PG Mall Sdn Bhd, an online shopping company backed by Public Gold Marketing Sdn Bhd, is targeting to break-even in three years.
PG Mall executive chairman Datuk Louis Ng says in an interview that although in 2018, PG Mall’s turnover would hit RM5mil, the company would still be in the red.
“Last year we generated a turnover of about RM500,000. This year we are targeting RM5mil.
“We expect to break-even in three years time. Our target is to generate RM50mil a year in revenue in three years and RM2mil in gross profit.
“We are also working towards being one of the top five online shopping websites in three years.
“We will make a yearly investment of about RM3mil to improve the features and the security of the portal,” he says.
Ng adds that the company had invested about RM5mil so far into developing the online shopping portal.
“The lack of security is perceived as a major stumbling block for doing business online.
“However, it is becoming more important than ever to facilitate online transactions to replace traditional payment methods such as checks.
“Thus our focus is to invest into improving the security features of our portal,” he says.
According to Ng, shopping online is the way of the future.
“E-commerce is recognised as a critical enabler to accelerate the revenue growth for the Malaysian economy, under the Digital Malaysia Initiative.
“The internet penetration in Malaysia stands at 67% presently, while e-commerce contributes 5.8% to the nation’s gross domestic product, just 0.6% below the target set for 2020.
“The market size of Malaysia’s e-commerce market has ample room for growth. The increasing consumer spending, the surge of internet users, and the greater acceptance of mobile e-commerce are the main drives,” he adds.
Ng says the most popular types of products purchased by Malaysians online are fashion and beauty products, electronics, and sports products.
“Some 80% of shoppers use their smart phones for purchasing online.
“We also observed that men shopped online more often than women and pricing is a major consideration.
“About 59% of Malaysians shop online at least once a month and most of them are satisfied with the online shopping experience,” he says.
PG Mall to date has over 200,000 customers and 6,000 merchants selling more than 500,000 products online.
“We work with the Malaysia Internet Entrepreneur Association to welcome more entrepreneurs, especially start-ups, to explore the new era of e-commerce through a truly reliable and marketing platform to reach out to international markets.
“We have partnered with POS Malaysia and telecommunications service provider, RedOne, to reach out to online shoppers,” he says.
According to Ng, although e-commerce websites originating from outside South-East Asia region such as eBay and Sephora are also accessible to Malaysians, he notes that regional or locally based e-commerce sites seemed to be more successful, probably due to their on-the-ground knowledge that gives them a higher advantage.
According to management consulting firm A.T. Kearney, Malaysia’s online retail market is expected to grow by 23% per year through to 2021, driven by electronics and media.
In the firm’s 2017 Global Retail Development Index released recently, Malaysia is ranked third among the top 30 developing countries for retail investment worldwide, with India topping the list, followed by China.