GROWING OF E-COMMERCE AND SHOPPING ONLINE: IMPACT TO THE PROPERTY MARKET IN MALAYSIA

GROWING OF E-COMMERCE AND SHOPPING ONLINE:

IMPACT TO THE PROPERTY MARKET IN MALAYSIA

by

DR. AZMIZAM ABDUL RASHID

THE GROWING OF E-COMMERCE AND SHOPPING ONLINE

In a 1997 article, Baen and Guttery predicted that the emergence of the web as an open medium for commerce would threaten the role of the real estate professional as a market intermediary. They predicted that the internet would provide increased consumer access to information which in turn would lead to an increase in for-sale-by-owner (FSBO) listings, and a decrease in the employment and income level of real estate professionals. This prediction was tied to the belief that real estate professionals derived their power from the proprietary information they controlled, and thus this power and their position on the supply chain would diminished once this information became more accessible on the internet. At the time this sentiment was echoed by the National Association of Realtors (NAR). When first faced with the emergence of the internet in the industry the NAR fought to prevent the release of the coveted Multiple Listing Service (MLS). In 2003 the NAR proposed bylaws, that according to some, “illegally adopted rules that would discourage new real estate sales practices, including home sales over the internet and discounted realty services” by allowing real estate professionals to withhold their listings from online brokers.

In the developed world, 77 out of every 100 people are now connected to the internet². This high level of internet penetration coupled with a generation brought up online and familiar with the digitally connected lifestyle, we think has led to comfort in sharing their personal details online. With this comfort in using both the internet and sharing personal details, it seems inevitable that savvy retailers would capitalise on these favourable market characteristics. E-commerce, one of the fastest growing market sectors, is to an ever greater extent affecting the pace and trends in development of the domestic industrial and retail market. The dynamic development of the e-commerce sector represents both an opportunity and a challenge for the industrial and logistics property sector. Due to the growth of the e-commerce sector, the existing distribution models are evolving, the time of delivery is becoming shorter and the range of additional services is now expanding. As per the estimates, the e-commerce sector is generating a combined 10-15% of the total annual demand for modern industrial space.

Unlike traditional stores, whose demand for warehouse space is relatively predictable, the e-commerce sector requires much more flexibility. The range of goods, the number of customers, as well as the place of delivery in case of an online shop vary considerably, therefore it is extremely important that warehouse properties be adapted to the changing demand and landlords enable their tenants to increase the space actually occupied in peak times, such as e.g. during the pre-Christmas rush.

Lease costs along with the quality of services are also an important factor as far as the e-commerce sector growth trends are considered. Therefore, many online shops take the decision to collaborate with specialised logistics and courier companies. The vast majority of the key players have a dedicated line of services focused on e-commerce, starting with preparing orders, storage, handling of returns and exchanges, through to management of incoming and outgoing payments, customer services and software management. Outsourcing this type of services means that the costs may be lower than in the case of managing the entire supply chain internally, as it allows the online shops to concentrate on their core business, which is the selling of goods and services.

E-commerce has entered our lives for good now, changing both the supply chain market and the warehouse property market. In order to gain maximum benefits and explore the sector’s full potential, companies involved in this type of business should understand it well and adapt to the changes that are taking place within it, including the logistics and warehousing aspect thereof. UK retailing is currently being reshaped by new competitive patterns and pressures, contributing to a weakening in retail property performance. The growth of online retailing has been perceived as a further threat to the sector, although the problems facing ‘pure play’ e-tailers mean that Internet shopping is likely to be increasingly dominated by multi-channel retailers. Web-based retailing will add to competitive pressures on retailers and increase general price transparency. Internet sales penetration will vary between products and services and also geographically. Even with Internet sales growth being concentrated on established retailers, there will be impacts on retail floor space productivity, property requirements and store networks, with implications for retail property performance. Online shopping could reinforce the existing trend of polarisation of retail spending into the larger and more attractive centres within the retail hierarchy. Retailers and retail property investors need to find ways of upgrading the shopping experience to respond to the growth of online sales. 

E-COMMERCE AND SHOPPING ONLINE IN MALAYSIA

No one can predict how successful e-commerce will be in Malaysia in this competitive market. Malaysia is still lagging far behind developed countries. Online shopping is supplementary or complementary to existing business as an additional marketing, promotion and fulfilment channel. Malaysia has a huge potential for Internet procurement. It will be hard for Malaysians to rapidly adopt online shopping due to cultural inertia. Malaysians like going to the shops rather than browsing the Internet without an initial inspection of the goods. This culture will change for Malaysian consumers as they become aware of the advantages of online shopping. If the consumer can be convinced that it is safe and reliable to purchase online, the potential will be unleashed. A new economic culture that is in contrast to the traditional one of owning and keeping the intellectual property one creates, may flourish.

