It’s the time of the year for businesses to seize the opportunity.
If we are honest, the Great Singapore Sale has lost its lustre of yesteryear, when massive in-store discounts drew hordes of bargain-hunters moving from store to store in search for the best deals. These days, even Orchard Road during the GSS season feels like a ghost town.
It is no secret that one of the main reasons for this demise is that more shoppers are heading online. As such, it is worth considering how local businesses can transform themselves so that they can continue to capture a larger share of the growing retail pie – and it is growing, as will be evident from this piece.
Cross-border shopping is here to stay
A recent study by
PayPal[1] has revealed that Singaporeans are expected to spend S$3.5 billion online this year - a 15 per cent increase from 2016. This upward trend towards online purchasing is inevitable with recent technology advancements. But what is even more interesting is a marked rise in cross-border shopping. Half a million Singaporeans spent an estimated S$1.2 billion in cross-border online commerce alone last year, led by millennials, where 69% of them bought from overseas merchants.
This increase in international purchases could be from an excitement by local consumers to acquire foreign products that are less available in Singapore. As cross-border shopping is set to increase by another 23 per cent this year, it is clear that local retailers would have to share the limelight with these international merchants.
How can local merchants remain competitive?
That said, I believe local consumers remain interested in Singapore brands. With 39% of Singaporeans stating that they will shop more from local online stores this year, opportunities are plenty for these merchants to capture more of the online market share and be less reliant on the brick-and-mortar.
An omni-channel approach
For a start, we’re witnessing a progressive transformation in the industry, where more retailers are adapting to the changing buying patterns of consumers. Many have adopted an omni-channel strategy to better target end-to-end consumer needs across both online and offline channels. A great example is local online furniture retailer
Hipvan, a furniture and décor retailer which targets millennials who grew up with the internet and lead convenience-focused lifestyles. An originally online venture, it has since opened a bricks-and-mortar flagship store after several pop-up spaces to complement its shoppers’ experience with the brand. This is the same for retailer
Naiise.
Mobile shopping is a thing
For those who have not caught on the mobile wave, it’s also time to ensure that your business is mobile optimised. A study by Ernst & Young found that consumers spend most of their waking hours on digital devices – 12 hours 42 mins a day on average, with the most time spent on the mobile phone
[1]. Mobile shopping in Singapore is also set to increase by 42% to S$1.2 billion in 2017.
Even the Great Singapore Sale has introduced a new mobile phone app this year to incentivise the mobile-first shoppers and encourage them to shop more. These initiatives can help small business owners better adapt to the shift in consumers’ preferences and be in a better place to engage them in this season of sales.
The time is now
Amidst this ongoing technology transformation, I encourage all local merchants to boldly embrace this opportunity and tap into the huge and fast-growing market of technology-savvy consumers in Singapore. We can’t turn back time and return to the days of old where shoppers are elbow-to-elbow with one another, jostling for the last piece of item on sale in bustling atriums. Consumers will not return to their old shopping habits. It’s up to us now to adapt to consumers’ preference, and seize the exciting opportunities that come along with it in order to succeed.
[1]PayPal-IPSOS Cross-Border Consumer Research 2016
[2]Ernst & Young, 2017, http://www.straitstimes.com/singapore/12hr-42min-connected-for-hours