Statistics about the blogshop scene in Malaysia

Here are some statistics about the size of the Malaysian blogshop scene.  I think the estimated 3000 blogshops does not include the ones operating on Facebook.


Source: http://www.freemalaysiatoday.com/category/business/2013/04/17/online-payment-gateway-for-%E2%80%98growing%E2%80%99-blog-shops/

Online payment gateway for ‘growing’ blog shops

April 17, 2013

By Tanu Pandey
KUALA LUMPUR: Keeping pace with the changing shopping environment where online shopping has become very popular, Malayan Banking Bhd (Maybank) has launched a payment gateway for blog shops, targeting a blog shop purchase market worth RM105 million in five years.
Blog shops that are online shops that sell goods and services online, have been growing lately with an estimated 3,000 blog shops currently and the “the number is growing”.
Maybank president and CEO Abdul Wahid Omar said this yesterday at the launch of the Maybank2u Pay, the first payment service of its kind in the country.
This year, the bank aims at capturing 5% of the sector worth RM5 million with at least 180,000 transactions on the online shopping portals and blogs. The average size of each transaction is worth RM30 as many of the blogs shops purchases are for lower priced items.
There is an increasing trend in social commerce where blog shops use banks as a payment facility. Such shops are too small to be registered as payee corporations and in most cases use online fund transfers as a mode of payment from buyers to sellers.
The Maybank2u Pay service has no joining fee but after 2013 there will be a nominal transaction fee for each transaction done via the gateway.
Maybank plans to expand the service to Indonesia, the Philippines and Singapore after this year. “This year we will try to expand the service in Malaysia and try to penetrate the market,” said executive VP and head of virtual banking & payments community financial services Mohd Suhail Amar Suresh.
When asked if the bank expects others to follow a similar trend, Abdul Wahid said, “ As a leader, we are used to others following us. We are accustomed to dealing with competition.”
Online shopping has become popular in the country with more than 1.1 million Malaysians spending RM1.8 billion for online shopping in 2010, according to statistics. The value of such shopping is expected to grow RM5 billion next year, said Maybank.



 from: http://www.thesundaily.my/news/663916

Maybank aims RM5m transactions from blogshops

Posted on 17 April 2013 - 05:40am

Ee Ann Nee
sunbiz@thesundaily.com

Print

KUALA LUMPUR (April 17, 2013): Malayan Banking Bhd (Maybank), the country's biggest lender, expects its Maybank2u Pay -- a new payment gateway to facilitate online purchasers at blogshops -- to attract at least 5% or 150 of the 3,000 local blogshops this year, to register 180,000 transactions valued at RM5 million, said its president and CEO Datuk Seri Abdul Wahid Omar.
"This is projected to increase to 30% (of total blogshops) with expected transaction value of RM105 million in five years," he said at the launch of Maybank2u Pay here yesterday.
Twenty local blogshops have signed on for the service, which is the first by a bank in Malaysia.
"The average transaction (at blogshops) is about RM30 and this is where we feel we can play a role by making it more efficient so that it can generate more volume," said Abdul Wahid.
Online shopping in the country is expected to grow to RM5 billion next year from RM1.8 billion in 2010 spent by over 1.1 million Malaysians. Maybank currently commands 50% of registered users for online banking in the country.
"Within our customer base, we have some 2.3 million active users who performed over 2.5 million shopping transactions worth about RM675 million last year," he added.
Abdul Wahid said over the years, Maybank has noticed an increasing trend in social commerce of blogshops using Maybank2u as a payment facility.
However, they were too small to be registered as payee corporations and in most cases, were using online fund transfers as a mode of payment from buyers to sellers.
This year, Maybank will focus on rolling out Maybank2u Pay in Malaysia, but plans to expand the service across its other key markets such as Indonesia, the Philippines and Singapore in 2014.
Maybank2u Pay offers blog shop owners the ability to manage their transactions via Maybank2u in a systematic and professional manner, with detailed view of sales transactions with information such as date and time of transactions, buyer's name and email as well as the transferred amount.
The new service also eliminates the current need to send proof of payment to blogshop owners. Instead, Maybank2u Pay will send email alerts to both buyers and sellers when a payment is made.
One of the key strengths of Maybank2u has always been the bill payment facility, which by far, offers the largest number of payee corporations. Maybank is also the leader in online fund transfers.
Blogshop owners can apply for Maybank2u Pay via their Maybank2u access without any joining fee. Beyond 2013, on a per transaction basis, the bank would probably charge a nominal fee like any other e-payment transaction.
Abdul Wahid also said Maybank is predicting Malaysia's gross domestic product to grow by 5.3% this year, driven by the various projects under the Economic Transformation Programme.
"With that, the banking system will both benefit as well as play a catalyst role. With an efficient banking system, we will make sure that there is enough founding for the various projects to be implemented."


