Retail News CRM

Tag: Malaysia

  • Malaysia’s DFI approves Heinemann sale agreement

    Malaysia’s DFI approves Heinemann sale agreement

    Shareholders of Malaysia’s largest duty-free operator Duty Free International Ltd have approved a strategic partnership with Heinemann Asia Pacific for a sale of up to 25% equity interest plus one share in DFZ Capital Berhad (DFZ).

    The sale and purchase agreement with Heinemann comprises a 10% equity interest plus one share in DFZ (the proposed sale), and two call options to purchase up to a further 15% equity interest in DFZ.

    The proposed sale is targeted to be completed by June 2016. On completion of the proposed sale, Heinemann will be entitled to board representation on the board of directors of DFZ, allowing both parties to deliver the expected synergies in an efficient and timely manner, said DFI in a statement.

    “We view Heinemann as a strong business partner and strategic investor. The completion of the proposed sale will bring significant positive changes to DFZ. Going forward, we will be leveraging on their resources and expertise in the areas of purchasing, merchandising, product assortment/costing, retail store management, distribution and logistics management. We believe that this alliance will further enhance the overall travel retail experience in Malaysia, to bring us on par with the best available in the world. The Proposed Sale will also further strengthen DFI’s financial position and allow the Company to consider future business opportunities.” said DFI  executive  director Lee Sze Siang.

    Commenting on the proposed sales, Heinemann Asia Pacific CEO Max Heinemann said: “One of the key synergies for this alliance is the similar business models and corporate culture that both the organisations share. We are confident that this partnership will provide a sturdy platform for our expansion into South East Asia.”

    DFZ Capital Berhad, a group subsidiary of DFI with an operating history of more than 35 years, is the largest multi-channel duty-free and duty-paid retailing group in Malaysia. The company, through its “ZON” brand of retail shops, serves both Malaysian and international customers across all major entry and exit points in Peninsular Malaysia including operations at international and domestic airports, seaports, border towns, duty-free islands and other tourist destinations.

    The companies entered into the sale and purchase agreement in March 2016 as reported.

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  • Apollo Tyres expands operations to Malaysia, targets big share of the replacement tyre market

    Apollo Tyres expands operations to Malaysia, targets big share of the replacement tyre market

    After making its presence felt in Thailand and Indonesia, Apollo Tyres announced the setting-up of its office in the third largest automotive market in the ASEAN region, Malaysia. Satish Sharma, President, Asia Pacific, Middle East & Africa (APMEA region), Apollo Tyres Ltd inaugurated the company’s Malaysian office in the presence of select Business Partners and company officials.

    Apollo-Tyres-inaugurates-Malaysia-office-1

    Subsequent to setting-up its sales and distribution hub in Bangkok for the ASEAN region, Apollo Tyres has been increasingly focusing on expanding its footprint in South East Asia. The company is targeting a bigger share of the pie in the Malaysian replacement tyre market, which has an annual capacity of 580,000 truck-bus radials and 9.5 million passenger car tyres.

     

    Malaysia has above 90% radialisation levels in the commercial vehicle segment. Apollo Tyres, with its Apollo Endurace range of truck-bus radials, has already received high acceptance from Malaysian customers. The tyre maker is keen to further establish the Apollo brand at the top tier of the truck-bus radials market. Similarly, Apollo’s passenger car tyres portfolio is capable of servicing nearly 90% of the Malaysian car tyre market, which is currently, one of the largest in the ASEAN region.Apollo Tyres inaugurates Malaysia office (2)

    Satish Sharma, President, Asia Pacific, Middle East & Africa, Apollo Tyres said that over the past two-three years, Apollo Tyres has been making steady inroads into the Malaysian market as this is a pivotal market for the company’s growth in the region. The product range fits well with the Malaysian consumer requirements and with the support of its key distribution and retail partners in Malaysia, Apollo Tyres has been able to penetrate most of the key replacement tyre market segments.

