· Singaporean shoppers use multiple devices throughout their purchasing journey.
· Physical stores must adapt to the local trend of “showrooming” and invest in integrating their online and offline channels.
· Enhancing last-mile delivery will help local retailers compete more effectively with international e-commerce businesses.
Criteo, a performance marketing technology company, has discovered that shopping habits are evolving among consumers in Singapore. Research by Edelman Intelligence found that Singaporeans now possess or have access to an average of 4.72 devices.
Source: Criteo. Profiling the mobile shopper in Singapore.
With 75% using these devices to shop online at least once a month, retailers must address three key areas: cross-device usage, “showrooming,” and last-mile delivery. “Showrooming” describes consumers using physical stores as showrooms to try on clothes or inspect items before purchasing them online.
Criteo stated that retailers who successfully integrate mobile websites, apps, and in-app targeting into their business operations and engagement strategies will be well-positioned to adopt new mobile technologies or add-ons as needed.
The research revealed:
· Six out of ten Singaporeans prefer using mobile devices for shopping, with 95% having browsed online catalogs on their smartphones or tablets in the past month.
· Over half (54%) of consumers reported spending more than before due to the convenience of mobile shopping, with four out of five admitting to making impulse purchases online.
· Travel products and apparel are the most commonly purchased items online, with each shopper buying from an average of 5.43 product categories.
· Retailers must familiarize themselves with app-based advertising and messaging since nearly half of Singaporeans shop on branded mobile apps at least once a week, and mobile shoppers tend to be active social media users.
“Singapore is a truly cross-device market where most consumers – particularly Millennials – utilize multiple devices while shopping. Although some still rely on PCs for payments, mobile devices are constant companions throughout all stages of online and offline shopping," said Alban Villani, Commercial Director, Southeast Asia, Criteo. “This emphasizes what we’ve been advising retailers – targeting individuals on a single device is no longer effective. Instead, they need to embrace technologies that provide tailored creative experiences and messaging to address individual needs and desires at any moment, regardless of location or mood.”
The high prevalence of showrooming in Singapore underscores the significance of multichannel integration:
· Almost two-thirds of Singaporeans prefer shopping online during events like the Great Singapore Sale to avoid crowds and lines.
· Half of local consumers believe the Great Singapore Sale offers better deals online than in-store.
· Even when visiting physical stores, six in ten local shoppers browse similar products and compare prices online to secure the best deals.
· Seven out of ten (69%) consumers purchase the same product or service online instead of offline.
· While physical stores still hold an advantage in engaging consumers who want to physically interact with products before buying, this is diminishing as seven in ten Singaporeans agree that augmented reality provides a similar “try-before-you-buy” experience, which online retailers are adopting to simulate real-world experiences.
“Some established online retailers are already utilizing physical pop-up stores with exclusive collections and discounts to create a unified online-to-offline customer experience. Conversely, physical retailers seeking to retain and convert customers must integrate online channels, especially mobile-optimized websites or branded apps, and consider optimizing customer relationship management (CRM) data to engage customers more effectively before, during, and after store visits,” said Villani.
Local retailers should prioritize same-day or next-day order fulfillment by collaborating with specialized local last-mile delivery providers to compete more effectively with international retailers.
· Singaporeans shop on both local and international websites. Seventy-eight percent choose local sites due to delivery benefits like faster or cheaper domestic shipping and convenient pickup options.
· Six in ten prefer home delivery over collecting purchases from physical stores.
“The research suggests a future where offline and online shopping merge into a single, integrated “shopping” experience. Retailers who embrace mobile as the primary enabler and successfully deliver such experiences will likely require smaller stores as fulfillment is managed directly from warehouses. Local malls must also adapt to this shift, whether by providing better connectivity or reconsidering retail space allocation,” said Villani.
Interested?
Browse the full Criteo-commissioned Edelman Intelligence 2H16 research findings and analysis (PDF)