In Malaysia, the use of the internet be it via the mobile phone or desktop computer, to purchase things has been rising steadily over the years. In fact, Malaysia is one of only five places in the world where the use of smartphones is higher than computers (51% versus 39%), according to The Connected Consumer Survey 2014.These figures also reveal a shift in how consumers are researching what they want and their purchasing behaviour. For example, the Consumer Barometer with Google data reveals that of the 5,191 Malaysian respondents, 55% use the internet to do product research via smartphones, tablets or computers. Lazada Group was founded in 2011 by Rocket Internet in Singapore. A year later, it soft-launched Lazada Malaysia and other portals in Southeast Asia and Taiwan.

E-commerce platform Lazada Malaysia says on its website that it has “a broad product offering in categories ranging from fashion, consumer electronics to household goods, toys and sports equipment”. The company recently leased a 224,000 sq ft warehouse in Subang Jaya, Selangor.  Before that, it had a warehouse of only 50,000 sq ft,  7km from its new premises.  It also leased 25,400 sq ft of office space in Menara Worldwide on Jalan Bukit Bintang, Kuala Lumpur. “We consider the location of our main office to be strategic — an MSC-status building in the Golden Triangle. It is convenient for our employees, suppliers and partners,” says Lazada Malaysia CEO Hans-Peter Ressel.

Ressel says an ideal warehouse should have clear and separate access points to different areas of operations. “Couriers and suppliers do a lot of deliveries and pick-ups daily so ample space for loading and unloading is a must. “In terms of offices, landlords must be prepared to offer bigger space with supporting facilities to cater for staffing growth. Space is very important for an e-commerce business,”

THE FUTURE OF PROPERTY MARKET IN MALAYSIA

E-commerce in Malaysia is growing, but there has been little impact on the leasing of office and warehouse space by e-tailers as yet. Although retail sales from e-commerce is small — making up less than 5% of total sales,  according to Deloitte Consulting Malaysia executive director Kavita Rekhraj — some companies are taking steps to cater for future growth in view of its potential. “Many of the leading logistics, distribution and warehousing players are seen to be increasing their warehousing capacity. These include Century Logistics and Tiong Nam Logistics Holdings, which are building multi-storey warehouses of up to one million sq ft. SingPost’s acquisition of Axis Plaza in Shah Alam in 2014 also supports the growth potential of e-commerce in the country,” says Kavita.Knight Frank Malaysia executive director for capital markets Allan Sim says, “With regard to warehouses, we understand that a few aggressive e-commerce companies are looking to increase their facilities to at least twice their current capacity, to nearly 200,000 sq ft. We also understand that they have plans to double that capacity in the next three to five years. “When it comes to offices, many e-commerce companies, especially those in the services sector, are occupying Grade A space in the city centre, taking up an average space of 20,000 sq ft, at rents of RM6.50 to RM8 psf per month. Many of the smaller players are scattered around the city, occupying offices of between 4,000 and 6,000 sq ft, which have lower rents of RM3 to RM5 psf per month.”

As online sales grow, industrial properties are expected to draw more attention.“From the real estate perspective, it’s more a matter of how the space is used, and in this case, the winner is the industrial real estate sector,” says Area Management Sdn Bhd chairman Datuk Stewart LaBrooy. “It’s much more efficient and cheaper to spend real estate dollars on distribution centres than on retail space. Stores of the future will have different footprint sizes. Retailers are configuring their stores so that they don’t need so much space for inventory.” Area Management is a regional private equity firm specialising in industrial and institutional real estate development and management. It provides real estate advisory services to institutional clients and due diligence services to institutions acquiring corporate real estate and is currently developing a 1.5 million sq ft inner city distribution hub in Ampang, Selangor. LaBrooy notes that e-commerce organisations will seek out warehouse and distribution spaces based on specific criteria to ensure their businesses are not impeded.“ Many companies in the e-commerce sector are searching for space that can meet heavy power requirements and have high clear heights, in addition to being centrally located. They are becoming more specialised and less generic in design as well. With same-day delivery models becoming increasing popular, companies will continue to invest in industrial properties located near their clients or major transport facilities,” he says. “Overall, we expect the industrial real estate sector to continue to transform and lead the way, with e-commerce as its main driver.”