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  • Petron to open more than 250 gas stations in Malaysia and the Philippines

    Petron to open more than 250 gas stations in Malaysia and the Philippines

    The Philippines’ largest oil refiner and distributor Petron Corporation is set to further expand its retail business as it continues to enjoy stronger sales and positive growth potentials, reported The Standard.


    Source: Petron Corporation Facebook Page

    This year, Petron targets to add more than 250 gas stations to the existing 2,800 Petron stations in Malaysia and the Philippines.

    The company, in fact, has already carried out a significant gas station network expansion in Malaysia with the acquisition and rebranding of approximately 550 ExxonMobil stations.

    It also plans to upgrade its Port Dickson Refinery, according to Petron president and chief executive Ramon Ang.

    Ang also disclosed plans to put up 12 retail stations along the Philippines’ 88.5-kilometer, two-lane Tarlac-Pangasinan-La Union Expressway (TPLEX).

    TPLEx has a high traffic volume as it connects the central and northern Luzon provinces to Manila through the Subic-Clark-Tarlac Expressway and the North Luzon Expressway.

    Petron’s parent firm San Miguel Corporation (SMC), through the Private Infra DevCorporation (PIDC), the concessionaire in TPLEx, provides management services, toll collection, traffic safety and security management, toll road maintenance, and other related services along the expressway.

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  • Maybank Islamic secures four awards

    Maybank Islamic secures four awards

    Maybank Islamic Berhad has clinched the Leadership Issuer of the Year Award for a financial institution by the Asset Triple A Islamic Finance Awards 2015 for its RM1.5 billion Basel III-compliant subordinated sukuk murabahah, which was the single largest deal of its kind launched by an Islamic financial institution.

    The issuance was pursuant to a subordinated sukuk murabahah programme of up to RM10 billion in nominal value established in March 2014.

    The transaction received encouraging response from investors resulting in an oversubscription rate of 2.9 times, enabling Maybank Islamic to upsize the deal from the initial target of RM1 billion. Maybank Investment Bank Berhad acted as the Lead Arranger and Manager.

    “Proceeds raised from the subordinated sukuk murabahah are used to position Maybank Islamic for stronger growth domestically and regionally,” said Maybank Islamic Chief Executive Officer Muzaffar Hisham.

    He also thanked his team for their hard work in the sukuk issuance and The Asset for recognizing this effort.

    “The strong demand we received from investors for this programme is a testimony of Maybank Investment and Maybank Islamic’s leadership in the Islamic capital market space,” he said.

    The Sukuk programme also won an award in the category of Highly Commended Best Bank Capital Sukuk.

    In 2014, Maybank Islamic Berhad cemented its leadership position as it posted robust double-digit growth rates in financing, deposits and in asset size which stood at RM146.4 billion as at December 31 2014.

    Maybank Islamic also won 4 other awards. These were the Islamic Bank of The Year for Asia Pacific and Malaysia, Best Islamic Retail Bank, Best Islamic Trade Finance Bank. It also picked up 2 awards in collaboration with Maybank Investment Bank for Best Corporate Hybrid Sukuk and Best Local Currency Sukuk.

    Maybank Investment also won the following awards – Best Reit sukuk, Best bank capital sukuk-Highly commended, Best corporate sukuk, Best quasi-sovereign sukuk, and Best Islamic Deal.

    The awards ceremony took place here recently and Maybank Islamic was represented by its Deputy CEO, Nor Shahrizan Sulaiman and its Head of Corporate and Investment Banking Arshad Ismail.

    Maybank Islamic is currently the leading Islamic Bank in ASEAN and the largest Islamic Bank in Malaysia securing a 32.7 percent domestic financing market share and accounting for 43.8 percent of Maybank Group’s total domestic loans/financings.

  • New release: Mango Ramadan fashion range

    New release: Mango Ramadan fashion range

    Spanish fashion brand Mango has launched a range of Ramadan styles, including special festive garments.

