DUBLIN–(BUSINESS WIRE)–The “Malaysia Social Commerce Market Intelligence and Future Growth Dynamics Databook Q1 2022” report has been added to ResearchAndMarkets.com’s offering.
According to the Q1 2022 Social Commerce Survey, social commerce industry in Malaysia is expected to grow by 45.2% on annual basis to reach US$1,327.5 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 41.2% during 2022-2028. The social commerce GMV in the country will increase from US$1,327.5 million in 2022 to reach US$10,232.9 million by 2028.
In Southeast Asia, social commerce has surpassed in-store retail to become the second most popular shopping method, second only to e-commerce. This growth in the Southeast Asian social commerce industry is led by markets including Singapore, Malaysia, the Philippines, and Thailand. Globally, Malaysia is one of the leading markets when it comes to social commerce adopters. In Malaysia, there is a growing percentage of social media users who are likely to convert into paying customers, thereby resulting in higher revenue per order.
During the first two quarters of 2021, the social commerce revenue per order grew more than 85% in the Southeast Asia region. Notably, the 32 million-strong population of the country, of which half are digital-savvy consumers, are driving the growth of the social commerce industry in Malaysia. With the rising internet penetration rate of 83%, the number of active social media users has also increased in the country.
Brands are partnering with social media influencers to increase their social commerce sales in Malaysia
The increasing popularity of social media platforms in the country also resulted in the boom of social media influencers. Over the last four to eight quarters, several businesses and brands have experienced the impact of social commerce. Consequently, social commerce platforms are partnering with these influencers to target a larger consumer base and increase their sales in Malaysia. Their partnerships with influencers are thereby driving the growth of the social commerce industry in Malaysia.
Retailers in Malaysia are turning to the latest technologies to address consumer concerns related to shopping on social media platforms
In Malaysia, social media shoppers have listed several concerns. According to the survey, nearly 45% of the shoppers stated expensive shipping costs as the area of concern, whereas 37.7% stated no return or exchange policy as the reason for their concern. Apart from these, almost 30% of the consumer stated no online tracking was the area of concern for them.
To address these issues, retailers across the region are looking at emerging technologies. Technologies such as order management systems, AI chatbots, and auto-detection were most popular among retailers in Southeast Asia. For instance, Naraya, one of the retailers in Malaysia, which started experimenting with social commerce, saw a significant rise in purchases from Facebook after leveraging influencers in tandem with the order management system. The firm also reported a 90% increase in the efficiency of order management.
As the popularity of social media shopping continues to grow in the region, the publisher expects more and more retailers to turn to newer technologies to offer consumers a seamless shopping experience. This will subsequently support the growth of the social commerce industry in the country from the short to medium-term perspective.
Live streaming platforms are launching marketplaces to provide businesses with increased exposure and sales in Malaysia
In the midst of growing traction among consumers for livestream sales sessions, live streaming platforms are launching a marketplace, which allows businesses to leverage the platform’s growing user base for increased exposure and sales conversions in Malaysia. For instance,
- In August 2021, Bigo Live, the leading global live streaming platform, announced that the firm is launching Bigo Marketplace, a new e-commerce platform, which is aimed at helping local businesses and SMEs to leverage the platform’s increasing user base for gaining more exposure and facilitate sales conversions.
- The launch of the new platform comes after the successful first e-commerce online marketplace event, Bigo Pasar Malam, where users of Bigo Live were allowed to participate in the sales sessions. During the event, more than 100 Bigo Live broadcasters sold products, ranging from snacks, clothing, homeware, accessories, gadgets, and beauty.
The report provides in-depth, data-centric analysis of social commerce in Malaysia across key market segments:
- Malaysia Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Malaysia Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
- By Retail Product Categories
- By End Use Segment
- By End Use Device
- By Location
- By Payment Method
- By Consumer Demographics & Behaviour
For more information about this report visit https://www.researchandmarkets.com/r/hyl1n6
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