Traditional weekly shop under threat in Malaysia as e-shopping surges: BuzzCity

By Digital News Asia December 23, 2014

Nearly 1 in 5 Malaysians now shop online on a daily basis
Even if they don’t buy, will recommend sites to others

Traditional weekly shop under threat in Malaysia as e-shopping surges: BuzzCity

RESEARCH released recently by BuzzCity reveals that the traditional weekly shop, though evident, is in decline, as a new habit has evolved amongst shoppers who now shop online frequently, almost daily.

Online food shopping in Malaysia has seen a 250% increase, from 5% regularly shopping online for food and groceries in 2012 to 17% in 2014, BuzzCity said in a statement.

These ‘new shoppers’ buy the same products – but only when needed – enjoying the convenience to browse different sites for better offers.

Now, one in five people shop online on a daily basis, according to the BuzzCity research that was conducted amongst 4,700 consumers from 25 countries, across five continents.

Positive experience encourages endorsement

This trend is expected to grow, with fewer people ‘stocking up’ during their weekly or monthly shopping, the company said.

But the true value of the online shopping experience is best exemplified by the one in five (22%) of shoppers who, despite only browsing products online, would recommend sites to others, proving that a positive experience online can reap rewards for retailers.

Despite an expected decline in electronics and digital content, demand is set to remain high, BuzzCity said.

Upsurges in the purchase of children’s toys, clothing and homeware are predicted for the holiday period. Rare online annual visits, by 20%, are likely to be planned purchases – bargain hunters looking for holiday offers during the heavy discounting periods of Black Friday and Cyber Monday – and are also likely to be the largest in basket value.

“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 BuzzCity founder and chief executive officer Dr K.F. Lai.

“This, combined with consumers’ increasing confidence in online and mobile purchasing, illustrate the blurring of boundaries between online and in-store shopping.

“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 argued.

By November 2014, Malaysia ranked 7th among top mobile advertising markets as more online shopping sites increased promotional activities on mobile.

This is expected to grow as smartphone penetration increases beyond 80% and small and medium enterprises like manufacturers of fashion accessories, begin experimenting with digital as a supplementary distribution channel.

BuzzCity’s data was derived from on-going studies across the BuzzCity Ad Network and is shared as a precursor of mainstream consumer behaviour.

Detailed results for the Malaysia: Online Shopping Routines 2014 report can be found here.