PETALING JAYA: The exponential growth of e-commerce in Malaysia is becoming increasingly ubiquitous and should be capitalised by local companies, said Aladdin Group vice-president Datuk Seri Dr Vincent Tiew.
He said with the local e-commerce’s potential market volume expected to grow to RM10bil by 2022, local businesses should take advantage of the budding market and embark into digital.
“Currently, the estimated revenue of e-commerce was RM4.56bil with a compound annual growth rate (CAGR 2017-2022) of 18.6%,” he said.
In terms of market penetration, Vincent said that it is currently at 47.9%, with e-Commerce forecasted to touch 63% within the next four years, with average revenue per user (ARPU) amounting to RM300.
So who are the players within the e-Commerce space?
- Currently, Tesco is one of the biggest merchants with more than RM150mil in sales and more than a million orders online since 2014.
- Royal Selangor has reached a wider audience as their online presence enables potential customers from around the globe to purchase their products.
- Nestle experienced a quadrupled turnover within six to eight months after unveiling its’ first e-commerce flagship stores.
“With the success of e-Commerce, brick and mortar businesses need to weigh their priorities, and think about what is best for the business and also for their customers,” he added.
Vincent said the internet has granted retailers the ability to promote their products to customers and bridge the gap which is hindered by the limitations of physical stores. He added that it allows for these businesses to reach a broader customer base which is not previously possible.
“In a nutshell, if we are to succeed in the e-Commerce industry, we need to start planning now.
“With the expanding rate of e-Commerce, competition has grown proportionally and eventually, users will be fussier and harder to win over the interface,” said Tiew.
Known as EC, this medium of buying and selling goods and services over the internet and is built upon the foundation of transmitting funds for goods over an electronic network.
The technology has become increasingly popular as a viable commercial platform with the advent of technology which has become increasingly popular when tablets and phones first came into existence.
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