    For more than 10 years the brand has been globalising its collections for different markets. Its special-collections department develops exclusive designs in line with the cultural and religious norms of different countries.

    The Mango Ramadan fashion offer includes casual garments such as jackets, kaftans, flowing jackets, oversized shirts, leggings and tunics made of fabrics such as poplin and imitation suede. There are also festive garments such as long dresses and double-layer body wraps (relaxed or fitted), plus midi-skirts made of fantasy fabrics. Satin finishes, lurex and laminated fabrics play a key role, as does lace.

    While the Spanish market is key for development, the brand has about 80 per cent of turnover in other countries. There are more than 2200 Mango stores in 109 countries.

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  • New Toys’R’Us Asia-Pacific president named

    New Toys’R’Us Asia-Pacific president named

    The new Toys’R’Us Asia-Pacific president is Andre Javes.

    Taking up the role on May 27, Javes will oversee all operations and business activities for the company’s growing number of stores in Japan, Southeast Asia, Greater China and Australia, and he will be responsible for the profitability and success of the company in these markets. He will report directly to chairman and CEO Dave Brandon.

    A seasoned retail executive with more than 30 years of merchandising and management experience, Javes most recently served as MD of Toys’R’Us, Southeast Asia and Greater China, where he oversaw all operations and business activities for the company’s more than 170 wholly-owned stores and some 2500 employees in Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand.

    “Since joining Toys’R’Us, Andre has made significant contributions to the continued growth and success of our business throughout Asia and Australia,” said Brandon. “With his extensive retail background, drive for results, commitment to building and leading high-performing teams and proven track record, we expect to further grow and strengthen our brands’ position in the global marketplace.”

    Javes first joined the company in Australia in 2008 as GM merchandising with responsibility for toy and baby products. After a brief hiatus, he returned to the company in April 2013 as MD, overseeing all operations and business activities for the company’s more than 30 stores, eCommerce site, corporate office and more than 1700 employees.

    Prior to joining Toys’R’Us, Javes served as CEO at Anaconda Group from 2009 to 2012, a retail chain of camping, outdoor and adventure gear stores across Australia. Earlier in his career, he spent three years at Kmart as divisional merchandising manager first for seasonal and consumable items and later for the company’s toy and outdoor product categories throughout Australia and New Zealand. He also served as group merchandise manager, grocery at Coles Supermarkets Australia.

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  • Manolo Blahnik steps up in-store presence in Asia

    Manolo Blahnik steps up in-store presence in Asia

    Footwear label Manolo Blahnik is expanding operations in select Asian markets through a new distribution and retail partnership.

    Beginning with the autumn/winter 2016 collection, Bluebell Group will be responsible for Manolo Blahnik’s distribution and retail development in Japan, Singapore and Malaysia. Depending on the success of the partnership, Bluebell Group will then be tasked with expanding Manolo Blahnik further into the region.

    Finding its footing
    Under the agreement, Bluebell Group will manage and provide support service for Manolo Blahnik’s 41 retail locations already in operation in the Japanese market.

    The Japanese locations will be added to Manolo Blahnik’s existing 290 points of sale in 33 countries. Manolo Blahnik’s retail network consists of 11 standalone stores, including two in Hong Kong and one in Seoul, South Korea.

    In Japan particularly, Bluebell Group will help Manolo Blahnik to launch its first shop-in-shop and corners in the market’s leading department stores. Additionally, the brand is planning its first flagship in Tokyo for 2017.

    Also, Manolo Blahnik’s shop-in-shop in Takashimaya in Singapore will be operated by Bluebell’s local division. The shop-in-shop will undergo renovations later this year.

    manolo blahnik.ss16 illustration

    In the Malaysian market, Manolo Blahnik will open its first standalone storefront in autumn/winter 2016. The boutique will be located in the Pavilion Mall in the speciality retail section.

