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GENERAL METHODOLOGY OF MARKET REPORTS

Secondary Market Research

The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are

solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and

company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for

all obtained data. As a result, companies gain a precise and unbiased impression of the market situation.

Cross referencing of data is conducted in order to ensure validity and reliability.

The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several

sources. If this is the case, all sources are mentioned on the chart.

The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart.

Definitions

The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact

definition used by the source (if available) is included at the bottom of the chart.

Chart Types

Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main

idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time

period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple

answers were possible, which is noted at the bottom of the chart.

Report Structure

Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,

management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When

available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional

reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.

Notes and Currency Values

If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In

some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.

When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR

values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the

currency figure be in the future, the average exchange rate of the past 12 months is used.

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METHODOLOGY OF THE CURRENT REPORT

Report Coverage

This report covers the retail E-Commerce market in Malaysia. A broad definition of retail E-Commerce used by some original sources cited in this report might

include both B2C and C2C E-Commerce.

The report contains relevant information about international comparisons, market trends, E-Commerce sales and shares, Internet users and shoppers, products,

payment methods, delivery and players.

Report Structure

The report starts with an overview of the E-Commerce market and international comparisons, where the relevant country is compared to other countries in the

region in terms of criteria relevant to retail E-Commerce, such as sales, Internet and online shopper penetration.

Next, the “Trends” section includes an overview of market trends, such as M-Commerce and social commerce.

The section “Sales & Shares” covers the development of retail E-Commerce sales and E-Commerce’s share of total retail sales.

In the “Users & Shoppers” section, information about Internet penetration and online shoppers is included.

Afterwards, the section “Products” shows the leading product categories purchased online.

The next section, “Payment”, covers the payment methods most used by online shoppers.

Furthermore, the “Delivery” section covers information related to delivery in online shopping.

Finally, the “Players” section includes information about the leading E-Commerce companies, including rankings of top online shopping platforms by website

visits.

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DEFINITIONS

B2C E-COMMERCE the sale of products (and services) through electronic transactions via the Internet from businesses to

consumers (B2C). A broader definition of retail E-Commerce applied by some sources also includes consumer-

to-consumer (C2C) sales.

E-COMMERCE SALES the total sales generated either on the E-Commerce market in a certain country or region, or the total sales

generated through E-Commerce by a player on the market.

M-COMMERCE M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through electronic

transactions via mobile devices, such as mobile phones, tablets and smartphones.

SOCIAL COMMERCE the sale of goods (and services) that involves the use of social media, such as social networks.

INTERNET USERS the total number of inhabitants in a certain country that regularly accesses the Internet.

ONLINE SHOPPERS the total number of inhabitants in a certain country or region that participates in B2C E-Commerce.

E-COMMERCE MARKETPLACE platforms where third-party merchants (B2C) or individuals (C2C) can sell their digital or physical products

online whereas the marketplace operator acts as an intermediary.

MARKETPLACE SELLERS individuals or businesses who use an E-Commerce marketplace as a platform to sell items to buyers.

GROSS MERCHANDISE VOLUME abbreviated as GMV, a total value of successfully completed transactions between buyers and sellers on a

marketplace.

ONLINE CLASSIFIEDS an online platform, where both consumers and businesses can publish small advertisements about the sale of

goods and services.

The following expressions and definitions are used in this market report*:

Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective

charts

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TABLE OF CONTENTS (1 OF 3)

1. Management Summary

2. Overview & International Comparisons

• Overview of B2C E-Commerce Market and International Comparisons, March 2017

• B2C E-Commerce Sales in Southeast Asia, by Country, incl. Malaysia, in USD million, 2015

• Total Retail Sales and Retail E-Commerce Sales, in USD billion, and E-Commerce Share of Total Retail Sales, in %, in Southeast Asia,

by Country, incl. Malaysia, 2016e

• B2C E-Commerce Sales in Southeast Asia, by Country, incl. Malaysia, in USD billion, 2015 & 2025f

• B2C E-Commerce Share of Total Retail Sales in Southeast Asia, by Country, incl. Malaysia, in %, 2015 & 2025f

• Online Hotels and Airlines Sales in Southeast Asia, by Country, incl. Malaysia, in USD billion and in % of Total Hotels and Airlines Sales,

2015 & 2025f, and CAGR, in %, 2015-2025f

• Online Rides Sales in Southeast Asia, by Country, incl. Malaysia, in USD billion, 2015 & 2025f, and CAGR, in %, 2015-2025f

• Internet Penetration in Southeast Asia, by Country, incl. Malaysia, in % of Individuals, 2015

• Average Fixed Internet Connection Speeds in Southeast Asia, by Country, incl. Malaysia, in MBPS, Q2 2016

• Internet Users in Southeast Asia, by Country, incl. Malaysia, in millions, 2015 & 2020f

• Number of Internet Users in Southeast Asia Who Researched Products or Services Online, by Country, incl. Malaysia, in millions, 2015

• Breakdown of Online Shoppers in Southeast Asia by Buying From Mobile Phone and From Other Devices, by Top Cities and Other

Areas, by Country, incl. Malaysia, in %, November 2015

• Top 10 E-Commerce Platforms Preferred for Online Shopping, by Rank, by Country, incl. Malaysia, 2015

3. Trends

• Overview of Regulatory B2C E-Commerce Trends, March 2017

• E-Commerce Contribution to GDP, in MYR billion, 2015, E-Commerce Sales Growth CAGR, in %, 2012-2015, and Forecast of E-

