Ensuring the digital marketplace stays relevant, safe and thriving is crucial for the continued growth and success of MSMEs
by HIDAYATH HISHAM
THE digital marketplace has become a vital part of the nation’s economy, offering unprecedented opportunities for micro, small and medium enterprises (MSMEs) to grow and adapt in the face of economic challenges.
Ensuring the digital marketplace stays relevant, safe and thriving is crucial for the continued growth and success of MSMEs.
Therefore, it is crucial to reinvest in the digital ecosystem to enable sellers to continue benefitting from the platform’s robust services, including improved customer support and greater access to international markets.
According to Minister of Entrepreneur and Cooperatives Development Datuk Ewon Benedick, MSMEs account for almost 1.2 million or 97.4% of the total business establishments in the country and are pivotal in shaping the economic landscape.
In May, he reportedly said that MSMEs made a substantial impact on the economy, accounting for 38.4% of GDP, 10.5% of total exports, and 48.2% of total employment.
Their resilience is evident in their positive outlook and adaptability.
The symbiotic relationship between buyers and sellers in the e-commerce ecosystem mirrors the unity and progress that must be celebrated this Merdeka Day, showcasing the collective strength that leads to mutual success.
The Malaysia Digital Economy Corp projects local e-commerce revenue to reach RM1.65 trillion by 2025, highlighting the sector’s enormous potential.
Improvements in shipping is needed to ensure products reach customers on time and intact (Pic by Muhd Amin Naharul / TMR)
This growth is driven by buyers’ continuous shift in preferences and behaviours, hence focusing on customer relationships and achieve long-term success.
Buyers’ support is instrumental in empowering sellers to operate as resilient MSMEs capable of transcending challenges.
International University of Malaya-Wales’ School of Business head Dr Nadisah Zakaria said satisfied customers lead to repeat purchases and drive revenue growth.
“By focusing on customer needs, MSMEs can create personalised experiences, boosting customer retention and supporting growth. Customer feedback provides valuable insights and encourages creativity and innovation within MSMEs.
“Many perceive customer-centricity as merely providing good customer service, when in fact, it encompasses the entire business process,” she said.
Nadisah added that customer-centricity helps MSMEs build long-term relationships, contributing to sustainable business growth and brand longevity.
It improves customer satisfaction, leading to positive reviews and testimonials, which in turn enhances brand credibility and presence.
“By fostering deeper emotional connections, customer-centricity encourages brand affinity. It also assists MSMEs in developing unique value propositions, setting them apart from competitors and making the brand more attractive,” she added.
According to Benedick, MSMEs account for 97.4% of the total business establishments in the country (Pic by Muhd Amin Naharul / TMR)
Entrepreneur Mohd Shawal Daniel Alim Yatim, 26, started his online business during the Movement Control Order in 2020.
The pandemic lockdowns accelerated the adoption of digital platforms. According to the SME Info website (www.smeinfo. com.my), online shopping and e-commerce income grew by 33% in 2020. This growth helped many MSMEs sustain their operations amid challenging conditions.
“We started selling beauty and healthcare products online and focused on building trust with our customers through live sessions. That trust translates into better sales. “
When people can interact with us directly and see a face behind the business, it creates a positive impression,” Mohd Shawal Daniel told The Malaysian Reserve (TMR). For many businesses, the transition to online selling is a lifeline during difficult times.
However, some recognised the potential of e-commerce long before Covid-19.
Anime Access is a group of anime doujin artists who expanded their business online around 2013.
Spokesperson Meerzan Azmi said the team attended a start-up event and learned how to properly sell goods online.
“Customer input typically helps us expand our offerings. If they ask for a specific art tool, we will stock up on it and if they request merchandise of a specific character, we might consider adding it,” Meerzan said.
Anime Access is a group of anime doujin artists who expanded their business online around 2013 (Source: Anime Access)
Many sellers who made the shift to the online marketplace found that it has brought about cost savings and efficiency gains. Mohd Shawal Daniel said previously, he had to commute to the office every morning, but now he can start his day at home, go live and start making money.
However, the ever-changing nature of e-commerce platforms presents ongoing challenges for sellers, requiring them to continuously learn and adapt to stay competitive.
Meerzan shared that the business’ plans include constantly expanding wares and potentially increasing the size of its physical store to accommodate more goods for shipping.
Meanwhile, consumers have a role to play in supporting local businesses and contributing to the growth of the Malaysian economy.
By choosing to shop from local sellers and providing constructive feedback, consumers help to drive the continued success and resilience of Malaysia’s e-commerce sector.
Meerzan said if this support were to suddenly stop, small businesses like his would be shut down sooner than anyone could anticipate.
Similarly, Mohd Shawal Daniel said when he asks loyal customers to like or share his business’ social media content, they would have no problem doing it.
He noted that customer loyalty is the foundation of his business relationships and will continue to be crucial for future growth.
The growth in e-commerce is driven by buyers’ continuous shift in preferences and behaviours
Nadisah further confirms and said that loyal customers can become brand advocates, promoting the business at no cost and providing crucial support during economic downturns due to their strong brand affinity.
To further support the growth of e-commerce in Malaysia, stakeholders including the government, e-commerce platforms, industry leaders and logistics providers must work together to create a supportive environment that enhances the buyer experience and fosters trust and transparency.
Meerzan suggested improvements in shipping and ensuring that the product reaches the customer on time and intact.
Given the numerous benefits, investing back into the e-commerce ecosystem is crucial for maintaining stability and supporting further expansion.
By reinvesting in better logistics, customer service infrastructure and platform enhancements, the overall e-commerce ecosystem will be strengthened, benefitting both sellers and buyers in the long run.
In conjunction with Merdeka Day, Malaysians can look up to homegrown e-commerce sellers who embody the spirit of independence and progress.
- This article first appeared in The Malaysian Reserve weekly print edition
