Brick-and-mortar firms need to up their game in digital space

IN today's digital age, most people are comfortable transacting with businesses online. This ranges from ordering products from sites such as Amazon to booking a table at your favourite restaurant via a mobile app or "chatting" to an AI robot when you need help.

Millennials are leading the way and, more often than not, the rest follow, including the baby boomers. However, there is a small portion of society that is resisting this transition into the digital age - the small and medium brick and mortar businesses. For example, mom-and-pop retail outlets, hawker stalls and self-employed tradesmen generally prefer to employ traditional business models.

Whether they like it or not, all businesses are affected by the digital age. According to Go-Globe, Singapore's e-commerce penetration was at 57 per cent in 2015 and is expected to hit approximately 75 per cent by 2020. Similar rates and growth occur in other developed countries. Businesses that choose not to ride this digital wave are likely to go the way of Toys "R" Us Inc, which filed for bankruptcy protection earlier this year.