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How Mobile is changing shopping behaviour in Malaysia: BuzzCity study

AvantiKumar | Dec. 23, 2014
BuzzCity Founder and CEO Dr KF Lai said Malaysian has seen a 250% increase in online food shopping alone.

Dr KF Lai, BuzzCity founder and CEO - done 

Photo - Dr KF Lai, BuzzCity founder and CEO.


According to mobile advertising network BuzzCity's latest research, traditional weekly shopping is giving way to daily online purchases in Malaysia with the increasing use of mobile internet access and smartphone penetration.

Speaking of the Malaysia cut - Malaysia : Online Shopping Routines 2014 - from the company's latest survey of 4700 consumers in 25 countries, Dr KF Lai, BuzzCity founder and chief executive officer, said online food shopping in Malaysia has seen a 250 percent increase - from 5 percent in 2012 to 17 percent in 2014. "These 'new shoppers' buy the same products - but only when needed - enjoying the convenience to browse different sites for better offers."

Dr Lai said that this trend was expected to increase further with fewer people 'stocking up' during their weekly or monthly shopping. "But the true value of the online shopping experience is best exemplified by the 1 in 5 (22 percent) shoppers who, despite only browsing products online, would recommend sites to others, proving that a positive experience online can reap rewards for retailers."

He added that even with the expected decline in electronics and digital content, the rapid dominance of mobile as an e-commerce channel in the region will continue to fuel online purchasing as many retailers were now adapting to this trend.

"The cash-on-delivery, reserve in store and next day delivery services that most brands now offer are a prime example of how retailers are fully maximising online as a complement to in-store shopping," said Dr Lai. "This combined with consumers increasing confidence in online and mobile purchasing illustrated the blurring of boundaries between online and in- store shopping."

 A top mobile advertising market

"Brands that create a positive online environment for their customers will succeed as it is clear that providing a superior experience encourages recommendation, loyalty and referral," he said, adding that by November 2014, Malaysia ranked 7th among top mobile advertising markets as more online shopping sites increased promotional activities on mobile.

Dr Lai expected further growth as smartphone penetration will increase beyond 80 percent and local small and medium enterprises [SMEs] are now experimenting with digital as a supplementary distribution channel.


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