CONCLUSION

Online shopping was introduced to the market in the last decade as many individuals and organizations purchase through the World Wide Web. This project investigates the influence of the World Wide Web online trading on Malaysian daily life, and future trends of online shopping in Malaysia .A number of dot.com companies have been established in Malaysia and about ten thousand websites exist in Malaysia, but only an estimated 30% are capable of providing online shopping facilities for Malaysian consumers. The focus of this paper is on the demographics of the use of online shopping in Malaysia. This study explores the development, current status and future trends of online shopping in Malaysia as well as factors that influence the decision on whether or not to use this form of commerce. Research findings include which and how often online shopping applications are used by consumers in their daily life, the benefits online shopping brings to the Malaysian communities, and factors contributing to the popularity of Internet sites. Initiatives to raise online shopping by various parties are also studied.

Shopping online as an alternative to in-store shopping can make much of traditional retail less attractive. There exists an obvious relationship between e-commerce and the demand for commercial real estate that accommodates physical retail shops. Substantial evidence supports the idea that the demand for physical shops has been affected by the rapid development of e-commerce in China. In order to better understand the sustainability of the commercial real estate market in a context of rapidly developing e-commerce in China, this study seeks to clarify the relationship between e-commerce and the demand for commercial real estate. Methods of inductive and comparative analysis are adopted. The findings show that from 2009 to 2013, the slowing growth rate of commercial property sales and the accelerating vacancy rate of commercial properties are closely related to the dramatic growth of e-commerce. We also found that different forms of commercial properties–supermarkets, department stores and shopping centers–are differently affected by the rise of e-commerce. However, due to the respective advantages and disadvantages associated with online and offline shopping, physical stores will not be completely eclipsed by virtual retail shopping.

Reference

The Edge : E-commerce Set to Impact The Property Market

The Star Online : E-commerce Set for Growth

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GROUNDED THEORY....SYSTEMATIC METHODOLOGY IN DOING PHD RESEARCH?

Grounded theory (GT) is a systematic qualitative research methodology in the social sciences emphasizing generation of theory from data in the process of conducting research.It is a research method that operates almost in a reverse fashion to traditional research and at first may appear to be in contradiction of the scientific method. Rather than beginning by researching & developing a hypothesis, a variety of data collection methods are the first step. From the data collected from this first step, the key points are marked with a series of codes, which are extracted from the text. The codes are grouped into similar concepts, in order to make them more workable. From these concepts categories are formed, which are the basis for the creation of a theory, or a reverse engineered hypothesis. This contradicts the traditional model of research, where the researcher chooses a theoretical framework, and only then applies this model to the studied phenomenon

GT is a systematic generation of theory from data that contains both inductive and deductive thinking. One goal of a GT is to formulate hypotheses based on conceptual ideas. Others may try to verify the hypotheses that are generated by constantly comparing conceptualized data on different levels of abstraction, and these comparisons contain deductive steps. Another goal of a GT is to discover the participants’ main concern and how they continually try to resolve it. The questions you keep on asking in GT are "What’s going on?" and "What is the main problem of the participants and how are they trying to solve it?" These questions will be answered by the core variable and its subcores and properties in due course (see below). GT does not aim for the "truth" but to conceptualize what's going on by using empirical data. In a way GT resembles what many researchers do when retrospectively formulating new hypotheses to fit data. However, in GT the researcher does not pretend to have formulated the hypotheses in advance since preformed hypotheses are prohibited (Glaser & Strauss 1967).

If your research goal is accurate description, then another method should be chosen since GT is not a descriptive method. Instead it has the goal of generating concepts that explain people’s actions regardless of time and place. The descriptive parts of a GT are there mainly to illustrate the concepts. In most behavioral research endeavors persons or patients are units of analysis, whereas in GT the unit of analysis is the incident (Glaser & Strauss 1967). There are normally at least several hundred incidents analyzed in a GT study since every participant normally reports many incidents. When comparing many incidents in a certain area, the emerging concepts and their relationships are in reality probability statements. Consequently, GT is not a qualitative method but a general method that can use any kind of data even if qualitative at the moment are most popular (Glaser, 2001, 2003). However, although working with probabilities, most GT studies are considered as qualitative since statistical methods are not used, and figures not presented. The results of GT are not a reporting of facts but a set of probability statements about the relationship between concepts, or an integrated set of conceptual hypotheses developed from empirical data (Glaser 1998). Validity in its traditional sense is consequently not an issue in GT, which instead should be judged by fit, relevance, workability, and modifiability (Glaser & Strauss 1967, Glaser 1978, Glaser 1998).

