The month of October has marked a significant turning point for Malaysia E-commerce Marketplace, showcasing a notable reversal in its trajectory. While Retail Group Malaysia cuts retail industry growth rate for 2023 to 2.7%, platforms like Shopee and TikTok have begun to witness a reversal from their declining trends, particularly after hitting a low in September.
This turnaround can be primarily attributed to strategic move done by each respective player, particularly Shopee where substantial investments in live vouchers were made to stimulate consumer spending. The impact of this investment has been substantial, propelling Shopee sales back up to RM1.79 billion. This surge comes as a breath of fresh air offsetting previous declines and heralding a potential recovery to greet 11.11 Single Days Sales.
Equally surprising and encouraging is the significant improvement observed by TikTok, indicating a 19% growth compared to the previous month. This positive momentum sets a favorable stage for the upcoming 11.11 growth, signifying a promising outlook for the platform and suggesting an optimistic trend in the realm of social commerce despite our neighbor country ban on social commerce.
Shopee’s investment in live vouchers and TikTok’s resurgence demonstrate a shift towards recovery for both e-commerce and social commerce. These advancements underscore the adaptability and resilience of these platforms in response to challenging market conditions.
In an effort to further enhance the shopping experience, Shopee has implemented a strategic shift. They’ve amalgamated their coin cashback and rebate programs into a unified cashback program. This new program is designed to offer sellers better returns at reduced rates while concurrently benefiting buyers. The intention behind this strategic move is to encourage increased seller participation in their cashback program.
Singapore has already witnessed an exclusive incentive strategy: live vouchers are now exclusively available to sellers who have joined the cashback program. This move aims to incentivize sellers and foster greater participation in the program. Speculations arise that Malaysia might follow suit, employing a similar strategy where live rebate vouchers might become exclusive to enrolled cashback program sellers.
As we approach the pivotal month of November, marked by major sales events like 11.11, the upward trend seen in October bodes well for the anticipated growth in e-commerce. To delve deeper into these strategies and gain firsthand insights, Shopee has organized an offline session at their headquarters on the 7th of November. This session promises a booster push for sellers to get ready for the highly anticipated single days sales.
In summary, the e-commerce landscape’s reversal in October, propelled by Shopee’s and TikTok’s resurgence, marks a hopeful shift in the industry. These developments signify potential revival and optimism, offering a promising outlook for a thriving e-commerce landscape as we head into the exciting shopping seasons ahead.