from: http://www.btimes.com.my/Current_News/BTIMES/articles/rup164/Article/ 

Maybank2u Pay to facilitate online shopping

Published: 2013/04/17

KUALA LUMPUR: Maybank2u Pay, a payment gateway for blogshops, is expected to facilitate RM5 million worth of online shopping transactions in Malaysia next year as consumers look to blogshops as a convenient and reliable online shopping experience.

Malayan Banking Bhd (Maybank) president and chief executive officer Datuk Seri Abdul Wahid Omar said the Maybank2u Pay will likely attract at least five per cent of the 3,000-strong local blogshop community this year.

This customer base is projected to increase to 30 per cent with expected transaction value of RM105 million in five years.

Within Maybank itself, there are some 2.3 million active users who performed more than 2.5 million online shopping transaction, worth about RM675 million last year.

Abdul Wahid said Maybank will establish the Maybank2u Pay service locally before expanding it to Indonesia, the Philippines and Singapore next year.

"We intend to introduce this to other key markets in the region, where we believe we can make a significant impact on the lives of micro entrepreneurs," he said at a media briefing yesterday.

Maybank is the first in Malaysia to launch such a payment gateway for the blogshop community.

Originally hosted on free blog sites, blogshops are now becoming regular online stores while retaining more personal customer relationships.

The country's biggest lender, which has been a leader in Internet banking since it introduced the service in 2000, commands nearly half of registered users in the market for its services, which include the bill payment facility and online fund transfers.

Over the years, Maybank found an increasing trend of blogshops using its website as a payment facility. They were, however, too small to be registered as payee corporations and in most cases, were using online fund transfers as a mode of payment from buyers to sellers.

Maybank2u Pay eliminates the current need to send proof of payment to blogshop owners. Instead, Maybank2u Pay will send email alerts to both buyers and sellers when a payment is made.

Read more: Maybank2u Pay to facilitate online shopping http://www.btimes.com.my/Current_News/BTIMES/articles/rup164/Article/#ixzz2QlzZoB9X

Blogshops are money spinners

From: http://newnation.sg/2011/12/blogshops-are-money-spinners/

Blogshops are money spinners

Posted on 25 December 2011

 0 0share0

Cold hard cash to be made, if LiveJournal’s recent survey on Singapore blogshops is accurate.

Now you know why every other chick you meet these days is a blog shop model.

According to the LiveJournal press release on Dec. 22, approximately 10 percent of blogshops in Singapore earn more than S$2,000 (US$1,500).
LiveJournal estimates that there are 50,000 or more blogshops in Singapore: That would mean over 5,000 blogshop owners can make a decent living selling fashion items, accessories and even muffins online!
On the other end of the spectrum, 80 percent of blogshops earn S$500 (US$385) or less.
On average, Singapore blogshops conduct eight transactions a month, generating about S$160 (US$123) worth of income.
These figures were revealed after a survey conducted by LiveJournal on 868 Singaporean users in December 2011.
LiveJournal is a popular blogging platform hosting over 30 million accounts around the world.
In Singapore, its users are predominantly female.
The top earner is reportedly generating some S$20,000 a month in revenue.
Tan Yi Fong, the owner of Ministry of Retail, a recent Nanyang Technological University graduate, made the news recently for being one of the top earners for the latest batch of students to leave the institution.
She makes about S$10,000 a month.
Other details revealed in the survey:
About 480,000 out of 1.2 million LiveJournal users visit a blogshop hosted on LiveJournal each month.
S$8 million worth of items are sold on LiveJournal blogshops every month.
Less than four percent of blogshop owners use paid advertising as the majority of traffic is derived from LiveJournal’s forums and communities.
LiveJournal claims that it represents six percent of forecasted e-commerce volume in Singapore for 2011.
Although these figures might appear rosy, aspiring entrepreneurs who want to go into the blogshop business should consider ways to stand out from the crowd.
There is no indication how new blogshops are doing compared to the more established ones.
And while an average monthly revenue of S$160 per blogshop sounds decent, it has not factored in the cost of procuring or manufacturing of items for sale.