Fit has to do with how closely concepts fit with the incidents they are representing, and this is related to how thoroughly the constant comparison of incidents to concepts was done.

Relevance. A relevant study deals with the real concern of participants, evokes "grab" (captures the attention) and is not only of academic interest.

Workability. The theory works when it explains how the problem is being solved with much variation.

Modifiability. A modifiable theory can be altered when new relevant data is compared to existing data. A GT is never right or wrong, it just has more or less fit, relevance, workability and modifiability.

SHOULD RESEARCH QUESTION IS RELEVANT AND CLEAR?

The Research Question Should Be Relevant

Questions that clearly demonstrate their relevance to society, a social group, or scholarly literature and debates are likely to be given more weight by reviewers. Of course the relevance of a research question, not to mention the question of who finds it relevant, will vary widely according to the funding source. As a general rule, research is more likely to be funded if it is seen as part of a larger intellectual project or line of inquiry, not just a way for the researcher to get a degree. Below are two common ways to demonstrate this in your proposal.

Fill in the missing piece. If your proposal can lay out a given field or dilemma and then point to a specific portion that is missing in that field or dilemma -- a gap which will be filled by the answer to your research question -- your research is likely to garner a great deal of support. Reviewers will note its importance and recognize its relevance to a larger community of researchers.

Make connections. Even if you are working on a narrow topic or in a specific place, ask questions that help relate the research to broader trends, patterns, and contexts. Doing this will help show how funding a seemingly distinct research project helps fuel larger debates. For example, show how someone working in a small town in Outer Mongolia will help understand the broader process of post-Soviet economic transformations.

The Research Question Should Be Clear

Clear questions tend to be short, conceptually straightforward, and jargon-free. This does not mean they have to be overly simplistic; but save your theoretical gymnastics and abstract disciplinary language for the analysis. Work to keep your questions as lucid and simple as possible. This may be easier in some cases than in others, but some of the strongest and most theoretically sophisticated proposals we reviewed were framed by some of the simplest, most straightforward research questions. In contrast, the most complicated questions tended to appear in proposals where the researcher seemed more interested in demonstrating his/her theoretical knowledge than in engaging the research itself. Below are simple ways to keep your question clear.

Ground the questions. Keep your questions close to the topic or place you are researching. Questions that are too abstract or obtuse make it difficult for the reader to determine your question's relevance and intent. You must still link your question to a larger context, but ground that connection in temporal and spatial specifics.

Limit variables. If a question is burdened with too many variables or too many clauses it becomes both difficult to read and difficult to research. Here are two contrasting examples from the SSRC web site: a question like "Was the decline of population growth in Brazil the result of government policies?" is much easier to understand than "Was the decline in population growth in Brazil related more to sex education, the distribution of birth control, or resource depletion?" You may talk about all these factors in your proposal, but the first question allows the reader to focus on the central aspect of your research rather than the variables surrounding it.

The Research Question Should Be Researchable

Research questions need to be clearly "doable." One of the most common rationales for rejecting proposals is that the question is simply too expansive (or expensive) to be carried out by the applicant. There are many questions that you will need to ask yourself to avoid this pitfall. Above all else, consider your limitations. Many very practical questions need to be considered when choosing your research question. First among them is: How long will the research take to carry out? Next, do you have the appropriate background to carry out the research? Are there ethical constraints? Is the project likely to be approved by your advisor and your university's committee for the protection of human subjects? Can you obtain the cooperation from all the necessary individuals, communities and institutions you need to answer the question you have asked? Are the costs of conducting the research more than you will be likely to raise? If I can't complete this project well, can I break it down and address the most important component? Remember that writing a research question is an iterative process and such concerns need to be carefully considered in your research design and budget.

source : University of California, Institute of International Studies

WHY RESEARCH QUESTION IS IMPORTANT?

Research Question

Your research question is the most critical part of your research proposal -- it defines the proposal, it guides your arguments and inquiry, and it provokes the interests of the reviewer. If your question does not work well, no matter how strong the rest of the proposal, the proposal is unlikely to be successful. Because of this, it is common to spend more time on the researching, conceptualizing and forming of each individual word of the research question than on any other part of the proposal.

