The consumer trends in the past few years have been a rollercoaster for the global economy. COVID-19, the Russia-Ukraine conflict, and trade wars have shaken things up everywhere, Singapore included.
Inflation skyrocketed globally, and central banks cranked up interest rates, weakening currencies everywhere.
While these challenges have undoubtedly put pressure on businesses, there are always ways for business owners to stay ahead of the curve. In this guide, we unpack the latest consumer trends in Singapore in 2024 to help you nail your strategic planning.
The Rise of Conscious Consumer
Singapore is entering an era where consumers are becoming more deliberate in their spending habits.
With consumer spending expected to grow at a modest 2.8% in 2024 due to the pressures of inflation, people are critically evaluating their purchase decisions. Essentials like groceries and home improvement items are taking precedence, reflecting a shift towards spending that aligns with personal values and necessities.
To thrive in this climate, brands must evolve their marketing strategies to resonate with these conscientious buyers, emphasizing transparency in sourcing and fair pricing. Adaptability and honesty will be the cornerstones for brands aiming to connect with the modern, mindful consumer.
So, What Does this Mean to Singaporean Business Owners?
Since consumers will be more hesitant to spend on non-essential items, this means that consumers will become more mindful of their spending and prioritize purchases that add value or align with their values.
Brands will need to re-evaluate their marketing and branding strategies to address the concerns of conscious consumers.
As a Brand, how do you Appeal to this Trend?
To appeal to this trend, brands can focus on transparency and fairness in their operations. By openly sharing detailed information about the sourcing of raw materials and the production processes involved, they can build trust and credibility with their consumers.
This transparency should extend to ethical practices, such as ensuring fair treatment of workers and environmentally sustainable operations. Additionally, maintaining fair pricing is crucial; it demonstrates that brands are not exploiting consumers and are committed to offering genuine value. This holistic approach can significantly enhance a brand’s reputation and foster long-term customer loyalty.
Shift into How Consumers Shop for Food and Grocery
Singaporean consumers are well-acquainted with e-commerce, and the trend has only intensified following the COVID-19 pandemic.
Online shopping in the grocery and Fast-Moving Consumer Goods (FMCG) sectors has seen a steady rise. The convenience of ordering groceries and food online has persuaded consumers to enjoy a broader range of options without the hassle of crowded supermarkets.
This trend is likely to persist into 2024, with Singaporeans expected to increase their spending on daily essentials.
How do you Appeal to this Trend?
As e-commerce trends continue to rise in Singapore, traditional grocery retailers must adapt to these changes. To remain competitive, retailers should establish an online presence.
Implementing effective online marketing and promotions can attract consumers seeking deals and discounts while ensuring a seamless shopping experience.
Many Singaporean consumers now appreciate the convenience of ordering groceries through the official websites of major supermarket chains such as NTUC FairPrice, Sheng Siong, RedMart, and Shopee, among others.
Customer Trends Are All About Transparency with Artificial Intelligence
Given that Singaporean consumers are now prioritizing meaningful and informed purchasing decisions, there is an increasing demand for personalized experiences. In response, Artificial Intelligence (AI) is playing a pivotal role in enabling businesses to serve their consumers more efficiently, intelligently, and precisely.
By integrating AI into retail processes, businesses can offer various enhancements, such as chatbots that provide superior customer support. This technology ensures that shoppers receive immediate and accurate responses to their queries.
Notably, 78% of customers in Singapore expect consistent interactions across different departments, emphasizing the need for seamless integration within customer service. Furthermore, 76% of these consumers demand immediate engagement when they reach out to a company, highlighting the critical role of AI in meeting these heightened expectations and fostering customer satisfaction.
How do you Appeal to this Trend?
According to a recent report by Salesforce, 87% of customers in Singapore believe it is important to know whether they are interacting with artificial intelligence (AI) or a human. Consequently, to build trust and ensure customers feel comfortable and secure, brands and business owners must be transparent about their use of AI in their processes.
