Winning at online and offline a must for today's Malaysian retailers [BTTV]

Publish date: Sun, 23 Jun 2024, 03:34 PM

KUALA LUMPUR: A seamless online-offline experience is now recognised as a fundamental requirement for retailers in the rapidly evolving retail and commerce landscape.

According to a study by KPMG and GS1, an international standards organisation with member bodies in more than 100 countries, which surveyed 7,000 respondents across 14 markets in the Asia Pacific region, 49 per cent of respondents from Malaysia are comfortable with both online and physical store shopping.

In a statement today, KPMG said the survey found that another 27 per cent of Malaysian respondents preferred in-store shopping.

"In Malaysia, we're seeing a convergence of traditional and digital shopping preferences, particularly among Gen-Z consumers," said Ngu Heng Sing, partner and head of the consumer and retail sector at KPMG Malaysia.

Ngu said that 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 personalised engagement cannot be understated.

"By embracing these principles, they can cultivate enduring connections and deliver transformative experiences that redefine the future of commerce," he said.

The study also found that mobile banking apps are the preferred online payment method among Malaysian consumers, with security and fraud risks being the most important factors in choosing a payment method.

In addition, Malaysia recorded the second-highest dissatisfaction rate at 27 per cent with generative artificial intelligence (AI)-driven product recommendations, almost at par with Singapore's 28 per cent.

KPMG said Malaysia also registered the second lowest adoption rate for subscriptions, which can include digitally delivered services such as media or entertainment as well as fast-moving consumer goods (FMCG) products.

According to the study, only 26 percent of respondents currently subscribe to a product supply, while 50 per cent have never subscribed, which implies the need for companies to think outside the box when developing their customer loyalty programs.

The study also revealed that Malaysian consumers embrace sustainable products, with 93 per cent actively seeking them out.

"However, 44 per cent of Malaysians expect sustainable options to be priced competitively with other options, with only 32 per cent prepared to pay a premium," KPMG said.

The report also highlighted the gradual traction gained by the Buy Now, Pay Later (BNPL) services across the region.

According to KPMG, the study found that Malaysians were generally highly aware of BNPL services, with just 10 per cent unaware of them and about 28 per cent of respondents across all age groups having used BNPL services in the past year.

"The highest usage was in the 25 to 34-year-old age group (38 per cent)," it said.

  - Bernama

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