    “We are delighted to now be working with the Bluebell Group in Asia,” said Kristina Blahnik, CEO of Manolo Blahnik International, in a statement. “Manolo Blahnik is a global brand but with comparatively small distribution in Japan, Malaysia and Singapore.

    “With Bluebell now as our partners we are excited about exploring and building the business in these regions and further territories,” she said. “I have trust in their guidance and experience, and appreciate their company family values that resonate with our own. We look forward to a successful relationship.”

    Manolo Blahnik has recently turned to ecommerce platform Farfetch to expand its global presence. As of March, the online retailer’s Black & White service powers Manolo Blahnik’s monobrand ecommerce point of sale.

    manolo.ecomm web full 400
    Manolo Blahnik ecommerce Web site, powered by Farfetch’s Black & White 

    Through Black & White, Manolo Blahnik sells its entire catalog of men’s and women’s shoes as well as books relevant to the brand

  • Axiata Q1 profit falls 37% on rising costs

    Axiata Q1 profit falls 37% on rising costs

    Malaysia-based Axiata Group has reported a 37% slump in net profit for the first quarter ending in March, due in part to higher capex, financing and depreciation costs.

    Net profit fell to 368 million ringgit ($90.1 million) despite a 5.4% year-on-year increase in revenue to 5 billion ringgit.

    Axiata’s domestic subsidiary Celcom Axiata had what the company called a “challenging quarter,” with revenue declining 13.4% year-on-year.

    As a result of new regulations, Celcom had to temporarily suspend almost all value added services during the quarter due to customer complaints, resulting in VAS revenue falling by 19.8%. Celcom’s normalized profit fell 22.3%.

    But Indonesia’s XL Axiata had a strong first quarter, with net profit more than doubling and revenue growing 2.5% as a result of the strong performance of the Axis brand, acquired in 2014.

    Axiata Group also reported a steady performance in its emerging markets segment of Sri Lanka, Bangladesh and Cambodia. But the contributions from regional associates Idea Cellular in India nd M1 in Singapore both declined.

    “The first quarter showed mixed results with XL, Dialog and Smart performing exceptionally well while Celcom’s performance impacted the Group’s results,” Axiata Group CEO Dato’ Sri Jamaludin Ibrahim said.

    “However, I am pleased to note there are many positive signs; Celcom has been aggressively rolling out more LTE sites and a number of competitive and exciting data products and services over the last two months. I am confident with these initiatives in place, Celcom will be back on track to finish the year respectably.”

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  • Kitchenware boutique bags global honour

    Kitchenware boutique bags global honour

    KITCHEN Shop received the Global Innovation Award 2015 for Retail Excellence held in Chicago, making it the first global recipient from Malaysia.

    This also makes Kitchen Shop the first speciality shop to attain the award in this region.

    Katrin BJ Sdn Bhd managing director Jean Yeap said it was not only a triumphant success for the Kitchen Shop and Katrin BJ but they have also done Malaysia proud.

    “Since the launch of the IHA Global Innovation Award in 2000, there have been more than 320 Global Innovation Award retail award winners from 40 countries in six continents.

    “This is the first global award recipient from Malaysia.

    Inside the Kitchen Shop.

    Inside the Kitchen Shop.

    “Our Kitchen Shop at Great Eastern Mall competing against 25 great speciality shops in 23 countries achieved a landmark success for being the first for Malaysia and the first speciality shop to attain this award in this region,” said Yeap, in her speech.

    Their journey to win this award started in Chicago in 2013 when they were at the Chicago International Housewares Show.

    “Our group managing director M.H. Basri saw the newsletter on the GIA awards and he planted in his mind that he will build the next kitchen shop to win this award,” said Yeap.

    Apart from the physical store, Kitchen Shop was selected for this global award based on the following criteria – overall mission statement; vision and strategy; store design and layout; visual merchandising, displays and window displays; marketing, advertising and promotions; customer service and staff training and innovation.

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  • Parkson Vietnam shutters store

    Parkson Vietnam shutters store

    Parkson Vietnam has closed another of its stores as it continues to struggle to make its business profitable.

