By MARK RAO
Revenue from the Malaysian e-commerce space is projected to increase eightfold to RM32 billion over the next eight years, spurred by high online and mobile penetration in the country.
According to a joint study by Google Malaysia and Singapore-based Temasek Holdings Pte Ltd, Malaysians spent RM4 billion on retail purchases online in 2015, with 81% of the country’s over 30 million population using smartphones.
Google Malaysia e-commerce and travel industry manager Su Ann Lim said revenue from online transactions is expected to reach RM32 billion in 2025, underpinned by strong mobile usage among Malaysians.
“The future of e-commerce in Malaysia will be mobile-driven, with less and less people using laptops and computers for transactions,” Lim said at a media briefing in Kuala Lumpur yesterday.
“Mobile will be a key feature that we as a country should look to propagate to bring the e-commerce to a higher level in the country.”
The report by Google Malaysia and Temasek said the country has an approximately 24 million online population, with 30% of this demographic using the online space to conduct purchases.
“We see 2025 to be a productive e-commerce market for Malaysia, predicted to be driven by online retail marketplaces selling products like groceries, children and infant products, apparel and electronics,” she said.
Meanwhile, Google Malaysia officially launched its new image-based shopping ad format yesterday, which aims to facilitate a smoother and faster e-commerce process for both users and retailers.
The Google Shopping Ads will provide e-commerce customers images, prices, availability and merchant details when shopping online, while boosting retailers’ online presence.
Lim said Google Malaysia is forging a close partnership with retailers, whereby the latter can upload their inventory to a Google merchants centre.
South Korea-based online marketplace 11street is the official launch and beta partner for Google Shopping Ads, and aims to increase its total sales during the period by 50%.
11street Malaysia VP of marketing Peter Lee said the company has been collaborating with Google Malaysia since the start of this year on the e-commerce marketing platform. “Since we started using Google Shopping Ads, our seller stores’ conversion rate has increased twofold, while our cost per acquisition has also improved by 85%,” he said.