May 01, 2012
Kuala Lumpur, 1 May 2012 – Consumers in Malaysia are shopping online more and have become more confident about online security, according to the latest MasterCard Worldwide Online Shopping Survey.
The number of people in Malaysia shopping online has grown by 12% compared to the year before (55% in 2010). This increase is partly attributed to the Malaysian consumer’s increased confidence level in online shopping – 36% in 2011 were concerned about security versus 39% in 2010.
With the cumulative growth in confidence to make purchases online, the MasterCard Worldwide Online Shopping Survey also showed an increase in spend across various categories.
Airline websites saw further growth (86% in 2011 compared to 71% in 2010) in online spend compared to offline. There was also an increase in online purchase for Books/CDs/DVDs (49% in 2011 versus 40% in 2010), Music Downloads (i.e. iTunes) (82% in 2011 compared to 53% in 2010) and Products/Services in Online Gaming (77% in 2011 compared to 60% in 2010). The top 5 purchases online include, in their respective order – Airlines, Music Downloads (i.e. iTunes), Coupon/Deal sites, Products/Services in Online Gaming/Virtual World and Apps.
Jim Cheah, vice president and senior country manager, Malaysia and Brunei said, “Consumers in Malaysia are increasingly getting more sophisticated and savvy in making online purchases, and coupled with that, the Internet has also become a vital part of the lives of the consumers – together this holds very strong growth potential for the online shopping segment. Along with the growth of this space, we have rolled out value added benefits for online shoppers through tie-ups with top-tier online retailers to further build and sustain MasterCard led online purchases.”
In terms of online shopping and purchase intent, the results show that the gap is closing for online shopping in Asia/ Pacific markets between the “mature” and “emerging” markets. Thailand leads the pack both in terms of online shopping (80%) and likelihood to make an online purchase in the next six months (93%), alongside China. Korea (84%) and Malaysia (79%) also show high intent to purchase over the next six months, with Vietnam also showing similarly high intent to purchase (87%) despite a low percentage of people using the Internet for online shopping (61%). The survey and its accompanying reports do not represent MasterCard’s financial performance.
Although a majority (71%) of respondents said they would rather use their laptop for shopping, the mobile phone is rising rapidly as the device of choice for Asian shoppers in emerging markets, with respondents in Thailand (59%), China (37%), Vietnam (32%) and India (32%) all leading more established markets.
Mobile shopping is also slowly gaining traction in Malaysia with 25% of Malaysian respondents carrying out transactions through their mobile phone in the past three months.
Among the reasons given for using the mobile for shopping, most said it was more convenient (57%) and also cited the growing availability of apps that make it easier to do (46%). Music (24%) and apps (31%) topped the list among those who have made purchases through their mobile phones, followed by coupon deal sites (17%), retailers for clothing and accessories (17%), and cinema (16%).
The MasterCard Worldwide Index suite in Asia/Pacific, Middle East and Africa includes the long-running MasterCard Worldwide Index of Consumer Confidence, as well as the MasterCard Worldwide Index of Women’s Advancement, Online Shopping, Index of Financial Literacy, and the 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 Worldwide 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 @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.