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Are Malaysia top retailers doing e-commerce?

March 18, 2015 CK Wong Category : , , , , ,


"Retail sales are getting weaker, but store rental (in shopping malls) keep going up", this could be a typical feedback from retailers who run brick & mortar stores.

There are various factors contributing to weaker retail sales in general, mainly due to rising of living cost, cautious consumer spending due to upcoming GST, competition and more options available online via e-commerce sites.

This is further justified by a report by The Edge back in November 2014, on Malaysia retailers contend with weaker sales.

1 Utama Shopping Mall

Even though shopping malls are still always packed, retail sales are declining especially those in fashionable and non-essential items, according to Tan Sri Teo Chiang Kok, whose family owns a controlling stake in the 1 Utama Shopping Centre.

Datuk Wira Ameer Ali Mydin, Managing Director of Mydin Group has also revealed in the same report that their same-store sales are down, even the sales of basic items are down 3%.

So, what's next for retail?


Top Malaysia retail brands, are they online?


Obviously, e-commerce is one of the options for traditional retail brands to consider as their new business strategy and reaching out to younger consumers.

Even though e-commerce penetration in Malaysia is still low when compared to the total retail market size, the online transactions growth rate is projected at 20% to 30% year-over-year.

Read also: Top 8 reasons why traditional retail must sell online

Top retail brands in Malaysia are generally conservative in adapting e-commerce but we have observed more e-commerce setups in the past 1-2 years and we expect more to follow suit.

Here is the compilation of top 3 retail brands in each category (by market share), whether they have setup their own online store. Do take note that some of the brands do setup online channel in online marketplace but it is not being considered in the table below.

  Category  
  Retailer  
  Own Online Store  
  Grocery     Giant  
  No  
  Tesco  
  Yes  
  AEON Big  
  No  
  Convenience Store     7-Eleven  
  No  
  KK Super Mart  
  No  
  99 Speedmart  
  No  
  Departmental Store     AEON  
  Yes  (Shoppu)
  Parkson  
  No  
  The Store  
  No  
  Apparel & Footwear     Padini  
  Yes  
  Bata  
  Yes  
  Kamdar  
  Yes  
  Electronics & Appliance     Senheng  
  Yes  
  Harvey Norman  
  Yes  
  Best Denki  
  No  
  Health & Beauty     Guardian  
  Yes  
  Watsons  
  Yes  
  Caring Pharmacy  
  Yes  
  Beauty Specialist     The Body Shop  
  Yes  
  Sa Sa  
  Yes  
  L'Occitane  
  Yes  
  Home & Garden     IKEA  
  No  
  Courts  
  Yes  
  ACE  
  No  
  Jewellery & Watch     Poh Kong  
  No  
  Tomei  
  No  
  City Chain  
  No  
  Bookstore     Popular  
  Yes  
  MPH  
  Yes  
  Borders  
  No  
  Pet     PetsMore.com  
  Yes  
  Pets Wonderland  
  No  
  Pets Lover Centre  
  Yes  
  Sports     Al Ikhsan Sports  
  Yes  
  Takasima  
  No  
  Royal Sporting House  
  No  
* Own online store definition: a website with shopping cart and online payment facilities

Update: We have checked again during December 2016 and update the table above in red. As this was originally posted in 2015, there are 6 retailers who have setup own online store since, but there are also 5 retailers who have suspended or shutdown their online store during the same period.

Based on the sampling above, 18 (19 by 2016) out of 36 top retail brands in Malaysia have setup their own online store. Some brands above have presence in online marketplaces without own online store, therefore we can conclude that more than 50% of top retailers in Malaysia are already doing e-commerce.

Whether those e-commerce sites are gaining traction or successful is another matter altogether, you can find out more from the top 10 e-commerce sites by leading retailers in Malaysia.

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