KUALA LUMPUR, Malaysia, June 11, 2018 /CNW/ -- Malaysia's Business to Consumer (B2C) e-commerce market continued to witness attractive event-based promotional campaigns and tried to maintain the shopping momentum from previous quarter, however it fell short to register growth.
During the quarter ended March 2018, the market shrank by 2.1% to US$792 million, primarily due to limited attractive offers in comparison to previous quarter. Besides Shopee and Qoo10, most of the leading market players registered a decline in their revenues.
"Shopee significantly improved its market position as it continued to increase its market share by controlling over 15% of the market on account of significant improvements in its basket size," shared Naveen Mishra, E-Commerce Program Director at Frost & Sullivan Asia-Pacific.
"With limited number of promotions and events during the quarter, smaller market players observed lower customer traction and lost their market share to Shopee," said Avinash Sachdeva, Industry Principal at Frost & Sullivan Asia-Pacific.
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