Malaysian online sales set to quintuple by 2025, with fashion industry leading the way

Online sales in Malaysia currently account for just over 1% of the total retail market, but are likely to increase five times by 2025, the report said. This increase is due to online outpacing store-based retail, especially fashion sales. The Malaysian government has launched a strategic roadmap for e-commerce and has rolled out several initiatives in collaboration with the private sector.

Lazada Malaysia is one of the most visited online stores in Malaysia, says report – Lazada

According to the Malaysia B2C E-commerce Market 2017 report by yStats, more than 50% of online shoppers in Malaysia are under the age of 29. In other words, the maturity of this demographic and continued growth in assets makes it well-suited for increased online sales, yStats said.

Furthermore, Malaysia has the highest internet penetration rate in the region, with around one-third of internet users making purchases online, the report authors said. The product categories that accounted for the largest share of e-commerce sales in 2016 were clothing and footwear.

Complementing government-backed e-commerce development projects, other factors driving online retail growth in Malaysia include the Asian country’s improved infrastructure and favorable demographics, the report said.

In March, Malaysian Prime Minister Najib Razak launched a digital free trade zone with Alibaba founder and executive chairman Jack Ma. At the time, the Chinese e-commerce company announced that it would establish a logistics hub in Kuala Lumpur that would serve as a regional logistics hub.

It will be part of the Digital Free Trade Zone planned to be developed near Kuala Lumpur International Airport.

The competitive environment for e-commerce in Malaysia is dominated by online marketplaces. According to the rankings included in the report, the most visited e-commerce websites in Malaysia in February 2017 were his Lazada.com.my and 11street.my.

Copyright © 2024 FashionNetwork.com All rights reserved.

Related Article

0 Comments

Leave a Comment