From: http://www.penn-olson.com/2011/12/22/livejournal-singapore-generates-72-million-from-blogshopping-in-2011/

LiveJournal Singapore Generates $72 Million Worth of Blogshopping in 2011

Correction: I was told by LiveJournal Singapore that the sample size is 868, not 1.2 million. It is still a representative sample size though. And fyi, LiveJournal has 1.2 million Singaporean users.

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Looking for Christmas gifts? Try LiveJournal Singapore: There are over 50,000 ‘blogshops’ in the country selling anything from clothing to muffins.
According to a recent survey by Livejournal (
its 1.2 million sample size is massive, accounting for more than one-fifth of our total population!
), it was found that blogshops on the platform generated more than US$72 million worth of transactions in Singapore in 2011. On average, LiveJournal Singapore generates or facilitates about $2.30 worth of transactions every second. Here are some key figures:

• LiveJournal blogshop transactions represent around six percent of Singapore’s forecasted e-commerce volume in 2011.
• LiveJournal hosts more than 50,000 blogshops in Singapore.
• Each month 480,000 visitors come to LiveJournal.sg with the intention to shop.

Blogshopping may not be common in other countries. It is, as I would describe, a very Singaporean thing. Most female Singaporean entrepreneurs have started or at least have once dreamt of starting a blogshop on LiveJournal. But it isn’t at all a gold rush. Only 10 percent of the blogshops earn more than US$1,500 per month with the highest monthly revenue reported at $15,000.
Roshni Mahtani, CEO of Tickled Media, the publisher of LiveJournal in the South-East Asian markets, said:

With the Singapore e-commerce market estimated at US$1.2 billion this year, we are proud that LiveJournal drives 6 percent of that. We believe blogshopping will continue to grow here as e-commerce represents the most cost-effective way to do business.

Tags: around asia, blogshop, e-commercea, Livejournal, livejournal singapore, Singapore

About Willis Wee

Co-founder of Penn Olson who is also an entrepreneur since 2005. He has had experience in crafting social media strategies for organizations such as Marriott Vacation Club, James Cook University, Reach Singapore and Unilever. Contact him at willis[at]penn-olson[dot]com

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Here is another report based on the same survey:

From: http://www.fccsingapore.com/index.php?id=42&tx_ttnews[tt_news]=1104&cHash=b2fbc057c7dcc4e3d3e00e17ddda2239

28.12.2011
Source: Singapore Business Review


On which platform do roughly half-million Singaporeans shop monthly online?

LiveJournal reports that 480,000 visitors come to LiveJournal.sg with the intention to purchase on its blogshops, according to its December survey of 868 Singaporean users.

This number of potential blogshoppers represents half of Livejournal's 1.2 million monthly users.

Blogshops are micro online stores established on blogging platforms like LiveJournal with typically external payment systems, as through PayPal or bank transfers.

LiveJournal has 50,000 of such blogshops with predominantly home-based female owners. Typical products include clothes, fashion accessories and bakery goods.

Despite the bustling sales, blogshopping profits are still not enough to be considered as a full-time work option.

"The survey showed that 80% of the blogshops make less than S$500 a month keeping it an attractive passive income, but not a career switch option. Only 10% of the blogshops earn more than $2,000 per month. The highest monthly revenue in the survey was reported at S$20,000," said LiveJournal in a release.

"Blogshops have on average 8 transactions per month with a per-item sales price of S$20. This indicates that a staggering S$8m worth of blogshop transactions flow through LiveJournal Singapore every month," it added.

“We are extremely impressed with the Singapore e-commerce market and are happy to drive up to S$96m of e-commerce this year," said Annelies van den Belt, CEO of SUP Media, the owner of LiveJournal.com.

“With the total e-commerce market estimated at S$1.6 billion this year, we are proud to see that LiveJournal transactions might represent a staggering 6% of that, re-affirming us as one of the largest e-commerce players in Singapore. The world is bound for an economic slowdown in 2012, but we believe blogshopping will continue to grow here as e-commerce truly represents the most cost-effective way to do business," adds Roshni Mahtani, CEO of Tickled Media, the publisher of LiveJournal in the South-East Asian market.

