01.26.07
E-commerce in Malaysia to see robust growth: IDC (update)
According to latest IDC’s Study, E-COMMERCE spending in Malaysia is expected to present an annual growth of 70 per cent.
Interesting enough, but on what basis?
[Latest Update]
News in The Star dated 30th January 2007
Six million M’sians shopping online6 Million Online Shoppers and over 70% growth in 2006? Hmm…. The detail is just too vague. They just release certain figures without explaining in more details, primarily to entice corporate to buy their reports.
Anyhow, 6 Million is not a small sum – around 23% of our population. I think if the figure quoted were accurate enough, majority of them would be those spending on Online Booking of Tours and Tickets. Why? Thanks to Malaysia Airlines and AirAsia, both do HEAVY advertising of Free Tickets and Cheap Airfares restricted to online purchase only, that put enough incentive which encourages locals to change their buying behaviors and started getting comfortable with online purchases.
Have you seen the future yet? Just a matter of time it will be extended to product purchase, in a major way… watch out.
But what we have to agree is what being mentioned below.
“Among the key issues that need to be addressed to ensure this sustainable growth in the market include development of payment gateways, easing of monetary regulations and proper e-Government delivery,” Lee added.
Payment Gateways is the major bottleneck for Malaysia Merchants, period. Banks are conservative, period.
Even though webShaper e-commerce supports the most type of Payment Gateway Services in Malaysia. It ain’t enough.
Once the Internet Payment Solution is abundant (like the US or UK), you will then realize, the toughest problem for online commerce, is still back to the very basis. It’s all about MARKETING!
One thing for sure. Every brick-and-mortar retailers in the future will be also an Internet Retailers. We are witnessing the dawn of multi channel retailing. Those who get it will has the last laugh, and you don’t want them to be your competitors!
