Understanding the internet spending habits of Singaporeans will help you launch your business successfully in the country. Singapore takes pride in having one of the most vibrant and fastest growing online marketing industries in South East Asia. Reports indicate that most Singaporeans prefer shopping online to get better bargains and deals from the various e-commerce sites in the country.
We, Singaporeans, are also the fastest adopters of mobile shopping in the world despite the fact that the country’s e-commerce industry is relatively new. According to a report by PwC, 60% of Singaporeans buy one or more products online at least once every month. The change in consumer behavior will power the next global retail revolution and continue to improve the economy of the country.
During the poll, 38% of the respondents said that they purchase products online through their smartphones at least once per month. This percentage is higher than the global average 28% and 37% in South-East Asia. Before we proceed, it is important to note that Singapore has the highest smartphone penetration with most citizens owning at least two internet-enabled smart mobile devices.
Impact of Social Media on Online Shopping in Singapore
Social media is one of the major factors that influence online shopping in Singapore. There are more than 2 million active social media users in Singapore. Based on this statistic, it is not difficult to see why most marketers prefer using the platform to market their products and services.
PwC report indicates that social media has a major influence on online shopping behaviour in the country. 57% of Singaporeans who were polled revealed that they use social media platforms such as Facebook, Instagram, and Twitter to read reviews, learn more about products, and access promotional offerings.
This report on internet spending habits of Singaporeans also showed that Singaporeans who prefer shopping online do not just use their smartphones to buy products from online stores in the country but to get product and pricing information before making a purchase also. The high internet penetration in every part of the country makes it possible for customers to search the internet for information via mobile devices and personal computers easily.
Cost is one of the key factors that Singaporeans consider when shopping for a product or looking for a service online. For your business to remain competitive, you need to have a clear understanding of the trends and act on them quickly. You will also need to re-evaluate your corporate strategy and revamp your brand to resonate with the digital age. Making sure that your business is in line with the internet spending habits of Singaporeans will help you get a firm footing in the country.
Most companies in Singapore are faced with a tough decision of whether to embark on the online journey or stick to the brick and mortar businesses. Smart business owners understand that the internet offers unlimited growth opportunities to businesses and have invested in online versions of their physical businesses.
Singapore Millennials Internet Shopping Habits
80% of millennials in Singapore have purchased one or more products online in the last one year. 69% of them have done cross-border online shopping. In fact, Singapore has the highest cross-border online shopping percentage in the Asia Pacific.
According by a research done by Marketing Interactive, Singaporean millennials focus on not only tangible goods, but also authentic experiences that resonate with their interests and passions. 40% of millennials who prefer shopping online purchased products in the entertainment category in the last 12 months. 58% of their income was spent on travel and 54% on event tickets.
Another major factor that makes Singapore millennials unique in the realm of internet marketing is that they value speed and convenience. They expect frictionless and faster shopping experiences from local and foreign e-commerce sites.
Another unique aspect about internet spending habits of Singaporeans is that nearly half of the millennials polled during this survey said that fast delivery is one of the prominent factors that would motivate them to purchase a product from another country.
Here is a brief list of statistics to give you a clearer understanding of Singapore millennials internet spending.
- 69% did a cross-border purchase online in the past 12 months
- 65% have no problem buying a product from e-commerce store in another country
- 65% made a purchase online in foreign currency
- 33% bought products from an e-commerce website that is in foreign language
- 54% of income is spent on event tickets
- 58% of income is spent on travel
- 40% of income is spent on digital education and entertainment
- 78% of online shoppers in this age group prefer using PayPal
Top Drivers of Cross-Border Shopping among Millennials in Singapore
- 65% free shipping
- 52% opportunity to purchase rare items/hard-to-find products
- 49% fast delivery
- 49% lower shipping cost
- 47% safe way to pay for the products
Overall Internet Spending Habits in Singapore
- 58% of respondents shop for footwear and clothing online. This percentage is higher than the global 51%
- 55% of respondents said they prefer buying products online because they are often better priced/cheaper
- 40% of Singaporeans purchase movies, music, video games, and books online
- 39% of Singaporeans purchase health and beauty products online
The statistics above on internet spending habits of Singaporeans are proof that Singapore retail consumers consider online shopping as a norm. Online shopping is the one of the factors that fuels innovation. Businesses need to monitor the online space to understand how it functions then come up with digital marketing strategies to position their businesses for cusses.
Despite the fact that online shopping is one of the rapidly growing industries in the country, retailers should not side line the human aspect of consumer experience. As mentioned earlier, internet shoppers in Singapore value authentic experiences and so it is imperative for brands to make sure they offer the best shopping experiences to their customers.
That is, you need to come up with robust ways of delivering end-to-end services to customers who shop both offline and online. Companies also need to carry out market research to understand the needs of their customers. The research should be a continuous not a one-time project since the needs and expectations of customers keep changing.
Finally, if you are to succeed in online marketing in Singapore, you need a team of professionals on your side to create robust campaigns for you. Get in touch with us for reliable digital marketing services in Singapore.