To write a strong research question you will need time. Step away from your computer; consider what drew you to your topic. What about it animates and matters to you? Listen to yourself and start formulating your question by following your own interests. Remember, you will spend a lot of time researching and writing about the proposed project: if it does not interest you in the beginning, it will certainly become very difficult to write about in the end.

Next, extensively research your topic. What have people said about it? How have they framed their research? What gaps, contradictions, or concerns arise for you as you read, talk to people, and visit places? After you have done this you can go back to your computer or note pad and start crafting the question itself. When you do, consider that a strong research question should be evocative, relevant, clear, and researchable.

The Research Question Should Be Evocative

Evocative questions are ones that catch the interest of the reviewer and draw her/him into the proposal. Equally important, they easily adhere in the reviewers' memory after reading the proposal. Questions tend to be evocative because of the ways they engage with challenging topics: they pose innovative approaches to the exploration of problems, and because of this the answers found are far from obvious. There is no single way to form a conceptually innovative question. However, some of the following qualities are common to successful proposals.

Make it timely. Evocative questions are often distilled from very contemporary social or theoretical concerns. For example, questions regarding the energy crisis, international tribunals, nationalism, or the rise of anti-globalization protests are likely to peak the interests of others because they are questions whose relevance will be clearly discernable for reviewer.

Frame it as a paradox. Frame your question around a provocative paradox. For example, why have indigenous organizations in Bolivia markedly declined while the number and quantity of funding sources has increased? Or why have violent conflicts over forest resources increased in the last ten years while the very people involved in these conflicts have become less and less dependent on forest resources for their livelihoods? There are many potential answers to these questions, and your research may ultimately challenge your own expected explanation -- but this in itself is a relevant discovery. These types of paradoxes pull the reader into the proposal and set up a situation whereby the research will fill in a provocative piece of the puzzle and make clear a much-needed broader understanding.

Take a distinctive approach. Finally, a question that approaches an old problem in a refreshingly new way, or proposes a surprising angle of analysis on a difficult dilemma, is likely to prove evocative for reviewers. This could involve a new methodology, a new conceptual approach, or the linking of two previously disparate fields of knowledge. These innovative approaches both develop confidence in the intellect of the researcher and hold promise for new understandings and insights to old and difficult questions.

source : University of California, Institute of International Studies

WHAT IS RESEARCH QUESTION?

On 18 March 2008, I met my supervisor Assc Prof Dr Hamzah Jusoh and he ask me to find out what is Research Question?

DEFINITION

The word RESEARCH means "finding out" or "discovery", by use of systematic effort, information or answers to something you want to know. You RESEARCH by asking questions and by searching for answers to those questions which are satisfactory, methodological valid, and balanced. You cannot RESEARCH if you do not want to know anything, that is, you must have something you would like to know more about before you can do RESEARCH. You begin with a QUESTION or QUESTIONS. If you have none, you will find no answers or will not know when you have found one. Since you will be assigned to write a RESEARCH paper, a paper written without a question in mind will NOT be a RESEARCH paper.

The research question is one of the first methodological steps the investigator has to take when undertaking a research. The research question must be accurately and clearly defined. Choosing a research question is the central element of both quantitative and qualitative research and in some cases it may precede construction of the conceptual framework of study. In all cases, it makes the theoretical assumptions in the framework more explicit, most of all it indicates what the researcher wants to know most and first.

DEVELOPING RESEARCH QUESTION

It's absolutely essential to develop a research question that you're interested in or care about in order to focus your research and your paper (unless, of course, your instructor gives you a very specific assignment). For example, researching a broad topic such as "business management" is difficult since there may be hundreds of sources on all aspects of business management. On the other hand, a focused question such as "What are the pros and cons of Japanese management style?" is easier to research and can be covered more fully and in more depth.

How do you develop a usable research question? Choose an appropriate topic or issue for your research, one that actually can be researched.Then list all of the questions that you'd like answered yourself. Choose the best question, one that is neither too broad nor too narrow. Sometimes the number of sources you find will help you discover whether your research question is too broad, too narrow, or okay?If you know a lot about the topic, you can develop a research question based on your own knowledge. If you feel you don't know much about the topic, think again. For example, if you're assigned a research topic on an issue confronting the ancient Babylonian family, remember, by virtue of your own family life, you already know a great deal about family issues. Once you determine what you do know, then you're ready to do some general reading in a textbook or encyclopedia in order to develop a usable research question.

source : Empire State College, State University of New York http://www.esc.edu/esconline/across_esc