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Multi-channel: Workers seen sorting products at a fulfillment centre. Online buying will continue to grow even though physical retail businesses have started operating again as consumers prefer an omnichannel approach to purchasing. — Bloomberg

THE e-commerce industry has continued to flourish in 2021, growing at an accelerated pace due to the Covid-19 pandemic, and this in turn has helped many businesses, especially micro, small and medium enterprises (MSMEs), to stay afloat.

“It has been a very positive year for the industry,” Zalora chief executive officer Gunjan Soni said. Zalora, part of Global Fashion Group, is South-East Asia’s leading fashion and lifestyle e-commerce player.

According to the Department of Statistics Malaysia (DOSM), the country’s e-commerce income surged 23.1% year-on-year (y-o-y) to RM801.2bil in the first nine months of this year.

For the third quarter, e-commerce income was up 17.1% y-o-y at RM279.0bil. In terms of quarter-on-quarter growth, it maintained a positive trend with 4.3%.

One of the driving forces for this trend was the middle class in Malaysia, which has the highest percentage of digital natives in South-East Asia, at 88%, Soni told Bernama in an interview.

“These 22 million digital natives (in Malaysia), who spend close to nine hours online daily, play a key role in driving the growth of Malaysia’s e-commerce sector,” she explained.

Soni said e-commerce has also helped to cushion against unemployment not only in Malaysia but also other countries in South-East Asia.

She said Zalora is proud to be able to support the Malaysia Digital Economy Corp’s (MDEC) MSMEs e-commerce campaign, which reached thousands of new businesses.

“During the pandemic, more Malaysians have become e-commerce entrepreneurs and are providing job opportunities,” the National Tech Association of Malaysia (Pikom) said.

Based on DOSM data, 1.2 million people were employed in the information and communications technology (ICT) industry last year, representing 7.7% of total employment in the country.

Although the growth of e-commerce may slow down in the short term as physical retail businesses have started operating again, Pikom said consumers prefer to have an omnichannel approach to purchasing.

It is, however, expected to re-accelerate in the medium to long term as consumers have become comfortable to the new normal of buying online.

MDEC chief executive officer Mahadhir Aziz advised entrepreneurs to adopt e-commerce to stay relevant in this challenging time, as well as expand their business beyond local shores to regional and international markets via cross-border e-commerce.

“Improve (your) capability and capacity to stay competitive. E-commerce is a very dynamic sector; new business models and new value propositions can be created by adopting new MarTech (marketing tech) and other digital tech or business processes digitalisation,” he said.


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