Malaysians Go Social Shopping

67% of Malaysian shoppers would recommend a product on social media sites

Kuala Lumpur, Malaysia, 26 March 2013 – Rakuten, Japan’s top e-commerce company and owner of Malaysian marketplace Rakuten Online Shopping, recently released insights from their E-commerce Index, an independent global survey into shopping trends. For the first time, Malaysia was included in the survey which discovered the prominence of social shopping in the market. Over two-thirds (67 per cent) of those questioned in Malaysia would recommend a product via a social media platform.

Malaysia’s propensity for social shopping stands out on a global scale, coming in second place behind Indonesia which took the top spot with 78 per cent. The data shows the majority of Malaysian shoppers are keen to share their online purchases on popular social networking sites such as Facebook, Twitter, and Pinterest. The data also indicates consistent global trend where on average almost half of respondents (45 per cent) are actively recommending products on social media sites. Through this sharing, shoppers are allowing friends and family to view their purchases while showing their affinity for a particular brand or product.

Globally, the research also found that the average online spend across the markets surveyed was USD$725 (MYR$2263) per person over 2012.  However, there were big differences between countries, with the UK leading the way with an average spend of USD$1,700 (MYR$5308), while at the other end of the spectrum Indonesians only spent around USD$239 (MYR$746) per person in 2012. Closer to home, Malaysia’s average online spend of U$344 (MYR$1074) per person sat at the lower end of the global spectrum but stacks up higher when compared to neighbouring countries such as Indonesia and Thailand. 

“The findings show that Malaysia is riding on the social shopping wave, which is consistent with trends we’re seeing globally,” said Masaya Ueno, President and Chief Executive Officer of Rakuten Online Shopping. “There is a definite increase in users taking their shopping online in the past two years and we expect this to continue rising at a steady pace, especially with the proliferation of linking social networks to e-commerce sites. It signals the need for online shopping to integrate features that allow users to easily share their purchases on social channels in order to improve their overall experience in line with their demands and behaviours,” he added.  

Mobile shopping still at infancy

A majority of Malaysians are still choosing their PCs over mobile phones or tablets for their browsing and purchasing needs, with almost 85 per cent of respondents using their computers to make purchases online. In the same light, Malaysian shoppers still prefer to make in-store purchases as compared to mobile or online purchases, with over 35 per cent of respondents choosing to shop in physical stores and over 36 per cent saying that their purchase decisions are dependent on the situation. While more Malaysians are starting to embrace online shopping, data shows that many are still cautious about using mobile devices to complete their purchases. 

“Whether online, on mobile, or in-store, consumers are coming to expect a uniform brand experience across all available channels.  It’s no longer enough for retailers to merely have a website that complements the brick-and-mortar presence, but they must provide shoppers all the information they require through their website or mobile shopfronts. Retailers also need to ensure their presence is prominently visible in both online and offline, which will help capture customers and broaden sales opportunities across multiple channels in this era of commerce,” Ueno added.

Other interesting findings

• Japan has the lowest number of first-time online shoppers (9 per cent), as compared to two years ago, where over 90 per cent of respondents shopped online for the first time. 

• Austria (46 per cent) and Germany (46 per cent) lead the way in preferring to stick with the bricks-and-mortar experience.  

• The survey also found that consumers in Brazil and Taiwan prefer the shopping experience online to in-store (29 per cent of Taiwanese and 26 per cent of Brazilian respondents).