Rishi Bedi, Managing Director, Asia Pacific, InMobi, interacted with CNA938, Singapore’s dedicated news and information radio station, through the dynamic presenter duo- Stanley Leong and Susan Ng. The conversation focused on insights from InMobi’s The 2022 Southeast Asia Holiday Shopping Guide that unraveled the shopping behavior of Singaporeans and the market conditions affecting their spending patterns. It also gives an outlook into how mobile phones are influencing consumers’ brand choices. Here are the key trends from the discussion:
1. No break on shopping: Singapore remains the least affected region in Southeast Asia by inflation, and Singaporeans would continue to shop despite the hike in prices.
2. Planned purchases thrive: Consumers in Singapore want an upgrade in their shopping, and with inflation hitting in, they are saving up more to buy from their favorite brands. Therefore, shopping sees an upbeat trend of premium brand choices.
3. Mobile dominates shopping: Mobile has reigned as the preferred device for shopping, providing strong alternatives for consumers and an equal window of opportunity for brands to be visible to them in their moments of discovery.
While Singaporeans continued to shop through the holiday season in 2022, learn what promises a bright year for shopping from the key insights.
Rishi Bedi: Holiday spending morale in Singapore is quite upbeat. Our study reveals that only 25% have experienced a decline in household income over the last year. With people stepping out of their homes and markets opening after two years, Singaporeans are looking forward to celebrating with friends and family. Many Singaporeans plan to spend the same, if not more, this holiday season.
Rishi: I think these big online shopping events have changed the way consumers shop. Our study shows that consumers can be divided into two categories based on their shopping behavior – Bargain Hunters and Brand Lovers. Bargain Hunters rely on these big online shopping events for the best deals after planning their purchases. Brand Lovers are saving up to purchase products from their favorite brands. What’s interesting is that gadgets are the center of attention for both groups. There has also been a shift in the way these shoppers are picking categories. Bargain Hunters are focusing on apparel and accessories, followed by gadgets and groceries. On the other hand, Brand Lovers' top shopping categories are gadgets where they want to upgrade the gadget, they already own.
Rishi: From our research across Southeast Asia, Singaporeans seem upbeat about shopping and ~9 in 10 plan to have either the same or increased level of spending this year. They are reporting soaring GST prices and inflation as one of the main reasons. But there are other factors also that are encouraging Singaporeans to shop more – an increase in family size and a desire to upgrade to premium products. Inflation is making them save more and plan their purchase well in advance, and when the moment comes, they are ready to shop for it. While the frequency of purchases might have gone down, Singaporeans are planning to spend more to upgrade their existing products.
Rishi: Some level of increased spending can be attributed to these factors. As discussed earlier as well, of the countries we surveyed in Southeast Asia, household incomes in Singapore have been least impacted since the pandemic. Only 2.5 in 10 Singaporeans surveyed have experienced a decline in household income compared to almost twice - 4 in 10 across Southeast Asia. In fact, 35% of Singaporean households have seen an increase in their household income. So, there is a mix of reasons why Singaporeans are spending more but the fact that places and markets are opening up after two years seems to be the top reason.
Rishi: Brand loyalty among consumers will be in flux this holiday season and this has been influenced by multiple factors. It is interesting to note that 6 in 10 consumers surveyed have already tried a new brand this year. As some Singaporeans look towards saving more and spending on specific products, they look for product alternatives. The experimental nature is taking the front seat and consumers are looking to try new brands that will provide them with a better experience. Additionally, online shopping presents consumers with an array of brands providing a wider range of choices. The omnipresence of this e-commerce experience has catalyzed the creation of marketplaces that are full of alternate brand choices. Online sale events and deals are making it easier for consumers to try new products at the best prices. This is a great time for brands to engage with consumers differently and capture their attention.
Singaporeans are getting more involved in their online shopping journey, leveraging every channel more extensively to learn and explore new brands/products. However, within online channels, exploring on the desktop has gone down significantly. Mobile is emerging as the preferred channel for learning and exploration. Even for purchases in some cases. There has been a significant increase in purchases made on mobile apps. They are still visiting stores but only when they have made up their minds on the product they want to buy or in cases where they want a physical experience before making the purchase.
The 2022 holiday season will see four trends: 1. Learning, exploring, and buying on the go 2. Following the same traditions through different means 3. The phenomenal surge in online shopping, and 4. Selective store footfalls. As the least affected region due to inflation, the spending trend will likely continue seeing an increase. The consumers might shop less frequently but they are expected to still eye deals and upgrade to premium products, overall showing a positive outlook towards shopping.
Read our The 2022 Southeast Asia Holiday Shopping Guide to learn more insights about last year’s holiday shopping in Singapore.
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