social commerce here.

First, DIYers or handicrafters in the US have their own platforms to buy and sell their wares.  In Malaysia and Singapore, blogshops and Facebook storefronts accomodate the same functions.

Secondly, cost free social media enables an explosion of DIY and self-made items, by enabling people to share and express their creations, and by offering a feasible platform for them to sell their creations.

Third, Etsy sounds a lot like blogshops in that it enables buying and selling for a variety of reasons- either to gain an income, or to participate in a hobby.

Lastly, commerce is something that occurs as a result of people in social situations.  Selling what we make or what we like is a kind of SHARING and EXPRESSION of ourselves to other people. Sharing includes selling. Therefore, hobbies like DIY/handicrafts, fashion, photography etc. all would involve some kind of commerce as we set to acquire and let go of various items and artefacts associated with the hobby or interest.

Where the cost barriers to get into business was once prohibitive, the Internet has lowered all that to the point where we can now all be sellers as well as buyers.  Sometimes we buy, and sometimes we sell.  This makes us all into PROSUMERS.


From: http://www.avc.com/a_vc/2009/12/thinking-about-etsy-in-the-san-telmo-markets.html

Thinking About Etsy In The San Telmo Markets

The streets of the San Telmo neighborhood of Buenos Aires turn into a big outdoor market on sundays. Our family spent sunday afternoon there this past weekend.

As I strolled around, I could not help but think of Etsy, what it has become and what more it needs to do to realize its potential.

But first a little backdrop. This decade we are now ending will be remembered as the time when the web became social. It took us almost a decade once the web became commercial, but we figured out how to make people the atomic element of the web. And now we get to build social gathering places on the web.

My friend Mark Pincus told me when he was first starting Zynga that social networks had to become like cocktail parties. You needed things for people to do in them so they would stick around and engage. Mark accomplished that goal with social gaming and experiences likeFarmville show that people will indeed 'hang out' with their friends on the social web.

Now back to San Telmo. People do come to the markets on sunday to shop. The artists, entertainers, and merchants who set up shop there do make money. For some it is a hobby, for others it is supplemental income, and for some its their full time business. But the main thing that is going down in San Telmo on sundays is a social experience. It is seeing and being seen. It is bumping into friends and meeting new ones. It is getting out of the home and into the streets.

People stroll, they chit chat, they sing, they dance, they eat, and they buy and sell.

Etsy is the closest thing to San Telmo on the web. But it doesn't come close in terms of social experience today.

Etsy has done a good job of bringing people (real people) together to buy and sell. There are over 500,000 people who have opened a shop on Etsy and millions who have registered and bought something from a seller on Etsy. Over ten million people visit Etsy every month.

Etsy has mostly focused on handmade goods along with supplies for making things and vintage items. These are things that are made and sold by real people and so Etsy has created the largest marketplace on the web where real people buy and sell things with each other.

There is also a very lively community on Etsy. The chat rooms are full of people talking, listening, and learning all day and all night. There are over 50,000 forum posts on Etsy every day.

But Etsy is not yet as vibrant and diverse an experience as San Telmo. Most people don't go to Etsy to 'stroll" or 'hang out'. Some do and the things they like to do other than shop are favoriting items and curating lists and treasuries.

The people that do use Etsy in this way are starting to have a San Telmo like experience.

What Etsy needs to do next is make this kind of 'strolling' experience work for everyone. We need to bump into our friends on Etsy and we need to make new ones there.

It would be great if we could sing and dance and eat and drink on Etsy too. But somethings don't make it onto the web as easy as others. Etsy will have to find experiences, like Zynga did with Farmville and its other games, that can replace eating, drinking, singing, and dancing. And I am confident they will.

While the web will never replace the real world experience of strolling through a bustling marketplace on sunday afternoon, it offers something else: scale.

There are more tractors sold in Farmville every day than are sold in the US every year. And so the artists and merchants who camp out in San Telmo on sundays can set up a shop on Etsy and be in business 24 hours a day, 365 days a year.  These artists and merchants can sell to tens of millions, maybe hundreds of millions of people someday.

And getting to that kind of scale, as Facebook has shown us, requires putting people front and center in the experience. Rob Kalin, founder and now CEO of Etsy, prefers the words 'social commerce' over e-commerce for a reason. The emphasis is on social. Commerce is the result. An afternoon in San Telmo makes that point crystal clear.