Chinese mid-range smartphones driving m-commerce

Mobile shopping is becoming ubiquitous among Malaysians, especially after the penetration of China-made mid-range smartphones.

According to the latest findings by Gfk tracking Point of Sales (POS), more and more Malaysians are making purchases on their mobile devices.

“With the recent nationwide expansion in mobile connectivity, consumers in the country are increasingly using their smartphones for activities such as mobile shopping, social media and general surfing on the internet,” said managing director, Southeast Asia, Stanley Kee, Gfk.

“Shopping apps, especially, are also gaining popularity, paving the path for mobile payments. More consumers today are contributing to the growth of mobile commerce in Malaysia, making payments through their mobile devices for retail items, airline tickets, and services such as Grab and Uber.”

According to the report, over 8.5 million units of smartphones were purchased in 2016, of which, 45 per cent of all devices having a screen measuring over 5 inches. The biggest spike in volume came from the mid-range segment, smartphones priced between RM900-1,050.

“Since Malaysian consumers are largely motivated by price, we believe the mid-range category of smartphones will continue to dominate the market this year. The marketplace will remain competitive, as we anticipate further sales surge for this popular device with the country’s recovering economy being a key contributing factor,” said Kee.

Gfk also found that the lifespan for smartphones has significantly decreased, driven by the fast turnover pace for new model launches.