Paypal did a study on Malaysian online spending, via the Lowyat website:
22 April 2011 01:13 PM
Think you're addicted to online shopping? Don't worry, you're not alone. According to PayPal's first ever "Online and Mobile Shopping Insights" study in Malaysia, Malaysians are groaning to be sophisticated and affluent online shoppers. The study which was conducted by The Nielsen Company, the size of the Malaysian online shopping market reached RM1.8billion in 2010 and by 2014, it will grow to a staggering RM5billion. The survey also showed that there were 1.1 million Malaysian online shoppers last year (above the age of 18) with an average spend per head of an interesting RM2,461 and no surprises they come from the middle income and above groups in Malaysia.
“With the online shopping market growing so quickly and nearly reaching the two billion Ringgit mark, Malaysians are finding great value in buying products and services via the Web as part of their daily lives,” said Elias Ghanem, PayPal’s Managing Director and General Manager for South East Asia and India. “In addition, Malaysians prefer to shop on local websites and are looking online for a wider range of higher-quality goods, not just the lowest price. So domestic retailers have a chance to compete with overseas websites and should set up their online stores now to capture a slice of the RM1.8 billion online shopping market.”
Hit the jump for a more detailed breakdown of the findings from the study
Think you're addicted to online shopping? Don't worry, you're not alone. According to PayPal's first ever "Online and Mobile Shopping Insights" study in Malaysia, Malaysians are groaning to be sophisticated and affluent online shoppers. The study which was conducted by The Nielsen Company, the size of the Malaysian online shopping market reached RM1.8billion in 2010 and by 2014, it will grow to a staggering RM5billion. The survey also showed that there were 1.1 million Malaysian online shoppers last year (above the age of 18) with an average spend per head of an interesting RM2,461 and no surprises they come from the middle income and above groups in Malaysia.
“With the online shopping market growing so quickly and nearly reaching the two billion Ringgit mark, Malaysians are finding great value in buying products and services via the Web as part of their daily lives,” said Elias Ghanem, PayPal’s Managing Director and General Manager for South East Asia and India. “In addition, Malaysians prefer to shop on local websites and are looking online for a wider range of higher-quality goods, not just the lowest price. So domestic retailers have a chance to compete with overseas websites and should set up their online stores now to capture a slice of the RM1.8 billion online shopping market.”
Hit the jump for a more detailed breakdown of the findings from the study
PayPal Online and Mobile Shopping Insights Study - Malaysia 2011
A Quick Snapshot
About the study
The PayPal Online and Mobile Shopping Insights Study – Malaysia 2011 is the company’s first ever comprehensive consumer survey in the country to measure local attitudes and behaviours when shopping online and on mobile devices.
Conducted by The Nielsen Company in January and February 2011, the wide-ranging study sampled 400 Malaysia online shoppers aged 18 and above, for their online and mobile shopping transactions in the past 12 months, including a breakdown of specific demographics, such as personal income level, and also explores the potential growth of the online shopping market and the upcoming mobile shopping trends in Malaysia.
What the study shows
The study reveals some interesting local trends that strengthen Malaysians’ reputation of being one of Asia Pacific’s most affluent and sophisticated online shoppers.
Malaysians are spending more online each year
● The size of the Malaysian online shopping market was RM1.8 billion in 2010 and is expected to grow to RM5 billion by 2015.
● With 1.1 million online shoppers 18 years and above, Malaysians spent an average ofRM2,461 per person in 2010
● 70% of the total online shopping spend came from the middle income and above[1]groups in Malaysia.
● Online shopping in Malaysia is becoming more mainstream and a bigger part of Malaysians’ daily lives as shown by the wide range of categories:
o Travel = RM435 million (24% share)
o Bill payments = RM329 million (18% share)
o Entertainment and lifestyle = RM255 million (14% share)
o IT and electronics = RM218 million (12% share)
o General insurance = RM205 million (11% share)
o Fashion and beauty = RM181 million (10% share)
o Gifts and collectibles = RM68 million (4% share)
Malaysian shopaholics are buying more from local websites
● Malaysians are also contributing to the local economy with 45% of online shopping conducted on local websites (worth RM825 million).
● Malaysians are purchasing nearly 2.5 times as much airline tickets from local websites (RM173 million) vs. overseas websites (RM72 million).
● Financial products/services (RM78 million) and health/beauty products (RM29 million) are mainly local online purchases.
● Clothings/shoes/accessories are slightly larger for local (RM48 million) vs overseas (RM41 million) online purchases.
Malaysians shop on overseas websites for greater variety and higher quality of products, not just for lower prices
● 35% of the online spend in Malaysia is with overseas merchants - worth RM627 million
● Malaysian online shoppers cite “unavailability” (65%), “greater choice” (55%) and “higher quality” (36%) as more important reasons than “less expensive” (35%), “better discounts” (32%) and “strong Malaysian Ringgit” (23%) when buying from overseas websites.
● Nearly twice as much spent on books from overseas (RM63 million) vs. local websites (RM36 million).
● Again, nearly twice as much spent on movie/music/game downloads from overseas (RM51 million) vs local websites (RM27 million).
● Malaysians’ favourite countries for overseas online shopping were the US, Singapore, UK, China and Hong Kong.
Safety and assurances are key features Malaysians want when shopping online
● Security is a top concern for online shoppers in Malaysia.
o 4 out of 10 Malaysian online shoppers said that current credit/debit card online security measures are inadequate.
o Nearly 6 out of 10 believe they are taking a risk every time they transact online with their credit/debit cards.
● However, increasing safety measures would convince nearly 7 out of 10 to spend more online.
o In fact, the middle income[2] group, which accounts for the largest share of the online shopping market (42%), is the most willing to increase their online shopping if safety is improved (72%).
● For cross-border shopping, assurances like secure online payment method (47%), protection for purchases (34%), and financial details not shared with merchants (31%) are more important than fastest way to receive item (21%) and cheapest payment method (17%).
Malaysians are keen to try out mobile shopping
● Over 254 thousand online shoppers spent RM100 million on their mobile devices last year, approximately 6% of the online shopping market value.
● The top activity for mobile shoppers was paying the bills on the go (22%), followed by buying low-priced items such as movie tickets (21%), books (15%) and movie/music/game downloads (14%) which led to an average mobile spend per head of RM388 in the past year.
● 4 out of 10 online shoppers are willing to make a purchase on their mobile phones.
● The top three barriers to mobile shopping are small screen size (48%), slow mobile Internet connection (48%) and security concerns (37%).
[1] with personal earnings of RM4,001 and above
[2] with personal earnings of RM4,001 to RM8,000
No comments:
Post a Comment