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PETALING JAYAWhile the shopping crowd in physical malls has shrunk significantly, the shopping spree continues unabated in cyberspace.
Everything indicates that the 11.11 Sale of last Wednesday has broken many records in terms of sales volume and profits generated.
However, consumer groups have expressed concern that despite the economic fallout as a result of the Covid-19 crisis, and with many people losing their jobs, the urge to splurge remains unchecked.
Shopee, a Singapore-based e-commerce platform, saw sales in Malaysia increase nearly three times.
The platform recorded more than 200 million items sold during this year’s 11/11 sale, compared to 70 million last year.
His regional manager’s director, Ian Ho, said that sellers who participated in the sale also saw 10 times more orders than on an average day.
“Household and living products, electronics, groceries and pet products were the top sellers,” he told the Sun.
He said Malaysia’s 3,000 small and medium-sized enterprises (SMEs) in Shopee achieved an average of RM55,000 in sales that day.
Overall, shopping traffic in Malaysia increased potentially by 20 times, a testament to the purchasing power of Malaysians even as the country is experiencing one of the worst economic crises in history.
Shopback said more than RM20 million in sales were generated on Sale 11.11 in 2019, and it was expected to be exceeded this year.
Lazada CEO Leo Chow said brands such as Lancôme, Xiaomi Global, and OnePlus Flagship Store posted sales of more than RM1 million each that day.
“Smartphones and tablets were the top sellers,” he said.
He said new SMEs that joined through Lazada’s stimulus initiatives since March accounted for 40% of the most active sellers in the 11/11 Sale.
“Together, they sold more than 680,000 items. The stimulus initiatives have helped the local SME community digitize their businesses and recover from the impact of the Covid-19 pandemic, “added Chow.
On the Alibaba Group platform, Malaysians ranked fourth among China’s largest buyers of goods, after Americans, Russians and French.
Locally, Selangor recorded the highest volume of shopping activities, with 650,000 items purchased in an hour at the peak of November 11, with one particular buyer making a single transaction worth RM 70,000.
However, the Penang Consumer Association issued a warning about the 11/11 sale.
“This can encourage excessive consumption and the purchase of unnecessary items that will not be useful for the consumer and the environment and will generate more waste,” said its president Mohideen Abdul Kader.
“This is a dangerous and irresponsible trend, as we encourage consumption during a period when people are losing their income and jobs. If consumers fall into the overspending trap, it can lead to massive household debt and even bankruptcies, ”Mohideen said.
The Executive Director of the Federation of Consumers Associations of Malaysia, Datuk Paul Selvaraj, believes that financial and consumer education is important.
“We need to empower consumers to protect themselves, especially when spending pressures are so high. The government can do its part by regulating sales and advertising, but the most important thing is consumer education, especially in the difficult times we are facing right now, ”he said.
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