the development of ecommerce in malaysia · 2019-08-09 · national ecommerce strategic roadmap...
TRANSCRIPT
P I K O M C O N F I D E N T I A LP I K O M C O N F I D E N T I A L
Ganesh Kumar BangahPIKOM, Chairman
The Development of
eCommerce in
Malaysia
P I K O M C O N F I D E N T I A L
Voice of the
Malaysia
Tech Industry
with 1,000 members across various
subsectors of the industry
The bridge to regional & global ICT bodies:
SEA Internet E-Conomy Market Size
4
3
E-commerce is expected to be the fastest growing and largest sectorin the SEA Internet E-Conomy with a USD102b market size by 2025.
Source: Google-Temasek’s eConomy SEA 2018 Report
P I K O M C O N F I D E N T I A L
6 thrust areas have been identified under the National eCommerce Strategic Roadmap to accelerate
eCommerce growth,
Malaysia’s National eCommerce Strategic Roadmap
Doubling eCommerce growth
national
boost cross-
eCommerce
Source: A.T. Kearney
Good and Affordable Infrastructure
1
Accelerate seller
adoption of eCommerce
2
Increase adoption of eProcure-ment by
businesses
3
Lift non-tariffbarriers
• Domestic eFulfillment
• Cross-border eCommerce
• ePayment
• Consumer protection
4
Realign existing
economic incentives
5
Make strategic
investments in select
eCommerce player(s)
6
Promote
brand to
border
Supportive Governance Framework
National eCommerce Strategic Roadmap Overview
P I K O M C O N F I D E N T I A L
Southeast Asia’s strong online culture is driving consumer behavior towards eCommerce
Internet culture in Southeast Asia
Source:, Trend Macro, MasterCard, PayPal, Frost & Sullivan, A.T. Kearney analysis
“ASEAN mobile users are more prone to buy online”
ASEAN 6
61% 47% 62% 48% 58% 58% 57%
Smartphone savvy
“They spend ~ 1/3rd of their online time on social media”
ASEAN 6
25% 32% 42% 16% 31% 22% 29%
Social Media addict
“ASEAN online users spend at least 14 hrs online / week”
ASEAN 6
14 16 16 17 27 26 19
Connected
“70% of ASEAN 6 population is aged 35 or below”
ASEAN 6
70% 63% 71% 51% 74% 74% 70%
Young
P I K O M C O N F I D E N T I A L
ABOUT #MYCYBERSALE
• A government initiated programme
• Develop the e-Commerce industry & to boost e-Commerce
• Driven by the industry with a Strategic Partnership with PIKOM, The NationalICT Association of MalaysiaOBJECTIVES
• Spin off #MYCYBERSALE as a self-sustainable, industry lead yearly event
• Accelerate SMEs adoption of e-Commerce and contribute towards National e-Commerce Strategic Roadmaps (NESR) 2020 goals.
27 September 2019 - 3 October 2019
P I K O M C O N F I D E N T I A L
Number of ecommerce shoppers in Malaysia has exceeded 20 million in
2019
Source: Statista, February 2019 (Malaysia)Source: Statista, 2016 (Malaysia)
Number of e-Commerce shoppers begin to stagnate at the 60%+ penetration (to total population) mark.
P I K O M C O N F I D E N T I A L
Malaysian e-shoppers will increase their average online spends by 42% in the
next five years
Source: Statista, February 2019 (Malaysia)Source: Statista, 2016 (Malaysia)
ARPU will continue to grow as consumers increase their frequency and value of online shopping spends.
P I K O M C O N F I D E N T I A L
The online shopping revolution is naturally led by young consumers but the
older segments contribute to large revenue growth due to a higher
purchasing power
%
• Source: Statista, July 2018 (Malaysia)
P I K O M C O N F I D E N T I A L
e-Commerce shoppers are evenly distributed across the various levels of
affluence
• Source: Statista, July 2018 (Malaysia)
P I K O M C O N F I D E N T I A L
Smartphones are the preferred choice for online shopping, indicating that
transactions occur on the go
• Source: GFK Retail Trend Monitor, June 2018 (Malaysia)
2
Malaysian SME eCommerce Adoption
12
Source: National Ecommerce Strategic Roadmap - MDEC
Technology Enablers
E-AggregatorPlatform
Payment
Loyalty
Delivery
Warehousing
Marketing
SMEs
Products / Services
Current State of the Malaysian Omnichannel Commerce Industry
13
Merchants are confused and think that marketplaces are the only ways to sell online
without realizing the importance ofTechnology Enablers
*All logos used are for illustration purpose only
Omnichannel Commerce
Payment + Loyalty
Warehousing + Delivery
Vertical In
tegration
BU
SINESS
Traditional Channels
Online Channels
OWN RETAIL STORES/ CHAIN STORES
CHAIN STORES
SHOPPING MALLS
OWN WEBSTORE .com
MARKETPLACE
SOCIAL MEDIA
14*All logos used are for illustration purpose only
ASEAN Omnichannel Commerce Landscape
SMEs
BU
SINESS
Sell Online
E-commerce
Marketplaces
Consumers
Powered By Enablers
E-AggregatorPlatforms
Payment Loyalty
DeliveryPlatforms
WarehousingServices
MarketingProviders
DropshippingPlatforms
Enablers are not well promoted part of the e-commerce industry due to lack of publicity and
funding
Social Media
Platforms
Opportunity on partnering with Malaysian Enablers
Customer Service Centers
15
Summary of Malaysian E-Commerce Industry
➢ High growth industry driven by increase in consumer penetration and mobile usage
➢ Local Merchant SME penetration still low
➢ Marketplace Wars reaching an end and Foreign marketplaces clearly dominate
➢ Government intervention successful in growing industry
➢ Driving growth of Local E-Commerce Enablers
➢ Facebook penetration driving social sales
➢ Collaboration Opportunities partnering with/investing in Local Enablers in particular for cross-border
➢ Growth of Ecosystems will be the FUTURE
16
P I K O M C O N F I D E N T I A L
THANK YOUTHE NATIONAL TECH ASSOCIATION OF MALAYSIAE1, Empire DamansaraNo 2, Jalan PJU 8/8A Damansara Perdana47820 Petaling Jaya, Selangor, MALAYSIAE : [email protected] : www.pikom.org.my