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Rise of e-commerce In Malaysia During Covid-19 The Covid-19 pandemic has made online shopping the new norm, thus making the e-commerce business boom globally as people shift their shopping towards online platforms. Malaysia too, has seen a huge increase in online shopping. A study shows what Malaysians shopped online during the lockdown.
uring the lockdown or the movement control order (MCO) nearly all economic activities in the country had ground to a halt. The only sector that thrived during this period was e-commerce sector. Malaysians turned to online shopping for their needs as there were no shopping malls or shops (except for supermarkets and pharmacies, among others) that were open. Many who had never shopped online started buying things online as well. Now that the MCO has been lifted, many Malaysians are still wary of being in crowded places and would rather shop online.
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THE SURGE IN ONLINE SHOPPING Commerce.Asia Group of Companies, an e-commerce ecosystem of technology and big data solutions, reports that it saw a surge of 149% yearon-year Gross Merchandise Volume (GMV) growth in the first quarter since the MCO was introduced. According to the company’s founder and executive chairman, Ganesh Kumar Bangah, e-commerce continues to be one of the few industries that would thrive in such challenging circumstances. The former National Tech Association of Malaysia (PIKOM) Chairman adds that, despite the pandemic, Commerce.Asia ecosystem is seeing a very encouraging spike in this first quarter of the year. “We are seeing significant growth in our
Malaysia Retailer Vol 8 No 2
merchants’ sales across various product categories. While some were practical purchases of essential items, other purchases were complete surprises to us given that the country is undergoing MCO. This change in buying behaviour shows that Malaysians are adapting to the new living situations.” He foresees a permanent change in consumer behaviour with many opting to make their purchases via digital marketplaces even after the MCO is lifted. Even as e-commerce continues to catapult after the implementation of MCO and merchants work tirelessly to keep up with the demand, what were Malaysians really buying online?
Commerce.Asia leveraged its huge database to analyse sales trends (30 days of MCO vs 30 days before MCO) across their merchants. From the graphics, we can discern that the MCO has had a marked effect on the consumers’ purchasing behaviours. With health being a major concern, it was no surprise that latex gloves saw staggering increase in sales as people try to protect themselves from Covid-19. As expected, essential items such as food, toiletries and baby products surged in sales. What was surprising was that the fastest-growing product transacted during the MCO was ladies undergarment!
IMPORTANCE OF LOGISTICS Ordering goods online is one thing, but delivering the goods to the customers on-time is equally important. Ganesh stresses the importance of merchants to be on top of logistics arrangements to ensure on time delivery. “Logistics play a vital role in supporting e-commerce by ensuring efficient processing and delivery of orders. In addition, logistics and transport services support the supply chain of essentials which ensures continuity of daily supply to consumers,” says Ganesh. He adds that the Commerce. Asia ecosystem has been built with this in mind, which is to give a one stop solution to e-commerce merchants from on board to delivery, which would enable merchants to sell quickly and effectively.
