Xin Ou
Research expert covering Greater China
Social commerce in Malaysia - statistics & facts
With an algorithm curated for every Malaysian user’s content preference and behavior, social media platforms like TikTok and Instagram now offer not only posts to view but also products to buy. Social commerce, a rising trend in which users can seamlessly purchase a product while simultaneously browsing social media, made up an estimated 5.5 percent of the e-commerce market in Malaysia in 2023. Through integrated platforms such as TikTok Shop or Facebook Marketplace, this subset of e-commerce generated a revenue of approximately 400 million U.S. dollars in the same year, and was forecasted to increase to nearly one billion U.S. dollars by 2028.
A 2023 survey showed that around 37 percent of Malaysian respondents regularly shop on social media. It is not surprising when considering that, on average, Malaysians spend nearly three hours daily on various social networking platforms. In addition, influencer marketing has also contributed to the rise of social commerce. Users of social media are constantly presented with well-edited imagery of influencers, who often promote a certain product or brand . The leading Instagram influencer in Malaysia had more than 8.7 million followers as of February 2024, proving that social media can reach a great number of audiences.
TikTok has also been accommodating the social commerce trend. In December 2023, TikTok Shop Malaysia launched TikTok Shop Mall to further enhance the shopping experience of users through its social media platforms. Through its online mall, the social media platform gives consumers access to local and international brands, while ensuring the quality and safety of online shopping.
While TikTok is yet to overtake the leading e-commerce market players in Malaysia, there is a clear demand for an integrated social media and shopping experience. This was demonstrated by the slowly increasing social commerce penetration rate, which was forecasted to reach more than 19 percent by 2028.
The rise of social commerce in Malaysia
Due to the two-year COVID-19 pandemic restrictions, e-commerce in Malaysia experienced a massive growth. Although businesses have returned to normal and physical stores have reopened, many consumers still prefer the convenience of online shopping. Meanwhile, the pervasiveness of social media in everyday life made social commerce the obvious evolution in the e-commerce trend.A 2023 survey showed that around 37 percent of Malaysian respondents regularly shop on social media. It is not surprising when considering that, on average, Malaysians spend nearly three hours daily on various social networking platforms. In addition, influencer marketing has also contributed to the rise of social commerce. Users of social media are constantly presented with well-edited imagery of influencers, who often promote a certain product or brand . The leading Instagram influencer in Malaysia had more than 8.7 million followers as of February 2024, proving that social media can reach a great number of audiences.
Is TikTok the next e-commerce giant?
Although Shopee is still dominating the market share of e-commerce shopping platforms, TikTok Shop emerged as a new contender among Malaysian consumers, according to a 2023 survey. In recent years, the social media platform owned by Chinese company ByteDance, grew in popularity, especially among Gen Z. In Malaysia itself, there were an estimated 17.8 million TikTok users in 2023.TikTok has also been accommodating the social commerce trend. In December 2023, TikTok Shop Malaysia launched TikTok Shop Mall to further enhance the shopping experience of users through its social media platforms. Through its online mall, the social media platform gives consumers access to local and international brands, while ensuring the quality and safety of online shopping.
While TikTok is yet to overtake the leading e-commerce market players in Malaysia, there is a clear demand for an integrated social media and shopping experience. This was demonstrated by the slowly increasing social commerce penetration rate, which was forecasted to reach more than 19 percent by 2028.
