In a study commissioned by KPMG and GS1, 49% of respondents from Malaysia said they are comfortable with both online and physical store shopping, and 27% expressed a preference for in-store shopping.
Ngu Heng Sing, partner and head of the consumer and retail sector at KPMG in Malaysia, commented, “The retail landscape is undergoing a transformative shift. In Malaysia, we’re seeing a convergence of traditional and digital shopping preferences, particularly among Gen-Z consumers.”
“Retailers must prioritise seamless commerce to cater to these evolving needs, ensuring a cohesive shopping experience across all channels,” he said.
Published in a report entitled “Navigating the future of seamless commerce in Asia-Pacific”, the study encompasses 7,000 respondents from 14 markets in the Asia Pacific region including Malaysia.
It revealed the preference for variety over price among Gen-Z consumers, who along with Baby Boomers, also value faster and more reliable delivery over promotions, discounts, and competitive pricing.
This shift emphasises the need for retailers to enhance their logistical capabilities to meet delivery expectations.
Mobile banking app is the preferred online payment method among Malaysian consumers, with security and fraud risks being the most important factors in choosing a payment method.
Also worth noting is that Malaysia recorded the second-highest dissatisfaction rate at 27% with generative AI-driven product recommendations, almost at par with Singapore’s 28%.
The survey also indicated that Malaysian consumers prioritise e-commerce platforms that offer competitive pricing, a wide variety of products, promotions, and discounts, as well as fast and reliable delivery and secure payment options.
Across the region, Malaysia recorded the second lowest adoption rate for subscriptions which can include digitally delivered services such as media or entertainment as well as FMCG products.
Only 26% currently subscribe to a product supply while 50% have never subscribed, which implies the need for companies to think outside the box when developing their customer loyalty programmes.
Malaysian consumers embrace sustainable products, with 93% actively seeking them out. However, 44% of Malaysians expect sustainable options to be priced competitively with other options, with only 32% prepared to pay a premium.
The report also highlighted the gradual traction gained by the Buy Now, Pay Later (BNPL) services across the region.
Malaysians were found to have a generally high awareness of BNPL services, with just 10% unaware of them and about 28% of respondents across all age groups having used BNPL services in the past year, with the highest usage in the 25 to 34 age group (38%).
“The recent emergence of BNPL is transforming the digital payment landscape by offering instalments for a wide range of transactions, including low-ticket items. This bodes well for the underbanked population.
However, there may be disruptions to the growth trajectory of BNPL, given the recent push for higher regulatory oversight and intervention,” Ngu observed.
He concluded, “In an era defined by consumers’ increased price sensitivity and digital fluency, the need for brands and retailers to adopt seamless integration, technological innovation, and personalized engagement cannot be understated.”
“By embracing these principles, they can cultivate enduring connections and deliver transformative experiences that redefine the future of commerce.” – Business Today