Customers Now Prefer Digital Payment Methods
Currently, over 90% of stores in Singapore, equating to more than 210,000 locations, accept SGQR, a form of digital payment wallet. As more businesses transition to cashless payments, the usage of digital wallets and payment services like Pay Now and PayLah is expected to rise further in 2024.
This change in consumer behaviour is largely driven by the convenience and safety of contactless payments, particularly in the wake of the pandemic.
How do you Appeal to this Trend?
To keep up with the cashless trend, business owners should implement systems that accommodate these payment methods, ensuring seamless transactions for their customers.
Leveraging open banking solutions can significantly enhance the digital payment processes for businesses. By adopting open banking, companies can achieve faster, more secure, and highly convenient transactions. This modern approach to financial management allows for seamless integration with various banking services, reducing the time and effort required for payment processing.
Consumer Electronics and Gadget Sales is Booming
As we look towards the future, the outlook for Singapore’s consumer electronics sales in 2024 appears promising, with gradual growth expected. This positive trend is largely driven by the nation’s tech-savvy population and the steadily increasing demand for a variety of gadgets and accessories.
The ongoing shift towards remote work and the growing popularity of home entertainment solutions are also significant contributors to this forecasted growth. Devices such as laptops, tablets, and smartphones are expected to see a surge in sales as consumers seek to enhance their home and work environments.
Moreover, the expansion of online retail channels in Singapore has revolutionized the way electronic products are sold, offering a vast selection of items at competitive prices. This shift towards e-commerce provides consumers with greater convenience and choice. However, despite the rise of online shopping, many consumers still prefer purchasing from physical stores.
The ability to see, touch, and test electronic products in person before making a decision remains a crucial factor for many buyers, underscoring the enduring importance of brick-and-mortar outlets in the consumer electronics market.
How do you Appeal to this Trend?
Businesses can harness the growing demand for electronics in Singapore by first establishing a robust online presence. This includes developing a user-friendly website that is easy to navigate and visually appealing.
Equally important is ensuring fast delivery services to meet the increasing expectations of quick and efficient service. Competitive pricing is another key factor; offering fair and attractive prices can help meet customer needs and drive sales.
Customers to Prioritize Wealth and Wellness
The pandemic has significantly heightened awareness and placed an increased emphasis on health and wellness, a trend we expect to persist into 2024 and beyond.
As a result, companies operating within the health and wellness sector—including fitness studios, supplement providers, and healthy food suppliers—are poised to experience a surge in demand for their products and services.
There is a noticeable shift among Singaporeans, who are now more than ever prioritizing their physical and mental well-being. This has been driven not only by the immediate health concerns brought about by the pandemic but also by a broader recognition of the long-term benefits of a balanced lifestyle.
Consequently, businesses within this sector are uniquely positioned to capitalize on this growing trend, offering innovative solutions and services that cater to a health-conscious population. The increased consumer focus on health and wellness offers a significant opportunity for these companies to expand their reach and make a lasting impact on the well-being of the community.
How do you Appeal to this Trend?
By actively embracing this trend, businesses can effectively cater to the needs of health-conscious consumers through thoughtful communication and robust support for both mental and physical health initiatives.
This can be achieved via targeted marketing campaigns and the provision of both virtual and in-person services, which not only make health and wellness resources more accessible but also demonstrate a genuine commitment to consumer well-being.
Furthermore, offering comprehensive education and resources on health and wellness can serve as a powerful tool for engaging customers, fostering a deeper connection, and building long-term brand loyalty.
By positioning themselves as advocates for a healthier lifestyle, businesses can differentiate themselves in a crowded marketplace and create lasting, meaningful relationships with their audience.
12 E-commerce Trends to Get You Started: 12 Do’s
- Building long-term customer relationships: Concentrate on delivering outstanding customer service and personalized experiences to ensure shoppers keep coming for more.
- Augmented Reality and Virtual Reality: Dive into the exciting world of AR and VR technologies, and watch as the shopping experience transforms into an interactive adventure. From trying on clothes in a virtual fitting room to exploring products in 3D, these cutting-edge tools can captivate customers and keep them coming back for more.