    The Malaysian department store operator has closed the 19,000 sqm District 7 outlet in Ho Chi Minh City, a multi-story department store beneath a commercial tower.

    The store opened in April 2011 after the company invested US$5 million in a new fitout of a small shopping mall bought from Kim Cuong Company.  But the store has never attracted sufficient customers to make it viable, despite a cinema on the top floor. The building is two blocks from the giant Crescent Mall shopping centre which opened in late 2011 in the largely expat-populated suburb some 20 minutes drive from downtown Ho Chi Minh City.

    The mall reportedly closed on Monday.

    Parkson did not give local news media an explanation for the decision – or why it persevered with the site for five years before pulling the plug. But the company did say the closure would not affect the other eight stores in its network, five of which are in Ho Chi Minh City.

    In January last year, Parkson closed another store opened in 2011, Hanoi’s Keangnam Hanoi Landmark Tower. That followed a dispute with the building’s owners over rent which Parkson said was set at a level sales could not sustain.

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  • Takeover bid of $196m. for Eu Yan Sang

    Takeover bid of $196m. for Eu Yan Sang

    A takeover bid for Singapore-based Eu Yan Sang has valued the traditional Chinese medicine retailer at about S$269 million (US$196 million).

    A consortium comprising Singapore state investment company Temasek Holdings’ unit Blanca, Tower Capital TCM Holdings and some members of the founding Eu family have made the final offer of 60c Singapore a share.

    About 63.2 per cent of shareholders have committed to accept the offer, including members of the Eu family, Aberdeen Asset Management Asia and First State Investment Management (UK), says Eu Yan Sang.

    Tower Capital founder Danny Koh says the consortium’s offer is attractive “considering the company’s recent financial performance and the current challenging environment”.

    Eu Yan Sang launched in Malaysia in 1879, expanding to more than 250 outlets in China, Hong Kong, Macau and Australia.

    Its third-quarter net income slumped to S$286,000 from S$5.45 million a year earlier, and its slide became evident in August when it lost US$3.6 million.

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  • Profit slump for supplement retailer Eu Yan Sang

    Profit slump for supplement retailer Eu Yan Sang

    Singapore supplement retailer Eu Yan Sang International has had its third-quarter net profit slump to S$286,000 (US$208,515) from $5.45 million as a result of declining revenue, foreign exchange losses and expenses related to closing F&B outlets in China.

    Revenue for the four months ending March 31 slipped 6 per cent to $103.87 million, mainly because of lower revenue from the Malaysian market as well as its weakening currency.

    Foreign exchange losses of $1.9 million resulted from the weakening Hong Kong dollar during the third quarter as well as the outlet closures.

    “Despite the sluggish regional economy, we are heartened by the green shoots of recovery budding in some of our markets,” says group CEO Richard Eu. ”We remain committed to improving our performance through cost-reduction initiatives and rationalisation, while seeking greater levels of efficiency through technology.

    “On the other hand, weak macroeconomic conditions continue to weigh down our market performance in Hong Kong and Malaysia.”

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  • 11street Academy is the First E-commerce Certification Programme in Malaysia

    11street Academy is the First E-commerce Certification Programme in Malaysia

    11street (www.11street.my), one of the largest online marketplaces in Malaysia, launched ‘11street Academy’, the first ever e-commerce certification programme in the nation, targeting to help at least 1000 sellers and entrepreneurs to grow their businesses online.

    According to Hoseok Kim, Chief Executive Officer of 11street, this initiative aims to impart every facet of e-commerce knowledge to help sellers expand their online businesses. “We have been receiving overwhelming response to 11street’s existing and basic training courses, which is an introductory level of e-commerce training session for the past one year. Majority of our sellers who took up the basic courses has purportedly reported a hike in month-on-month sales.”

