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Thursday, 16 February 2017

Online shopping is the way to go

Kim says 11street expects to see a substantial shift in the marketing plans of many businesses.

Kim says 11street expects to see a substantial shift in the marketing plans of many businesses.

LAST year, online marketplace 11street conducted a nationwide survey from Nov 15 to 21 with the objective of studying the Malaysian online market and to predict leading trends for 2017.

In total, 3,507 respondents from all 14 states of Malaysia took part in the survey.

The results were presented by 11street chief executive officer Hoseok Kim at an event held at Aloft, Kuala Lumpur last December.

“Based on the findings of our survey, we can conclude that the online shopping sphere in Malaysia is thriving, fuelled by potential elements for it to mature and grow.

The survey revealed the psyche of Malaysian consumers who shop online, and provided nuggets of information to outline our predictions for the Malaysian e-commerce scene in 2017,” he said.

Based on the findings, 11street has outlined five key trends: online shopping is the way forward; non-cash payment methods will continue to mushroom; Malaysian consumers will continue to explore and venture into new product categories; express delivery will gain traction and sellers will offer better services.

11street predicts that existing online shoppers will continue to buy more frequently while current non-online shoppers may start to explore e-commerce in the next 12 months.

Based on the results of the survey, 17% of the respondents said they had not shopped online before and 85% expressed interest in seeking out e-commerce services.

While cash is the most preferred method of payment for Malaysian consumers at the moment, 11street foresees they will be more open to the idea of exploring non-cash payment methods such as online transfer, or through credit and debit cards.

With the expected increase in frequency of online purchases, the usage of credit or debit card for online payments will grow as consumers gain more trust in buying online over time.

The top three product categories of 2016 included electronics, fashion and beauty, followed by sports and hobbies.

Survey respondents revealed that they would like to explore more categories, namely home décor and furniture, household and groceries, and health and supplements.

As consumers gain familiarity with online shopping, 11street envisions consumers to shop online for daily essentials, fresh produce and personal items, as these products can be easily browsed on their smartphones and conveniently delivered to their doorsteps.

In addition, majority of the participants indicated that they would be willing to wait up to a week for the delivery of their purchases.

However, more than 60% of them stated that they were willing to pay up to RM10 for express delivery.

11street sees this as setting the trend for express delivery moving forward, in which consumers expect faster delivery at a more affordable price.

Consumers are well aware of the cost-saving benefits of shopping online. In order to move forward, sellers will have to up their game and go the extra mile to deliver better services.

This is on the back of 11street’s survey, in which respondents listed “timely delivery” and “positive customer review”, among others, as their key considerations for online shopping.

“In 2017, we expect to see a substantial shift in the marketing plans of many businesses, whereby they will transcend from being device-focussed to more people-focused.

“After all, consumers these days are not only on the look-out for the best deals, but also other factors that cater to their needs.

“On top of online deals, good customer service and excellent logistics will pave the way for online businesses,” said Kim.

11street is an online marketplace that offers a great variety of products at competitive prices.

Product categories include fashion, electronics, groceries, health and beauty, children and baby, leisure and sports, home and living as well as books and services, including deal offerings such as e-vouchers.

Established in South Korea since 2008, 11street is now one of the top global e-commerce marketplace providers with 400,000 sellers serving more than 30 million consumers worldwide.

Tags / Keywords: Central Region , 11street , online shopping , e commerce

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