- Voice Search Optimization (VSO): By sprucing up your site’s content to sync with voice queries, you’ll tap into the booming crowd of folks chatting with their gadgets. It’s like adding a megaphone to your website, making it easier for users to find you with just a simple, “Hey Alexa!”
- A Diverse Range of Payment Gateways: Providing an array of payment methods, from digital wallets to installment plans, ensures that everyone finds a convenient way to pay.
- Dive into headless e-commerce: Imagine the possibilities with a headless commerce approach that separates the front-end user experience from the back-end system, offering unparalleled flexibility and room to grow.
- Leverage the power of AI: Tap into the potential of artificial intelligence by utilizing tools like predictive analytics and machine learning algorithms. These advanced technologies can uncover valuable insights into consumer behavior patterns, empowering you to make informed, data-driven business decisions.
- Harness the power of chatbots to elevate customer service: These virtual assistants offer instant support, swiftly address customer queries, and ensure a seamless shopping experience.
- Effective SEO Practices: To turbocharge conversion rates, they should optimize their digital strategy by implementing effective SEO practices.
They should also polish product descriptions and images, revamp the user experience design (UX), and streamline the checkout process.
All of these elements work in harmony to transform casual browsers into enthusiastic buyers.
- Optimize for Mobile: With more Singaporean shoppers reaching for their mobiles to make online purchases, ensuring your website is mobile-friendly is important.
- Harness the Power of Video and Livestream Shopping: Captivate your audience with live product demos or interactive videos that bring your products to life and make shopping a dynamic, engaging experience.
- Unlock the power of personalization with data-driven insights: Utilize customer data to craft custom recommendations, offers, and promotions that speak directly to each shopper’s unique tastes and needs.
- Harness the power of chatbots to revolutionize customer service: By integrating chatbots, businesses can deliver immediate assistance, effortlessly address customer inquiries, and craft a smooth, enjoyable shopping journey.
Consumer Trends: E-commerce Statistics in Singapore in 2024
eCommerce Market to Hit US$5.04bn in 2024: The eCommerce market is gearing up for explosive growth, with projections indicating it will soar to an impressive $5.04 billion in revenue by 2024. This dynamic surge reflects the increasing reliance on online shopping, driven by consumer convenience, expanded product selections, and improved digital experiences.
The enormous potential in the eCommerce sector is reshaping how businesses operate and how consumers interact, pointing towards an exciting future brimming with opportunities for innovation and expansion.
Revenue to show an annual growth rate (CAGR 2024 to 2029) of 10.76%
Revenue is set to take off with an exciting annual growth rate (CAGR 2024-2029) of 10.76%. This promising upward trend is poised to propel the market to new heights, culminating in a projected market volume of an impressive US$8.40 billion by 2029.
As these figures soar, they paint a picture of vibrant economic progress, ushering in a wave of opportunities and innovation. Businesses and investors alike will be eager to harness this momentum, eager to contribute to and benefit from this dynamic growth trajectory.
A Staggering 4.9 million eager shoppers will join the virtual marketplace by 2029
In the dynamic and ever-growing e-commerce market, an exhilarating wave of new users is riding the digital tide. By 2029, it’s anticipated that a staggering 4.9 million eager shoppers will join the virtual marketplace.
This surge paints a vibrant picture of countless transactions, buzzing activity, and a bustling digital economy. Unveiling endless opportunities for businesses and buyers alike, the future holds an electrifying promise of innovation and an expansive reach that transforms how we shop, sell, and connect.
User Penetration is set to Skyrocket from 58.8% in 2024 to an Impressive 80.4% by 2029
Brace yourself for a surge in user penetration, set to skyrocket from a robust 58.8% in 2024 to a staggering 80.4% by 2029. This rapid growth highlights the increasing adoption and reliance on digital platforms and services across various demographics.