    “As a result, they have been yearning to deepen their knowledge in e-commerce to explore untapped opportunities in hopes of maximizing their online businesses. Hence, with the launch of 11street Academy, we will be offering up to advance level of e-commerce-related education to reinforce many more local sellers with in-depth knowledge, expertise and know-hows to achieve significant growth and success in e-commerce,” Kim added.

    Photo 1_Low Res

    11street Academy will kick start by offering a well-structured education program with a comprehensive syllabus to enhance sellers with state of art knowledge. This includes essential marketing skillsets offered by our partners, Google AdWords and Facebook, which allow online sellers to proceed to the next level as the market matures while fulfilling their drive in finding more effective ways to excel in e-commerce.

    Kim further shared, “Working hand-in-hand with Malaysia Digital Economy Corporation (MDEC), Google AdWords and Facebook, we are committed to fuel the success of Malaysian online sellers by providing top-notch e-commerce trainings offered only by industry leaders in which we strongly believe will help our sellers’ businesses bloom and generate greater revenue.”

    “11street Academy’s strategic collaboration with the partners, including MDEC is the forefront of an emerging informative e-commerce community, which intends to empower Malaysian SMEs and entrepreneurs to grow their business, and coherently boost the economic growth in Malaysia,” said Chief Executive Officer of MDEC, Datuk Yasmin Mahmood.

    Denise Gamo, Head of SMB Marketing at Google Malaysia also said, “According to Google’s Consumer Barometer study, Malaysia is a mobile-first nation with a 70% smartphone penetration and 1 in 3 Malaysians exclusively using their mobile device to access the Internet. By attending the workshop, the audience will better understand Malaysia’s digital landscape, consumer behaviours and learn about platforms such as Google My Business and Google AdWords on Search, YouTube, and on the Display Network. With these, the sellers will be geared with knowledge, tools and online presence that is crucial in reaching their potential customers.”

    Facebook will provide custom Blueprint Training that will include extensive e-learning modules, offering sellers an opportunity to learn more effective ways to leverage Facebook advertising to drive real business results.

    Sandhya Devanathan, Group Head of e-commerce, Retail, Financial Services and Travel, for Facebook in Southeast Asia added that, “Mobile News Feeds are the new storefront for retailers looking to reach Southeast Asia’s mobile first consumers. We know that 94% of Malaysians discover products and brands on Facebook while 62% make a purchase after discovery. There’s an unprecedented opportunity for businesses in Malaysia to connect with the 18 million people on Facebook – 94% of them connecting through mobile devices. We’re committed to helping support and educate partners similar to these workshop sessions that will ultimately help e-commerce companies in Malaysia build and grow their businesses.”

    Apart from the basic syllabus, the advanced courses established under 11street Academy will also cover a large breadth of topics such as ‘Marketing, Advertising & Promotion’, ‘Shipment & Inventory Management’, ‘Product Photography – Theory & Practical’, ‘Sale & Online Supply Chain Management’ and many more.

    Learning the Ropes of E-commerce with 11street

     With no fees required, 11street Academy will be opened to all Small and Medium Enterprises (SMEs), businesses owners, and individual online sellers aged 18 and above and it only targets 100 participants per batch every month.

    Participants are required to attend 5 classes to complete the full course within 4 weeks. To graduate with certification, attendees are required to pass its qualification exam, complete the given assignments with a set minimum class attendance.

    The certification programme is open for registration from 16 May 2016 onwards on a first come, first served basis, whereby shortlisted candidates will be informed via email. For those who are interested, please register at https://bit.ly/registeracademy.

    Kim also shared, “11street Academy is our long term commitment to build a strong seller ecosystem because we value their contribution and we view sellers as the strongest support to the evolution of entire e-commerce market when it comes to providing the best products and services to local consumers. The programme is scheduled to operate for at least 12 months and shall be extended as we foresee an overwhelming response from our sellers.”

    “By supporting them to grow via the most recent 11street Academy’s e-commerce certification programme, we hope that our sellers will be able to grow their businesses and increase sales by implementing effective online retailing strategy and practices,” Kim concluded.

