Business News 07/10/2024

Malaysia’s Social Media Influence Lags Behind in Southeast Asia’s E-commerce Surge

Summary:

Malaysia’s Social Media and Influencer Impact in E-commerce

Malaysia’s social media usage and influencer impact are notably lower than the regional averages in Southeast Asia, as revealed by a research report titled “E-commerce Influencer Marketing in Southeast Asia.” The study, conducted by impact.com in collaboration with Cube Asia, surveyed 400 Malaysian adults above 18 years. The findings indicate that while YouTube is the most popular platform with 87% usage, followed by Facebook and TikTok at 80%, and Instagram at 74%, the overall influence of social media on e-commerce is less pronounced compared to neighboring countries.

Influencer Impact on Purchasing Decisions

The report highlights that celebrity and mega influencers hold significant sway in Malaysia, with 62% and 61% of respondents indicating they strongly influence purchasing decisions. However, only 75 out of 100 Malaysians make purchases based on influencer recommendations, compared to 82 regionally. The most influenced categories are fashion and beauty, with 65% and 61% of purchases driven by social media figures, respectively.

Strategic Insights for Brands

Antoine Gross, General Manager of impact.com for Southeast Asia and India, emphasized that influencers are driving conversions in physical goods and high-growth sectors like online travel and subscription services. He noted that the e-commerce landscape in Southeast Asia is rapidly shifting, necessitating strategic differentiation beyond mere expansion. Traditional advertising channels are losing their impact as consumer attention shifts to more authentic and engaging content.

Gross advised brands to focus on developing or enhancing their influencer strategies by leveraging the popularity of live commerce, the power of product reviews, and travel opportunities. Brands that fail to pivot to influencer marketing risk being left behind in this evolving landscape.

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Key Points:

Malaysia’s Social Media Usage: The study shows that YouTube is the most popular platform with 87% usage, followed by Facebook and TikTok at 80%, and Instagram at 74%. Despite high usage, the overall impact on e-commerce is lower than regional averages.

Influencer Impact on Purchases: Celebrity and mega influencers significantly influence purchasing decisions in Malaysia, with 62% and 61% of respondents acknowledging their impact. However, only 75% of Malaysians make purchases based on influencer recommendations, compared to 82% regionally.

Strategic Differentiation for Brands: The e-commerce landscape in Southeast Asia is rapidly evolving, requiring brands to adopt strategic differentiation. Traditional advertising is losing effectiveness, and brands are encouraged to focus on influencer marketing, live commerce, and product reviews to connect with audiences.

Resources:

Impact.com: A partnership management platform that collaborated with Cube Asia to conduct the research on e-commerce influencer marketing in Southeast Asia. The platform provides insights and tools for brands to manage and optimize their influencer marketing strategies. Visit Impact.com

Cube Asia: Southeast Asia’s e-commerce market intelligence provider that partnered with impact.com for the study. Cube Asia offers data-driven insights and analysis to help businesses understand market trends and consumer behavior in the region. Visit Cube Asia

Next Steps:

1. **Enhance Influencer Strategies:** Brands should focus on developing comprehensive influencer marketing strategies that leverage the power of social media platforms and influencer recommendations to drive consumer engagement and sales.

2. **Explore Live Commerce:** Given the popularity of live commerce, brands should explore opportunities to integrate live streaming into their marketing efforts to create more interactive and engaging shopping experiences.

3. **Utilize Product Reviews:** Encourage influencers to provide authentic product reviews, as these can significantly impact consumer purchasing decisions and enhance brand credibility.

Bella Jin

co-Founder of Pongo