Singaporean consumers are turning to a new form of shopping where online and in-store experiences converge. The “Singapore Retail Trends” report, commissioned by Amazon and produced by analytics powerhouse GlobalData, reveals fascinating shifts in consumer behavior and the retail landscape.
The Overlapping Worlds of Online and In-Store Retail
The report showcases a surge in omnichannel retailing, a trend that seamlessly integrates the physical shopping experience with the digital world. In 2022, over half of Singapore’s retail spend (57.6%) revolved around this concept, with a predicted 21.2% increase in the next four years.
Consumer Behavior: Online Fun vs In-Store Connections
Despite the proximity of physical stores, Singaporeans are increasingly using online platforms for product information, price comparison, and exploration of novel items. The report found that 50.2% of online shoppers verify or compare prices, while 57.3% consult online reviews and comparison sites prior to making a purchase. This indicates a need for businesses to offer a flawless shopping experience and detailed product information to gain consumers’ trust.
Also read: Singapore E-Retail: Bridging Consumer-Retailer Gap
In a unique finding, nearly one-third of online shoppers in Singapore browse for fun, a factor driving the phenomenon of “e-window shopping”. This trend surpasses other Southeast Asian countries, unlocking potential for impromptu purchases.
How Omnichannel Spend is Driven
The study also highlighted how nearly half of Singaporean shoppers (48.2%) find inspiration and ideas in-store before purchasing online, and an equal percentage (48.8%) browse online before visiting a physical store. This cyclical behavior stimulates omnichannel spending.
The findings confirm the trends we’re seeing in consumers’ evolving preferences and access to more choices. Such shopping patterns create new opportunities for businesses to reach and engage customers across multiple touchpoints, highlighting the importance of local and cross-border ecommerce as part of an omnichannel strategy. This year particularly, inflation is a key concern for retailers and consumers alike, so price and convenience remain top-of-mind. By investing in sustainable omnichannel strategies, prioritising customer preferences, protecting their brand, as well as thinking long-term for international growth, businesses can offer unique and holistic value to their customers and succeed.
Leo Laforgia, Amazon Singapore Country Manager
Singapore’s Retail Landscape Post-Pandemic: A Promise of Growth and Challenges
The swift recovery of Singapore’s retail sector post-pandemic points to an upward growth trajectory until 2026. However, inflation is emerging as a significant concern, with 93% of consumers showing varying degrees of worry about rising costs of living.
The Power of Omnichannel Shopping Amidst Inflation Concerns
Consumers in Singapore are most concerned about inflation compared to other shoppers in Southeast Asia – here’s where having access to multiple shopping channels matters. The majority of Singapore consumers are already looking across multiple retailers online and in-store to find the best value for money.
Neil Saunders, Managing Director of GlobalData’s retail division
Neil Saunders further emphasizes that the blurring lines between online and offline shopping are fuelling consumer demand for omnichannel experiences. Given the challenging economic environment, such a trend is likely to intensify as consumers look for the best value for their money across multiple shopping platforms.
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