As more people integrate technology into their daily lives, the opportunities for businesses and innovators to capture and engage with a broader audience expand significantly. This dramatic rise signals not only a shift in consumer behaviour but also underscores the burgeoning importance of staying ahead in the digital race, harnessing new technologies, and offering seamless user experiences to maintain a competitive edge.
The Average Revenue per user (ARPU) is Set to Reach an impressive US$1,445.00
The average revenue per user (ARPU) is projected to soar to a whopping US$1,445.00. This isn’t just a number; it’s a testament to the value each user brings to the table. From subscriptions and in-app purchases to premium services and ad revenue, every interaction counts.
This figure highlights the immense potential for growth and profitability that businesses can tap into.
The Total Number of Stores in Singapore By Industry
This vibrant chart shines a spotlight on the diverse retail landscape in Singapore by breaking down store counts across various categories. Leading the pack is the Apparel category, boasting a whopping 4.97K stores, which account for a substantial 14.00% of all retail outlets in the region.
Hot on its heels is the Food & Drink sector with 4.88K establishments, making up a delicious 13.75% of the total store count. Not to be outdone, Home & Garden stores also make a strong showing with 4.84K locations, capturing 13.62% of the market.
This colorful breakdown not only highlights the sheer variety of retail options available but also underscores the dynamic and thriving nature of Singapore’s retail scene.
- Apparel: 4.97K stores (14.00%)
- Food & Drink: 4.88K stores (13.75%)
- Home & Garden: 4.84K stores (13.62%)
- Beauty & Fitness: 3.41K stores (9.60%)
- People & Society: 2K stores (5.62%)
- Business & Industrial: 1.93K stores (5.45%)
- Health: 1.81K stores (5.09%)
- Jobs & Education: 1.2K stores (3.37%)
- Computers: 1.19K stores (3.35%)
- Gifts & Special Events: 1.11K stores (3.12%)
- Others: 8.18K stores (23.04%)
The Total Number of Stores in Singapore By Platform
In Singapore, the vibrant marketplace is painted by the dynamic distribution of stores across various platforms. Leading the charge, Shopify powers an impressive 16.38K stores, capturing 42.23% of the total market.
Coming second is WooCommerce, which supports a robust 11.1K stores, making up 28.63% of the market. Wix also plays a crucial role with 3.76K stores, comprising 9.70% of the total.
This landscape not only highlights the diversity of choices available to store owners but also reflects their varied preferences when it comes to platform selection.
- Shopify: 16.38K, 42.23%
- WooCommerce: 11.1K, 28.63%
- Wix: 3.76K, 9.70%
- Custom Cart: 1.98K, 5.10%
- OpenCart: 1.44K, 3.70%
- Magento: 715, 1.84%
- Ecwid: 659, 1.70%
- Squarespace: 650, 1.68%
- SHOPLINE: 366, 0.94%
- PrestaShop: 267, 0.69%
- Others: 1.47K, 3.79%
Online Store App Spend in Singapore By Industry
The pie chart reveals an intriguing snapshot of how eCommerce stores in Singapore allocate their spending on apps and software, categorized by different store types.
It’s fascinating to see that Apparel leads the pack, splurging $5.60 million, which forms a substantial 26.95% of the total expenditure. Not too far behind, Food & Drink stores are whipping up a $3.17 million spend, making up 15.24% of the pie.
Beauty & Fitness stores are also in the spotlight, investing $2.44 million, which translates to 11.74% of the overall spending. These figures paint a vivid picture of the strategic priorities of eCommerce businesses, highlighting their focus areas and how they channel their resources into various app and software solutions.
- Apparel: $5.60M (26.95%)
- Food & Drink: $3.17M (15.24%)
- Beauty & Fitness: $2.44M (11.74%)
- Home & Garden: $2.30M (11.08%)
- Health: $1.59M (7.64%)
- People & Society: $1.13M (5.46%)
- Gifts & Special Events: $684.37K (3.29%)
- Sports: $665.42K (3.20%)
- Pets & Animals: $621.03K (2.99%)
- Business & Industrial: $536.34K (2.58%)
