KUALA LUMPUR, Malaysia, April 18, 2018 /PRNewswire/ -- Malaysia's Business to Consumer (B2C) e-commerce market recorded a triumphant growth in the Q4 2017. It achieved 43.5% growth in GMV compared to Q3 2017 and generated close to US$ 800 million, as shared in the Frost & Sullivan's E-Commerce Q4 2017 report released recently.
As per Frost & Sullivan's E-Commerce Market program's latest analysis, businesses like Shopee and Lazada were recorded to be the top players in the market with each having about 10% GMV market share. Back-to-back promotional events during the quarter like 11.11, Black Friday/Cyber Monday and 12.12 helped in attracting customers.
"The trend of cashing in the tech-savvy young population who are just a touch away from placing an online order is working out for Shopee, whose mobile first approach helped it to become the market leader," shared Mr. Naveen Mishra, E-Commerce Program Director, Frost & Sullivan Asia-Pacific.
"Traditional retailers like Watsons, Unilever, Tesco, etc. are also taking advantage of growing e-commerce trend in the country, amid intense competition, high buyer/ seller acquisition and Opex heavy business models, e-commerce players success hinges on the ability to penetrate with sufficient cash to fight the battle," Mishra further added.
In the context of this research Frost & Sullivan defines "E-Commerce" as the sale of goods via an online medium which have been traditionally purchased via physical retail medium. The research excludes electronic sales of:
- Travel and holiday packages
- Tickets sale related to travel (air, rail and road) and events (sports, music concerts, etc.)
- Revenue generated by online gambling sites
- App store purchases, online gaming services and in-app purchases on such platforms.
- Ride hailing services and delivery of foods, magazines, household goods, and DVD rentals.
The research study primarily focuses on Business to Consumer (B2C) market however the coverage includes individual sellers transacting on the e-commerce marketplaces such as Shopee, Lazada, Bukalapak and others. It excludes Person to Person (P2P) platforms (Mudah, OLX etc.) which primarily lists products and where the transaction does not conclude on the platform. Any revenue reported outside of the definition mentioned here is not part of the Frost & Sullivan's numbers reported here.
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SOURCE Frost & Sullivan