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  • Parkson revenue falls

    Parkson revenue falls

    Despite contributions from new outlets, Parkson Retail Asia’s department stores have seen third-quarter group revenue fall by 15.6 per cent to S$98.4 million (US$71.5 million), with a 14.4 per cent drop to S$294.6 million for the nine months of its current financial year.

    The Parkson revenue decline reflects same-store revenues falling in Malaysia and Vietnam, plus the weakness of the Malaysian ringgit resulting in lower figures because of the reporting currency being Singapore dollars.

    A pre-tax loss of $7.5 million was recorded by the group for the third quarter, with factors including provision made on loans to managed stores of $4.9 million, and initial losses associated with new stores.

    Same-store sales growth in Malaysia fell 17.4 per cent in the third quarter, but figures for the corresponding quarter last year were bolstered by sales before the introduction of a Goods & Services Tax (GST) on April 1 2015. Also, consumer confidence was below the 100-point threshold for the seventh consecutive year, as reported by the Malaysian Institute of Economic Research.

    Vietnam same-store sales fell 8.2 per cent for the quarter, with a difficult and increasingly crowded retail environment, the company said. For the nine months, a pre-tax loss of $4.9 million has been recorded.

    Sales were flat in Indonesia, edging up just 0.1 per cent. However, the company says consumer sentiment is robust with Bank Indonesia reporting the consumer confidence threshold at 111.1 points, a little down on the 119.1 points at the same time last year. For the nine months, a $3.2 million pre-tax loss was recorded.

    In Myanmar, Parkson same-store sales fell 7.6 per cent, affected by supplier uncertainty about plans to close the FMI Centre, where the store is located, for re-development. However, a new location has been secured, with the new store expected to open by March.

  • The rise of mCommerce in Malaysia

    The rise of mCommerce in Malaysia

    Online payment gateway provider iPay88 has seen a sharp rise in mobile traffic with its total online payment transactions representing close to 70% of the Malaysian market.

    Chan Kok Long, executive director of iPay88 said this was refelctive of the growth of mCommerce in the market.

    In year 2015, iPay88 recorded that 3.7 million online shoppers who made purchases through its systems used mobile devices. A year ago it was only 2.0 million.

    It is also seeing a rise in merchants actively promoting mobile purchases in 2016 following the mCommerce waves. In the last few years, the percentage of mobile traffic have also increased substantially, with the number being 27% in 2014, to 38.4% in 2015, up until 48.6% in 2016 so far.

    In the first quarter of 2016 alone, 1.6 million shoppers have purchased through their mobile devices on iPay88, the company said.

    With the rising number of mobile device users increasing, the mCommerce trend is predicted to follow suit. Mobile penetration has reached 136% in 2015, with 47% of Malaysians using their smartphones to online shop.

    Statistia, one of the leading statistics companies on the Internet projects the value of retail goods purchased via mobile to exceed USD$1 billion in 2018. Paypal has also cited that 28% of the 4.9 billion payments it processed in 2015 were from mobile devices.

    A survey on mobile shopping last year ranked Malaysia third in terms of mobile shopping growth rate in Asia, at over 20%, from 25.4% in 2012 to 45.6% in 2014. Many popular international online stores including Amazon, Apple, Walmart and Google Play have recorded an increasing number of consumers purchasing on their mobile.

    In Malaysia, 35% of the purchases on smartphones go to ticketing, while 29% goes to marketplace/group buying, but airline tickets are the most commonly purchased items on Malaysian tablets.

    Additionally, the rise of new platforms such as Uber and Grabcar that leverage on mobile booking and transactions also contribute to the rise of popularity in mobile usage and purchasing.

    “No doubt the availability of cheap smart phones and laptops have made the Internet accessible to a whole new demographic. The advent of tablets and smart watches has also broadened the spectrum of Internet usage,” Chan said.

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