Blogshop Earnings

This article gives insights into how much money blogshops can make.

What jumps at me is way at the bottom of the article where it says that a blogshop's credibility is a key criterion of its success.

Source: http://www.divaasia.com/article/14048

Sun, Aug 07, 2011

The New Paper

   

Her blogshop makes up to $45k a month

by Maureen Koh

 

Six years ago, it was just a chance for them to earn extra pocket money.
Today, My Glamour Place (MGP) is a blogshop - which sells only apparel - with an average monthly turnover of $30,000.

Festive seasons such as Chinese New Year and Christmas can easily bring in up to $45,000.
Co-owner Angela Ang, 24, told The New Paper that she orders only 100 pieces of each item from manufacturers in China.

The new designs sell out within hours, if not minutes, once they are uploaded on the blogshop.
That's no mean feat given that Miss Ang and her business partner and sweetheart from their days in Singapore Polytechnic, Mr Keith Tay, started the venture with capital of just $500 each.

Mr Tay, 24, recalled: "We got into the business when we were in our last year in poly. We got so busy - from procurement (of the apparel) to photoshoots to fulfilling orders.

"I didn't even join a CCA when I was in university. MGP was my CCA."

Mr Tay studied at the National University of Singapore.

But it was not all a bed of roses for the couple at first. They started out selling cosmetics but ran into losses.
Said Miss Ang: "We had issues with the products' expiry date and realised it didn't make money sense."
But when they switched to clothes, they made only two transactions the entire week.

Mr Tay said: "We had a little squabble because I had less risk appetite, so I suggested that we stop and resume what we were best at (cosmetics).

"But Angela was adamant that we should take on new stocks instead."

Her reasoning was simple: What was not selling that week would not sell the week after either.
True enough, by the next week, MGP sold 10 pieces.

Still, it was another three more months before they managed 100 pieces in a week.

Overseas suppliers

Encouraged by the responses, Mr Tay said they decided to hunt for alternative suppliers from overseas instead of taking their stock from local wholesalers.

He added: "We also wanted to explore if it was viable to produce our own label."

Today, after six years, Miss Ang designs 90 per cent of the apparel, which includes ruffle dresses, bustiers, casual tops and jackets.

Prices go from as low as $22 for a top and $33 for a dress.

She says she draws inspiration from an extensive selection of fashion magazines for her designs.

With the blogshop going well, she quit her job as an auditor with Ernst & Young after six months in February this year.

She had found it tough to do both roles simultaneously and struggled for a couple of months.

Miss Ang said: "I felt I should pick and focus on just one job, so it was either my audit job or MGP."

MGP was the obvious choice, she added, "because we built it from scratch over a few years".

"Right now, I should take the opportunity to expand the business and see what we can do," said a feisty Miss Ang.

While Mr Tay was initially more active in running the blogshop with Miss Ang, he has since taken a backseat after starting work as teacher a few months ago.

MGP has also ventured into taking up shop spaces in concept stores at Bugis Junction, Plaza Singapura and Far East Plaza.

Mr Tay said: "People who aren't confident about buying from us online can always go to the retail stores.
"Having a physical presence also helps to build up the brand."

Their customers are mostly tertiary students and young working professionals aged between 18 and 24.
That number could well grow as experts are expecting online shopping to boom.

Mr William Klippgen, executive director of Tickled Media, which represents LiveJournal in this region, said: "E-commerce is seeing a major uptake in Singapore - online shopping here (came up to) more than $1 billion last year, according to Paypal.

"This number is expected to reach $4.4 billion in 2014."

But if you are thinking about jumping on the blogshop bandwagon, think again, said Mr Samuel Teoh, who provides consultancy services for online start-ups.

Mr Teoh, 47, said: "I've seen blogshops here today and gone tomorrow. It takes time and a lot of hard work to get the online business going because credibility is the key criterion.

"There's also a limit to what they can offer until the brand has established itself."

He added: "And it's not like you can 'close shop' for the day. Running a blogshop also means that you are expected to be working 24/7."

Mr Tay agreed: "Even when we take our short breaks or go for holidays, we'll take along our laptops and make sure that there is Internet access at the hotels.

"You can't afford to take too long to respond to your customers."

This article was first published in The New Paper.