In this article, you will be given information about Consumer Trend in Singapore. It will explain deeper about the understanding of the Singaporean market, including their behaviour and lifestyle, and the consumer trend in Singapore!
Understanding The Singaporean Consumer Trend and Market
Singapore has a population of almost 6 million people and the population grew at a rate of 1.79%. Meanwhile, 74.3% of the inhabitants are Chinese, 13.4% are Malay, and 9% are Indian.
A household in Singapore counts on average 3.3 people, while 12% of the households count 1 person, 39% of the households count 2 or 3 people, 38% of the households 4 or 5 people, and 11% of the households 6 people or more.
As Singapore is a city-state, 100% of the population is urban, and most of the population along the southern coast, with relatively dense population clusters found in the central areas.
In between 2017-2018, Singapore resident households’ average monthly household income from all sources rose 2.4% annually in nominal terms to $11.780 from $10.470 in around 2012 or 2013. Meanwhile, households spent an average of $4.906 a month on goods and services in 2017-2018, an increase of 0.8% annually from the $4.724 in 2012-2013.
In 2019, the Gross Domestic Product (GDP) in Singapore was S$507.568 million, while the Consumer Price Index or CPI measures changes in the prices paid by consumers for a basket of goods and services. The inflation rate of all items in the Consumer Price Index (CPI) in the country rose to 0.6% in 2019, from 0.4% in 2018.
It is close to 70% of nominal value added by the services industries, while about 25% is generated by the good-producing industries. The GDP refers to the aggregate value of the goods and services produced within the economic territory of Singapore. GDP estimates are also compiled by the output, expenditure and income approaches.
Singapore ranked 1st globally when it comes to fixed internet speed which is 190.90 Mbps and 2nd for mobile internet connection speeds, which is 60.95 Mbps. The impressive speed made it convenient for Singaporeans to access the internet any time of the day because the fact is 93% of users accessed the internet every day.
Consumer Behaviour and Lifestyle
Singaporeans enjoy a high standard of living and are a keen buyer of foreign products. They are not only brand conscious but are also very loyal and cautious towards exploring alternatives, for instance, they like new products, but they stay loyal to familiar brand names. They actually like to experiment with new products, but it’s only after feeling assured about the quality and customer care service. They keep in mind factors such as price, quality, and service when making purchasing decisions.
Singaporeans spent a lot on food serving services, in fact, Singaporean citizens’ expenditure on food was 68% in 2018, and it is much higher than 64% in 2013. Households spent $810 a month on food serving services, they were mostly spent in restaurants, cafes, and pubs. In addition, Singaporeans are welcoming all varieties of cuisines to their foodie haven and attracting entertainment culture beyond English and Mandarin language sources.
Nevertheless, meals at hawker centers and food courts continued to create the largest share of expenses on food serving services.
Singaporeans are also increasingly choosing to live healthier lifestyles, thus demand for healthy foods and sustainable products is growing. Like other Asian consumers, Singaporeans are sensitive to environmental issues, though they are not willing to pay more or change their habits to support the cause.
Singaporeans like shopping online, it may be because buying clothing and footwear online became more common. The average monthly expenditure on clothing and footwear in 2018 was $120, and spending on these items increased, also making up a larger share of overall clothing and footwear expenses.
Consumer Trend in Singapore
Singaporean consumers are becoming more sophisticated in their choice of product. They are no longer attracted to simple functional intrinsic benefits, such as prestige that comes along with the ownership of a branded product has become a necessary consideration in their purchase decisions.
Singaporeans are also looking for delivery options in categories beyond fast food, as shown by the increase in Google’s queries, like “flower delivery” rose by 49%, and “massage delivery” rose by 16%. Singaporean also look for free delivery services, as there is a 60% increase in “free delivery” queries on Google.
Not only that, the tremendous increase in access to on-demand services like streaming entertainment and ride-sharing has set a benchmark expectation of affordability amongst Singaporeans.
Many Singaporeans are looking for effective ways to ease work stress. It is shown by the growth in search terms on Google like “being calm” which is 60%, and they are actively seeking ways to deal with daily stressors. There is also a 39% increase in “calming music for stress” queries. Some of them are trying to cope with stress by taking short breaks, and the consumer trend is made clear by the rise in searches on Google for “Sentosa for staycation” and “luxury escapes.”
Moreover, Singaporeans are starting to look for more sustainable models of work, as evidenced by the world’s highest concentration of “work-life balance” searches and the world’s second-highest searches is “flexible working hours.”
Also, there is a 180% increase in “FIRE” movement searches on Google, with FIRE stands for “Financial Independence, Retire Early.”
As seen from the Great Singapore Sale to 11.11, Singaporean consumers are known for their readiness to queue for a good deal. The growth of search terms like “cheap and good restaurants in Singapore” and “delivery promo” has shown that spenders are looking to maximize the value of each dollar with good quality.
The quality and cost have always been important factors to Singapore consumers, but there also has been a new surge in the value of protecting the environment. There is an increase of 70% on “climate change news” searches on Google. Singaporeans are highly concerned about sustainability, with more finding value in low-impact and eco-friendly products and services.
Singaporeans have a taste on the luxury brands, as the queries on Google had shown that the rise in “Dior Sneakers” searches was 400%, while “bum bag” was 82%, and “bucket hat” was 57%, where these all practically took precedence over fashion. However, consumers are turning to the internet to seek out stylish iterations of essential accessories.
In conclusion, these are all the information about consumer trend in Singapore in order to help you understand deeper about the Singapore market, Singaporeans lifestyle, and their behaviour when making purchasing decisions. Hopefully, it will help you to sort things out if you want to have a business in the country or just want to know the market well.