Among the member countries of the Regional Comprehensive Economic Partnership (RCEP), Malaysia, one of the ten ASEAN countries, has attracted much attention for its sound economic development and rich cultural resources. Its e-commerce market is almost occupied by Shopee and Lazada, and international giants occupy the main market. Today i provide you a simple analysis of Malaysia's cross-border market.
Malaysia Market Overview
Malaysia is a multi-ethnic country, located in the heart of Southeast Asia, with an important strategic position.
Malaysia, southeast Asia's third-largest economy, is rich; And there are a lot of young people who love Chinese products very much.
Analysis of E-commerce market in Malaysia
1. E-commerce scale
In recent years, with the popularity of smartphones as the main shopping device, the number of e-commerce users and online spending in Malaysia has continued to increase, driving the ever-expanding e-commerce market. According to bain & Company's analysis, Malaysia's e-commerce market will reach us $19 billion by 2025.
2. Logistics efficiency
According to the World Bank's Logistics Performance Index report, Malaysia is more efficient than the southeast Asian average in terms of infrastructure, services, cross-border procedures and timing, and supply chain capabilities.
3. Terms of payment
Data showed that bank transfer and bank card payment are the two mainstream online payment methods, accounting for 46 percent and 32 percent respectively.
4. E-commerce platform
According to iPrice's Q4 data for 2021, Shopee, Lazada and PG Mall all lead in App downloads and website traffic, followed by Zalora, GoShop, Qoo10, Decathlon, Applecrumby, Sephora and eBay.
Consumer analysis in Malaysia
1. Number of users
The total number of Internet users in Malaysia's e-commerce market is more than 27 million, with a penetration rate of nearly 80% and an annual growth rate of 14%. The number of Internet users is growing. About 86% of them are mobile users. Mobile terminals have become the mainstream, and mobile e-commerce has become the general trend.
2. Consumption level
The latest data shows that the proportion of online shopping among low, middle and high income groups in Malaysia is very similar. About 95% of local Malaysians cited price and promotions as the main reasons for online shopping. Incentives such as promotions, price discounts, product diversification, free shipping, zero commission and so on often attract people to choose online shopping.
3. User structure
The main group of E-commerce consumers in Malaysia is 25-34 years old, this group has certain economic capacity;
Data from the platform showed that the proportion of males doing e-commerce shopping was higher than that of females, but the unit price of females was higher than that of males. The gap in women's spending is largely due to the types of products they buy, with clothing, accessories and cosmetics being the most popular categories.
Malaysia has unique market potential and characteristics, but like other Southeast Asian countries, the competition of cross-border shops in Malaysia is increasing day by day. It is important to make early choices and seize opportunities.