According to the Malaysian Department of Statistics, the average Malaysian household spends about RM130 per-day (RM4,033 per-month, as of 2016). However, consumers on Singles’ Day spent an average RM277 on each online order, 113 per cent more than the average household spending in a single day.
iPrice Group, a Malaysian-based information aggregator platform analysed data for more than a week from more than 150 online merchants and more than 43 million products in the country to reveal the following 11.11 Sale insights.
The rationale of this study is to analyse consumer behaviour and the growing interest in the online sale event which was first made popular by Alibaba in China.
Here are five most fascinating insights from our Singles’ Day analysis:
1. Malaysians spent an average RM277 on November 11
Various e-commerce companies, both large and small, undertook massive marketing initiatives to promote the event on November 11. Our aggregated data reveals a 13 per cent increase in consumer spending when compared to previous years, from RM245 (averaged 2018 and 2017) to RM277 on November 11.
2. Consumers spent most money on electronics, automotive items
Data records that consumers spent an average RM422 on electronics and RM228 on automotive products on November 11. This is remarkable as automotive products were not always considered as a popular category when it comes to online shopping. Looking into automotive sub-categories, shoppers spent most on car care and care accessory items.
In electronics, Malaysians spent most on items such as lighting and electronics for home or office usage.
3. Kids and toys, home and living categories recorded highest growth
Both categories saw 94 per cent and 89 per cent increase in consumer average spending respectively. This shows positive consumer confidence in a wider range of product variety in the e-commerce arena.
In 2019, consumers spent an average of RM223 on kids and toys as well as home and living items. On Singles’ Day in 2018, consumers spent RM115 on kids and toys and spent RM118 on home and living items.
4. High spending on non-conventional subcategories such as gym equipment, watches, and eyecare products
Interestingly, Malaysian shoppers spent an average RM683 on Gym Equipment, RM392 on Watches and RM416 on Eyecare products on November 11, 2019. The high spending on these items was most likely caused by the high-value price tag (also known as big-ticket items).
5. Popularity of 11.11 at all-time high
Data by Google Trends (collected as of November 21, 2019) revealed there was a 36 per cent growth in search interest in the term “11.11” in 2019 as compared to 2018. Observing the growth trends in the past five years in Malaysia, there is still much room for growth.
This is also clear as seen through the 13 per cent growth in average basket size on Singles’ Day between 2019 & previous years. Added with the diversification of consumer spending on a wide variety of products other than Fashion & Electronics, this shows big potential for growth for e-commerce companies selling niche products.
Data featured in this study were aggregated and averaged from more than 150 online merchants and more than 30 million products through https://iprice.my/. Data on top-selling categories were solely based on data recorded on November 11, 2019 and 2018.
*Data on total average basket size for the “Past Years” was obtained by averaging the total amount consumers spent on November 11m 2018 and 2017.
Jeremy Chew is the senior content marketer for iPrice group, the fastest growing product meta-search platform in Southeast Asia. For further information, please visit https://iprice.my.