Commerce Contribution to GDP, by Business as Usual and With Intervention, in MYR billion, 2020f

• Devices Used to Access the Internet, in % of Internet Users, 2015

• Top 20 Activities Conducted via Connected Mobile Devices, incl. Shopping-Related, in % of Internet Users, March 2016

• Share of Online Shoppers Buying via Smartphones, in %, November 2016

• Share of Smartphone Users Who Bought a Product or Service Within an App, in %, and Share of Online Shopping Done Through Mobile

Apps, in %, June 2016

• M-Commerce Sales, in MYR million, and Share of Total B2C E-Commerce Sales, in %, 2013 – 2020f

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TABLE OF CONTENTS (2 OF 3)

3. Trends (Cont.)

• Share of Online Shoppers Who Made a Purchase via Social Media, in %, April 2016

• Breakdown of Preferred Types of Online Promotions, in % of Online Shoppers, Q1 2016

4. Sales & Shares

• B2C E-Commerce Sales, in MYR billion, 2011 & 2016

• B2C E-Commerce Share of Total Retail Sales, in %, 2011 & 2016

• B2C E-Commerce Sales, in USD billion, 2015 & 2025f

• B2C E-Commerce Share of Total Retail Sales, in %, 2015 & 2025f

• B2C E-Commerce Sales, in USD billion, 2014, 2020f & 2025f

5. Internet Users & Online Shoppers

• Internet Penetration, in % of Individuals, 2011 - 2015

• Internet Penetration, in % of Households, 2011 – 2016

• Breakdown of Broadband Subscriptions by Mobile and Fixed, in millions, Q1 2015- Q3 2016

• Breakdown of Internet Users by Internet Users Who Shop Online, Who Do Webrooming Only, and Who Do Not Shop Online, in %, 2015

• Breakdown of Online Shoppers by Socio-Demographic Characteristics, incl. Gender, Age, Income and Education, in %, 2015

• Breakdown of Frequency of Online Shopping, in % of Online Shoppers, November 2016

6. Products

• Breakdown of B2C E-Commerce Sales by Product Categories, in %, 2016

• Breakdown of Product Categories to Purchase Online, incl. “Fashion and Accessories”, in % of Online Shoppers, Q1 2016

• Product Categories Purchased in E-Commerce, in % of Online Shoppers, 2015

7. Payment

• Breakdown of E-Commerce Transactions by Payment Methods, in %, 2015

• Payment Methods Used in E-Commerce, in % of Online Shoppers, 2015

• Pull-Factors in E-Commerce According to Online Shoppers, in % of Online Shoppers, 2015

• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, November 2016

• Top 5 Reasons Preventing Consumers from Conducting Certain Banking Activities via Mobile, in % of Internet Users, March 2016

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TABLE OF CONTENTS (3 OF 3)

8. Delivery

• Reasons to Shop Online, incl. “Convenient Delivery Service, in % of Online Shoppers, 2015

• Breakdown of the Parcel Delivery Market by Local Players, in %, December 2015

• Breakdown of Expected Delivery Times, in % of Online Shoppers, November 2016

• Share of Online Shoppers Willing to Pay Extra for Express Delivery, in %, November 2016

9. Players

• Overview of E-Commerce Players, March 2017

• Breakdown of Online Marketplaces Preferred for Online Shopping, in % of Online Shoppers, 2015

• Top 6 Local C2C/P2P E-Commerce Websites, by Website Visits, in millions, incl. Malaysia’s Share of Website Visits, in %, and Estimated

Number of Visits from Malaysia, in millions, February 2017

• Top 9 Local B2C E-Commerce Websites, by Website Visits, in millions, incl. Malaysia’s Share of Website Visits, in %, and Estimated

Number of Visits from Malaysia, in millions, February 2017

• Top 10 E-Commerce Apps, by Rank, by B2C/B2B2C and C2C, by Mobile Platform, March 2017

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1. Management Summary 10 – 12

2. Overview & International Comparisons 13 – 26

3. Trends 27 – 36

4. Sales & Shares 37 – 42

5. Internet Users & Online Shoppers 43 – 49

6. Products 50 – 53

7. Payment 54 – 59

8. Delivery 60 – 64

9. Players 65 – 70

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in %

of H

ousehold

s

55.6%

62.3% 66.0% 67.1%

70.2%

77.3% 77.9%

0%

20%

40%

60%

80%

100%

2010 2011 2012 2013 2014 2015 2016*

77.9% of households in Malaysia had broadband Internet access

in 2016, an increase from 55.6% in 2010. Malaysia: Internet Penetration, in % of Households, 2011 – 2016*

Note: *Q3 2016

Definition: household broadband penetration rate

Source: Malaysian Communications and Multimedia Commission (MCMC), December 2016

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Online Transfer 54%

Credit/Debit Card 33%

Cash on Delivery 12%

Pre-Paid Account 1%

“Online transfer” (54%) was the payment method most preferred by

online shoppers in Malaysia in November 2016. Malaysia: Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers,

November 2016

Note: according to the same survey, 90% of respondents who currently pay with cash on delivery were keen on trying other payment methods within the next 12 months

Survey: based on a nationwide survey of 3,507 respondents, of whom 83% shopped online, conducted in November 2016

Source: 11street, February 2017

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