You may be surprised to learn that Malaysia leads the world in smartphone usage per capital, and that it is one of only five countries worldwide where 67% use their smartphones as a crucial access point to get online. Additionally, a recent Mobile Shopping Survey conducted by MasterCard, Malaysia ranks third in the rate of growth of mobile shopping in Asia (over 20% from 25.4% in 2012 to 45.6% in 2014) – further indicating that we, as a nation are become increasingly tech-savvy and shopping-savvy too.
Today Malaysia, spearheaded by a formidable and fast-growing Gen-Y population, is at the forefront of ‘mobile-first’, the emergent driver of e-commerce in its latest ‘e-volution’. Fresh supporting data by online marketplace 11street (www.11street.my) further confirms that today’s shopping trend is progressively moving toward mobile-first. 11street, one of the largest online marketplaces in Malaysia, recently revealed that close to 50% of their shoppers use smartphones to shop and purchase items online on their site.
The reasons for the growing popularity of mobile shopping are related to a combination of factors: increased reliance on smartphones as an indispensable go-to tool; more products on offer; new players, and new apps that promise even more speed, ease, convenience, options, and incentives.
Hoseok Kim, the CEO of 11street, shared some of the other insights gleaned from the company’s Online Shopping Index. He summarizes the main reasons behind the mobile shopping surge in Malaysia:
Easier access for anytime, anywhere convenience
Hundreds of thousands of products covering everything from consumer electronics to fashion, from groceries to cosmetics, from kid and baby products to services such as vouchers and much more, are now just a mobile screen click away. Consumers needn’t spend hours out of their busy schedule to shop. They save money on petrol or transportation without the hassle of traffic jams, queues and frustration that comes with it. Items purchased are delivered right to their door – at the home or office – and at a convenient time.
Exclusive offers
Companies are constantly providing incentives and inducements in the form of promotions, discounts, and shopping credits exclusively for mobile users. In fact, there is an active market for digital coupons with over 16 billion coupons redeemed worldwide in 2014. The expected rate is set to increase by up to 31 billion in 2019. A key promotion at 11street for mobile shoppers is the ‘Weekend Special Deals’ – it allows those that mostly shop over the weekend to save even more.
Engaging functions
Visually engaging displays of products are giving way to more dynamic, interactive content, where shoppers can browse, comment, and share interesting finds with their social circles. At 11street, shoppers are offered a full camera function-enabled product review mode, which allows them to view and post comments with photos for a fun shopping experience. App functions such as ‘first-hand news’ push notifications also provide shoppers with advance notice of upcoming sales.
User-friendly interface
Mobile apps that come with user-friendly interface enable consumers to access a desired range of items quicker, with set filters for an intuitive and interactive experience. In fact, it is due to these conveniences that mobile shopping have become a part of the Malaysian lifestyle of which consumers mostly go online when they would like to make a purchase, or conduct pre-purchase research.
11street for example, has an ‘Event Page’ which summarizes all the promotions making it much easier for shoppers to access hot selling products and services and to see the most price- competitive deals from the moment they log in. This is especially true for the ‘Shocking Deals’ section with Lowest Price Guarantee of which shoppers are promised with the best price possible for a range of products in that section.
Simplified yet secure payment processing
Majority of mobile apps today are designed to accept credit cards and bank transfers for online transactions. Shoppers can also view their membership benefits, check their order status, and utilize their discount coupons while shopping on-the-go. As there has been increasing concern on mobile data security, 11street employs various security features that include an ESCROW system to put shoppers at ease. The ESCROW system releases payment to sellers only when the customers receive their products in good condition protecting them from frauds
The growing popularity of mobile shopping here has not only made 11street’s mobile app a key component of the e-tailer’s business, but positively contributes to the overall growth of Malaysia’s e-commerce landscape by engaging with a wider net of buyers.
As Malaysia currently has a 140% mobile penetration rate and continues growing, it’s easy to predict that the mobile-first trend will definitely continue to flourish in the country.