Think of Singaporeans and you might get a mental image of hordes of people craning their necks over their phones, making orders at group buys, catching an e-commerce live stream, or adding another item into their burgeoning (but never bursting) cart.
It is indeed hard to deny the affluence of Singapore. Often ranked highly in terms of GDP, a white paper by asset manager Eastspring Investments and PwC Singapore stated that the annual disposable income per capita in Singapore rose from US$23,000 in 2010 to US$28,000 (S$37,000) in 2020, and is expected to reach US$47,000 by 2030.
But over the past four years, the global economy has experienced significant volatility, marked by the COVID-19 pandemic, the Russia-Ukraine conflict, and ongoing trade tensions. These events have profoundly impacted consumers worldwide, and Singaporeans are no exception.
This leads us to the question: what does the Singaporean consumer look like in the present day?
Singaporeans are savvy, if not savvier.
Beyond the surface image of tech-savvy shoppers, a more nuanced picture emerges. While disposable income has steadily risen, the recent economic turbulence has instilled a heightened sense of pragmatism. Singaporeans remain discerning consumers, but their purchasing decisions are increasingly driven by value, convenience, and a desire for stability.
In an Ipsos survey, it was found that 50% of shoppers who have online shopped the past 3 months have participated in an 11.11 online sale event. And of these, much research was conducted, with shoppers comparing deals between e-commerce platforms, as well as the actual brand websites.
Singaporeans are avid digital shoppers
The digital landscape continues to be a dominant force. E-commerce, live streams, and group buys are not mere trends, but ingrained habits. Mr Patrick Low, a popular e-commerce live streamer, said that it was “not uncommon to receive hundreds of orders to the tune of over $10,000 in a typical two-hour session”. The accessibility and competitive pricing offered by such platforms align perfectly with the Singaporean consumer’s desire for both efficiency and affordability.
Singaporeans are spending more on travel
Furthermore, the pandemic has accelerated the shift towards experiential spending, such as travel. While material possessions remain desirable, there is a renewed emphasis on experiences that foster connection and well-being. This can range from wellness day trips, homestays and forest bathing, illustrating travelers’ preference for immersive experiences. The desire for meaningful experiences reflects a broader societal shift towards prioritising quality of life.
So how should businesses react?
With these in mind, How do you tailor your business offerings to resonate with the psyche of your average Singaporean shopper? Here are some ways.
1. Embrace digital integration, but focus on authenticity
The digital realm is non-negotiable. Businesses must prioritise a seamless online experience, optimising for mobile platforms and leveraging live commerce. However, mere transactional efficiency is insufficient. Consumers crave authenticity. Build genuine connections through interactive content, personalised recommendations, and transparent communication. Highlight brand values and ethical practices to resonate with the growing demand for conscious consumption.
2. Prioritise value and durability
In an era of economic uncertainty, value reigns supreme. Beyond competitive pricing, emphasise the long-term benefits of your products or services. Showcase durability, functionality, and the return on investment. Consider offering flexible payment options and subscription models to enhance affordability.
3. Cater to the experiential craving
Capitalise on the shift towards experiential spending. Offer unique and immersive experiences that align with the Singaporean consumer’s desire for connection and well-being. This could involve curated travel packages, interactive workshops, or exclusive events. Partner with local businesses and influencers to create authentic and memorable experiences.
4. Personalise and customise
Leverage data analytics to understand individual preferences and tailor your offerings accordingly. Offer personalised recommendations, customised product options, and exclusive deals. Deliver a seamless and an “uniquely Singapore” customer journey across all touchpoints.
5. Build trust and credibility
In a digital landscape rife with misinformation, trust is paramount. Prioritise customer service, address concerns promptly, and maintain a strong online reputation. Leverage customer reviews and testimonials to build credibility.
By adapting to these evolving consumer behaviors, businesses can not only survive but thrive in the dynamic Singaporean market. The key is to move beyond traditional marketing approaches and embrace a customer-centric strategy that prioritises value, authenticity, and meaningful experiences.
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