Singapore shoppers blur lines between online and offline retail: report

OMNICHANNEL retail is the way forward, as Singapore consumers increasingly combine online and offline shopping, according to a study by GlobalData.

The data and analytics company on Wednesday (Jun 14) reported that nearly half (or 48 per cent) of shoppers browse in physical stores before buying online, while the other half (or 49 per cent) browse online before buying in a physical shop.

The rise in omnichannel shopping comes as consumers are turning price-conscious amid rising inflation. Singapore takes the lead in omnichannel spending, with this accounting for about 57 per cent of retail spend in 2022 – much higher than its South-east Asian peers.

It is expected to rise a further 21 per cent over the next four years, to nearly 62 per cent in 2026.

GlobalData’s report said that online channels are popular for price comparison, while brick-and-mortar stores are important for “social connections”.

Notably, despite the proliferation of e-commerce, the online penetration of retail sales is only 10.7 per cent in 2022. Bigger ticket items are also mostly purchased offline.

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Some 68 per cent of shoppers look both online and in-store to assess which is the cheapest product of choice.

About half of consumers use online stores to compare prices, emphasising their price sensitivity and access to a variety of retail channels. Some 57 per cent of shoppers look at online reviews and comparison sites before making a purchase.

On average, Singapore consumers browse more than five online retailers before deciding where to make their purchases.

The report also noted that consumers value a “seamless” shopping experience and high-quality product information for businesses to win their trust.

In addition, nearly one in three online shoppers in Singapore browse for fun when they are “e-window shopping” – higher than in other South-east Asian countries.

This creates potential business opportunities for ad-hoc purchases, the Amazon-commissioned report noted.

For shoppers who browse offline and buy online, they prefer visiting stores for inspiration and asking for advice in physical shops first.

“Such shopping patterns create new opportunities for businesses to reach and engage customers across multiple touchpoints,” said Amazon Singapore country manager Leo Laforgia.

Businesses can offer unique and holistic value to their customers by investing in sustainable omnichannel strategies, prioritising customer preferences, protecting their brand and thinking long-term for international growth, Laforgia added.