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Tapping the e-commerce growth

Looking at growth: Kim is confident 11street will achieve its growth targets this year. WITH consumer sentiment expected to improve over the coming quarters, e-commerce marketplace 11street is eyeing a 70% growth in gross merchandise value (GMV) in Malaysia for 2017. “Previously, the market was affected by the overall slower economy in Malaysia and consumers were limited by budget. But the market is improving and moving forward, we will grow better than the previous quarters,” says 11street chief executive officer Hoseok Kim. Kim notes that its wide variety of products, particularly its Korean offerings, as well as its operational efficiencies will help the platform grow in the market. Additionally, Malaysia is one of the more advanced e-commerce markets in the region with the right infrastructure in place in terms of logistics, payment facilities, high Internet, credit cards and smartphone penetration rates and high income levels, which ensures good potential growth for marketplaces such as 11street. 11street is also present in Indonesia and Thailand. Regionally, it is targeting growth of 50%. “We believe we are providing great value to South-East Asian consumers because we are able to bring in Korean products which are very popular here,” Kim adds. Established in South Korea since 2008, 11street is currently the largest e-commerce platform in Korea with total GMV worth US$6bil. However, Kim says one of the challenges for the growth of e-commerce in Malaysia is the logistics services available in the country, which are not as efficient as in advance countries such as Korea. He explains that delivery time needs to be shortened to enable instant delivery services to facilitate better exchange and return policies. “We are engaging our logistics partners and we are monitoring the whole logistics value chain to help improve our partners’ performance so that we can provide a better logistical experience for our customers,” he says. 11street has also partnered with other e-commerce marketplaces such as WorldFront and UiTOX to offer local consumers more product varieties from abroad. Kim says seven out of 10 products transacted on 11street are products that are not available in the local market.

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