80% of consumers prefer branded products, Malaysian e-commerce continues to heat up!

According to Rakuten Marketing’s “APAC State of eCommerce” report, Malaysian shoppers’ brand engagement is primarily through Facebook, with 69% following local brands and 63% following international brands.

In addition to Facebook, consumers also follow brands on Instagram and email. On Instagram, 37% of consumers follow local brands and 36% follow international brands.

Among all the Asia-Pacific countries surveyed, Malaysian consumers have the highest brand engagement in the Asia-Pacific region, with more than 80% of consumers paying attention to and purchasing local or international brands. Among them, the main motivation for Malaysian consumers to choose international sellers' brands is that 72% of people have better prices, followed by 49% who think they can buy products that are not available domestically.

Malaysia also has the highest rate of discovering brands through social media advertising (65%) and KOLs (21%). Malaysian consumers are also among the most likely consumers in Asia Pacific to use cashback and discount websites to find new brands, at 28%.

Although Malaysians are using other channels to find new brands, online search and recommendations from friends and family are still the two main channels used by consumers, accounting for 78% and 53% respectively.

Data shows that more than 70% of Malaysian shoppers said that cross-border shopping websites offer more comprehensive products; more than 50% of shoppers said that cross-border shopping websites offer better quality products; and 45% of shoppers said that the overall experience is better when purchasing foreign brands.

The development potential of Malaysia's e-commerce market should not be underestimated. According to a survey, as of 2020, the market value of Malaysia's e-commerce is US$4.3 billion, and the annual growth rate in recent years is expected to be 14%. It is expected to reach US$8.1 billion by 2024.

In Malaysia, the usage rate of social platforms such as Facebook, Instagram, and YouTube is very high, with nearly 78% of people using these social media platforms. Among them, Facebook is used as the main social media by 96%. Moreover, the main user groups are relatively young, with the largest number of users aged 18 to 34, and the average time spent on these platforms is nearly 3 hours.

Therefore, sellers using these social media platforms is one of the more effective ways to build and expand product awareness. For example, Shopee has invested heavily in Facebook promotion and quickly attracted 5 million fans by interacting with fans and cooperating with local well-known Internet celebrities.

In addition, major holidays in Malaysia, such as the Chinese New Year and Ramadan, are also the most active periods for online shopping. Locals will start visiting e-commerce platforms a few weeks before the holidays to look for gifts for family and friends during the holidays.

Malaysia

E-commerce