Omni-channel the way to go for Singapore retailers

MINISTER for Trade and Industry (Industry) S Iswaran's recent call for retailers to transform their business - by using unconventional channels such as online sales and engaging shoppers through mobile applications - to stay relevant is very timely. Singaporeans, especially the younger generation, are moving online for their shopping needs. E-commerce is the new flavour in retail.

A survey earlier this month by HSBC Bank showed that more than half of Singaporeans (57 per cent) have bought goods or services online in the past month - the ninth largest in the world on a per capita basis, and the largest in South-east Asia. However, when one looks at the supply side, that is the sales figures of retail shops, one sees that e-commerce accounts for just 3 per cent or just a little over S$1 billion of the operating receipts of S$35 billion of all local retail establishments here. This compares with as much as 20 per cent in some of the advanced economies of the world.

The apparent disconnect is well explained by Terry O'Connor, CEO of Courts Asia, who says that a large portion of online buying is apparel sourced outside of Singapore. It is quite likely other categories also make the list in online shopping by Singaporeans.