South East Asia has become one of the fasted growing markets with regards to e commerce. The South East Asia region consists of Indonesia, Singapore, Thailand, Vietnam and Malaysia. The reason for e commerce market emerging in this region can be pinned to the regions population and the wide usage of technology. The use of the Internet thru technology devises such as smartphones and tablets has become a favorable method of browsing the web for shopping and social media interaction. E commerce shopping is booming in this regions because of its geographical diversity and under developed infrastructure making the internet a method or a mean of reaching inaccessible territories. According to ecommerce milo, Internet usage in this region equates to 6% of the world Internet users making penetrating this market lucrative for e commerce business ventures.
In a break down of this region Internet usage Singapore and Malaysia is ranked at the top, with Singapore penetration at 74.2% and Malaysia at 65.8% with a total of 23 million users in these countries. They are followed by Thailand at 26.5% with 18 million users, Vietnam 39.5 % with 36 million users, Indonesia 15.4% with 38 million users and the Philippines at 36.2% with 38 million users. The percentages are derived from the total of the population of each country and figures are quoted from e commerce milo source data sources from Wikipedia, January 2014.
According to ecommermilo.com 91% of Internet users in Malaysia shop online. The top categories that are shopped via the web are Travel valued at 268 million, followed by insurance at 184 million and Fashion and Accessories at 184 million. In terms of demographics 44.1% of Internet users are male and 55.9% female and the largest age group users are between the ages of 21-29 years old at 48.4%, followed by the age group of under 20’s at 33.2%. The Internet user in Malaysia is highly educated with 89.9% of the users having a university level education.
These figures are an indication that a luxury online menswear site has a market that is using currently using the Internet and also using the web for making Fashion and Accessories purchases. Key to the success of the online luxury site is that 10% of the shoppers spend more than RM500 which as an equivalent of 283,33 euros and 5% spend more than RM1000 equivalent to 566,67 euros.
The key competitors active in the luxury e commerce landscape are reebonz.com with an Alaxa ranking of 1376, mysale.com ranked at 417 and 3houteavenue.com at 3 836.
Dominating the market is mysale.com which is classified as a luxury online site but offers mass market product majority are local brands and offer these at discounted prices. It offers product categories for women, kids, men, beauty and home.
Second ranked is reebonz.com a site that offers luxury international brands targeting women, men and offers outerwear and accessories. This is perhaps the one online luxury platform and is present in Malaysia and other South East Asia country. It concept is that is it a flash sales site and carry over 800 designer labels and ships to more than 21 countries and has a membership base of 2.3 million. Reebonz also trade offline and has a standalone store.
Hauteavenue.com online website is under construction and when searched a number of negative customer reviews show up suggesting that this site has failed as customers are still waiting for orders places in December 2013. From the name of the site, one assumes that it is probably an online site that offered haute couture brands. According to VS Daily this site is by invitation only and is a flash sale e commerce platform were customers receive up to 70% off retail.
The Malaysian male luxury consumer has the same characteristics to that of the Singapore consumer in that he is educated, well travelled and most importantly tech savvy, shops abroad and online. The luxury consumer in Malaysia is concentrated in Kuala Lumpur were...
Bibliography: Tech in Asia. 2014. ecommerce in indonesia. [online] Available at: http://www.techinasia.com/tag/ecommerce-in-indonesia/page/3/ [Accessed: 16 Mar 2014].
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