Vast growth seen in mobile shopping in Malaysia
According to MasterCard’s Mobile Shopping Survey, Malaysia ranked third in mobile shopping growth in Asia Pacific, just behind Taiwan and India. The country recorded over 20% growth, up from 25.4% in 2012 to 45.6% in 2014. One of the key factors fueling this growth is the number of Malaysians accessing the internet through their mobile phones which has risen steadily from 81.2% in 2012 to 94.6% in 2014.
Malaysians are shopping on their mobile phones due to the increasing availability of apps that make shopping easy (46.2%), the ability to shop on the go (44.8%) and the convenience of using a mobile phone (42.4%). On the other hand, Malaysians who have not used mobile phones for online shopping cited preference for shopping via PC/ laptop (77.7%), at an actual store (61.4%), and via their Tablet (48.3%).
The research found that Malaysians who did shop online via their mobile phones were discerning in their options, planning ahead and reviewing options available before making purchases. About 51.3% of Malaysians have compared prices at stores with online prices, followed by 47.1% who have conducted an online search before heading to a physical store and 46% who have conducted research online before buying offline. The top 3 categories of items that Malaysians bought using their mobile phones are clothing and accessories (26.2%), airline tickets (23.3%) and phone apps (23.3%).
In general, Malaysians are optimistic towards using new mobile technologies in the future. Current levels of usage suggest a good degree of familiarity – mobile banking apps took the lead (38.2%), followed by in-app shopping (24.4%) and in-social network marketplace apps (20.6%).
Recognising the importance of mobile commerce for the payments landscape, Safdar Khan, group country manager, Indonesia, Malaysia and Brunei; group head, Islamic Payments, Southeast Asia, MasterCard stated, “The vast growth of mobile commerce will likely be on an upward trend as Malaysians embrace new technology in their daily lives. As a payments technology company, we are committed to providing innovative payments solutions that facilitate safe and convenient online payments. Security and innovation are the cornerstone of our payment offerings and ensuring that Malaysians are able to shop with peace of mind is our priority.”
Elsewhere in Asia Pacific, mobile commerce is also experiencing rapid growth. Some key findings include:
- Overall, consumers from China (70.1%), India (62.9%) and Taiwan (62.6%) are the most likely to shop using their smartphones.
- In terms of the biggest growth in mobile shopping, Taiwan and India lead the region with the number of people shopping on smartphones more than doubling over two years – Taiwan went from 28.2% in 2012 to 62.6% in 2014 while India went from 30.3% in 2012 to 62.9% in 2014.
- Nearly half of the respondents across Asia Pacific (49.5%) cited convenience as the most compelling reason for shopping on their smartphone. Other motivating factors include the ability to shop on the go (43.9%) and the growing availability of apps that make it easy to shop online (39.5%).
- The most popular mobile shopping purchases amongst Asia Pacific shoppers include clothing and accessories (27.9%), followed by apps (21.2%) and daily deal coupons (19.2%). More than one-third of Chinese (37.4%) and Korean (36.0%) consumers shop for clothing and accessories on their smartphone. Meanwhile, apps top the list of items Thai (33.8%) and Vietnamese (31.8%) shoppers purchased using smartphones.
- Another positive indicator of the advancement of mobile commerce is adoption of new mobile technologies by consumers in Asia Pacific – top three technologies being used are mobile banking apps (27.9%), followed by in-browser apps (14.4%) and group buying apps (14.1%). Group buying apps (40.3%) and digital wallets (28.5%) are the most popular amongst Chinese consumers.
The results of the survey are based on interviews that took place between October and December 2014, with a minimum of 500 people aged 18-64, in each of the 14 markets surveyed.
MasterCard and its Suite of Research Properties
The MasterCard Index suite in Asia Pacific includes the long-running MasterCard Index of Consumer Confidence, as well as the MasterCard Index of Women’s Advancement, MasterCard Survey on Online Shopping, MasterCard Index of Financial Literacy, and the MasterCard Index of Global Destination Cities. In addition to the indices, MasterCard’s research properties also include a range of consumer surveys including Ethical Spending and a series on Consumer Purchasing Priorities (covering Travel, Dining & Entertainment, Education, Money Management, Luxury and General Shopping).
MasterCard also regularly releases Insights reports providing analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 80 Insights reports have been produced since 2004. MasterCard has also released a series of four books on Asian consumer insights, authored by Dr. Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard and published by John Wiley & Sons.
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardAP and @MasterCardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau
 Malaysia, Thailand, China, Japan, Korea, Australia, New Zealand, Taiwan, Vietnam, Hong Kong, Indonesia, Singapore, India. Philippines.