Key Trends from the Singapore Retail Report 2023

 Key Trends from the Singapore Retail Report 2023

Retailers faced dual disruption, but digital transformation brought innovation. 1,000 consumers, 507 businesses surveyed in Singapore. Personalised experiences demanded, driving transformation. Data-driven strategies optimise operations, diversify revenue, and prevent fraud.

Rewarding Loyalty with Abundance: Meeting Shopper Desires for More Choices

“In corporate findings, an impressive 77% of shoppers assert a strong correlation between loyalty and personalised rewards.”

In 2023, 42% of shoppers search online for deals, 48% seek deals in stores. 40% delay spending for seasonal discounts. 68% of retailers face increased customer expectations, 46% witness decreased loyalty, prompting 52% to offer year-round discounts.

Rising customer demands for personalization. 56% abandon purchases if preferences are not met. 77% desire personalised discounts. 80% expect improved loyalty rewards. 76% would download retailer apps for better bonuses. Challenges in shopper data categorization. 57% of businesses find it harder. Only 31% use CRM. 28% connect online and in-store data. 36% to invest in payments data analysis, 20% increase from last year.

“In the past you’d walk in, get your product, and leave. But there’s so much more today – people are hunting for loyalty programs, points, rewards, and incentives. People are really more conscious of value and incentives, and that can be very important for the in-store experience.” Josh Bell — Principal, Guzman y Gomez Singapore

Tapping into the S$1.48 Billion Unified Commerce Retail Opportunity

“Incorporating a seamless connection between sales channels resulted in a notable 5 percentage point increase in revenue growth for retailers in the previous year.”

Unified commerce solutions, like self-checkout kiosks and mobile point-of-sale, had a positive impact on shoppers, with 55% using kiosks and 27% experiencing mobile POS services. Flexible omnichannel experiences, loyalty benefits, and seamless online-in-store shopping enhance customer loyalty. Adopting unified commerce led to a 5 percentage point revenue boost for Singaporean retailers, with an estimated S$1.48 billion potential growth. The industry views unified commerce as a strategic imperative, with 14% heavily investing and 38% starting to invest. Businesses plan a 100% increase in connecting backend systems and investing in technology for an improved shopping experience.

“Unified Commerce has helped us increase our market share, allowing us to reach out to our customers thoughtfully. Consumers who have tried us across multiple sales channels typically have higher average transaction values, because they understand our products better, so there’s more loyalty to the brand.” Dione Song — CEO, Love, Bonito

Enterprises Seek Cross-Border Growth Opportunities

“Nearly 39% of retailers are strategizing to venture into new markets online as part of their expansion plans.”

28% of retailers plan physical store expansions. Singapore’s strategic location attracts retailers. 62% see improved positions due to diversified revenue from multiple markets. Amid border closures, retailers target China, Australia, Malaysia, Japan, and the US for cross-border growth. Customers prioritise variety, price, and convenience in cross-border ecommerce.

28% of shoppers seek unique locally unavailable products; 40% prioritise reasonable delivery charges; 22% avoid customs charges. 24% look for flexible payment methods, including local currency conversion. The right payment partner aids cross-border commerce, overcoming challenges, and achieving economies of scale.

“Payments vary wildly country by country. These differences, including what currencies they want to transact in, have a direct impact on how customers use your product and thus, your global expansion strategy. Some of these can be absolutely critical in the success of your international expansion.” Adam Byrnes — Vice President of Product & Growth, Freelancer.com

1 in 5 Shoppers Encounter Deceptive Practices

“Over 50% of Singapore’s retailers grapple with significant expenses resulting from fraud and chargebacks, posing financial challenges.”

Amid digital transformation, retail faces rising fraud rates, with 51% encountering payment fraud attempts and 43% cyberattacks or data leaks. Fraud incurs significant costs for 56% of retailers and affects 22% of shoppers, averaging S$339 each, doubling for digital currency users.

Surging prices and cybercrime impact shopper confidence. 75% find online shopping less appealing due to fraud. 77% seek transparent payment processing. 83% want clearer online fraud protection communication. Shoppers employ secure practices like checking website security (42%) and using biometric authentication (35%). Retailers focus on investing in fraud and risk management systems (24%), expanding teams (55%), and implementing AI in fraud prevention (60%).

“The challenge for every organisation is deciding where to set the threshold between the number of checks and controls to manage your fraud risk, versus the happiness of your customer as they go through a smooth payments journey. We spend a lot of time assessing how strict we want our risk tools to be.” Aurélie Saada — Director, Global Fraud Risk Lead, Microsoft

Conclusion

Retailers drive trends by connecting with consumers, integrating technology, and becoming creative disruptors. We engineer solutions for sustainable growth, personalised experiences, optimised payments, fraud prevention, and market expansion.

Key Highlights

  • Digital transformation brings innovation and creative disruption to the retail industry.
  • Shoppers demand personalised experiences, driving retailers to optimise operations and prevent fraud.
  • Unified commerce solutions lead to a 5% revenue boost for retailers, representing a S$1.48 billion retail opportunity.
  • Retailers seek cross-border growth, targeting markets like China, Australia, and the US.
  • Cybercrime impacts shopper confidence, with 1 in 5 encountering deceptive practices.
  • Retailers invest in fraud prevention, risk management systems, and AI to address rising fraud rates.

Brands & Business Magazine

https://bbmagz.com

Related post

Leave a Reply

Your email address will not be published. Required fields are marked *